Bangor Sales Tax Hike
2/18/09 | 11 comments
Editorial

Bangor Sales Tax Hike


The odds of Sen. Joe Perry convincing the Legislature to approve a $25 million state bond to pay for a new Bangor auditorium and civic center are about the same as the odds that a behind-the-back, full-court shot has of swishing the net. Rather than pat the senator on the back for his long-shot effort, the city’s legislative delegation ought to consider aiming at a more equitable funding mechanism — the local option sales tax.

A $25 million bond issue will not win legislative approval because legislators from Presque Isle, York, Rumford or Eastport would not be able to defend the proposal to their constituents. If approved in a referendum, it would use their taxes for a project with little benefit to their lives. And if it passed, those same legislators would be proposing similar bond issues for their pet projects, which is another reason to stay away from a bond issue.

It’s true that communities across eastern, central and northern Maine would benefit from a new auditorium and civic center. Such facilities are economic development tools, albeit low-key ones. They allow businesses to network and provide opportunities for large-scale marketing, such as at boat and RV shows. The facilities also boost a region’s cultural assets, which improves the quality of life, which in turn leads to business relocations.

A more equitable way to fund such a facility is to give Bangor — and other service-center communities — the right to adopt a local option sales tax. It’s an idea that has been floated before, but failed to win legislative approval. It could be structured very simply. If voters of the service center — in this case, Bangor — vote to approve the measure, a 1 percent sales tax would be added to the existing state sales tax of 5 percent. Virtually all of the additional revenue (giving the state a small portion for handling the funds) would be directed to the city.

The Legislature could designate other service-center communities that also could adopt the tax. The fairness of such a proposal lies in the burden these municipalities bear. Bangor may have as many as 100,000 people within its borders on a busy weekday. That means the city needs more police to respond to vehicle collisions, shoplifting complaints and petty crime, and the fire department must be large enough to fight a blaze at the mall. Bangor roads get more wear and tear, and so they must be repaired more frequently. And as a center for commerce, City Hall must be staffed to accommodate property inspections, tax billing and so on.

Similar scenarios are played out in service centers across the state. The Legislature could designate which municipalities are able to adopt the local sales tax — at least one in each county — and then turn the decision over to voters in those communities. There are, of course, reasons why voters might reject the local sales tax hike. Chief among them is that it could discourage sales.

But consider the boon the revenue could provide for service centers. The funds could be designated for public safety and road maintenance, or applied as a windfall to property tax reduction. Or they could be used for that one-time construction project, like a performance space and conference center.

Not registered? Click here
E-mail this
Print this
Guidelines for posting on bangordailynews.com

Bangordailynews.com is pleased to offer a forum for readers to react to our stories, discuss them and provide additional information. We are reluctant to delete comments, but do reserve that right for those who abuse our forum. For more on using this site, please see our terms of service.

The primary rule here is pretty simple: Treat others with the same respect you'd want for yourself. What does that mean specifically? Here are some guidelines (see more):

Comments
11 comments on this item
On 2/19/09 at 8:19 AM, windfuture wrote:         Repeated separate thumbs down will cause comment to be hidden

I couldn't disagree more with the concept of a local option sales tax. Bangor, and other so-called service centers, benefit greatly from shoppers and workers coming into the city each day. Coffee shops, clothing stores, restaurants, hotels, etc. - everything that makes Bangor a city - are paid for in large part by people who don't live there. Property taxes paid by those businesses carry the burden for the services the city collectively provides. More wear and tear on the roads?? I suppose my car levitates from northern Maine until it touches down at the Hogan Road exit. As for police services, I question the ratio of out-of-town drivers to locals. More likely, the police are more heavily involved in domestic calls within the city limits. The State Police handle the interstate in any case. No - the local option sales tax is simply a money grab. If Bangor can do it, every town in Maine shoud be allowed to as well - as long as they can show one visitor from out-of-town is there each year.

Report abuse
On 2/19/09 at 8:28 AM, BeaverFood wrote:         Repeated separate thumbs down will cause comment to be hidden

I have a better idea. Why don't we just hand over all of our income to the government and let them make all the spending decisions. Then we wouldn't have to use our tired little brains to figure out anything for ourselves. You BDN editorial writers are blooming lunatics!!!!!

Report abuse
On 2/19/09 at 8:39 AM, eastman wrote:         Repeated separate thumbs down will cause comment to be hidden

If Bangor has a sales tax, I will spend my money elsewere. Other town's will be glad to get the buseness.

Report abuse
On 2/19/09 at 9:00 AM, wayback wrote:         Repeated separate thumbs down will cause comment to be hidden

If the auditorium replacement doesn't make business sense on its own, it shouldn't be built.

Report abuse
On 2/19/09 at 11:41 AM, Beelzebubba wrote:         Repeated separate thumbs down will cause comment to be hidden

The only new tax I will gladly pay is on legalized cannabis.

Report abuse
On 2/19/09 at 12:16 PM, bobjohnson wrote:         Repeated separate thumbs down will cause comment to be hidden

Would some answer me one simple question? What would this ridiculous proposal do to local businesses, especially ones that sell big ticket items such as CARS, SUV's, expensive ELECTRONICS, etc?. Would anyone actually shop Bangor for such things if they had to pay, hundreds more in tax for these items?

I think this would be a final nail in Bangor's economic coffin.

Report abuse
On 2/19/09 at 3:35 PM, pjramsay wrote:         Repeated separate thumbs down will cause comment to be hidden

No to increasing taxes period. But a user fee for parking ($12) and ticket sales ($5) to all non-residents who visit the new "Legacy Center" is not a bad idea. Bangor residents would have to show a driver's license and a current utility bill with a Bangor address to be exempt from the user fee.

The $4.24 million per year mortgage isn't going to pay itself and the pundits guesstimate that the Racino is only good for $1-million per year(maybe).

If the county doesn't want to help - so be it. But if you want to see a third-string band, you'll need to cough up the extra cash.

Report abuse
On 2/19/09 at 10:28 PM, boogyman wrote:         Repeated separate thumbs down will cause comment to be hidden

Joe Perry is a moron.

Report abuse
On 2/20/09 at 3:16 PM, pjramsay wrote:         Repeated separate thumbs down will cause comment to be hidden

boogyman - moron is a bit strong. He is a politician that got an atta-boy from the public by asking Augusta for something they will not give. He looks good and the rest of the state is mean for saying no. Mr. Perry can remind everyone that "he tried" during the next election.

Moron - no - a politician - yes.

Report abuse
On 2/21/09 at 7:55 PM, mousehunt wrote:         Repeated separate thumbs down will cause comment to be hidden

Why not build it with the money obama giving the state?He know`s where he can get more don`t worry.

Report abuse
On 2/22/09 at 8:28 AM, JWBooth wrote:         Repeated separate thumbs down will cause comment to be hidden

"...new auditorium and civic center... network and provide opportunities for large-scale marketing, such as at boat and RV ..."

Which the BDN would immediately kill off with an extra 1% on the sales tax.

Report abuse
You must be logged in to post a comment. click here to log in.

Powered by: Creative Circle Advertising Solutions, Inc.