Staff Writer
HOULTON — Houlton town councilors voted Monday night to increase the town’s property tax levy. Town Manager Doug Hazlett told councilors that in response to LD1, it was in the town’s best interest to increase the levy in the event that the town’s revenues exceed the limit in which the state formula allows.
“It’s a safe action to say you’re going to go ahead and increase it,” said Hazlett, adding that the law does not require an actual figure, just indication that the cap might be exceeded.
The proposed increase was set at $2,411,249. Hazlett told councilors that his estimates, compared with what they will actually have come the end of the summer, are within close range.
“If we’re going to exceed that limit, we have to acknowledge that we would exceed it,” he explained. “We don’t know that we’re going to exceed it until we do the tax commitment in July. Estimates right now are that we’re within $10,000 to $20,000 of this number.”
The LD1 bill was accepted by voters in 2004 and became law on Aug. 1 of that same year. The referendum called tax relief for citizens but municipalities have viewed the law as a “bad” piece of legislation, which could result in a higher mill rate for some towns.
In 2005, Houlton town councilors passed a resolution opposing LD1, which read: “Be it resolved by the town of Houlton that the town council of the town of Houlton opposes the proposed Homestead Exemption Program as contained in LD1. Be it further resolved by the town of Houlton that this community hereby petitions the 122nd Legislature to recognize the negative impacts of the Homestead Exemption Program contained in LD1 to many Maine communities and Maine’s business environment and work toward the development and quick enactment of a bill to repeal the $13,000 Homestead Exemption and return to a fully state-funded exemption.”
Town councilors voted unanimously to pass the town manager’s motion to increase the levy. Council Chair Paul Cleary was not present for the vote.
The next council meeting will be held Monday, Feb. 25.
