• Phase in revaluations for single-family homes

• Create a city-based homestead exemption program

• Allow cities to tax nonprofit groups

• Let cities run the circuit-breaker programs

• Pay for state homestead exemptions with higher sales taxes

Tax reform talk runs afoul
State’s Constitution does not mesh with city’s money ideas

LEWISTON – Maine’s Constitution seems to get in the way of all the city’s best tax reform ideas.

State Sen. Peggy Rotundo told Lewiston councilors Tuesday that didn’t mean their ideas would never work. It just makes it harder to make them happen.

“I hope they all make it to Legislature for long-term discussion,” she said. Tax reform is on every legislator’s agenda this year, and some of Lewiston’s recommendations could be part of a general tax reform package.

“And that could be given to the voters later on,” she said.

Councilors promised to keep pushing their five suggestions, promising to come to Augusta to testify in support of the changes.

“Something has to be done, because what we have now has just stopped working for the cities,” said Councilor Mark Paradis. “I know it doesn’t work for us, and if it doesn’t work for Lewiston, I’m sure it doesn’t work for Augusta or Brunswick. So I’m sure there is support for this.”

Lewiston’s tax reform talk grew directly out of the council’s decision to delay a property revaluation in May. It would have boosted property tax bills on 85 percent of single-family homes by an average $508, despite city efforts to trim overall property taxes.

The city will have to adopt that revaluation this spring, unless state rules change, and councilors began drafting their own wish list of changes. They presented their list to Rotundo, state Rep. Margaret Craven and Rep.-elect Mark Samson during an evening workshop Tuesday.

Lewiston’s ideas include letting the city phase in revaluations for single-family homes; create its own homestead exemption program; tax larger nonprofit groups; run the circuit-breaker applications for city residents; and have the state pay for bigger homestead exemptions with higher or broader sales taxes.

All five ideas run afoul of the state Constitution, Rotundo said.

“It’s the same two sentences every time,” she said, and both are located in Article 9 of the state Constitution. The first sentence, in Section 8, requires all property taxes to be levied fairly. The second, in Section 9, says the Legislature cannot give up its power to control taxes. Both would have to change for Lewiston’s ideas to work, she said.

“It’s not me, it’s the Constitution,” she said.

“The Constitution can be changed,” responded Councilor Normand Rousseau.