AUBURN – In his last official act as city assessor, Joe Downey denied this week a controversial request by the Androscoggin Valley Council of Governments to erase its $25,357.88 property tax bill.

The ongoing dispute could end up in court if both the quasi-municipal planning organization and the city stick to their guns.

In his Monday letter to AVCOG’s executive director, Downey called Robert Thompson’s argument in favor of exemption “unconvincing.” Downey cited state law that only exempts such organizations from paying sales and income taxes, not property taxes.

Contacted Tuesday by phone, Thompson withheld comment, saying he had not yet received the letter notifying him of Downey’s decision. When he does, he said he plans to forward it to AVCOG’s board, which will determine whether or not to press its appeal further. The board is scheduled to meet next on Jan. 21. No money was budgeted for the taxes this year, Thompson said.

If AVCOG appeals Downey’s ruling, the city’s Board of Assessment Review would take up the matter next, Downey said. Board appeals must be filed within 60 days of an assessor’s denial.

AVCOG has never paid property taxes on its nearly 10,000-square-foot office building on Manley Road.

The city did not tax the building from 1990 until 1996 due to a misinterpretation of state law, Downey said. He began assessing the property in 1997 based on dual rulings by lawyers for the city and the Maine Municipal Association. But since then, the city repeatedly granted a waiver.

This year, City Councilor Bob Mennealy questioned that practice. A recent interpretation by the city’s lawyer found again that AVCOG should pay up.

The pending tax bill represents $18,012.88 in real estate taxes plus $7,345 in real property taxes. The property taxes were due in July and half of the real estate taxes in September. Nothing has been paid to date, Downey said. Interest and penalties are accruing, he said.

“I think it’s quite obvious,” Menneally said of Downey’s decision. “I’m amazed they even tried to get this exemption.” He said AVCOG should not only pay this year’s bill, but prior tax bills dating back to 1997, totaling roughly $150,000.

“The law’s the law and it should apply to everyone,” he said.

Downey, whose last day on the job was Tuesday, was not optimistic. Judging from the city’s past actions, he predicted AVCOG “will never pay a dime in taxes even though they should.”

Downey, Auburn’s assessor for the past 16 years, has worked in the field for 37 years. He retired Tuesday.

City Manager Pat Finnigan declined to comment Tuesday on Downey’s denial. She said she had not had time to review his decision.

Of the four other council of government planning organizations in Maine, several are located in public buildings, pay rent and do not own property. The Kennebec Valley Council of Governments pays property taxes on its building in Fairfield, according to published reports.

AVCOG provides a range of services, including transportation, environmental and economic planning, to dozens of member municipalities in central and western Maine in exchange for annual dues.

cwilliams@sunjournal.com

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