Palesky pleased; calls lack of action a “disgrace.”

AUGUSTA – Lawmakers adjourned Friday morning without a plan to relieve property taxes despite it being one of the session’s top priorities. Gov. John Baldacci said he’ll call lawmakers back to work in late summer, first allowing them time to rest.

Early Friday the House and Senate rejected different tax plans.

The House voted 76-62 against a proposal to increase cigarette and alcohol taxes to raise money for targeted property tax relief. The Senate voted 20-14 against a non-binding resolution to support a June ballot question that, if passed, will force the state to shoulder a greater share of the burden for local education costs.

The lack of action “benefits our tax cap referendum,” said Carol Palesky, who, with the Maine Taxpayers Action Network, is behind a November referendum to cap property taxes at 1 percent of a property’s value. Chances for that passing “look even better now, because the taxpayers in Maine realize that the Legislature is never going to do anything meaningful,” Palesky said.

She called it “a disgrace” that lawmakers didn’t act. “It shows that the Legislature cannot agree on any meaningful tax reform. And property tax relief was supposed to be the No. 1 issue in Maine.”

Baldacci disagreed with Palesky’s assessment, and said the House tax relief plan was “a good vehicle.” He praised legislators, saying they had a difficult session. Tough budget decisions took up more time than expected, which “took a lot out of people. Had we had more time we probably could have come up with some alternative.”

Now, said Baldacci, legislators need to “recharge their batteries.”

Citizens looking for property tax relief should not lose faith, Baldacci said. He plans to call legislators back into session in late August or early September to work on property tax relief and finalize a bond package.

If there’s agreement on a tax plan, there will be time to get a competing measure to Palesky’s referendum on the November ballot, said Baldacci spokesman Lee Umphrey. Not enough time remains to get a competing plan on the June ballot, so Baldacci will take to the road to campaign against both the June and November tax proposals, Umphrey said.

House Speaker Patrick Colwell, D-Gardiner, said he was disappointed by the lack of property tax relief. The tobacco and alcohol lobbies were too strong, Colwell said.

“When you try to do something bold to provide tax relief and school funding, it’s difficult. The bottom line was, (the House plan) would have doubled property tax relief for seniors and put a significant amount of money, $25 million a year, for local schools,” Colwell said.

“It’s a lot easier to sit on your hands and say no” than act, he said. “We were up against well-financed tobacco and alcohol lobbies. They had the effect they wanted.”

When asked about a special session, Colwell said “the ball’s in the governor’s court.” There’s always hope something can be done, he noted, but on Friday afternoon “I’m going fishing.”

Senate Majority Leader Sharon Treat, D-Farmingdale, said she’s “extremely disappointed” legislators adjourned without a plan, but said Senate Democrats “advanced the debate,” and there was much agreement on the kind of help needed. Talks broke down on how to pay for it, Treat said.

Rep. Randy Hotham, R-Dixfield, who voted against the House plan because he didn’t like the targeted tax increases, predicted lawmakers would return and come up with a relief plan.

Homeowners who want to vote for the tax cap referendum “should not lose hope,” he said. “We will be back this summer. You’ll see something from the Legislature.”

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