NEW GLOUCESTER – The Budget Committee expressed concerns Thursday night that Gov. Paul LePage’s tax reform plan will shift more burdens onto towns.
At the committee’s invitation, state Rep. Ellie Espling, R-New Gloucester, took questions and provided information on LePage’s proposed tax reform and relief plan.
“It’s way too early to tell how it will work out,” Espling told the committee. The plan goes to the Appropriations Committee and must pass by two-thirds majority.
“A lot of people have to be happy,” she said.
“We would hope there would be something to relieve property tax burden, but it’s early in the process and we don’t know how and when. The government would have to shut down if we don’t have a budget,” she said.
Espling is a former chairwoman of the town Budget Committee and is serving a third term representing New Gloucester and Poland.
She provided information that included town comparisons of net income tax, proposed tax cuts and revenue sharing. The packets were developed by the Maine Office of Policy and Management, directed by Jonathan P. LaBonte.
New Gloucester taxpayers pay $5.94 million in net income filings. Gov. LePage’s income tax cut, if passed, would total $1.79 million. The town received $191,515 in revenue sharing in 2014. This fiscal year it received $175,000.
“I see this as a shifting onto real estate taxes and rental fees,” Budget Committee Chairwoman Tamilyn Wayboer said. “I am really concerned with the shift onto property tax. Smaller businesses are hit harder because of the sales tax going higher.
Wayborer has a small business raising Alpaca.
Committee member Lawrence Zuckerman asked if a graduated plan had been considered.
Member Jean Couturier said, “This is going all the way and shifting property tax and that will hurt a lot of people.”
The committee also raised questions about nonprofits possibly being taxed for their properties.
After the talk with Espling, the committee approved the Parks and Recreation budget at $49,029 and the Administration budget at $279,219.
The committee will continue reviewing the selectmen’s $3.58 million spending plan for 2015-16 on Thursday, Feb. 19.
Comments are no longer available on this story