Cutler Property Tax Relief Plan

PO BOX 17766 PORTLAND, MAINE 04112 207.358.7000 AUTHORIZED BY THE CANDIDATE AND PAID FOR BY CUTLER FOR MAINE

PROPERTY TAX RELIEF

20-40% Property Tax Cuts for Maine Residents $100 Million Increase in State Funding for Towns and Cities

$75 Million Increase in State Education Funding $10 Million Increase in Branding and Marketing Maine

Maine’s tax system, which has been described as “some combination of imbalanced, burdensome,

unfair, uncompetitive, complex, archaic, and volatile,” badly needs a reboot. Maine people suffer

because the tax system we have is neither smart nor fair.

Nowhere are these deficiencies more evident than in property taxes.

The property tax is Maine’s most regressive tax and most highly stressed revenue source. It is the

only tax that local officials can use to raise revenues that pay for local services like education,

police and fire protection, and the maintenance, repair and plowing of roads and streets. When the

state cuts back on revenue sharing or fails to meet its education funding commitments, or when a

tough winter blows out the public works budget, Maine towns and cities get squeezed and

property taxpayers take the hit.

Property taxes increasingly place a disproportionate burden on particularly vulnerable groups of

Mainers. Today, some 28 percent of Maine households pay more than 6 percent of their income in

property taxes; 11 percent of Maine households pay more than 10 percent of their income; and 3

percent of them pay more than 20 percent of their income. Seniors on fixed incomes, students in

underfunded schools, farmers who are pushed off their land and fishermen who are driven from

the shore are all among the casualties of Maine’s growing dependence on property taxes.

Tax reform should start where relief is most urgently needed. The structural reform in this plan

would release Maine residents from the choking grip of outmoded and unfair property taxes;

unburden Maine cities and towns; free funds for investment in education and tourism promotion;

www.eliotcutler.com/taxes


and fuel new growth and job creation in the Maine economy.

The principle features of the Property Tax Relief plan include:

• Improved tax fairness for low and middle income Mainers.

• Exported tax burdens target benefits to Maine residents.

• Economic stimulus from more discretionary dollars in Mainers’ pockets and better marketing.

• Increased state funding for education.

• Funding for towns and cities is increased and more certain.

• Municipalities rewarded for more collaboration.

Meaningful tax reform is hard work and not without political risk. By tackling Maine’s most

onerous and regressive tax first, the Cutler Administration will demonstrate the value of political

independence; will show that tax reform can be accomplished and will stimulate economic activity

in Maine; and will set the stage for further reforms that can make Maine’s entire tax system smart,

efficient and fair to all Maine people.

WHAT IT DOES More than a third of Maine homeowners with incomes under $40,000 pay more than 10 percent

of their income in property taxes. This is an unfair burden. This plan takes a serious approach to

property tax relief and fairness while providing more support for the municipal and educational

services delivered by Maine’s local governments.

1. Property Tax Relief. The centerpiece of the Property Tax Relief plan is an increase

in the homestead exemption that would lower property taxes by 20 to 40 percent for the average

Maine homeowner. The homestead exemption would increase from $10,000 to $50,000, up to

50% of the assessed value of a Maine resident’s primary residence. No matter the homestead

value, the minimum exemption would never be less than $12,000.

Just about every Maine resident would get significant property tax relief under this reform, with

more substantial reductions in the case of homesteads valued closer to or less than the median

value. Compared with traditional revenue sharing, which provides 10 times as much tax relief (in

dollar terms) to a $1 million home as it does to a $100,000 home, this plan would target relief to

those who need it the most.

For example, for a home worth $171,600, the median value in Maine, property taxes would be

imposed on only $121,600 of that value. Depending upon the location of the home, the owner’s

annual tax savings under the Property Tax Relief Plan would range from about $400 in lower tax


rate communities to over $700 in higher tax rate communities (See Table 1). In some

communities, tax relief would approach $1,000.

The percentage reduction for higher valued homes would be less than it is for lower valued homes.

For example, the estimated property tax on a $400,000 home in South Portland would drop from

$6513 to $6090, a savings of 6 percent. The estimated property tax on a $750,000 South Portland

home would drop by 1 percent, from $12,358 to $12,180.

Here are examples of how the Property Tax Relief plan would affect property taxes on homes in

various Maine communities:

• Estimated property taxes on a $125,000 home in Lewiston would drop $875 from $3065 to

$2190, or by 29 percent.

• Estimated property taxes on a $90,000 home in Caribou would drop $675 from $1640 to $965,

or by 41 percent.

• Estimated property taxes on a $160,000 home in Brewer would drop $740 from $3138 to


• Estimated property taxes on a $220,000 home in South Portland would drop $549 from $3507

to $2958, or by 16 percent.

• Estimated property taxes on a $55,000 home in Millinocket would drop $499 from $1348 to


• Estimated property taxes on a $150,000 home in Sanford would drop $744 from $2968 to


• Estimated property taxes on a $135,000 home in Belfast would drop $682 from $2621 to


The expanded homestead exemption would be simple to administer, as it already is being done on a

smaller scale.

2. Revenue Rebates for Towns and Cities. Coupled with the increased

homestead exemption in the Property Tax Relief plan would be new Revenue Rebates for Towns

and Cities that would increase state financial assistance to $185 million from $85 million in

FY2015 (including revenue sharing and current homestead reimbursements).

Funds distributed through traditional revenue sharing are widely diffused and poorly targeted.

For example, a considerable portion of the tax relief associated with traditional revenue sharing

benefits non-resident property owners and resident owners of very expensive homes.

The new Revenue Rebates plan would better target benefits to Maine residents, particularly those

who own more modest homes.


In place of Maine’s traditional revenue sharing, Revenue Rebates would reimburse towns and

cities for most of the lost revenue from the enlarged homestead exemption. Communities with

low property values per capita, or with the highest property tax rates on their residents, would be

95 percent reimbursed for the lost revenues (estimated cost: $115 million). Communities with

very high property values per capita and very low existing tax rates would be reimbursed for 50

percent of lost revenues (estimated cost: $59 million). Most communities’ rebates would fall

somewhere between 50 and 95 percent.

The plan would result in small increases in the property tax rate in most communities. The increase

averages about .56 mil, or $0.56 per $1000 of property value.

• The impact of the slight mil rate increase would be more than offset for the typical Maine

homeowner by the Property Tax Relief and is fully accounted for in the property tax estimates

for individual Maine residents that are set out by municipality in the calculator at

www.eliotcutler.com/PropertyTaxRelief and for median home values in the Table 2.

• Notwithstanding the small increase in mil rates, most Maine resident homeowners would see

property tax cuts of between 20 and 40 percent on their primary residences.

• Non-residents would see modest property tax increases, as would some commercial taxpayers.

• The amount of revenues that would need to be restored through tax increases is highly

concentrated in those communities with a larger tax base from which to make up the

difference. Even in those communities, however, resident taxpayers would be much better off than they would be without the new program.

3. Collaboration Rewards. Maine taxpayers know that their local governments can provide

services more efficiently by collaborating with each other, but they don’t want the state telling

them where and how to do it.

A voluntary Collaboration Rewards plan would make available bonus Revenue Rebates for towns

and cities that establish an approved regional service delivery plan and timetable. Collaboration

Rewards would make available to those municipalities additional Revenue Rebates of up to 5

percent of their lost revenues from the Property Tax Relief plan (estimated cost: $11 million).1

These supplemental reimbursements would be distributed among municipalities that

demonstrate progress in achieving the objectives of their regional service delivery plan.

