Tax cap could paralyze Eddington Assessors say passage of proposal would be ‘disastrous’ to community

EDDINGTON – “Disastrous” is the word assessor Roscoe Kent used to describe Carol Palesky’s tax cap and its effects on the community during a selectmen’s meeting Tuesday night.

“It doesn’t make sense,” is what assessor Charles Plummer said about the initiative, which is set to go before voters in November.

Under the tax cap, Eddington could end up more than $1 million in the red or with approximately $36,000 to run the town depending on which year’s property values are used, Town Manager Russell Smith said during a presentation to town assessors and selectmen.

If 2004 property values are used, Eddington would face a “$730,337 loss in revenue from taxes,” Smith said. “After paying school and county expenses, the town would have $36,626 to operate on.” The current municipal budget is $766,964.

The Palesky initiative 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 only 2 percent a year while the property remains in a family.

The rollback in property values has been deemed unconstitutional by the Maine Supreme Judicial Court, so this part of the tax cap may be eliminated.

Because of the Supreme Court’s opinion, Smith prepared separate figures using the 1996 and the 2004 property values.

Using 2004 figures, Eddington would be able to raise approximately $1.4 million, or $876,000 in property tax revenues and $550,000 in nonproperty tax revenues.

From the projected amount, Eddington would have to first pay its county tax and the SAD 63 school assessment that this year totaled $1,389,647, which would in turn leave the town with approximately $36,000 to operate.

Under Palesky the town would basically shut down and would not be able to provide fire or police protection or other services, Chairman Joan Brooks said.

“All the services that are expected and provided this year will go away,” she said.

Using 1996 figures, Eddington would only be able to raise approximately $562,000. Even with the other nonproperty tax revenues added in, the town’s total revenues would only be $1.1 million or nearly $1 million less than what was expended this year, Smith said.

“We wouldn’t have enough money to even pay the school bill,” Plummer said.

Town leaders decided Tuesday the time is now to get the word out to let residents know how the tax cap would affect the town.

“If the citizens know the facts, I think they’ll vote it down,” Plummer said. “But I don’t think we should take any chances.”

A town newsletter, with the town’s projected figures, will be sent to residents before the November vote.

“There is a need for tax relief, but this isn’t the answer,” Smith said.