AUGUSTA (AP) – A prominent Portland businessman says he is forming a a statewide group to support the 1 percent property tax cap that will be on Maine’s ballot this year.

Eric Cianchette said the group is forming a political action committee to accept donations, which he expects will top $1 million. He said none of the money will be given to Carol Palesky, who led the petition drive that landed the measure on either the June 8 or Nov. 2 ballot.

“I am not intending to give Ms. Palesky a nickel,” Cianchette said.

Cianchette said he has talked to Palesky about three times but will not work with her. He said he doesn’t agree with every part of the proposal, but called it the best plan for helping longtime Mane residents who are burdened by rising property assessments and taxes.

“We are trying to give Maine back to Maine people,” he said.

Palesky’s initiative would cap property taxes at $10 per $1,000 of assessed value, based on values in 1996-97. It would also limit assessment increases to 2 percent a year while the property’s ownership remains in a family.

Cianchette said the group’s members, which include business people and homeowners from all over Maine, are angry that rising property taxes are driving fishermen and native Mainers off the coast and forcing farmers to subdivide their land. Former state Sen. Phil Harriman of Yarmouth is also involved, he said.

Harriman said last week he decided to become involved in the campaign after going to a meeting of the Yarmouth Taxpayers Association that was attended by 83 people, nearly every one of whom supported the tax cap proposal.

Since the group met for the first time last week, Cianchette has hired lawyers to establish a political action committee, he said.

Cianchette lives in Cape Elizabeth. He owns real estate in Portland’s Old Port, including the Portland Regency Hotel, and owns The Black Point Inn in Scarborough.

Peter Cianchette, Maine’s 2002 Republican nominee for governor, is his cousin. Peter Cianchette said he is not involved with the new group.

AP-ES-03-18-04 0916EST