4. Small Business and Farm Fairness Adjustment. Small businesses and farms are the

backbone of the Maine economy, and many are struggling with rising property taxes.

A new Small Business and Farm Fairness Adjustment would shield smaller businesses and farms

1 Calculator at www.eliotcutler.com/PropertyTaxRelief assumes that each municipality would participate in the Collaboration Rewards plan


against the small rate increases that could result from the expanded homestead exemption.

If property taxes exceed 6 percent of the net income of a small business or farm, the Fairness

Adjustment would reimburse $1.00 per $1000 of valuation up to $2 million of property value,

paralleling the eligibility rules for the existing individual property tax fairness credit. Here are

three illustrations of how the Fairness Adjustment would work:

• Family Farm in Fort Fairfield. The enlarged homestead exemption would increase the tax

rate in Fort Fairfield from $23.00 to $23.86 per $1000 (see Appendix). If the owner of a

$450,000 family farm doesn't participate in the existing farmland program nor claim the new

homestead exemption, the farm would face a tax increase of $387. As long as the total property

taxes of the business would be more than 6 percent of its net income, the owner would be

eligible for a Fairness Adjustment of $450, fully making up for the tax increase. • Auto Repair Shop in Skowhegan. The enlarged homestead exemption would increase the

tax rate in Skowhegan from $16.40 to $17.07 per $1000. The owner of a $650,000 auto repair

shop would see her property taxes go up by $436. As long as the total property taxes of the

business would be more than 6 percent of the net income of the business, the owner would be

eligible for a Fairness Adjustment of $650, more than offsetting the tax increase. • Apartment Building in Bangor. The enlarged homestead exemption would increase the tax

rate in Bangor from $20.80 to $21.77 per $1000. The owner of a six-unit $325,000 apartment

building would see an increase in property taxes of $315. As long as the total property taxes of

the business would be more than 6 percent of its net income, the owner would be eligible for a

Fairness Adjustment of $325, fully mitigating the tax increase.

5. Education Challenge Fund. A new $75 million Education Challenge Fund will increase the

state’s share of education funding, bringing it closer to the 55 percent contribution required by

law but never met, providing additional assistance to local schools, and further reducing the

burdens imposed on local property taxpayers. (Additional details on this Fund and education

funding in general will be described in an education reform initiative to be presented later this

spring.)

6. Marketing Maine Trust Fund. Growing Maine jobs and incomes will require an expansion of

Maine's export markets, where the tourist experience is Maine's biggest and most economically

significant export. Maine is a mythic state, but our brand is largely undeveloped and our

marketing has been chronically underfunded.

In order to develop an umbrella brand for Maine that will last for decades, either 33 percent of the

incremental revenues from a permanent 8 percent tax on meals and lodging or $10 million

annually from a 6 percent sales tax (see below) would be reserved for a Marketing Maine Trust


Fund, effectively doubling Maine’s annual expenditures for promoting and marketing the state.

PAYING FOR THE PLAN These structural reforms in Maine’s tax system should be revenue neutral, and the Cutler

Administration will present two options to the Legislature for achieving revenue neutrality. The

Cutler Administration will work closely with the Legislature to determine which plan, or other

possible alternatives, would work best for Maine.

Option 12

Multiple components together would raise an estimated $180 million to pay for the reforms.

Though more complicated, this option is designed to maximize the export of Maine’s property and

sales tax burdens; it would draw more revenues from the millions of non-residents who spend

time in the state.

• Adopt a seasonal sales tax rate of 7 percent from May 1 through October 30, excluding auto

sales and building materials, and a rate of 5 percent during the rest of the year. (Estimated

additional revenue: $90 million)

• Make permanent the current 8 percent sales tax on meals and lodging, with one-third of

revenues reserved for the Marketing Maine Trust Fund. (Estimated additional revenue: $30

million)

• Extend the sales tax base to include amusement and recreational services, such as golf, skiing,

bowling, theatre tickets and amusement parks. (Estimated additional revenue: $20 million)

• Collect sales tax for online purchases by joining with other states in the streamlined sales tax

compact. (Estimated additional revenue: $20 million)

• Increase real estate transfer tax from 0.44 to 1.00 %. The tax would be offset by a 50% tax

credit on the first $200,000 of the sales price of homes used as primary residences. (Estimated

additional revenue: $20 million)

Option 2

This option would adopt a straightforward one percent increase in the sales tax rate – on the

existing base plus online purchases – from 5 to 6 percent. It would affect residents and non-

residents the same year round. (Estimated additional revenue: $180 million)

2 Both Option 1 and Option 2 include $15 million in savings from the current individual property Tax Fairness Credit.

PRELIMINARY IMPACT ANALYSIS Property Tax Reform Plan

Prepared for Cutler for Maine April 10, 2014

Richard Woodbury 174 Oakwood Drive

Yarmouth, ME 04096 [email protected]

207-847-9300

Home Value Now Plan Savings Percent Now Plan Savings Percent Now Plan Savings Percent

$50,000 $471 $304 -$167 -35% $635 $412 -$223 -35% $821 $533 -$288 -35%$75,000 $765 $456 -$309 -40% $1,032 $618 -$414 -40% $1,334 $800 -$534 -40%

$100,000 $1,059 $608 -$451 -43% $1,428 $824 -$605 -42% $1,847 $1,067 -$780 -42%$125,000 $1,354 $912 -$442 -33% $1,825 $1,235 -$590 -32% $2,360 $1,600 -$760 -32%$150,000 $1,648 $1,216 -$432 -26% $2,222 $1,647 -$575 -26% $2,873 $2,133 -$740 -26%

$171,600 $1,902 $1,479 -$423 -22% $2,565 $2,003 -$562 -22% $3,316 $2,594 -$722 -22%

$175,000 $1,942 $1,520 -$422 -22% $2,619 $2,059 -$560 -21% $3,386 $2,666 -$720 -21%$200,000 $2,236 $1,824 -$412 -18% $3,015 $2,471 -$545 -18% $3,899 $3,200 -$699 -18%$250,000 $2,825 $2,432 -$393 -14% $3,809 $3,294 -$515 -14% $4,925 $4,266 -$659 -13%$300,000 $3,413 $3,040 -$373 -11% $4,602 $4,118 -$485 -11% $5,951 $5,333 -$618 -10%$500,000 $5,767 $5,472 -$295 -5% $7,776 $7,412 -$365 -5% $10,055 $9,599 -$456 -5%

Additional information on the data, methodology, and reported impacts is provided at the end of the report.

Impact on Property Taxes

The median value of a home in Maine is about $171,600 (source: www.city-data.com).

Low Rate Municipality Middle Rate Municipality High Rate Municipality

Impact on Property Taxes Impact on Property Taxes

IMPACT OF REFORMTABLE 1

BY HOME VALUE AND TAX RATE

The one-third of homeowners with the lowest property tax rates pay an average tax rate of 11.77 mils. Though their average rate would rise to 12.16 mils, a typical homeowner in these communities would save about $400 in property taxes.

The one-third of homeowners with mid-range tax rates pay an average tax rate of 15.87 mils. Though their average rate would rise to 16.47 mils, a typical homeowner in these communities would save about $550 in property taxes.

The one-third of homeowners with the highest property tax rates pay an average tax rate of 20.52 mils. Though their average rate would rise to 21.33 mils, a typical homeowner in these communities would save as much as $700 in property taxes.

