Maine Municipal Tax Collectors' & Treasurers' Association
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Posted by Tammy Mote, Ellsworth, December 16, 2008:

A high-valued, commercial parcel of property was recently sold to a not-for-profit organization in the City of Ellsworth.  The City will be losing $1.2 million dollars in assessment this year due to the exempt status of this property. 

We were looking for any information other municipalities might have on recapturing some of these lost tax revenues (i.e. fee assessments, service fees, etc.).

Responses: Over the past 4 years or so, the town of Castine has “lost” about 4 million in assessment due to non-profits purchase of property in town.  Last year our exempt property totaled $73,192,000 – this does not include veterans or homestead.  $48,819,200 is owned by Maine Maritime Academy – they do give us approximately $11,000 to go towards fire protection, which is 20% of the average last 5 years Fire Dept operating budget (no capital $) and $7,000 from the houses that they “rent” to their employees – value of the house, land not included at the current mil rate.  These agreements were made more than 20 years ago and have not changed, although the Selectmen have tried on numerous occasions to increase funding.     

Castine would be interested in hearing if and how any other municipalities are recapturing any monies from tax exempt entities.  (Karen Motycka, Castine)

I sat on the MMA/Maine Revenue Service non-profit fees vs. property taxes committee this past fall. We were given the charge of analyzing the non-profit use of municipal services, and if possible, calculating an accurate method of charging non-profits for their use of these services. It was very difficult, because the non-profits did not want to make any payments toward their use of services, and the municipal employees in the room wanted to calculate the direct cost associated with these services. Please see the MMA bill that Geoff Herman wrote, and his e-mail below. I hope this is helpful. (Abbe Yacoben, Bath) (Go to Bath Service Charges word document)