November 18, 2024
TAX REFORM DEBATE THE ONE PERCEN

County groups oppose tax cap plan Panels in Houlton, Dyer Brook concerned about measure’s impact

HOULTON – An increasing number of Aroostook County town councils and school boards are taking a stand against the Nov. 2 tax cap referendum.

At meetings on Monday evening, both the Houlton Town Council and the Southern Aroostook Community School District expressed concern about the impact of the proposed 1 percent property tax cap.

If approved, the plan would scale back assessed property values to their 1996-97 level and cap property taxes at $10 per $1,000 of valuation. It also would limit assessments to an increase of 2 percent a year while a property remains in a family.

In Dyer Brook, the Southern Aroostook Community School District board voted unanimously to adopt a resolution opposing the tax cap.

On Thursday evening, the SAD 29 board also spoke out against the measure, citing cuts it says would have to be made if the plan were passed.

That same approach was taken this week by the SAD 1 board, which also approved a resolution to investigate the potential legal and financial effects of the initiative. The district will partner with the city on the resolution.

In Houlton, the council voted to form a “tax cap council” to look at the referendum.

Interim Town Manager Phil McCarthy invited business leaders, school board members and other community residents to join the group. The interim manager said Houlton’s property tax commitment would be reduced by 58.1 percent, according to an impact analysis by the Maine Municipal Association.

“Obviously, that’s significant,” McCarthy told councilors, noting that the town would lose about $2.5 million in revenues under that scenario. “But we have to look at what our options would be. For example, would the Parks and Recreation Department become totally self-funding?”

Councilor Paul Cleary said that the impact of the referendum could be “devastating” if passed, but he acknowledged that some people might find it appealing.

“To people on fixed incomes, a 1 percent tax cap looks pretty good,” the councilor noted.

One councilor and a resident at the meeting did show support for the tax cap plan. Stan Ginish, who recently moved to town, said that he felt that “cities and town governments” have wasted money and that it was “too late” for the council to form a tax cap committee.

Councilor Phil Bernaiche also said that the was in favor of the tax cap.

“I would encourage people to vote for it,” he said. “I’ve got a home and I want to keep it. I am overtaxed along with the rest of the people.”


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