MedianMUNICIPALITY Now Plan Now Plan Home Now Plan Change

ABBOT $36,290 $94,329 12.65 13.05 $108,497 $1,246 $763 -39%ACTON $124,278 $255,341 11.10 11.53 $261,345 $2,779 $2,379 -14%ADDISON $68,091 $194,804 12.50 12.82 $106,807 $1,210 $728 -40%ALBION $120,945 $387,321 14.50 14.77 $143,380 $1,934 $1,379 -29%ALFRED $173,066 $423,375 13.75 14.27 $194,087 $2,531 $2,056 -19%ALNA $61,885 $205,125 22.65 23.21 $167,843 $3,611 $2,921 -19%ALTON $35,857 $91,312 9.75 10.03 $119,743 $1,070 $700 -35%ANDOVER $43,883 $139,340 14.50 14.72 $116,875 $1,571 $1,095 -30%ANSON $240,901 $547,260 19.60 20.35 $77,055 $1,314 $784 -40%APPLETON $103,769 $355,596 16.65 16.90 $164,871 $2,579 $1,942 -25%ARUNDEL $224,509 $439,317 14.50 15.26 $234,856 $3,260 $2,822 -13%ASHLAND $171,594 $304,972 23.25 24.34 $71,378 $1,455 $869 -40%ATHENS $63,577 $145,604 17.60 18.02 $86,182 $1,341 $777 -42%AUBURN $2,162,769 $4,187,337 20.43 21.41 $160,012 $3,065 $2,355 -23%AUGUSTA $1,526,389 $2,431,941 18.15 19.19 $135,520 $2,278 $1,641 -28%BAILEYVILLE $145,793 $247,532 21.70 22.23 $87,611 $1,699 $974 -43%BALDWIN $75,769 $106,935 11.50 12.22 $166,997 $1,805 $1,429 -21%BANGOR $2,806,175 $4,408,907 20.80 21.77 $148,317 $2,877 $2,140 -26%BAR HARBOR $178,384 $266,700 10.01 10.22 $239,715 $2,299 $1,939 -16%BATH $744,079 $1,458,305 19.64 20.26 $168,491 $3,113 $2,401 -23%BELFAST $488,168 $1,072,283 20.80 21.54 $134,239 $2,605 $1,923 -26%BELGRADE $140,092 $263,038 11.95 12.41 $181,092 $2,045 $1,627 -20%BELMONT $36,429 $115,855 13.80 13.99 $105,944 $1,352 $923 -32%BENTON $120,507 $451,857 13.10 13.19 $145,930 $1,781 $1,265 -29%BERWICK $499,563 $904,311 16.05 16.96 $206,263 $3,139 $2,591 -17%BETHEL $120,103 $192,017 12.30 12.80 $182,170 $2,118 $1,692 -20%BIDDEFORD $1,496,170 $2,136,732 17.53 18.29 $224,215 $3,755 $3,187 -15%

IMPACT OF REFORMBY MUNICIPALITY

This table estimates the impact of Eliot Cutler’s property tax reform proposal on municipal aid, tax rates, and property tax amounts for a median-valued home in every Maine community that has at least 200 homesteads. Additional information on the data, methodology, and reported impacts is provided at the end of the report.

Municipal Aid Tax Rate Impact on Taxes

TABLE 2



BINGHAM $92,793 $198,135 20.20 20.78 $66,949 $1,150 $695 -40%BLAINE $65,216 $155,829 22.50 23.39 $64,523 $1,265 $754 -40%BLUE HILL $74,607 $135,464 8.40 8.61 $281,464 $2,280 $1,993 -13%BOOTHBAY $94,837 $181,789 8.40 8.58 $247,220 $1,993 $1,693 -15%BOOTHBAY HARBOR $64,989 $105,218 10.95 11.14 $184,873 $1,932 $1,591 -18%BOWDOIN $147,991 $374,347 13.00 13.46 $162,846 $1,987 $1,519 -24%BOWDOINHAM $195,415 $552,700 15.40 15.82 $194,242 $2,837 $2,282 -20%BRADFORD $88,305 $258,320 18.70 19.14 $126,818 $2,184 $1,471 -33%BRADLEY $88,204 $175,869 13.50 14.06 $130,886 $1,632 $1,137 -30%BREMEN $33,252 $72,266 10.70 11.09 $242,655 $2,489 $2,136 -14%BREWER $812,272 $1,748,853 20.92 21.80 $166,087 $3,265 $2,531 -22%BRIDGTON $299,794 $529,038 13.53 14.04 $199,505 $2,550 $2,029 -20%BRISTOL $63,050 $116,098 7.70 7.84 $182,560 $1,339 $1,095 -18%BROOKLIN $19,497 $35,565 6.60 6.70 $202,532 $1,275 $1,043 -18%BROOKS $66,130 $192,293 16.50 16.79 $134,510 $2,054 $1,419 -31%BROOKSVILLE $18,515 $28,839 4.80 4.86 $237,082 $1,090 $910 -17%BROWNFIELD $93,221 $209,811 13.90 14.52 $152,855 $1,986 $1,494 -25%BROWNVILLE $112,389 $239,067 18.30 19.13 $81,579 $1,310 $780 -40%BRUNSWICK $1,471,672 $2,880,874 26.54 27.74 $136,528 $3,438 $2,816 -18%BUCKFIELD $176,927 $538,504 21.30 21.75 $140,815 $2,786 $1,975 -29%BUCKSPORT $247,148 $366,573 13.56 14.10 $113,687 $1,406 $898 -36%BURNHAM $81,103 $240,874 16.56 16.77 $115,963 $1,755 $1,106 -37%BUXTON $376,211 $803,728 12.50 13.12 $217,105 $2,589 $2,193 -15%CALAIS $321,674 $682,793 25.30 26.23 $88,991 $2,009 $1,167 -42%CAMDEN $257,204 $403,636 14.04 14.44 $267,991 $3,622 $3,147 -13%CANAAN $150,426 $368,724 16.20 16.75 $111,129 $1,638 $1,024 -37%CANTON $87,503 $233,129 21.20 21.73 $103,474 $1,982 $1,162 -41%CAPE ELIZABETH $644,954 $1,250,312 16.28 16.87 $339,247 $5,360 $4,878 -9%CARIBOU $814,731 $1,665,367 20.50 21.45 $91,041 $1,661 $976 -41%CARMEL $170,159 $458,194 13.65 14.01 $143,798 $1,826 $1,314 -28%CASCO $206,086 $317,656 14.25 14.83 $194,528 $2,630 $2,144 -18%CASTINE $42,373 $53,663 9.30 9.52 $435,283 $3,955 $3,666 -7%CHARLESTON $77,247 $186,555 13.69 14.15 $126,818 $1,599 $1,087 -32%CHELSEA $205,370 $659,500 18.40 18.79 $147,752 $2,535 $1,836 -28%CHERRYFIELD $82,250 $237,369 19.30 19.55 $104,809 $1,830 $1,071 -41%CHESTERVILLE $71,943 $216,079 15.60 15.88 $92,840 $1,319 $815 -38%CHINA $244,090 $775,017 14.10 14.39 $179,817 $2,394 $1,868 -22%



