Ron Savage, from left, Robert Blake, Robert Everett, Michele Cole and George Angevine are Bethel’s Board of Assessors. They met on Aug. 31 at town office. Rose Lincoln/Bethel Citizen
BETHEL — After deciding not to assess businesses for personal property tax again, the Bethel Board of Assessors approved further discussion of a PILOT program that would request donations from land trusts and other tax exempt businesses.
Not assessing businesses for personal property tax began in 2008 or 2009 when Scott Cole was the town manager. Bethel’s non-compliance is in violation of Maine state statute, Title 36, S601.
Assessors Ronald Savage, Robert Blake, Chair Robert Everett, Michele Cole and George Angevine were present at town office on Thursday morning, Aug. 31 for the meeting.
Assessing Assistant Courtney McPherson said the value of 56 unsolicited 706a’s is $6.9M, the depreciated value is $3.9M. The BETE’s are sent because the businesses are not aware that Bethel is not assessing. These are companies that automatically send the form, she said.
Andrews asked Town Assessor Rob Duplisea how much money that equals to the town. He said the amount is $50, 310 of uncollected town dollars.
“So that’s $50,000 of free money?” asked Outgoing Town Manager Natalie Andrews
“And that’s just on the unsolicited [businesses] and it doesn’t include all the ones not sending it in?” asked resident Candace Casey
“That’s correct,” said Duplisea.
Blake said he feels the law unfairly penalizes small businesses. The small guy is not going to file for a BETE …it’s not a good system, it’s outdated. ”
Casey felt differently, “You’re transferring what they should be paying under state law to everybody else … this thing here (the State revenue services tax calculation form) is fraudulent because you know you have not honestly, legally, legitimately reported the personal property tax value on your calculation form. Anyone who owns a home here, anybody who is renting, it’s included in their rent. They are making up for what these businesses are not paying that they owe.”
Blake countered saying when they stopped paying 17 years ago the Assessor Board and Town Manager voted to not collect, “(Personal property collection) created confusion and ill will. Dollars and sense wise it wasn’t cost effective. That’s the bottom line.”
Andrews said, “No it’s not. It is not your job to collect. The tax assessor and the board of assessors does not collect the tax. You are not tax collectors. You need to figure out what the assessed tax is. You need to figure out what the valuation is. So the problem is you don’t know what the valuation of the personal property is … you have to at least make the effort.”
“No, we don’t have to, cause we haven’t for 17 years and gotten by with it. No one has come from the state of Maine, threatened to arrest us and saying you have to do it …
“These neighboring towns do not go out actively trying to chase down one guy with one skidder,” said Blake.
“Does Newry send out requests for a true and perfect list?” asked Andrews.
Blake didn’t respond but the Duplisea confirmed that Newry, W Paris, Norway and Paris send out requests every year.
“Its a broken system,” said Blake.
“It is not,” said Andrews.
Blake said it was time to make a decision, “we’ve kicked it around all summer and put it off and put it off.”
Instead Cole said that they should re-visit the decision after the first of the year. “The landscape has changed a little here… we are transitioning to a new assessor … I would like to revisit this. To see if we have the services available to take on this policy change.”
Blake said, “this was a non-issue until Natalie come on board … maybe the new town manager would have more insight, contradictory to her views.”
The board voted 4 in favor of tabling, with Blake opposed.
PILOT program
On request of the board, Duplisea presented information on the PILOT (Payment in lieu of taxes) program. He explained that new statutes allow the town to enter into an agreement with most tax-exempt entities, land trusts and other non-profits. In other towns he does assessing for they give people an opportunity to come in and negotiate what they are willing to pay.
“If they do not want to participate we can send them a payment an in-lieu-of-taxes bill.” He said in other towns the non profit will typically give a donation equal to or more than their tax liability if they are in tree growth or open space.
Ron Savage said, “We do the sidewalks [at Gould Academy]. We’ve got the water down there. It’s $50,000 to go there as a day student and we get $11,000 total. I have seen a map at Chadbourne’s office of all the stuff that’s in conservation and it’s huge. Every piece that comes out [through conservation], comes out forever and it’s a burden on the taxpayer.
“I believe the only one who is doing any donation currently is Gould,” said Savage.
Savage and Cole requested, from the assessor, a list of property that is conservation.
Everett asked if they should collect this year.
Savage said he would feel more comfortable giving the non-profits a head’s up this year and doing it next year. “The non-profits do a lot of good. The problem is they are chewing up all of our land. The simple math is if it [conservation] is 10% of our property then everyone got a 10% tax increase because of the conservation easements.”
They decided to talk more at their September meeting.
Mil rate
The board set the mil rate at $12.90, 56 cents over last year’s rate of $12.24. Following much discussion and input from Finance Manager Amy Hanscom they decided to choose an overlay of $105, 785.85 to cover abatements and non-payment of taxes. Liens currently number 85 totaling $83,000. Combined with abatements the total of money needed from the overlay last year was $92,000.
The total taxable valuation of real estate is $597,612,000. Hancock Lumber is the sole payer of $2,003,699. in taxable valuation of personal property tax. In previous years it had been around $1.3M. Duplisea explained that they bought more equipment.
They voted to commit.
Other business
The board voted to approve a penalty for Thomas and Patrick Hunt at 699 Grover Hill Road who pulled ten of their 50 contiguous acres from tree growth tax status to build homes.
Bethel Station, a Community Concepts development, was incorporated after 1982 and therefore are 50% exempt, said Duplisea. They were entitled to a break in taxes but hadn’t applied until now.
The value of the property is around $250,ooo. It is being valued on income not property value, said Everett.
“$125,000 of value times the mil rate is going to be $1,500,” said Duplisea.
Ron Savage said, “In my opinion there is an affordable housing problem in the area. This seems like a minor concession to not discourage other developers to come in to town and help with affordable housing.”
They voted to accept Community Concept’s tax exempt application.
They plan to send a letter to the approximately 129 Bethel taxpayers who will be affected by the repeal of the state tax stabilization program.
The board will meet again on Andrews’ last day, Sept. 22, when they will recommit the taxes with the tax collector who replaces Andrews.
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