Citizens of this state understand we have an over-reliance on property tax.

Maine Citizen Leadership Fund and Taxpayers for a Fair Budget, a coalition of about 20 statewide organizations, have worked over the last two years to help facilitate policymakers in determining how best to provide tax reform for the citizens of Maine.

Our extensive research includes: sending 4,000 surveys to municipal officials and school board members, 400 extensive follow-up interviews, focus groups – in cooperation with AARP – around the state including cross sections of voters with various incomes, education, party affiliations and ages. Further, we presented informational meetings around the state on the tax reform proposals before the Legislature and, finally, a poll last week done in cooperation with AARP.

Consistently through our research and interactions one thing became abundantly clear: People in Maine want to add a penny to the sales tax to provide property tax reform.

That included those from very low to very high incomes, and from rural, coastal and service centers around the state.

Citizens of this state understand we have an over-reliance on property tax. They understand that every time the federal and state governments cut their budgets, the onus invariably goes to municipalities. In Maine, through no fault of their own, individuals and families are facing spiraling property valuations literally forcing them out of their homes, off their land or to sell off land that has been in families for generations.

People of Maine want property tax reform. People of Maine want it to be fair and equitable, and need it to be significant enough to allow them to stay in their homes and communities. They have sent the message to the governor and the Legislature loud and clear: Add the penny to the sales tax for property tax reduction.

• 70 percent of respondents in our poll support adding the penny for property tax reform;

• 68 percent of respondents from our survey support adding the penny for property tax reform;

• 65 percent of respondents thought we should expand our sales base;

• Focus groups with every income and geographical area were steadfast in their support of adding a penny to the sales tax to provide property tax reductions.

If we are to avert the draconian tax cap being sponsored by Carol Palesky, we must offer bold, significant and immediate property tax reform.

Maine Citizen Leadership Fund and the Taxpayers for a Fair Budget Coalition have devised a plan we believe fits the necessary criteria for essential property tax reform.

Homestead Plus (L.D. 1394) is our comprehensive property tax reform plan that provides broad-based and targeted property tax reduction.

No one pays more than 5 percent of their income in property tax with a reimbursement cap of $5,000.

Those with incomes of $30,000 for individuals and $46,000 for households would pay no more than 4 percent of their income in property tax.

The plan exempts the first $7,000 of value on residential property for all resident homeowners.

It provides $40 million for K-12 education.

It gives service centers $10 million to offset the high cost of services they provide for their surrounding areas. This basic plan has received a great deal of support in and out of the State House.

At about $110 million, it is less expensive than 1A and the Palesky tax cap – total costs of those proposals are nearly $1 billion. It is fully funded with a penny on the sales tax supported by 70 percent of Maine citizens and is the only proposal polled where support increased even after hearing “negatives.” (Homestead Plus rose from 69 percent to 75 percent even after being informed of cost and funding.)

This plan is a fiscally responsible solution toward funding the property tax reform we need, and need now.

Kathleen McGee is the tax reform campaign director for the Maine Citizen Leadership Fund.

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