CLIFTON $45,636 $92,641 12.60 13.19 $142,560 $1,670 $1,221 -27%CLINTON $222,400 $609,414 17.00 17.42 $88,484 $1,334 $771 -42%CORINNA $163,213 $416,413 17.00 17.59 $113,588 $1,769 $1,163 -34%CORINTH $145,413 $483,939 13.90 14.15 $134,247 $1,727 $1,192 -31%CORNISH $76,542 $108,993 12.50 13.31 $192,917 $2,286 $1,902 -17%CORNVILLE $74,933 $193,061 17.00 17.43 $111,389 $1,741 $1,157 -34%CUMBERLAND $582,622 $1,126,145 17.00 17.66 $340,152 $5,613 $5,125 -9%CUSHING $75,733 $110,277 11.00 11.42 $181,322 $1,885 $1,500 -20%DAMARISCOTTA $139,516 $236,220 15.10 15.77 $252,137 $3,656 $3,189 -13%DAYTON $140,091 $354,067 18.47 19.26 $219,375 $3,889 $3,378 -13%DEDHAM $96,553 $194,247 15.43 16.22 $190,425 $2,784 $2,277 -18%DEER ISLE $63,807 $164,781 22.82 23.58 $117,515 $2,552 $2,099 -18%DENMARK $51,716 $75,829 8.98 9.27 $187,754 $1,596 $1,276 -20%DETROIT $55,484 $125,093 13.67 14.12 $93,958 $1,148 $663 -42%DEXTER $287,458 $588,857 15.40 16.01 $96,396 $1,330 $772 -42%DIXFIELD $262,565 $636,864 19.30 19.95 $114,582 $1,999 $1,189 -41%DIXMONT $55,104 $183,473 11.00 11.15 $153,119 $1,563 $1,094 -30%DOVER-FOXCROFT $328,606 $725,689 17.65 18.21 $118,352 $1,912 $1,245 -35%DRESDEN $91,623 $294,969 15.00 15.28 $148,543 $2,093 $1,583 -24%DURHAM $212,254 $582,913 14.95 15.51 $223,351 $3,190 $2,688 -16%EAGLE LAKE $57,284 $115,662 13.90 14.44 $109,701 $1,386 $862 -38%EAST MACHIAS $95,251 $280,196 15.75 16.10 $114,184 $1,641 $1,034 -37%EAST MILLINOCKET $206,271 $366,272 21.93 22.74 $64,132 $1,187 $729 -39%EASTON $51,253 $64,663 16.00 16.41 $45,314 $626 $372 -41%EASTPORT $155,104 $393,354 23.00 23.52 $117,769 $2,479 $1,594 -36%EDDINGTON $141,835 $561,066 18.10 18.19 $150,342 $2,540 $1,826 -28%EDGECOMB $62,870 $102,364 13.15 13.67 $218,358 $2,748 $2,343 -15%ELIOT $339,063 $535,079 13.17 13.81 $289,668 $3,683 $3,309 -10%ELLSWORTH $512,926 $871,889 16.05 16.74 $167,713 $2,531 $1,971 -22%EMBDEN $55,335 $97,011 12.46 12.92 $121,821 $1,393 $928 -33%ENFIELD $121,607 $247,203 16.00 16.56 $121,335 $1,781 $1,182 -34%ETNA $80,124 $235,241 16.50 16.95 $126,641 $1,925 $1,299 -32%EXETER $72,375 $205,928 15.00 15.32 $114,437 $1,567 $987 -37%FAIRFIELD $647,500 $1,534,385 20.25 20.99 $87,063 $1,561 $914 -41%FALMOUTH $657,657 $1,117,947 14.12 14.63 $397,207 $5,467 $5,080 -7%FARMINGDALE $153,330 $471,004 13.20 13.44 $149,743 $1,845 $1,341 -27%FARMINGTON $494,118 $983,932 15.75 16.53 $194,920 $2,912 $2,395 -18%



FAYETTE $70,018 $148,762 13.75 14.41 $163,238 $2,107 $1,632 -23%FORT FAIRFIELD $360,403 $760,503 23.00 23.86 $78,414 $1,574 $935 -41%FORT KENT $293,745 $660,257 17.35 17.92 $111,520 $1,761 $1,103 -37%FRANKFORT $67,397 $190,272 13.55 13.80 $117,523 $1,457 $932 -36%FRANKLIN $55,350 $114,420 9.70 10.10 $146,232 $1,321 $972 -26%FREEDOM $55,362 $174,995 17.90 18.14 $126,940 $2,088 $1,369 -34%FREEPORT $505,924 $886,846 15.85 16.41 $211,485 $3,194 $2,649 -17%FRENCHVILLE $97,756 $277,701 20.50 21.02 $98,215 $1,822 $1,082 -41%FRIENDSHIP $43,514 $95,039 9.80 10.15 $174,706 $1,614 $1,266 -22%FRYEBURG $223,352 $315,034 15.80 16.60 $158,871 $2,352 $1,807 -23%GARDINER $549,283 $1,026,377 19.90 20.96 $153,603 $2,858 $2,172 -24%GARLAND $72,837 $197,986 14.60 15.07 $105,562 $1,398 $852 -39%GEORGETOWN $28,905 $47,936 7.10 7.21 $264,969 $1,810 $1,549 -14%GLENBURN $394,570 $1,090,337 18.80 19.38 $156,002 $2,745 $2,055 -25%GORHAM $1,051,555 $1,952,513 17.30 18.29 $207,804 $3,439 $2,978 -13%GOULDSBORO $58,209 $108,097 7.95 8.20 $170,699 $1,278 $990 -23%GRAY $452,411 $976,204 17.20 18.04 $187,519 $3,079 $2,616 -15%GREENBUSH $150,728 $325,057 22.90 24.10 $102,056 $2,108 $1,254 -40%GREENE $256,061 $624,701 13.30 13.78 $172,411 $2,160 $1,687 -22%GREENVILLE $105,943 $197,919 15.10 15.69 $129,040 $1,798 $1,240 -31%GREENWOOD $45,611 $75,163 11.65 12.11 $145,352 $1,577 $1,155 -27%GUILFORD $93,032 $180,477 13.65 14.13 $80,359 $960 $568 -41%HALLOWELL $156,484 $251,748 17.10 17.94 $179,508 $2,899 $2,323 -20%HAMPDEN $537,693 $1,474,014 16.65 17.23 $165,789 $2,594 $1,995 -23%HANCOCK $92,444 $157,752 9.95 10.39 $163,682 $1,529 $1,181 -23%HARMONY $47,648 $114,027 21.30 21.92 $45,602 $865 $500 -42%HARPSWELL $109,302 $220,094 5.78 5.90 $284,185 $1,585 $1,381 -13%HARRINGTON $65,729 $133,369 15.00 15.54 $112,198 $1,521 $905 -41%HARRISON $118,359 $192,695 10.70 11.07 $194,058 $1,959 $1,539 -21%HARTFORD $86,549 $275,737 17.50 17.89 $148,318 $2,421 $1,759 -27%HARTLAND $168,001 $365,471 24.10 24.88 $65,686 $1,390 $817 -41%HEBRON $86,610 $242,565 12.70 13.06 $182,536 $2,179 $1,665 -24%HERMON $263,140 $823,660 11.91 12.18 $168,737 $1,891 $1,446 -23%HIRAM $93,613 $214,493 13.89 14.52 $142,909 $1,846 $1,349 -27%HODGDON $84,931 $236,647 20.10 20.59 $80,798 $1,460 $832 -43%HOLDEN $203,366 $596,113 15.60 16.06 $180,904 $2,661 $2,079 -22%HOLLIS $165,135 $309,210 11.00 11.58 $213,204 $2,235 $1,890 -15%



