AUGUSTA - Legislative leaders voted to advance a proposal by Rep. Dan Ankeles, D-Brunswick, to address looming property tax reassessments across Maine that could accelerate gentrification and make it more difficult for families to afford to remain in their homes and communities.
"Spiking home values in towns all over Maine are causing big disruptions in how we typically spread our property tax burden, and it is dragging working families, retirees and renters down," said Ankeles. "The Legislature needs to step in and provide some stability before more people lose their housing. The property tax is already regressive enough as it is."
Ankeles' three-part proposal would strengthen a program that provides tax relief for land designated as working waterfront so that Mainers who use their own residence for their commercial fishing business would have a larger incentive to utilize the program.
The bill would also specify that state and local assessors could use up to a five-year rolling average of home sales data so they do not have to rely exclusively on years when the market is too hot.
Finally, the bill would create a companion to the homestead exemption that exempts an additional $15,000 in value for units assessed at under $100,000. This is specifically intended to help those living in mobile homes, a group disproportionately affected by increased property taxes in a tight housing market. Under the proposal, the state would reimburse municipalities for 100% of any lost revenue.
This summer, Brunswick nearly experienced a major additional increase in property taxes after the town's reassessment work forecasted a significant shift of the property tax burden from commercial properties to residential properties. Because of the tight housing market, residential properties had increased in value far more than other types of properties.
While Brunswick voted to indefinitely postpone its reassessment after a large public outcry, the town will eventually have to proceed in order to comply with state law. Ankeles, also an outgoing Brunswick Town Council member, referred to his community as a canary in a coal mine and says he has since heard from towns across the state that are wrestling with similar valuation problems.
"I'm looking forward to working with the Taxation Committee on this bill come January and would welcome any additional ideas to make the reassessment process less expensive for our constituents," said Ankeles.
Ankeles submitted the bill with the support of all four members of Brunswick's legislative delegation.
Ankeles is serving his first term in the Maine House and represents District 100, a central slice of Brunswick that includes downtown, the former naval airbase and Bowdoin College.
Contact:
Brian Lee [Ankeles], 305-965-2744