AUGUSTA – Legislation replacing the Business Equipment Tax Reimbursement Program, often referred to by its acronym of BETR, with a new measure split the Legislature’s Taxation Committee 7-6 on Thursday. The majority of members are unsure of the details to their alternative to the original legislation.

“We had to stop going around in circles and take a vote,” said Sen. Joe Perry, D-Bangor, co-chairman of the committee. “I can tell you what we want to accomplish, but we don’t have all of the language together.”

Perry said the majority on the committee want a measure that eliminates the personal property tax on equipment used in businesses but does not want to shift that cost to residential taxpayers. The state constitution requires the state pay for half the cost of any property tax exemptions.

The minority report is basically the legislation sponsored by House GOP leader Rep. Dave Bowles, R-Sanford, and would phase out the existing program while phasing in the new program. The measure would assure municipalities that they would get half of the revenue they would lose from new qualified equipment added by a company. They would continue to be fully reimbursed for current property.

“The business community is not looking for a major change, but what they are seeing are efforts every year to make major changes in this program,” said Rep. Harold Clough, R-Scarborough. “They have lost faith that this program will continue for the long term.”

Last year, large retailers were removed from the program and the reimbursement was reduced, on a one-time basis, to 90 percent. Sen. Jon Courtney, R-Sanford, said that uncertainty has led to companies deciding not to invest in Maine.

“I have spoken with several companies, and they have assured me that they will not make major investments in Maine without having stability created in this program,” he said.

Courtney attacked the Maine Municipal Association for using “inaccurate” figures in representing what the legislation would do. He said municipalities would continue to receive full reimbursement for property taxes for current equipment, and would only lose a portion of new equipment that may be added.

“They are not losing anything they have,” he said. “They are losing a portion of what they would be getting in new taxes from new equipment.”

The discussion grew heated at times during the committee deliberations. Rep. Herb Clark, D-Millinocket, said he would not support legislation that eased the tax burden on business at the expense of homeowners, even though he works for a paper company that does benefit from the BETR program.

“Nobody wants to help the paper companies more than I do, I work for one,” he said, “But I know there are people out there that are going to be hurt, and I am not going to vote for it.”

Clark was one of those on the panel who suggested the issue should be studied over the summer to see if a measure can be developed that would meet the goal of repealing the tax on equipment and assure the towns they would not lose revenue.

Perry said it would take “a few days” to get numbers for the various alternatives the majority members are considering. But there are several options, and the lawmakers have yet to spell out exactly what they are considering. When asked when he would be able to provide some numbers to the public, Geoff Herman of Maine Municipal Association was clearly exasperated.

“Numbers on what?” he asked. “What is it you want me to get numbers on?”

The majority members are looking at several options, from shifting more revenue from the real estate transfer tax to municipalities to taking over the cost of running the county jails, which would reduce the property tax burden.

“I think we can come up with something that will work,” Perry said, “but I don’t know if we can do it in the next five or six days.”