HOPE $90,343 $197,564 12.90 13.51 $198,310 $2,429 $2,004 -18%HOULTON $543,136 $1,136,080 21.75 22.52 $88,707 $1,712 $999 -42%HOWLAND $112,865 $193,983 14.90 15.75 $80,700 $1,039 $635 -39%HUDSON $65,240 $166,149 11.35 11.69 $133,893 $1,406 $981 -30%INDUSTRY $47,428 $112,146 14.90 15.43 $94,273 $1,285 $838 -35%ISLAND FALLS $84,169 $201,306 21.30 21.92 $83,842 $1,573 $919 -42%JACKMAN $59,055 $160,591 15.80 16.24 $108,375 $1,554 $948 -39%JAY $288,335 $485,654 14.00 14.44 $138,878 $1,804 $1,283 -29%JEFFERSON $126,783 $203,633 12.84 13.48 $191,912 $2,336 $1,914 -18%JONESPORT $75,984 $166,490 12.90 13.36 $112,647 $1,324 $837 -37%KENDUSKEAG $58,995 $133,236 12.00 12.36 $119,390 $1,313 $857 -35%KENNEBUNK $603,088 $913,517 14.95 15.46 $249,328 $3,585 $3,121 -13%KENNEBUNKPORT $89,604 $181,248 7.53 7.62 $495,749 $3,658 $3,398 -7%KINGFIELD $54,987 $166,836 16.50 17.03 $140,931 $2,160 $1,548 -28%KITTERY $516,249 $682,136 15.22 15.77 $291,500 $4,284 $3,807 -11%KNOX $49,366 $153,006 15.53 15.78 $118,736 $1,689 $1,084 -36%LAMOINE $58,185 $113,483 9.30 9.72 $199,529 $1,763 $1,454 -18%LEBANON $330,149 $1,000,559 14.50 14.85 $182,021 $2,499 $1,982 -21%LEE $78,785 $184,044 18.00 18.52 $107,485 $1,762 $1,104 -37%LEEDS $133,911 $415,257 15.80 16.18 $159,231 $2,358 $1,767 -25%LEVANT $135,765 $374,270 12.50 12.86 $150,166 $1,752 $1,288 -27%LEWISTON $3,633,409 $7,317,093 26.44 27.54 $136,657 $3,373 $2,510 -26%LIBERTY $55,067 $158,217 16.40 16.96 $148,897 $2,278 $1,678 -26%LIMERICK $159,097 $386,692 12.07 12.59 $206,201 $2,356 $1,904 -19%LIMESTONE $219,077 $355,383 24.25 26.08 $57,608 $1,159 $751 -35%LIMINGTON $141,031 $302,073 10.50 11.01 $187,650 $1,865 $1,516 -19%LINCOLN $489,848 $1,374,457 22.96 23.37 $99,970 $2,066 $1,168 -43%LINCOLNVILLE $131,343 $219,339 13.60 14.15 $230,192 $2,995 $2,550 -15%LINNEUS $64,008 $209,394 17.87 18.19 $82,557 $1,297 $751 -42%LISBON $792,598 $1,923,212 23.00 23.77 $124,597 $2,670 $1,952 -27%LITCHFIELD $178,443 $453,174 12.30 12.75 $163,785 $1,892 $1,451 -23%LITTLETON $59,689 $171,411 17.50 17.77 $87,067 $1,370 $774 -44%LIVERMORE $141,017 $477,574 14.20 14.38 $141,598 $1,869 $1,317 -30%LIVERMORE FALLS $301,479 $523,954 20.80 21.90 $93,291 $1,732 $1,022 -41%LOVELL $33,228 $62,226 9.35 9.49 $146,404 $1,292 $998 -23%LUBEC $109,782 $263,875 19.50 20.07 $78,235 $1,352 $785 -42%LYMAN $203,960 $506,949 12.12 12.68 $213,204 $2,463 $2,070 -16%



MACHIAS $226,091 $343,451 20.00 21.16 $113,321 $2,038 $1,199 -41%MACHIASPORT $72,881 $156,051 18.10 18.82 $101,293 $1,674 $1,079 -36%MADAWASKA $420,388 $833,833 17.90 18.47 $100,378 $1,600 $927 -42%MADISON $344,543 $586,124 17.53 18.31 $94,740 $1,485 $867 -42%MANCHESTER $163,041 $444,969 14.95 15.50 $218,076 $3,111 $2,605 -16%MAPLETON $117,274 $360,691 14.50 14.73 $107,292 $1,411 $844 -40%MARS HILL $114,454 $264,098 25.75 26.44 $67,864 $1,531 $897 -41%MATTAWAMKEAG $65,276 $135,961 20.40 20.96 $85,253 $1,535 $894 -42%MECHANIC FALLS $259,935 $720,765 20.40 21.09 $132,458 $2,498 $1,739 -30%MEDWAY $181,248 $439,672 27.00 28.05 $87,552 $2,094 $1,228 -41%MERCER $49,046 $156,673 14.99 15.24 $136,563 $1,897 $1,319 -30%MEXICO $377,783 $627,291 24.96 26.55 $84,537 $1,860 $1,122 -40%MILBRIDGE $81,656 $119,933 14.00 14.72 $109,727 $1,396 $879 -37%MILFORD $241,973 $483,705 17.25 18.01 $114,365 $1,800 $1,159 -36%MILLINOCKET $629,048 $1,211,546 29.95 30.85 $59,168 $1,473 $913 -38%MILO $261,027 $460,301 20.35 21.62 $60,439 $1,026 $653 -36%MINOT $174,908 $486,536 15.00 15.41 $173,302 $2,450 $1,900 -22%MONMOUTH $252,219 $479,245 14.55 15.30 $153,582 $2,089 $1,585 -24%MONROE $76,677 $252,228 21.20 21.56 $120,707 $2,383 $1,708 -28%MONSON $40,373 $114,760 14.65 14.88 $101,396 $1,339 $765 -43%MONTICELLO $62,841 $176,333 17.50 17.80 $83,842 $1,292 $746 -42%MONTVILLE $70,788 $206,206 16.20 16.56 $127,233 $1,902 $1,295 -32%MORRILL $52,803 $163,979 17.90 18.19 $122,879 $2,047 $1,462 -29%MOUNT DESERT $50,881 $105,518 6.51 6.56 $368,900 $2,336 $2,091 -10%MOUNT VERNON $94,394 $173,870 15.05 15.72 $159,776 $2,254 $1,726 -23%NAPLES $208,011 $349,101 13.00 13.49 $178,227 $2,187 $1,730 -21%NEW GLOUCESTER $278,984 $733,564 13.45 14.02 $211,735 $2,713 $2,267 -16%NEW PORTLAND $59,088 $188,936 17.20 17.38 $104,809 $1,636 $978 -40%NEW SHARON $81,508 $206,647 14.30 14.71 $138,194 $1,833 $1,297 -29%NEW VINEYARD $33,511 $100,829 12.50 12.80 $121,604 $1,395 $917 -34%NEWBURGH $95,512 $301,805 13.75 14.05 $161,662 $2,085 $1,569 -25%NEWCASTLE $106,329 $235,633 15.90 16.69 $233,358 $3,559 $3,101 -13%NEWFIELD $53,161 $94,291 9.00 9.38 $185,505 $1,580 $1,271 -20%NEWPORT $218,929 $474,721 16.20 16.83 $114,960 $1,700 $1,094 -36%NOBLEBORO $67,485 $120,225 9.80 10.19 $213,508 $1,994 $1,666 -16%NORRIDGEWOCK $237,685 $547,720 20.50 21.26 $66,192 $1,191 $704 -41%NORTH BERWICK $211,328 $377,612 12.45 13.13 $189,275 $2,232 $1,828 -18%



