AUGUSTA – PricewaterhouseCoopers, a nationally known accounting firm, took a dim view Thursday of the state’s proposed property tax relief plan, portraying the legislation as well intentioned rather than substantive.

Under a contract with a group of Maine businesses known as the Maine Business Association Roundtable, the accounting firm was asked to review the governor’s property tax relief bill, LD 1, another tax relief plan submitted by the Maine Chamber of Commerce and a third proposal known as the Taxpayers Bill of Rights.

Pattie Aho, an MBART member, said the accounting firm’s 90-page report was designed to offer guidance to the Legislature on comprehensive tax reform to improve Maine’s economy and lower the state and local tax burden.

Still, much of the discussion at the morning press conference focused on LD 1, which is scheduled to receive a final vote today from the Legislature’s Joint Committee on Property Tax Relief.

“LD 1 is designed to constrain spending on the state and local level – there is no mechanism in LD 1 that guarantees tax relief. It all depends on the effectiveness of the spending caps,” said Linden Smith, managing director in the national economic consulting group of the Washington National Tax Services office at PricewaterhouseCoopers.

During the telephone interview, Smith said states which have passed stricter provisions for overriding a state spending cap are more likely to experience success in lowering their tax burden.

The proposal agreed to by the legislative committee now carries provisions for a simple majority vote to exceed spending cap limitations. Republicans had pressed for a constitutional provision for a two-thirds override, but later abandoned the goal for LD 1, preferring to deal with the issue in other legislation.

“The spending caps in LD 1 are not truly binding,” said Smith. “Success is not guaranteed. … If it had a constitutional cap, it would likely be more effective in constraining spending. It then depends on the mechanism in the constitutional amendment that provides for an override. If they can be overridden by a simple majority vote of the electorate – they are less likely to be binding.”

Joe Pietroski, another MBART member, said the information in the PricewaterhouseCoopers report identifies the need for Maine to become more competitive by restructuring its tax policy to attract and retain businesses in the state.

“So we hope people will have a look at this significant report,” he said.

House Speaker John Richardson, D-Brunswick, described the MBART-commissioned report as “an eleventh-hour study” which could be obsolete. Richardson said the committee had made many changes to the governor’s original proposal as presented in LD 1.

“It seems like they might be flying a little blind, since we only came to an agreement 72 hours ago,” Richardson said.

Information on the MBART study can be obtained on the Internet at http://www.mainebankers.com/uploads/442/PwCMainereport01-13-05.pdf.