HomeMy WebLinkAbout2002-10-15 02-384 RESOLVEItem Nc o
Date: 10/15/2002
Item/Subject: RESOLVE, Supporting an Act Reduce Property Taxes Statewide
Responsible Departrttent: Council/Executive
As the Council is aware, the Issue of tax reform has been a major priority of Maine's towns and cores for
many years. A variety of approaches to address this issue have been attempted with no meaningful
outcome. As a result the Maine Municipal Association has taken the lead In a tax reform Initiative aimed
at reducing loot property taxes statewide. In summary form, the Act would require greater financial
support from the State for elementary and secondary public school costs and would establish a plan for
state, regional and loot governments to reduce the overall tax burden within the State.
Councilor Tremble served on the MMA Committee which drafted the Initiative and Councilor Rahman
serves on the MMA Executive Committee. The attached Resolve indicates the Cry's support of this
Important effort.
Department Had
Manager's Comments:
This was reviewed and recommended for approval by the Strategic Issues Committee at Its meeting on
October 7, 2002. /
W" 40
ki City Manager
sso
Aciated Information: �w
Resolve, Background Information
Budget Approval:
Roane Director
Legal Approval:
/dg5�' Qty Solicitor
Introduced for
x Passage
_ First Reading Page _ of
Referral
02-384
C A sided to Councilor T euble Oc m6er 15. 2002
,M,.
CITY OF BANGOR
(TITLE) RESOLVE, Supporting an Act to Reduce Property Taxes Statewide
ay the afranmlofmeCRrofearga:
RESOLVED
WHEREAS, Maine relles too heavily on the property tax to pay for Kindergarten through
Grade 12 education; and
WHEREAS, the StaWs tax structure la too "volatile", resulting in an unpredictability of
state tax revenues that significantly disrupts both state and local efforts to
budget governmental resources; and
WHEREAS, the alignment of tax burden among the property tax, sales tax and income
taxes is seriously out of balance; and
WHEREAS, Maine's overall tax burden Is a matter of great concern to residents and
businesses; and
WHEREAS, Maine's tax structure should be changed to reduce the State's reliance on
the local property tax to fund K-12 education and special education casts,
reduce the volatility of Maine's tax code, more equitably realign the tax
burden among the state's three major tax revenue sources, and allow the
Legislature to develop a plan to reduce Maine's overall tax burden; and
WHEREAS, municipalities have tried forr many years to get the legislature to engage in
tax reform to address Maine's flawed tax code and the Legislature has
rejected these efforts and failed to enact meaningful tax reform; and
WHEREAS, we believe A Is time to directly provide the citizens of Maine the opportunity
to vote on proposed changes to Maine's tax structure that will reduce
property taxes statewide.
NOW, THEREFORE, BE Ir RESOLVED THAT: THE CRY COONCR OF THE CrrY OF
BANGOR hereby supports the proposed tax reform Initiative of the Maine Municipal Assoclabon
entitled "An Act to Reduce Loral Property Taxes Statewide."
Pr -
IN CITY COUNCIL
October 15. 2W2
Notion far Pusage Made 02-386
and Seconded g g 5 0 L Y g
Passed
le,
cI Prop suprty Taxes as ntc to amaa
Property Taxes Sta[evtde
Assigned to I�(rlCj�
bliCouncilor
02-386 /
Question: Do you want to provide broad-based, statewide property tax relief by
requiring greater financial support from the State for elementary and secondary
public school costs and establish a plan for state, regional and local governments to
reduce the overall tax burden in Maine?