NORTH YARMOUTH $253,309 $606,910 16.38 17.15 $283,460 $4,479 $4,003 -11%NORTHPORT $68,610 $121,667 14.15 14.56 $181,420 $2,430 $1,935 -20%NORWAY $314,109 $577,479 14.70 15.39 $109,218 $1,459 $911 -38%OAKFIELD $61,508 $137,814 17.08 17.60 $75,490 $1,119 $664 -41%OAKLAND $366,285 $1,020,676 13.80 14.19 $152,486 $1,966 $1,454 -26%OGUNQUIT $29,094 $66,685 7.50 7.55 $405,340 $2,965 $2,681 -10%OLD ORCHARD BEACH $509,799 $676,806 13.80 14.34 $216,628 $2,851 $2,389 -16%OLD TOWN $646,897 $1,054,484 19.62 20.82 $138,091 $2,513 $1,834 -27%ORLAND $115,318 $276,444 14.20 14.79 $150,728 $2,013 $1,564 -22%ORONO $989,127 $1,171,034 23.20 24.97 $195,671 $4,308 $3,638 -16%ORRINGTON $236,809 $611,246 13.45 13.98 $166,261 $2,102 $1,625 -23%OTISFIELD $72,639 $130,442 11.55 12.01 $174,785 $1,903 $1,499 -21%OWLS HEAD $57,619 $104,070 9.75 10.04 $237,114 $2,214 $1,879 -15%OXFORD $206,908 $304,130 12.25 12.91 $139,048 $1,581 $1,150 -27%PALERMO $80,862 $213,963 12.40 12.84 $159,401 $1,840 $1,340 -27%PALMYRA $117,535 $360,466 14.50 14.77 $99,304 $1,295 $734 -43%PARIS $323,386 $1,018,220 17.90 18.22 $144,131 $2,401 $1,715 -29%PARKMAN $45,424 $116,849 11.60 11.81 $105,029 $1,102 $650 -41%PARSONSFIELD $127,482 $232,669 14.60 15.38 $176,337 $2,429 $1,943 -20%PATTEN $104,346 $257,808 23.50 24.63 $86,916 $1,829 $1,070 -41%PEMBROKE $72,412 $220,309 18.00 18.23 $98,201 $1,588 $895 -44%PENOBSCOT $42,927 $84,446 9.10 9.52 $181,510 $1,561 $1,253 -20%PERRY $52,616 $142,376 12.90 13.22 $110,649 $1,298 $802 -38%PERU $122,774 $380,231 17.50 17.77 $129,299 $2,088 $1,409 -32%PHILLIPS $92,566 $237,299 20.80 21.30 $102,106 $1,916 $1,110 -42%PHIPPSBURG $66,699 $126,777 7.60 7.80 $210,285 $1,522 $1,250 -18%PITTSFIELD $313,367 $688,007 18.50 19.08 $95,420 $1,580 $911 -42%PITTSTON $132,840 $413,671 13.20 13.40 $150,303 $1,852 $1,344 -27%PLYMOUTH $66,362 $164,381 12.35 12.67 $122,043 $1,384 $913 -34%POLAND $338,902 $744,828 13.65 14.25 $167,068 $2,144 $1,668 -22%PORTER $99,920 $269,058 13.50 13.94 $146,399 $1,841 $1,344 -27%PORTLAND $5,125,403 $7,043,094 19.41 20.12 $223,100 $4,136 $3,482 -16%POWNAL $103,865 $257,483 34.75 36.18 $137,227 $4,588 $4,024 -12%PRESQUE ISLE $1,027,523 $2,031,728 24.70 25.72 $110,883 $2,504 $1,630 -35%PRINCETON $59,003 $142,092 14.50 14.88 $90,824 $1,172 $676 -42%PROSPECT $52,177 $134,680 15.00 15.40 $143,177 $1,998 $1,435 -28%RANDOLPH $118,942 $268,832 16.00 16.59 $106,364 $1,542 $935 -39%



RANGELEY $44,800 $86,711 11.70 11.87 $196,345 $2,180 $1,737 -20%RAYMOND $176,545 $328,725 11.25 11.58 $240,171 $2,589 $2,202 -15%READFIELD $189,572 $627,852 18.20 18.61 $188,562 $3,250 $2,579 -21%RICHMOND $253,863 $617,789 18.10 18.84 $161,009 $2,733 $2,092 -23%ROBBINSTON $44,877 $169,148 20.50 20.54 $87,406 $1,605 $898 -44%ROCKLAND $637,609 $982,625 19.52 20.32 $173,155 $3,185 $2,503 -21%ROCKPORT $189,086 $342,748 12.69 13.03 $300,594 $3,688 $3,265 -11%ROME $29,202 $49,906 7.20 7.39 $171,436 $1,162 $897 -23%RUMFORD $579,651 $960,559 24.00 24.91 $68,236 $1,436 $850 -41%SABATTUS $334,705 $951,019 16.35 16.71 $139,282 $2,114 $1,492 -29%SACO $1,278,327 $2,537,860 18.58 19.36 $219,847 $3,906 $3,328 -15%SAINT AGATHA $52,441 $145,511 18.50 18.78 $88,532 $1,490 $911 -39%SAINT ALBANS $128,329 $364,097 19.10 19.42 $87,141 $1,508 $896 -41%SAINT GEORGE $114,807 $177,329 7.70 7.93 $223,702 $1,646 $1,377 -16%SANFORD $1,691,749 $3,671,579 21.20 22.24 $181,988 $3,646 $2,935 -20%SANGERVILLE $99,858 $249,384 16.50 16.96 $112,791 $1,696 $1,065 -37%SCARBOROUGH $1,122,972 $1,928,979 14.77 15.30 $235,100 $3,325 $2,831 -15%SEARSMONT $93,623 $266,627 18.50 19.12 $161,030 $2,794 $2,123 -24%SEARSPORT $223,577 $821,823 21.50 21.79 $137,008 $2,731 $1,896 -31%SEBAGO $90,886 $139,667 13.15 13.57 $188,732 $2,350 $1,883 -20%SEBEC $34,018 $83,553 10.50 10.83 $153,134 $1,492 $1,063 -29%SEDGWICK $46,369 $83,792 10.25 10.59 $198,580 $1,933 $1,574 -19%SHAPLEIGH $103,274 $208,157 9.50 9.88 $236,026 $2,138 $1,789 -16%SHERMAN $78,366 $198,117 19.50 20.12 $92,515 $1,609 $930 -42%SIDNEY $151,901 $446,380 9.97 10.30 $163,967 $1,535 $1,174 -24%SKOWHEGAN $566,539 $850,038 16.40 17.07 $99,306 $1,465 $848 -42%SMITHFIELD $67,173 $192,333 14.85 15.28 $127,329 $1,742 $1,182 -32%SOLON $70,781 $203,677 16.00 16.27 $106,432 $1,543 $918 -41%SOUTH BERWICK $528,384 $1,251,594 17.25 18.06 $253,582 $4,202 $3,677 -12%SOUTH BRISTOL $13,247 $27,736 3.10 3.13 $284,496 $848 $719 -15%SOUTH PORTLAND $1,777,158 $3,219,086 16.70 17.40 $214,927 $3,422 $2,870 -16%SOUTH THOMASTON $87,794 $155,817 12.38 12.97 $223,523 $2,643 $2,251 -15%SOUTHWEST HARBOR $82,142 $147,762 12.86 13.13 $228,547 $2,811 $2,345 -17%STANDISH $423,459 $910,869 12.08 12.66 $211,192 $2,430 $2,040 -16%STARKS $65,657 $152,463 19.75 20.41 $98,621 $1,768 $1,084 -39%STETSON $81,836 $193,896 16.90 17.24 $120,217 $1,869 $1,245 -33%STEUBEN $81,888 $165,493 13.90 14.43 $117,559 $1,478 $888 -40%



