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Sunday, September 19, 2004
Anger, fear fuel tax-cap proponents
Copyright © 2004 Blethen Maine Newspapers Inc. | ||||||
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Also on this page: TAX-CAP POLL RESULTS | |||||
The state's political and business establishments may oppose them, but they are not backing down. They believe they now have the power to end legislative gridlock, tame the dreaded property tax and change the course of Maine history. They are the steadfast supporters of Carol Palesky's tax cap. Despite months of criticism about the tax cap from municipal and school officials, more than a third of the state's likely voters continue to favor the measure, with a similar number opposed and quarter of voters undecided, according to a recent poll conducted for the Portland Press Herald/Maine Sunday Telegram by Zogby International. The same poll shows that the measure has the support of voters of all ages and incomes. But many of the most ardent proponents of the tax cap are retired or nearing retirement age, tax-cap leaders say. Their incomes are often modest. Still, they share two common emotions: anger and fear. They say they hate the property tax because it is rising faster than their incomes and may eventually force them to sell their homes. Many live in houses that today are worth far more than they ever could have imagined. And their tax bills are higher than they ever thought possible. "They are people being pushed to the edge economically," said Martha Badyk, 56, a Kennebunk homemaker who is working actively to support the tax cap. Dudley Bostwick, 76, of Cape Elizabeth, who lives in a former lighthouse coal shed, says his $14,500 tax bill worries him to no end. He grew up in the building, which his father bought in 1933 for $26. The property is now assessed at nearly $900,000. "It's on my mind all the time, whether we can make taxes or not," said Bostwick, an artist. "I'm supporting the tax cap for many reasons. One is that it's very unfair that elderly people are put through this ordeal." Many of the tax cap's supporters admit the measure may be blunt and wreak havoc on municipal budgets. But they believe it's the only solution because the Legislature lacks the will to tackle tax reform. They are furious that the Legislature failed to address the problem during its last session. "I don't have a lot of faith in the Legislature to make significant changes," said Tom Wales, 57, who owns an oceanfront home in Bristol. "They nibble away at things around the edges." For Arthur McDermott, 78, the tax cap holds the promise of retirement. A longtime Palesky supporter, McDermott paid $24,802 last year in taxes on properties he owns in Falmouth and Windham, including Highland Lake Park Camping and Cottages. McDermott doesn't want to sell the campground that also is his home, so he continues to operate it to pay the taxes. "I shouldn't have to work at my age," McDermott said. "We could be living on our pensions if it weren't for the taxes." Another tax-cap supporter, Harry Martin, 83, says the tax bill for his lakefront home in Sebago last year was $4,200 but he expects it to climb to about $4,900 because of a recent revaluation. Over the past 10 years, Martin and his wife, Terry, have seen their incomes fall 13 percent and their property taxes increase 49 percent. He blames the increase on rising school costs that have produced no improvement in test scores. "To continue to throw good money after bad is not going to improve the situation," Terry Martin said. Some of the tax-cap supporters are longtime conservative activists, such as Beth O'Connor, 46, of Berwick, who last year was elected to the School Administrative District 60 school board as a write-in candidate. When she lived in Massachusetts, O'Connor was involved the 1980 campaign that passed Proposition 2 1/2, which caps the tax rate at 2.5 percent of value and requires a majority referendum for tax increases of more than 2.5 percent. Although close to 10,000 teachers statewide lost their jobs during the law's early days, the measure made government more efficient and led to an economic boom, said O'Connor, who home-schools her children. "Tax cuts are good for the economy," she said. "It's going to be hard at first, but Maine will be a much better place." The Maine proposal, which Palesky's Taxpayer Action Network put on the ballot after two unsuccessful petition drives, is more stringent than the Massachusetts cap. It would cap property tax rates at 1 percent of value. That means someone who owns a house valued at $150,000 would pay no more than $1,500 annually in property taxes - regardless of location. The cap would slash property tax revenues by about $600 million annually, according to state and municipal officials, many of whom oppose the measure. The measure allows cities and towns to raise fees and other forms of taxes, but only after winning the approval of two-thirds of voters at a referendum. The measure also rolls back property assessments to 1996-97 levels, although the Supreme Judicial Court has given an opinion that portions of the measure that affect assessments are unconstitutional. Tax-cap opponents say they aren't fans of the property tax, either. They say it is a regressive tax that falls most heavily on low-income homeowners, and that tax reform is needed to ease the burden. The idea that real estate is a measure of one's worth goes back to Colonial times, but it is no longer a valid measure, said Wes Bonney, chairman of Citizens United to Protect Our Public Safety, Schools and Communities, which is fighting the tax cap. Bonney said tax relief should be targeted to the people who really need it. He said the proposed tax cap, however, would also lower taxes for the out-of-staters who own 20 percent of the state's residential property. He added that Maine residents would end up making up the difference by paying more in sales and income taxes. The tax cap is bad policy, he said, but many people, including some of his friends, don't want to listen to his arguments. "They are so angry, they won't open their minds up," he said. "They are so mad at the Legislature and the governor." In South Portland last week, about 35 people gathered at the American Legion Hall to honor Palesky. They cheered as she entered and nodded in approval when she criticized the municipal officials who oppose the measure. "They are so arrogant," Palesky told the crowd. "They are used to having money in their pockets, and they don't want to give it up." Just about everyone in the hall was over the age of 50. One exception was Roxanna Kennedy of South Portland, who listened to Palesky's speech while holding her 2-year-old daughter in her lap. Kennedy said she and her husband, a grocery store manager, bought their first home last year. While the house is not on the water, she said, the couple are nevertheless afraid that skyrocketing assessments will affect them one day, and that they will be forced to sell. "I'm afraid of losing the American dream," she said. "Just when you make it and become homeowners, you lose the home because taxes go up suddenly." - Staff Writer Mark Peters contributed to this report. Staff Writer Tom Bell can be contacted at 791-6369 or at: tbell@pressherald.com 1/3 1/3 1/2
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