The property-tax structure of this state allows wealthy people living in other states to inflate property values to the point where citizens of Maine cannot pay their property taxes.

A home in a coastal town evaluated at $77,000 in 1990 is now appraised at $291,000. The owner cannot afford the taxes. The social cost is horrendous and unacceptable.

The proposed tax cap is a dangerous solution that freezes a dynamic economy. It will bankrupt many communities. We need flexibility and we need to respect our citizens’ lifestyles.

Another solution presents itself: Set the base value of each residential property at the latest, pre-1996 assessed value. As long as the property remains in the possession of the original owner or that person’s heirs, the assessed value of the property changes only according to inflation and the actual cost of later modifications. The taxes on all residential property change according to the town’s budget, which applies a uniform mill rate equally to all residential properties. All residential properties built or modified after 1995 or properties that have changed hands by any means other than through inheritance get a new assessment by the town within a reasonable time period, setting a new base value for the property that then follows the above formula.

In the case mentioned above, an annual 3 percent inflation rate would have increased the value of that property to a little less than $116,500. He keeps his home. Let’s keep it that way.

Dr. Ken Hamilton,

founder and principal

HOPE, Healing of Persons

Exceptional and SoulCircling

Copy the Story Link