AUGUSTA (AP) – While lawmakers delved into the details of Gov. John Baldacci’s tax relief package Wednesday, the governor launched a Web page with hopes of involving the public in the issue that’s taken center stage early in the legislative session.
The 15-member Joint Select Committee on Property Tax Reform opened Wednesday’s work session a day after public hearing on Baldacci’s two bills to rein in runaway property taxes.
Baldacci’s Web site includes a range of choices Mainers can enter for what share of tax relief money should be allocated to categories including low- and middle-income taxpayers, those whose principal residences are out of state, and all Maine residents.
Similar to a site that invited Mainers to suggest spending priorities two years ago when the state faced a $1.2 billion budget shortfall, Baldacci’s new Tax Reduction Survey Tool also asks for suggestions on how much should be allocated to schools.
At the same time, a coalition of about 15 business associations plans to measure the effects of the Baldacci proposal, and two other initiatives.
An important provision in Baldacci’s bill is to broaden Maine’s circuitbreaker program, which first appeared in 1972 to provide tax relief only to the elderly. It was expanded in 1988 to include non-elderly.
In its present form, it provides property tax rebates for single-member households with incomes below $30,300 and $46,900 for multiple-member households. Baldacci seeks to raise those standards to $50,000 and $75,000 respectively.
Another provision seeks to create a property tax deferral program available to homeowners whose property taxes are still in excess of 6 percent of income after the circuitbreaker is applied.
Amounts of taxes deferred would have to be repaid with interest. The Maine State Housing Authority would issue bonds to finance the program.
Baldacci’s bill also includes caps on municipal, county and education spending, an increase in the state’s public education subsidy to 55 percent, incentives to municipalities and schools for cost-cutting steps.
A proposed constitutional amendment would allow municipalities to freeze land values of principal residences at current use levels.
With school funding a major topic of the day, the top two legislative leaders expressed solidarity with the Democratic governor on his proposal to ramp up education funding to 55 percent in two phases, rather than one as some critics want.
Senate President Beth Edmonds, D-Freeport, said the governor’s bill seeks to add $250 million to state education funding in the coming two-year budget, which will require flat-funding of nearly every other state agency.
Adding more would come at the expense of public safety, roads, social services and other programs, she said.
House Speaker John Richardson, D-Brunswick, said Mainers don’t want to lower local property taxes if other taxes have to be raised in order to pay for it.
Edmonds and Richardson have pledged to put the tax proposals to a vote by Jan. 20.
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On the Net:
Gov. Baldacci’s tax tool: http://www.maine.gov/governor/baldacci/issues/taxes/taxtool/taxtool. php
AP-ES-12-15-04 1654EST
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