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City manager urges council to press state to expand tax fairness credit rather than unfunded property exemptions
Summary
Bangor City Manager Debbie Lawrence asked the finance committee to encourage the state to expand an existing property tax fairness credit rather than enact unfunded changes to homestead and other exemptions in five pending LDs.
Bangor City Manager Debbie Lawrence briefed the finance committee on March 17 about five legislative drafts expected at the state level that would change homestead, senior and veteran property tax exemptions.
Lawrence told the committee that changes increasing exemptions would reduce taxable value without accompanying state reimbursement, which could force the city to raise tax rates to maintain revenue. "By merely exempting property, it doesn't get it done," Lawrence said, arguing that without reimbursement "the tax rate would go up even though the exemption went down." She urged the council to encourage the state to expand the existing property tax fairness credit in the individual income tax to deliver more targeted relief without shifting costs to municipalities.
Councilors indicated general support for the recommendation. A councilor said they would be supportive of submitting testimony to the state, and staff said they would prepare a short note reflecting the council's view. No formal vote was recorded in the transcript; the action on the item was to direct staff to provide the suggested testimony to the state legislature.