An Act to Reduce Local Property Taxes Statewide
Sec 1.20-A MRSA, chap. 606-B, is started to read as hallows:
chapter 606-B
School Flnanee Act of 2003
Tfus chanter is (mown and may be citod as she "School Finance Act of200311,
415661 Ma Jet d leijsladive appropriationsfor K-12 education,
Notwithstandineanvothersection oflaw tft L 1 tens shall ch 'd
at least 55% oftise cog ofN tal allocation from GeteralF d
For the puraose ofthi h t d until such' Use Leenfatax as
implcmem an ade ussive school fondine system. thetotal allocation shall be defined
the foundation ll for that year, the debt atiocamonfor thatear,do am 0f
all adjusirmins for that and the tal offi additional lal myropfiationg for the
prim pear In the event the beemature ImPlecoctasalternative school finuing model
that altms the meaning of the lenus used in this TitleN makes obsolete the
syltern ofall d local "tIestablished by this Tifle, the tern,,lood
a Lm-afiod'mitappliwto6emmdatodoulbytirssectionxindibe
the amount roassonably calculated as the 'vaI Us definition,
415662 Manda" legislative amprouchnionat for 'al education,
N t—Mfledendinvm y other soctim,ofl the Legislature _i provide 100% of
the state and local cost of uroviding s0 speciat ectuotom services mandmed under federal
or state law or regulation
For the f the andat ' tid by this ec6 th
comanigioner shell'deobfv and rnowide in the recommendation t
to section 15605 the total costs to the individual schood d
with onevidmg ail special education serncosmand eclunderk
deml91 afar I or
gulatif th h I 1 di th I 30'T Aadditimy
Ig
aymyriationsroauinA by rectioa 15607 &a Le ' ]arum shall a oas000 f
accurate distribution of the total Mount identified by the conuaimimar, adittsbed bv the
Nal gate md federal b N for the sl f svocial ed=fim
maoda[ed by state and fale law and mmlation and onwiously 'ded to the
individual school administrative mots for that same school year
&15663. Fund for the Efficient Delivery of Educational semcm
2% ofth fiords strutually aimpooprated Pursuant to this ba st be dedicated
to the FtmdfrtheEfficient Delivery of Educational Services and dbtdbuta boon the
fund) !bose school zabainistvative units and Afies that &anon
siettificant and smt2inabfe savings in the cost of delivering educational throe h
changes in governance, admwsbafive stru tore satoylsat oalicy tbat mmitthe
creation of consolidated school administrative its bmad-baaedpurchaoing all'
enhanced regionalized d G f cLucational llaubarative schooimunicipM
-
smioedeh=orse cc sn000R swtelns
515664. Entitlement
The State's school administrative mots and municipalities sbaL! be entitled to the
iracl by fltis chapter
Ser. 2.30.A MRSA, §5681, sob -§3, as last amended by Pl. 1999, c. 731, is
further amevdN to read:
3. Revmuesharing funds. To strengthen the state -municipal fiscal relationship
pursumd to the findings and objectives of subsection 1, these is established fe Local
Government Fund. To provide additional support for mwicipalifies experiencing a
higher -fan -average property tax burden, there is established the Disproportionate Tax
Burden Fwd. To assist those municioalties that collabo te with "all'
counties costate amcies to Obtain the st ofdli local and nspioral
govuamenW services there is established the Fwd for the Efficient Delivery of Local
and Regional Services
Sec. 3.30.A MRSA, §5681, sub -§S B, is enacted N read:
5-B. And for Me Efficient Oglinexw ofl I andR a1S i For the
onths begumin a on or aftu July 1 2M andb f the ilistributions reauitailb
subs fiqa 4A aad4-B 2% ofall madras transferred each motab mconling
subwetiou 5 mostbd ited in the Ftatd for ne EfficietatDfi f i md
RepionalS ddisbibutdw those atiti that can d=taysbmte sionificaot
and sustainable savines in tbe cost of &fiveadng local and nal wyenunental
thmugk Ilaborative atnaroschdamliverv.enhen M mpiondd li gist
fe consohaatim of administrativem the atim ofb ad -b d umhas'n
alliances or fc exemfion of interlocal ac cmta
W-384 M
Sec. 4. Intens legislative do tes. It is the intent of this Act to provide mbstential
propertytmmhefstatewideinamaunerthmissustawedovertime. The Actcallsupon
the Legislature to reduce unnecessary spmding to engage in much needed and long
overdue on: reform and avoid adding to the overall tax burden ofMaine citizens. The
Act calls upon local govmwmts and schools to redouble their efforts to keep
mpmdltmes doom and not to add to the overs[] tax burden of Maine citizens.
