Palesky tax cap can’t deliver

A motion adopted by St. Croix Valley Chamber of Commerce directors expresses opposition to the Palesky tax-cap ballot question on Nov. 2. The board of directors for the region’s largest business and professional organization focused its position on instability the ballot measure would create in area communities.

The notion of a tax cap is very attractive to a region where both family income and personal opportunity are scarce. The Palesky tax cap, however, is an inappropriate way to cut the cost of government. It’s more likely the measure will make income and opportunity even more difficult for Washington County people to obtain.

A cap on property taxes means a cap on revenue used by municipalities to provide services. At present, when voters wish taxes to be contained, they can communicate their concern and their ideas for reducing municipal costs directly to their elected community officers. A state-mandated tax cap will force the reduction or elimination of services without regard to the desires of local residents.

Some of those services are directly related to the ability of the St. Croix Valley to provide income and opportunity for its residents. Every business relies on year-round, town-maintained roads to obtain raw materials for manufacturing or to stock shore shelves, to allow employees to get to work or to bring customers to their doors. Effective law enforcement agencies assure the security of property, both business property and personal homes. Well-equipped fire departments help contain the cost of fire insurance and protect the safety of people and property.

The Palesky tax cap is a threat to these basic services. And threats to the foundations of community government add uncertainty and instability to an already difficult environment for business development and job creation.

Further, an enforced cap on municipal budgets will cause the loss of local control. When vital community services are curtailed or even halted, taxpayers can expect to see an expansion of county government to fill critical gaps. Counties are responsible to the Legislature in Augusta, rather than to local residents, a fact that is a longtime point of contention in every part of Maine.

Sure, a bone was tossed to local residents several years ago when counties created budget review committees among county residents. At the end of the day, however, county budgets are reviewed by a legislative committee and approved by a 186-member body containing few Washington County residents.

On one hand, the proposed tax cap forces a reduction in municipal property taxes, but on the other hand it does nothing about escalating county taxes and the loss of local control. Those higher county taxes, like school district assessments, are passed off to municipalities for collection via their property tax bills. The result is a tax bill out of control, beyond the direct reach of taxpayers.

Hunting for property tax savings with a statewide referendum is like hunting squirrels with a howitzer. You’ll probably hit a squirrel, but when the smoke clears there won’t be much left of him and everything else in the neighborhood will suffer heavy damage. The Palesky tax cap will damage our towns and cities in the name of lower property taxes. And the damage will extend to the business community that strives to provide jobs and opportunity.

Finally, the Palesky tax cap will force communities to spend time, energy and resources solving problems created by the tax cap rather than working to make our area a better place to live, to work, and to raise a family.

The best way to affect the cost and operation of our municipalities is to get involved. The best way to help create family income and individual opportunity is to make a constructive difference in the governance of our communities. On Nov. 2, the St. Croix Valley Chamber of Commerce board of directors believes the best chance for a positive future is to vote NO to the uncertain and unstable promises of the Palesky tax cap.

Jim Thompson is manager of the St. Croix Valley Chamber of Commerce in Calais.