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Taxation committee considers proposal to tax Maine’s second homeowners to pay for affordable housing

4/15/2021

1 Comment

 
On Wed., April 14, Linda Caprara provided the Maine State Chamber’s testimony in opposition to LD 1337, An Act to Increase Affordable Housing and Reduce Property Taxes through an Impact Fee on Vacant Residences. We are reprinting it here for your consideration. If you would like more information on this issue, please contact Linda Caprara by calling (207) 623-4568, ext. 106, or by emailing lcaprara@mainechamber.org.
Good morning, Sen. Chipman, Rep. Terry, and members of the Joint Standing Committee on Taxation. My name is Linda Caprara, and I am a resident of Winthrop. I represent the Maine State Chamber of Commerce, and we are testifying in opposition to LD 1337, An Act to Increase Affordable Housing and Reduce Property Taxes through an Impact Fee on Vacant Residences.
 
This bill would impose a vacancy impact fee of 0.5% of the equalized assessed value on residential property that is vacant. Let’s be honest – this is nothing more than an additional tier of property taxes on second homeowners. Homeowners that own second homes already pay property taxes on these properties, and they also pay taxes if they rent out the homes.
 
Mainers pride themselves on owning second homes, whether it be a camp in the woods for hunting for fishing or a home on the coast to enjoy the sea. They may only use these camps a couple times a year. This will also penalize folks from away who own second homes in Maine. These folks are vital to our tourism industry in Maine and contribute to our state’s economy and our local economies and communities. This bill is simply a disincentive to owning a second home in Maine. 
 
LD 1337 attempts to make exceptions for carve outs and properties that are not habitable for at least three months, such as seasonal camps, etc. What is the definition of habitable? Who makes that determination? Many camps have been upgraded with heat, water, and amenities, which make them more habitable. So, in summary, if you don’t occupy the home for at least 180 days and you can’t prove it is not habitable for three months, you will have to pay the fee. 
 
This is simply another layer of property taxation that homeowners don’t deserve. We urge the committee to vote no on LD 1337. Thank you.
1 Comment
Chris
4/18/2021 09:19:58 pm

This tax is a very bad idea which will create alot of animosity. You are trying to fix Maine homelessness by making out of staters pay for it. Try inclusionary zoning and get Maine developers to pay instead. This is a tax that may not even be disputable as it in most cases would apply to an out of stater that is already paying property taxes for services such as schools that they are not using. I think that is called taxation without representation. Additionally will Maine Revenue be determining the exemption based on income? Maine Revenue does not have access to out of stater financial records so this will be a burdensome thing to provide by the homeowner. Is this intended to be continuous or at conveyance? Every year? Maine will have to show it is capable of holding theses funds separately which it has not demonstrated it can do.

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Copyright Maine State Chamber of Commerce. All rights reserved.
 128 State Street | Suite 101 | Augusta, ME 04330-5630
 Phone: (207) 623-4568
For media inquiries, please contact Melanie Baillargeon, (207) 623-4568
  • About Us
    • Connect with Us
    • Affiliates & Partners
    • Our Board
    • Meet the Team
    • President's Message
    • External Social Media Policy
  • Membership
    • Benefits of Membership
    • Join the Chamber
    • Return on Investment
    • Member Search
  • Public Policy
    • Public Hearings of Interest
    • Legislation of Interest
    • Public Policy Committees
    • Grassroot Resources
    • Find Your Legislator >
      • Representatives
      • Senators
  • Events
    • Calendar of Events
    • 2021 Annual Dinner
    • Sponsorship Opportunities
    • Business Day at the Statehouse
    • Board Meetings & Board Events
    • DC Fly-In
    • Legislative Social
    • Policy Issues Workshops
    • Regional Breakfasts
    • Scramble for Scholars
    • Webinars by The Maine State Chamber of Commerce
  • Initiatives
    • Campus Career Connect
    • Chamber BlueOptions
    • Dream It. Do It.
    • Education Foundation
    • Keep Maine Competitive
    • Maine Economic Research Institute (MERI)
    • This is ME Counting on You
    • Senior Leaders of Tomorrow Development Program
  • Newsroom
    • COVID-19 Resources
    • Impact Newsletter
    • MSCC Blog
    • The Bottom Line
    • The Maine Take
    • Making Maine Work
    • MERI Roll Call
    • OneVoice Maine Magazine
    • Policy Brief Series with Educate Maine
    • Press Releases & Headlines
    • Press Kit
  • Member Login