STOCKTON SPRINGS $124,611 $367,874 18.00 18.55 $149,417 $2,510 $1,844 -27%STONINGTON $41,111 $81,814 14.18 14.53 $139,198 $1,862 $1,448 -22%STRONG $64,232 $187,084 12.80 13.02 $110,658 $1,288 $790 -39%SULLIVAN $59,565 $127,728 10.75 11.24 $162,733 $1,631 $1,211 -26%SUMNER $80,664 $218,458 15.70 16.10 $129,822 $1,881 $1,285 -32%SURRY $42,224 $87,280 7.40 7.66 $193,080 $1,355 $1,096 -19%SWANVILLE $91,950 $266,363 16.50 16.76 $140,750 $2,157 $1,521 -29%THOMASTON $216,886 $398,892 16.74 17.53 $187,536 $2,972 $2,411 -19%THORNDIKE $42,338 $131,841 14.50 14.73 $141,617 $1,908 $1,350 -29%TOPSHAM $699,150 $1,358,665 16.65 17.58 $201,625 $3,191 $2,665 -16%TREMONT $50,651 $107,177 8.75 8.94 $240,117 $2,014 $1,700 -16%TRENTON $73,660 $119,708 10.40 10.83 $215,460 $2,137 $1,791 -16%TROY $63,293 $183,748 14.01 14.31 $120,469 $1,548 $1,008 -35%TURNER $268,891 $649,302 15.74 16.38 $150,486 $2,235 $1,769 -21%UNION $147,142 $472,423 15.10 15.46 $172,918 $2,460 $1,900 -23%UNITY $97,765 $257,417 13.40 13.80 $132,733 $1,645 $1,142 -31%VAN BUREN $232,888 $520,363 25.25 26.72 $80,006 $1,768 $1,069 -40%VASSALBORO $182,700 $561,555 11.20 11.49 $165,694 $1,737 $1,294 -25%VEAZIE $172,532 $277,924 17.50 18.23 $169,975 $2,800 $2,187 -22%VINALHAVEN $42,768 $96,198 9.95 10.12 $210,648 $1,996 $1,625 -19%WALDO $40,164 $135,818 12.70 12.83 $144,563 $1,709 $1,213 -29%WALDOBORO $339,401 $940,423 13.60 13.98 $170,696 $2,172 $1,618 -26%WALES $116,108 $334,255 16.00 16.40 $189,652 $2,858 $2,208 -23%WARREN $281,640 $755,737 15.90 16.41 $158,612 $2,363 $1,782 -25%WASHBURN $184,426 $374,001 27.50 28.65 $66,046 $1,596 $946 -41%WASHINGTON $81,744 $306,963 13.20 13.32 $162,367 $2,011 $1,497 -26%WATERBORO $423,224 $771,790 13.64 14.42 $189,601 $2,450 $2,013 -18%WATERFORD $73,584 $165,913 14.30 14.93 $127,631 $1,708 $1,293 -24%WATERVILLE $1,387,143 $2,297,732 27.40 28.90 $94,791 $2,371 $1,547 -35%WAYNE $73,807 $144,174 14.20 14.95 $229,371 $3,115 $2,681 -14%WELLS $347,952 $645,054 9.12 9.34 $291,229 $2,565 $2,253 -12%WEST BATH $78,016 $134,909 10.15 10.53 $239,783 $2,332 $1,998 -14%WEST GARDINER $143,302 $357,885 10.90 11.31 $163,056 $1,668 $1,279 -23%WEST PARIS $111,478 $312,795 15.75 16.23 $131,218 $1,909 $1,318 -31%WESTBROOK $1,377,759 $2,234,615 17.20 18.16 $198,387 $3,240 $2,694 -17%WESTPORT ISLAND $26,260 $57,379 7.75 7.94 $289,177 $2,149 $1,824 -15%WHITEFIELD $141,641 $330,057 15.25 15.76 $145,031 $2,059 $1,498 -27%



WILTON $284,074 $694,512 16.25 16.69 $117,769 $1,751 $1,131 -35%WINDHAM $1,057,875 $2,598,871 14.45 15.11 $211,916 $2,918 $2,447 -16%WINDSOR $139,898 $299,497 13.20 13.77 $154,493 $1,907 $1,439 -25%WINSLOW $569,355 $1,572,205 15.50 15.89 $140,600 $2,024 $1,440 -29%WINTERPORT $210,964 $667,315 13.25 13.48 $172,086 $2,148 $1,646 -23%WINTHROP $385,205 $888,639 13.98 14.57 $170,670 $2,246 $1,758 -22%WISCASSET $282,536 $517,557 16.20 17.07 $191,422 $2,939 $2,414 -18%WOODLAND $91,380 $259,118 18.50 18.87 $68,032 $1,083 $642 -41%WOODSTOCK $54,901 $79,097 11.45 11.92 $125,983 $1,334 $936 -30%WOOLWICH $150,456 $327,817 13.80 14.42 $195,622 $2,562 $2,100 -18%YARMOUTH $721,436 $1,649,756 22.00 22.43 $283,573 $6,019 $5,239 -13%YORK $430,999 $734,997 10.43 10.63 $371,985 $3,776 $3,422 -9%

]

METHODOLOGY

Objective. This report estimates the impact of Eliot Cutler’s property tax reform proposal. Table 1 estimates the impact across taxpayers by home value and by current tax rate, dividing taxpayers into the one-third with the lowest rates, the one-third with middle rates, and the one-third with the highest rates. Table 2 estimates the impact on municipal aid, municipal tax rates, and property tax amounts for a median-valued home in every Maine community that has at least 200 homesteads. Data. The preliminary modeling is based on data from 2013 municipal valuation returns (MVRs), including each municipality’s certified assessment ratio, local valuation, commitment, number of homesteads, valuation of the existing homestead exemption, and property tax rate. Municipal median home value data is for 2011, and was extracted from www.city-data.com, adjusted for each municipality's assessment ratio. The distribution of traditional revenue sharing across Maine municipalities is based on estimates provided by the Maine Municipal Association for other proposals of the 126th legislature. The distribution of homestead values in each municipality is based on a weighting system provided by the Maine Municipal Association for other proposals of the 126th legislature. Methodological Overview. The reform plan affects both the amount that needs to be raised through property taxes and the tax base on which property taxes are imposed. These in turn affect the tax rate in each community. The new property tax base (or taxable valuation) is also a function of the new municipal relief

formula, which accounts for each municipality’s capacity to replace lost revenues from the enlarged homestead exemption. We consider each of these factors in turn, and then combine them to produce our impact analyses. Current Homestead Exemption. Communities are currently reimbursed for 50 percent of the cost of the existing $10,000 homestead exemption. The estimated homestead exemption reimbursement for each municipality is calculated by multiplying the valuation of the existing homestead exemption (reported on the MVR) by the local tax rate (reported on the MVR), and then by the 50 percent reimbursement rate. Current Municipal Revenue Sharing. The estimated amount of current municipal revenue sharing is calculated using the municipal distribution rates provided by the Maine Municipal Association for other proposals, and then multiplying the distribution rate by the $65 million budgeted for total revenue sharing in fiscal year 2014. Total Municipal Aid Now (Table 2, Column 1). This is the sum of the estimated homestead reimbursements paid to municipalities now plus the estimated revenue sharing payments to municipalities now. The statewide total aid in fiscal year 2014 is about $90 million, made up of $65 million in traditional revenue sharing and $25 million in homestead exemption reimbursements. Municipal Commitment. On the MVR, each community reports its “commitment,” which is the total amount it will raise through property taxes, including the portion of property taxes paid by the state through homestead exemption reimbursements. To estimate the commitment that would be required to retain the

