Elimination of the personal property tax could double Rumford’s tax rate.
RUMFORD – Selectmen urged every Rumford resident to contact their local representative or the governor to stop passage of a bill to eliminate the personal property tax.
At issue is LD 208, which is before the state’s Tax Committee.
“It would cut Rumford’s value in half,” said Town Manager Robert Welch. “People won’t be able to live here or have the same services.”
He said taxes are collected on about $350,000,000 in personal property tax, a figure that translates into nearly half of the total taxes collected each year. Most of that personal property value comes from MeadWestvaco Corp.
“We would lose half our budget,” he said. “We’d have just enough left to pay the school budget.”
Right now, the municipal budget alone is around $6 million. With the town’s share of SAD 43 costs, the total tax liability is about $13 million.
“Each person needs to call their legislator and say it is not good for our community. We may never know (when it comes up) and it may pass,” said Selectman Jolene Lovejoy who added that the required public hearing on the bill was held during last year’s legislative session. “This bill would cripple this town and surrounding towns.”
“This bill doesn’t just impact our town or mill towns, but every town in the state. Smaller towns, too,” said board Chairman Jim Thibodeau.
He said personal property tax collected on contracting equipment or beauty salon equipment would become exempt.
“Anyway you take it, it will be devastating,” he said.
Selectman Eugene Boivin said all towns in Oxford County would be affected as well because Rumford pays 17 percent of the county tax.
“If Rumford’s percentage goes from 17 percent to 8 percent, the other towns would have to pick up that 8 percent,” he said.
Welch said only six towns of the 50 that would be affected the most by the elimination of the personal property tax formed a coalition a couple of years ago to try to stop the elimination of personal property tax.
“People, it’s time to start calling and writing letters to the state. This has been a tax mechanism for years,” said Thibodeau.
Selectmen said information on LD 208 is available at the Municipal Building for anyone who wants to learn more or who wants to make a statement about it.
eadams@sunjournal.com
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