By Abigail W. Adams
Personal property tax committee member Dan Joslyn (left) and chair Bill McKeen (right) flank assessors’ agent Tom Hayes in Whitefield Tuesday, June 23. Selectmen voted to adopt many of the recommendations of the committee to form a policy in Whitefield on the personal property tax. (Abigail Adams photo) |
Meeting June 23, the Whitefield Board of Selectmen voted 3-2 to adopt the majority of recommendations of the town’s personal property tax committee and settled an issue the
committee could not: the town will apply the state’s personal property tax strictly to businesses.
Selectmen plan to hold an informational hearing on the new policy Tuesday, July 7 at the municipal fire station. The deadline for completing the personal property
tax surveys sent out approximately two months ago was extended to July 10.
“We were all over the place with a lot of different opinions,” Dan Josyln, personal property tax committee member said. “It was hard to come to a consensus.”
The personal property tax committee was formed after Whitefield residents loudly protested the selectmen’s effort to update the town’s personal property tax list. On
the recommendation of assessor’s agent Tom Hayes, a personal property tax survey was sent to residents in an effort to update an out-of-date personal property tax list and
resurrect a neglected source of revenue for the town.
At a standing room only public hearing May 12, residents expressed confusion and anger over the unexpected tax, which many small farm and business owners said will
drive them out of business.
After a month of weekly meetings that included input from legislators, the committee did come to agreement around key issues on the controversial subject.
The committee recommended town office assistance in completing paperwork for the Business Equipment Tax Exemption, BETE, and Business Equipment Tax Reimbursement,
BETR, programs, a state reimbursement of personal property tax paid on certain equipment.
They recommended changing the depreciation schedule proposed by Hayes, so machinery and equipment subject to the tax reflects a 10 percent property value after seven
years.
The depreciation schedule proposed by Hayes initially called for the gradual drop on assessed value to bottom out at 20 percent after 10 years.
The committee also recommended establishing a $1,000 threshold on the property subject to tax and deducting $10,000 from the total purchase price of all equipment
included on the survey before the personal property tax is determined, with the assessor’s agent calculating the deduction.
The committee could not reach consensus on whether the tax should be limited strictly to business, as has become common practice in Maine, or should be applied to
all residents and businesses in a municipality, as the law requires.
According to committee chair Bill McKeen, the committee’s vote on the matter was tied.
After lengthy discussion, Tony Marple made a motion to adopt the threshold, depreciation, and deductions recommended by the committee, and limit the tax to
businesses. The motion passed in a 3-2 vote, with selectmen Dennis Merrill and Lester Sheaffer opposed.
Sheaffer has been opposed to the personal property tax since efforts to update the tax list were initially proposed.
According to Merrill, he voted in opposition because he felt the original depreciation schedule was fair and the $10,000 deduction would be difficult for Hayes to
administer. “My goal is to administer a bad law as justly and equally as possible,” Merrill said.
Merrill expressed concern about the impact of the policy on real estate taxes and the individuals struggling to keep their property from foreclosure.
According to Hayes, approximately 50 surveys have been returned since they were originally sent out, many of which are new to the personal property tax list.
The depreciation and deduction will knock off much of the personal property reported on the surveys, Hayes said, calling into question the amount of revenue the tax
will generate for the town.
According to Marple, the personal property tax was limited to business, due to the example set by other municipalities. “It would have totally changed the ball
game,” if the tax was applied to individuals as well, Marple said.
The tax committee intends to continue to meet to evaluate the program’s progression, committee members said.
According to Marple, Whitefield does intend to reach out to other municipalities to see if there is enough support for legislative changes to the personal property
tax law, but it is a long-range goal.