A. State tax revenue. As soon as Possible, but no later than March 1,
2004, the joint standing committee of the Legislature having
jurisdiction over bratlw matters small report out revenue neutral
legislation designed to accordance with the intentions of this Act to
generate the additional revenue necessary to provide adequate funding
for public education Amin kindergarten to grade 12 pursuant to the
Maine Revised Statutes, Title 20-A, chapter 606-B. The legislation
must not defeat the intent of Us Ad by reducing, freezing, eliminating,
or otherwise restricting the state revenues, appropriations or
reimbursemems that historically have bean provided to or shared with
municipalities, including without [imitation: municipal revenue sharing
established in Title 30-A, chapter 223, subchapter R; Property tax
homestead exemption reimbursement established in Title 36, section
685; County ]ail Prisoners Support and the Commwity, Corrections
Fund established in True 34-A, section 1210-A; the Tree Growth
reimbursement program established m Title 36, section 578; the
Geomel Assistance Varebursenrent program established in Tide 22,
section 4311; and the Rural Road Initiative and Urban Compact
Initiative established in Title 23, section 1803-B.
B. Fund for the Efficient Delivery of Educational Services. As soon ss
possible, but no later flan March 1, 2004, the joint standing commince
of the Legislature having jurisdiction over education shall report out
legislation designed in accordance with the intention of din, Act to
govern the design, nnPlemmmtion, management and oversight of the
Food for the Efficient Delivery of Educational Services.
C. Fund for the Effielent DeBvery of Local and Begioual Services. As
soon as Possible, but no [ata Nan Match 1, 2004, the joint standing
committee of the Legislature having jurisdiction over state Out local
government shall hereon out legislation designed in accordance with the
intentions of this Act to govern the design, implementation,
Management and oversight of the Fwd for the Efficient Delivery of
Local and Regional Services.
D. Tax burden management. As soon w possble, but no lata than
March 1, 2004, thejoint standing committee of the Legislature having
jurisdiction over taxation end appropriations end financial affirm shall
a2 -3e4 20
jointly develop and report out legislation that consists of
comprehensive Plan that integrates the efforts of state, county, local
gover®ems and schools to reduce a®ecessary spending, identifies
cost savings in the delivery ofgovernmmtal services and otherwise
addresses the issue of Maine's overall ter burden.
Summary:
In order N reduce property taxes statewide, this legislation requires the State to
provide at least 55%of the total state and local cost of Kindergarten, through Grade 12
public education, including 100%State support for special education services nmodated
by state or federal law.
2% of the annual state appropriation fm education required by this legislation
would be dedicated to the Fund for the Efficient Delivery of Educational Services, which
is dedicated to providing incentive -based resources to those school a hosts trative unit or
municipalities that would effx[ certain system changes that provide significant and
suslaftt bk cost savings in the delivery of educational services.
A parallel Fund for the Efficient Delivery of I.ocal and Regional Services is
established by this legislation within the Local Government Fund, which is the fund hour
which municipal revenue sharing is distributed. This fond would be capitalized by setting
aside 2% of the sales and income tax revewe that would otherwise be distributed
according to the revenue sharing formula. That revenue would be distributed to those
umcipalities that can demonstrate tort savings is the delivery of local and regional
governmental services through collaboration with other local and regional governments
and participating state agencies. This radiative direct the Legislature to develop the
necessary implementing legislation to fully, design both the educational and local services
efficiemdeliveryfands.
This inidative she directs the Legislature to develop the necessary impl®rating
legislation to provide fm the necessary stale revenue m meet the State's obligation to
support public education without undermining cresting municipal support systems such
as uarmlod revenue slaving the property tarz homestead exemption, local road
assistance, etc.
Finally, this initiative directs the Legislature to develop a comprehensive
spending and tae plan as soon as possible but an later than March 1, 2004 that will
integrate the efforts of slate, county, local govemmcot and schools to reduce
unnecessary speodin& identify con savings in the delivery of goverrmmW services and
otherwise address the issue of Maine's overall tax burden.
02_386 G1
Maine Municipal Association
Tax Reform Proposal
"Summary Sheer"
On Tuesday, August 13i°, MMA's Tax Reform Steering Committee finalized a
recommendation for a cit¢® initiated tax reform proposal.