same level of municipal services under the Cutler plan, the estimated amount that would otherwise be distributed through traditional revenue sharing in each municipality is added to the current level of commitment. Statewide, commitment increases from $2.27 billion to $2.33 billion, or by the $65 million total that is currently allocated to traditional revenue sharing. Valuation of New Homestead Exemption. This is the total estimated value of the homestead exemption before it is partially or fully reimbursed by the state. Estimating the full value of the new homestead exemption is the first step in figuring out the new property tax base in each municipality. The calculation is straight forward for municipalities in which most homes would receive the full $50,000 homestead exemption, and where the certified assessment ratio is 100 percent. Complexity arises in estimating homestead exemption values below $50,000, either because the value of the home is less than $100,000, or because the assessment ratio is less than 100 percent. For each municipality, the Maine Municipal Association has provided a weighting for the distribution of homestead exemption values that are less than $50,000. Their weighting method is operationalized by dividing homesteads into two categories: (a) a percentage of homestead exemptions that are treated for analytic purposes as being worth $25,000, and (b) a percentage of homestead exemptions that are treated for analytic purposes as being worth $50,000. The total valuation of the proposed homestead exemptions in each municipality is estimated using these weightings, combined with the number of homesteads (from the MVR) and the certified ratio that applies in each community (from the MVR). Municipal Reimbursement Rate. All municipalities receive at least the constitutionally required 50% reimbursement rate for lost tax base. In the estimates, we also add to each community a

reimbursement of an additional 5% for developing a plan for regional collaboration in service delivery. Supplementary reimbursements of up to 100% are based on two measures of a community’s calculated capacity to replace revenues from the lost tax base of the homestead exemption.

x Property valuation per homestead method. Communities with valuations below half the statewide average are reimbursed the full 100%. Communities with valuations above the statewide average receive no supplementary reimbursement under this formula. There is a straight line phase-out of the supplementary reimbursement for communities with a valuation above half the statewide average, but below the statewide average.

x Fair value tax rate method. Communities with tax rates above $24 per $1000 are reimbursed the full 100%. Communities with tax rates below the statewide average receive no supplementary reimbursement under this formula. There is a straight line phase-in of the supplementary reimbursement for communities with tax rates above the statewide average but below 24 mils.

Taxable Valuation with New Homestead Exemption. This is the valuation that is used in determining the new tax rate in each municipality. In includes the portion of homestead exemption value that is reimbursed by the state. For each municipality, the net total valuation with the new homestead exemption is calculated by taking the current total valuation (from the MVR), adding back the portion of the homestead exemption value that is unreimbursed now, and then subtracting the unreimbursed portion of the new homestead exemption. To better assess the overall statewide impact of the new homestead exemption on the property tax base, we also estimate total valuation statewide, adjusting the local amounts to an

equalized 100% assessment ratio. The total estimated statewide valuation with no homestead exemption is $158.2 billion. The total estimated statewide valuation with the current $10,000 homestead exemption is $156.7 billion (including the reimbursed portion of the homestead exemption). The total estimated statewide valuation with the proposed $50,000 homestead exemption is $155.2 billion (including the reimbursed portion of the homestead exemption, as calculated from each municipality’s reimbursement rate.) Tax Rate Now (Table 2, Column 3). These rates are taken directly from the 2013 municipal valuation reports submitted to Maine Revenue Services. The rates are reported by municipality in table 2. For table 1, the MVR-reported rates are adjusted to full value tax rates, and households are divided into three categories: the one-third with the lowest rates, the one-third with middle rates, and the one-third with the highest rates. The average tax rates paid by each group are 11.77, 15.87, and 20.52, respectively. The median rate statewide is 15.85. Tax Rate Plan (Table 2, Column 4). These rates are calculated by dividing the new commitment amount of each town by the total taxable valuation with the new homestead exemption. The result is reported by municipality in table 2. For table 1, the municipality-specific tax rates are adjusted to full value tax rates. Using the same household distribution categories (low, middle and high tax rates), the average tax rates paid by each group under the Cutler plan are 12.16, 16.47, and 21.33, respectively. The median rate statewide is 16.53. Municipal Aid Under the Reform Plan (Table 2, Column 2). This is calculated by multiplying the municipal reimbursement rate times the valuation of the new homestead exemption times the new property tax rate in each municipality. Total statewide aid includes $115 million for the constitutionally required 50%

reimbursement, $59 million in supplementary reimbursements, and $11 million for communities with a plan for regional collaboration in service delivery – or a total of about $185 million. Median Home Value (Table 2, Column 5). This is the median assessed value of a home in each municipality, as listed at www.city-data.com, and adjusted for the assessment ratio that applies in that community. The average reported value statewide is $171,600. Impact on Property Taxes by Home Value and Tax Rate (Table 1). As noted, table 1 divides households into three equally-sized groups, based on their current property tax rates. It then computes the taxes that would be paid on various home values, using the average tax rate of households in each group, and fully adjusting for the higher rate that applies under the reform plan. Impact on Property Taxes By Municipality (Table 2). Column 6 of table 2 shows the estimated property taxes paid on a median valued home in each municipality now. It subtracts from a home’s value the $10,000 homestead exemption (adjusted for assessment ratio), and multiplies the result by the municipal tax rate from the municipal valuation report. Column 7 of table 2 estimates property taxes on a median valued home under the Cutler plan. It deducts from a home’s value the smaller of 50% of its value or $50,000 (adjusted for assessment ratio), and multiplies the result by the estimated new tax rate in column 4. The percentage change is reported in column 8.

PROPERTY TAX RELIEF CALCULATOR

WHAT TOWN DO YOU LIVE IN?

WHAT IS THE CURRENT ASSESSED VALUE OF YOUR HOME?

ANNUAL SAVINGS

PORTLAND

AUTHORIZED BY THE CANDIDATE AND PAID FOR BY CUTLER FOR MAINE

ELIOTCUTLER.COM/CALCULATOR

$223,100

$654

CUTLER PLANRevenue Rebates for

Towns & Cities

2014(projected)

20132012201120102009200820072006200520042003200220012000199919981997199619951994

$100mm

$200mm


2015(projected)

Revenue Sharing &Reimbursement for Homestead Exemption

SAVINGS ACROSS MAINE


PRESQUE ISLE$874 (35%)

MILLINOCKET$560 (38%)

JACKMAN$606 (39%)

DOVER-FOXCROFT$667 (35%)

EASTPORT$885 (36%)

BANGOR$737 (26%)

BELFAST$682 (26%)

SKOWHEGAN$617 (42%)

WATERVILLE$824 (35%)

LEWISTON$863 (26%)

BRUNSWICK$622 (18%)

RUMFORD$586 (41%)

WINDHAM$471 (16%)

SCARBOROUGH$494 (15%)SANFORD

$711 (20%)

ELIOTCUTLER.COM/TAXREFORM

Based on Median Value Homes in Representative Communities

Cutler Property Tax Relief Plan

Documents

Transcript of Cutler Property Tax Relief Plan