September 20, 2024
Editorial

A WATERFRONT THAT WORKS

Maine’s Legislature has taken an important first step in protecting what’s left of the state’s working waterfront from escalating property tax increases. The House and Senate unanimously approved a bill to tax waterfront land used for fishing and fishing-related boat building based on current use rather than the current basis of highest and best use. That is, a fish pier or oceanfront boat yard for fishing boats is now taxed as if it had already been replaced by a pricey condominium or a luxurious vacation home.

The next step is a November state-wide vote on a constitutional amendment authorizing the change. If the voters approve it, the Legislature would create a change in the tax code, giving fishing and related industries a tax benefit like that already enjoyed by farming, forestry and open space.

The need is obvious. Maine’s traditional use of its ocean frontage is an essential part of its character and heritage. Its authenticity and charm appeals to residents and summer visitors alike. And its impact on the Maine economy is statewide. The lumber used for a new dock may well come from a mill in, say, Farmington.

Five years ago a similar proposal was on the ballot but lost, although by fewer than 4,000 votes out of a total of 600,000. This time, the need is even greater. Of the 3,500 miles of Maine coastline, only 25 miles are said to be dedicated to these traditional coastal industries.

A new Working Waterfront Coalition is ready with some telling statistics on the benefits of these industries. They support 10,300 lobstermen, clam diggers and other harvesters; 3,000 boat yard workers, and 26,000 fishing-related jobs, for a total annual income of $740 million. The Island Institute’s monthly newspaper Working Waterfront, started partly because of the tax issue, can be expected to continue to push it.

But even if the tax relief measure sails through, Maine’s traditional waterfront will still be threatened. Owners of industrial coastal land and buildings, especially next-generation owners will not only be burdened by the reduced taxes but also will be tempted by the skyrocketing prices being offered for their land.

Sen. Dennis Damon, D-Hancock County, who chaired the special tax reform committee that brought the issue before this legislative session, says the tax benefit would affect only waterfront structures used in fishing-related businesses. But residences related to the business could benefit from LD 2, which would limit the escalation of tax assessments wherever market prices have climbed exorbitantly, whether on the coast, on interior lakes and steams and elsewhere. That measure lacked the required two-thirds vote but now is being reconsidered by the Taxation Committee.

Another proposed tool for maintaining a working waterfront is a feature of Gov. Baldacci’s bond package. It would provide $3 million, to be matched dollar for dollar by local governments, to provide funds for purchase of waterfront access for industrial use.

Even aside from matters of fairness and tradition, all of Maine has an interest in maintaining its working waterfront.


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