On August 22ns, the Association's Legislative Policy Committee me to review the
Steering Committee recommendation. The LPC supported the recommendation
unanimously and the initiative was referred to MMA's governing body, the Executive
Committee, for further advancement. The proposal is scheduled to be the subject of full
membership review and endorsement at the October MMA Convention.
In a nutshell, this initiative would compel tax reform, create investments in structural
changes m achieve efficiencies in the delivery of governmental services, and accomplish
the development of a comprehensive plan to address Maine's overall tax burden. This
plan would:
Require the state to provide $290 million more per year in Financial
support for public education, thus compelling a restructuring of the
state tax code. The specific details of tax reform would be left to the
Legislature, although the munieipalilies have submitted many proposals
to the Legislature in the past regarding comprehensive tax reform and
will continue to offer their ideas about accomplishing quality tax
reform.
Create two parallel funds designed to obtain long-term efficiencies
in the delivery of educational, local and regional services.
Direct the Legislature to develop a comprehensive plan that
integrates the efforts of state, county, local governments and schools to
reduce unnecessary spending, identifies cost savings in the delivery of
govennemtal services and otherwise addresses the issue of Maine's
overall tax burden.
Elements of the recommended initiative:
• Require the smteto increase its financial support for elementary and
secondary public school education. Specifically, require the state to fulfill the
long -neglected legislative "immtion" to pay 55% of the can of K-12
education.
o Currently (m PY 02) the state paid $702 million in General Purpose
Aid to Education (OPAL or 416% of the total. The property tax
contribution was 3909 million, or 56.4% of the total.
02-384 L
c To bring the state from the 43% to 55% level represents a shift of
approximately $200 million off Me property tax.
o In 2002, the property tax generated$ 1 A billion of revenue. $200
million in reduced property taxes represents statewide property tax
relief of nearly 15%.
■ As part of the state obligation to provide 55% of the cost of K-12 education,
the state would also be obligated to pay 100% Of the costs ofspecial education
services mandated by state or federal law.
o Special education services are extremely expensive, unevenly provided
access the state, and seriously underfunded, especially by the federal
government that initiated the mandates.
o In FY 01, approximately $95 million worth ofurpeimbursed,
mandated special education services were provided with property tax
dollars.
o Requiring 100% reimbursement for special education mandates serves
to provide property tax relief even in Race "low receiver'
municipalities that do not get much financial support for education
through the GPA formula.
• Food for Me Efficient Delivery of Educational Services. 2% of the total
=net appropriation for K-12 education required by this initiative
(approximately $18 million) would be dedicated to a fund that would provide
entive-based support m school adminishative units that make changes in
structure or policy that deliver significant and sustained cost savings in the
delivery of educational services.
• Fond for Me Efficient Delivery of Local and Regional Services. A parallel
fund would be established in the municipal revenue sharing system whereby
2% of that existing funding would be dedicated to an incentive-bosed fund to
stimulate intermunicipal, and municipal -county collaborations.
IS Comprehensive tax burden management plan. The Legislature would be
directed to develop a comprehensive tax burden management plan that would
integrate the efforts at tax burden reduction across all lines of state, regional
and local government.
Plene feel free to refer questions or seek further information by contacting the Tax
Reform Steering Committee Chair Dana Lee at 20-345-2871 or MMA staff Cbris
Lockwood, Ie9Nevins, Geoff Herman or Mike Stam at t-800-452-8786.
for Tax Reform
Intense concerns about rising
pmpeny taxes. wide and Input.
dicuble swings in short-term state
ingtie Pr jections, and an impend-
long term `stmcmral state deb
" that will stall the $1 billion short
fall of 1991 are getting a lot of folks
'talkingabetalk' these days on earn -
protractive tan reform.
The Maine Municipal Astoria.
on has been pushing the Legisla-
te for comprehensive to, reform
most of the part decade, since the
Illeasnon of 1991 gave A harsh dem-
tof the inadequacies of
Maine'eax Ode and how the prop -
evil is osed as a backap make
up for mm
those l Ad,gvacles.
It now appears that MMA is going
to be taking the next step and "walk-
in, the-walk"by advancing a tax re-
form proposal a citizen Incurred.
