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NEWS: PENQUIS
Greenville hears plan for tax revenue sharing
Wednesday, August 17, 2005 - Bangor Daily News
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Territories, service centers both could benefit
GREENVILLE - Service center communities long have grappled with
providing for the needs of residents who locate on the outskirts of
organized townships. As growth continues to escalate in the unorganized
territories surrounding the Moosehead Lake region, so does pressure on
Greenville's infrastructure.
In what he called a "provocative"
proposal, Greenville Town Manager John Simko recommended to Piscataquis
County Commissioners on Tuesday that one half of the new property tax
revenue generated in the unorganized territories be shared with service
center communities.
Simko proposed that half of the new taxes
generated from subdivisions, renovations or new construction be placed
into a regional infrastructure account to help defray the capital costs
of new or expanded infrastructure, the need for which would be
triggered by growth in the unorganized territories. He said that the
other half of the new taxes would continue to flow into the unorganized
territories account.
Tree growth penalties, which is
unanticipated income, also could be rolled into the regional
infrastructure account, according to Simko.
The concept
generated little opposition among commissioners who met Tuesday in
Greenville. "Politically, it makes sense," Commissioner Tom Lizotte
said Tuesday. "I think this certainly is an innovative idea."
"I've
been kicking this around for a couple of years," Simko said of the
concept, adding that he had even solicited comment and advice from town
attorney Eric Stumpfel, the Maine Municipal Association and the
Greenville Board of Selectmen. Encouraged by the comments made on
Tuesday, Simko said he would continue working to refine the draft. It
would require Legislative approval for it to be implemented, he said.
The
concept, which could be used by any service center community, is
intended to be done without negatively affecting the favorable property
tax rate in the unorganized territories, Simko said.
"I'm seeking a win-win scenario for municipalities and the unorganized territories," he said.
Simko
noted the huge differential in the tax rates, that of $8 per $1,000
valuation in the unorganized territories versus Greenville's tax rate
of $17.90 per $1,000 valuation. Anyone wanting to invest in a home or
business that could get the services provided nearby from a service
center community would naturally locate in the nearby unorganized
territories.
The lower tax rates in unorganized territories have the potential to attract new business ventures to the area, he said.
Under
Simko's proposal, the fund would help with capital projects such as
transfer stations, the airport, the Junction Wharf, the landfill, or
any other infrastructure needs that would benefit residents throughout
the region.
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