MACHIAS, Maine — Washington County has filed suit against the Passamaquoddy nation, seeking recovery of payments in lieu of taxes dating to 2006.
While no dollar amount is specified in the lawsuit now pending in federal court, an attorney for the tribe said Thursday that the county is seeking about $40,000.
The suit claims that Washington County is authorized to collect payments in lieu of taxes, also known as PILOTs, under terms of the Maine Indian Claims Settlement Act of 1980 based on all real estate and personal property of the Passamaquoddy in Washington County.
“PILOTs are not defined in dollar amount,” the suit states, “but rather are to be in an amount equal to that which would otherwise be imposed by a county, a district, a state or other taxing authority.”
According to Portland attorney Craig Francis, who represents the Passamaquoddy, the tribe has agreed to negotiate a settlement but has received no response from Washington County officials.
“It’s very odd for the county to be suing the tribe,” Francis said. “I think with the economy being as tight as it is, they are looking for money anywhere they can find it. Instead of a flat-out tax, they’re now calling this a payment due.”
Typically payments in lieu of taxes are made on a voluntary basis by nonprofit organizations that are not legally obligated to pay property taxes. One example is The Jackson Laboratory in Bar Harbor, a nonprofit genetics research facility that owns land and buildings assessed at more than $150 million.
If the lab was not a nonprofit organization, its annual property tax bill would exceed $1.4 million. Instead, Jackson Lab which last year had a surplus of more than $30 million, made a voluntary annual PILOT contribution of $72,785 to help share the cost of fire protection and other municipal services provided by Bar Harbor.
Two attorneys representing Washington County declined comment on the lawsuit, as did Washington County Manager Betsy Fitzgerald.
Penobscot County Administrator Bill Collins said Thursday that the Penobscot Nation is sent an annual tax bill and that in 2012 the tribe paid $10,128, not as a PILOT payment, Collins said, but as the tribe’s share of county taxes.
Jackson Lab is getting a real deal. Even if they added a 0 to the figure they “volunteer” they would still be paying only half of the tax valuation. With a $30m surplus, they should be embarrassed of their cynicism!
At least Boston negotiates with its thousands of schools, hospitals and institutes for its PILOT.
Your logic would require that Maine churches and other non profits start paying too. At least Jackson Lab pays something, unlike many churches that use municipally funded services and roads too.
Not my logic! Boston’s way of doing things. Each institution negotiates their own deal. Obviously you are unaware just how much real estate is used here by the dozens of teaching hospitals and hundreds of university campuses, the massive holdings of the Catholic Diocese, etc etc
2006? This has been a long time coming- right after Newell was ousted, then convicted, the new heads decided that this was not fair?? hmmmm – someone should take a look at THAT reign of terror!!!
The tribe should not have to pay ever since you all got that land for less than a penny an acre!! And if the tribe does decide to to pay they should only pay them less than 4,000.00. close to what Jackson lab pays.
Time to move on……
We should pay.
I used to work at a non profit summer camp and every year in the budget was a ‘gift to the town’. It was basically a payment in lieu of taxes . not sure how much it was or how ‘fair’ it was but considering the obligation was zero, it was a nice gesture.
http://www.councilofnonprofits.org/public-policy/state-policy-issues/government-taxes-fees-and-pilots#3
If they can show that they do not use county services then I have no problem with them not paying taxes but I am pretty sure that is not the case. While obviously they do not receive many of the services that other communities get, such as the Sheriff’s patrol I think they use a larger percentage of the County dispatch and jail services than almost any other town in the county. If they do not want to pay taxes, or what is in this case, a previously agreed upon reduced tax, then instead they should pay user fees for the services that they do received, but I think that would actually end up being more. I really wish that the casino or some other economic developments would come along for them, I support anything (what happened to the water bottling plant idea). I agree with previous poster times are tough and the county is trying to cover there budget increase in whatever way they can, can you blame them for pursuing funds that they have been expecting to receive for years.