Developed As A unanimous mc-
mdation of an 18 -member Tax
Reform Steering Committee spe-
cially appointed by MMA's President
Gary lvo m, the three-page sex re-
form
nfarm initiative has now been ap
-
proved,also with unanimous rap-
port, by both MMA', ]Amemher Leg-
islative Policy Committee anti the
Associations Executive Committee.
Going the Onto of citizen-inki-
ted me reform is certainly new
ground for the Association, and Ibe
leaden in Maines towns and cities
weighed their options very carefully
before making the decision. Even
there is one more decision-
making hurdle that needs to jumped
before the final green light is given
to this effort, and that wfl be the yore
Of fall membership at MnIA's arcual
convention m October. The steps
that were taken that led to the devel-
opment of the in, reform initiative
are encapsulated az a side bar As Ebb
article.
THE MMA PROPOSAL
Relief, Reform, Restructuring,
and Reduction are the key elements
of the initiative developed by MMA'a
Tax Reform Steering Committee.
The proposal will provide aubatan-
tid property tax relief ,compel com-
Richensivetax reform.createinvest
-
ral changes to
achieve efficiencies in the delivery
of governmental services, and ccons.
plish the development of an anion
plan to address Maine'a overall tax
burden. If adopted by the wore(, the
MMA proposal would:
• Require the state to provide
$200 million more per year in finan-
cial support for public education.
This requirement will relieve the
overburdened pmpeny sex, Fulfill
longstanding promise of state gov-
t
apportion the appropriate
financial <l responsibilities m light of
the relentless unfunded educa-
nalmandates that come out ofAu-
gusto and Washington, and force a
restructuring of Maine's tax code.
• Create two parallel funds de-
signed
esigned to obtain long-term of icim,
gionan the delivery of local and re-
l educational and governmen-
in[ services.
• Direct the Legislature t
adopt A comprehensive tax burden
management plan Mat will integrate
the schools of sun, county. local gov-
ammonia and schools En r,once un-
necessary spending, identify civil sav-
ings in the delivery of governmental
G5
By Geoff Herman, MMA Director
of Slate & Federal Relations
services and otherwise address the
Issue of Maine's overall tax burden,
Specifically, the three-pageini
a -
t would provide:
u Relief anti Reform, The iniim
live would require the state to in.
crease is financial support for ementary and secondary public
school education by obligating the
Legislature to fulfill the long-ne.
glened legislative 'imentioti to pay
55% of the coat Of K-12 education.
• The 55% state cost -share for
public education is not new public
policy. For over 30 years the State has
promised to pay At least a majority
share of R -I2 education, but that
promise has never been honored.
Since 1985. the legislative -mten-
ared in Maine Law has ben Is
pay 55% of the total educational alb
Carron. The MMA initiative would
rely make the
state
longstanding obligation legally em
forceable.
• In PYO2, the nate paid $702
million in General Purpose Aid to
Education (GPA), or 43.6% of the
oral. The property D, contribution
az $909 million, or 58.4% of the ar,
lal.
• To lift the states contribution
from 43% m 55% of the total would
provide $200 million of peoperry ux
relief every year.
• m 2002, me property sex gen-
aad $1.4 billion of revenue. $200
million in reduced property taxes
represents statewide property wt re-
hey
telief of nearly 15%.
Special Education. Aa part of the
metobligation provide 55% of
cO cost of R-12 education, the state
would also be obligated under this
ALVN£TOWMdLIN AugusddywwAvkx 2002 5
teinpay 100% of the of...
special dtion, wnies mandated
by orate on federal law.
• Special education aerAces are
extremely expensive, unevenly pro.
Aided across the state, and seriously
underfunded, especially by the fed-
eral governmect which enacted the
mandates and then passed the tests
along to the property tax.
• In FYOI, approximately 195 mil.
lion worth of ",reimbursed, man-
dated special education send... were
provided wash pmpeny tax doUrns.
• Requiring 100% reimburse.
N for special education mandates
to provide property tax relief
even n those 'lou
receiver
palii es that do notget much crucial
support for education through
the GPA form,],.
Requiring the Legislature t
fully fund its obligation to K-12 Adu-
capon ould compel a Irng.overdo,
unag of Maine'a taxcode.
