Among the citizen initiatives on the state’s Nov. 3 ballot is a tax break that would benefit relatively few, while creating problems that everyone would eventually encounter.
Question 2 aims to cut excise taxes paid on newer vehicles. This would have a direct and predictable consequence: Less money for local road maintenance.
We urge a vote against Question 2 because well-maintained local roads are essential for safety and economic growth.
The excise tax initiative seeks to cut the excise tax on vehicles less than six years old by an average of 55 percent. It also exempts highly efficient vehicles from sales and excise taxes. According to the Maine Heritage Policy Center, the excise tax is burdensome and unfair to owners of newer vehicles, and cutting it would force cities and towns to manage more frugally.
But frugality is no answer for towns facing a 40 percent cut ”“ an estimated $81 million statewide ”“ in revenue that is traditionally dedicated to road maintenance. For most cities and towns, the only alternative would be to reduce the amount spent on road repair and maintenance.
According to Alfred Selectman John Sylvester, that town’s current excise tax revenue of about $515,000 would be cut by about $206,000 if Question 2 passes. Sanford Town Manager Mark Green said Sanford would lose $1.2 million ”“ equivalent to half of the Public Works budget.
An analysis of York County by Maine Municipal Association forecasts cuts ranging from almost $1.2 million in Saco and $1.1 million in Biddeford to $83,000 in Cornish and $98,000 in Newfield.
These proportions are much higher than the claim by the Maine Heritage Policy Center that the cut would amount to only 2-3 percent of local revenue. This estimate figures in education funds and other revenue that passes through the municipal budget but is not available for municipal use; Maine Municipal said the actual cut to cities and towns will amount to 7 percent.
Although there is no legal requirement for excise tax revenue to be used on roads, the money for maintaining local roads comes primarily from two sources: Excise tax revenue and state aid. And road maintenance is expensive. Cities and towns statewide spend $235 million plowing snow and melting ice in the winter and rebuilding roads and repairing bridges in the summer.
Since frugality is a Maine virtue, it is worth noting that the tax break proposed in Question 2 would provide nothing to the 68 percent of Mainers who own vehicles that are six years old and older. The present excise tax may not be perfect, but it’s fairer than the alternative on this year’s ballot.
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