To the editor:
Like most seacoast residents I am concerned about real estate tax increases caused by skyrocketing property values. Property tax increases are the principal reason long-term residents, particularly those working the waterfront and on fixed incomes, are being forced to sell their property.
One answer is to freeze all property tax assessments on a particular near term date. Any purchase and sale of property after that date would be assessed at the sale price. The tax rate (mill rate) would still be based on town and school budgets using the combined assessment of frozen and new property tax assessments. Freezing tax assessments would allow people to stay on their property without fear that rising property values will drive up their property tax assessment and their taxes. If someone chooses to sell the buyer is assessed at the sale price. Likewise a new home is assessed at market value. After the assessments are frozen any additions requiring a building permit would be assessed at market value.
Our local tax assessor told me that freezing property tax assessments is not difficult to administer; it requires a change in the property tax computer software. It can’t be done without statewide legislation, however. Fortunately Maine is one of only two New England states that can hold a statewide referendum. If the legislature is too timid to allow towns to freeze assessments then a statewide referendum is the next step. I think it would pass.
Dick de Grasse
Islesboro