Over the past 20 years, there have
been numerom studies and reports
issued by tax experts, special com
missions and blue ribbon pane6 that
outline the steps that should be
made to improve Maine's tax code to
achieve grant, fairness, balance,
and predictability of state revenues.
NIMA has adA..red or supported use,
Na[ comprehensive to, reform pro-
posals that have been rejected by the
Legislature. The essential compo-
s of comprehensive tax reform
us wen known. This initiative would
compel their implementation.
Restructuring. Funds will be sal
aside for the efficient delivery of lo-
cal and regional rascal ... I and
governmental services, 2% of the to
tal annual appropriation for K-12
education required by this initiative,
about $18 million annually, would be
dedicated to a fund that would pro-
vide i e ve-based support t
school administrative units that
make changes in structure or policy
mat deliver significant and sus-
ed'ned cost avings in me delivery Of
ucational services. A parallel fund
Would be established in the munici.
pal revenue sharing system whereby
2% of that existing funding would be
dedicated to a, incentive -based
fund to stimulate intermunicipal,
and municipal regional collat,ci
lion,
Reduction.
onReduction. The third major ele-
ment of this initiative a a Compre-
hengi.e Tax Burden Management
Plan that world dutcL the Legisla-
sure to develop and adopt a compre-
hensive tax burden management
plan thatwould integrate the efforts
regiovings act=all lines of state.
nal and local government and
implement other strategies to guide
the citizens of Maine and their star,
and local legislatures toward a lower
overall tax burden.
NEXT STEPS
On Thursday, Aµgus. 22, MMA's
70memberLsgislam, P,I... Com-
mitme z,pp...ed the
continued as anslyncemcnt of this to
reforme
As mentioned
above, final step in the approve]
process I, scheduled to occur at
MMA's annual mm'ention on Octo-
ber 1T" in Bangor ashen delegates
from All 492 rl the Association',
ember municipal hies will have an
opportune so vote on moving for-
ward with the signamtegathenng eL
fort that will be necessary to bring
this initiative before the Legislature
and, ultimately, the voters of>laine.
Much work must be done be
Convention. MMA
will be seeking collaborations with
other groups who are egnalle cam
a -
¢ed to comprehensive tax reform.
A political action committee (PAC)
will be formed to oeompass the
wider group of supporters and fully
account for the financial effort to ad
cause this proposal to the eaters)
Aryouc-Seneether 2Wd MAI TOWNSMAN
:I.
public. The mecbaaica of gatherir.
50,000 -plus signatures on a citize
petition will be organized. ready
be implemented in mid-October.
But most importantly. MMA tri
be making sure municipal of icia
across the State are fully informe
about the derail, of this proposal an
aware of the effort that will be nece
sary to more this tax reform plan int
the public areas.
For that purpoe. MMA has run
AcUtEed to at least 17 regional met
m g, to be Feld throughout main, I
September and early October so the
icipal and other local official
an become completely familiar wit
this tax reform proposal and leer
more about hose they can help in it
promotion. A schedule of thos
meetings is provided in a aideba, b
i
th title.
All municipal officials
strongly encouraged to mark then
calendars and plan to attend the re
gional meeting in their area. Prop
Wit tax relief, state revenue stabilit
and prednobllity, marprehensto
reform, burns cost savings ,
the delivery of governmental se
and developing is plan to ad
d ass Maine's overall tax burden ars
all issues of primary concern to mo
icipal government and we need III
full involvement Of town and ct
leaders from all Elie communitiesi,
order to bring about the changes thz
om
ted be made in the best interest
ofthe seta. IM
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02-386
Developing the Tax Reform Proposal
1980-2002. Year of erwear, Madame leaders and appointed municipal Officials idmnfy the Sute•s
ower-rcliance on due properry tax as Ne issue of highest prioriryand maximum concert, with no close second.
