AUBURN – The city will ask the state lawmakers to clarify tax rules by making groups like the Androscoggin Valley Council of Governments exempt from property taxes.
Councilors voted 4-2 to pass the request on to the Legislature with Councilor Kelly Matzen, who acts as an attorney for AVCOG, abstaining. Councilors Belinda Gerry and Bob Mennealy voted against the request, saying the law was clear enough.
“There have been numerous findings of fact saying that they are liable to pay property taxes,” Mennealy said. “The law is the law. I don’t believe we should help them not pay their taxes.”
AVCOG has never paid property taxes on its nearly 10,000-square-foot office building on Manley Road. The city did not assess taxes on the building from 1990 until 1996. Former City Assessor Joe Downey began assessing the property in 1997, but the city repeatedly waived those the taxes.
Mennealy began questioning the practice last summer and an interpretation by the city’s lawyer agreed that AVCOG should pay up.
The pending tax bill represents $18,012.88 in real estate taxes plus $7,345 in personal property taxes. The property taxes were due in July and half of the real estate taxes in September.
AVCOG filed an appeal in December, which Downey denied. AVCOG is considering further appeals, according to Mayor Normand Guay.
The group provides a range of services, including transportation, environmental and economic planning, to 43 municipalities in central and western Maine. It’s too valuable a partner to damage by requiring new taxes, according Councilor Marcel Bilodeau.
“Keep in mind that if we charge taxes, they may have to begin charging for their services,” Bilodeau said. “That could cost us a lot more than we’d make back in taxes.”
Councilor Gerry said she would go to Augusta to fight any changes to the law, if the issue comes up. The city already pays $19,445 per year to support the organization.
“By exempting them from paying taxes, it’s like we are paying our dues twice,” Gerry said. “We already pay them dues, and then we forgive them the taxes they owe.”
Members of the audience agreed that AVCOG was valuable but disagreed with changing the law.
“I do wonder why we are so willing to write off these taxes,” said Michael Dixon of 126 Everett Road. “If they were paid, the total cost could be spread among these 43 communities. Otherwise, it makes it appear we pay $45,000 per year in dues.”
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