chatty Of the auacmble problems municipal officials grapple with find their mol origin in the property tax burden
— problems like residential and commcaial dislocation, development pressure on open land, highly disparate
property tax mill rates among municipalm,, and the immili ry to put she i em osuuc rare in place W suppose growth
andeconomkdeuxlopmenr Taxrefosm M1azbeen she cmmopiece plank in MMA'slegislatim agendad mughtem
the 1990 sand into the4P'Cenwry. SurrryaRer,m miolatmey places the issues of execution as the urgent top
pr
1980-2002. The deep history of MMA's imnlvement with comprehensive tax reform also includes the am
mutant legislative studies, commissions, bluoribbon panels and wk forces the Association has oburn{ ca r-
Iosced, padmirttM in, advanced or supported overthe len 20, ems, All of those studies and reposes define the
hinderemat problems with Maine's ox code similarly, mxr-reliance on the foundry tax, highly unpredictable
narrow sales six base and a steep income tax ram sum; We: that contributes mwlauliry. The net
effect of these studies, commissions, task forces and refund, hoxmeq has been neglible.
1996-2002. Public opinion polis commiaioned by NINIA in 1996 and earlier this yearpreide overwM1elming
onfim nation that the general public is also mry, concerned about he preume on theproperrytaxantlunabazh-
Codysupportiveofcomprehensivetaxreform.
1997. NINA advanced LD IM, An Ad to Comiusem iue(y Ramign Ne TaxgWnurc afWSare which was rejected
by the Legislature.
1998. The 57,000 homes ¢ad propefry not axe caption, strongly supported by M>IA, was enac ted by the Ughe
lamre. The homestead exemption provides W million of property w re0ish representing nightly less Nan a 3%
reduction in property six burden for Maine residents. During Ne fouryeare since the creation of the homestead
exemption, some legialamrs and some members of Governor King's administadon have leveled criticism at
municipal officials par'gobbiingup" the benefits of the homestead exemption through increased (and, br drpli-
aur scary) local spending.
1999. MYW advanced M 1940, An Ad to OraeScrdmdsg(Vig dmufter Crain TaxEttmfr gpmeraraay which
T az rejected it the Legidamre.
2000-2002, AlongwiN the prime sponsor, lisp. Barney MCGaxan(Passfield),YINIAstmnglysupponedW
2086, An Ad Idwil mm[WPscontmmdasiou afffeEducatiaTFmidiagRgOw, Cummins. This legislation would have
sent
to the voters a comprther am rex a reform package Nhave az would haestablished a limit on property tares for K-
12 education and dimmed the Legislature to expand the bare of Ne sales tax and address ammIrs sup income we
users tie, The Legislature jetted this mx"form proposal, refining or send it w the voters az a referendum.
\Toch of the debate on this legislation focused on the nobility of the Legislnwre to enact comprehensive bar re
-
formoninteaminitu've(see April 2002 Maine Tatuvmun).
May 2002 Mer the Legislature adjourned in late April, MDhA's ]Omember Lcguladve Policy Committee
(111C) regrouped for its Wt meeting before Ne NO2 LPC elections. At that meeting, the LPC ururmnoudy
adapted and unummi rad a recommendation to the Association's Executive Committee that due governing board
she Ne sake necossetuyu, develops tax reform proposal to be advanced as a dozen rmtiative,
July 2002, NLWA's 2004-2004 Legislative Policy Committee is elected,
Jose -August 2002. An 18 -member Tax Rekrm Starting Wmmince, speriallyappointed by MMA's president
Gary Bram, convened four times during this two mon th pe diad. Using sm'eml proposals az working models, the
Steering Cornu cast handcrafted id recommended six reform in a.OnAugust15,2002,sheSaetingCm-
o
miaeerated its cumbrous support for the firW prepare] and abort ed it to the Assocvuon anewtyelectedLeg-
isUdve Policy Committee.
August 7, 2002, MNW's l2 -member Executive Committee wanimomly endoras the work of the Text Reform
Steering Comm, nee and amhoores MMA's Preside m, the Chaitpenon of the Tax Reform Steering Cgmminee
and NOIR s Executive Director to rake whatever action necessary to advance the final recommendations of tho-
Steering Committee and the Legislative Pohry Commhme
August 42, 2002. MNA's 7Omember LPC re ieeed she initiative developed by Ne Steering Committee and by
unanimous role recommend that the Aawciadon'sExecmhe Committee proceedxith the adommememodre
"NE TOWNSILN Auguste Nprwarge 2" 7