In what he called a "provocative" proposal, Greenville Town Manager John Simko recommended to Piscataquis County Commissioners on Tuesday that one half of the new property tax revenue generated in the unorganized territories be shared with service center communities.

Simko proposed that half of the new taxes generated from subdivisions, renovations or new construction be placed into a regional infrastructure account to help defray the capital costs of new or expanded infrastructure, the need for which would be triggered by growth in the unorganized territories. He said that the other half of the new taxes would continue to flow into the unorganized territories account.

Tree growth penalties, which is unanticipated income, also could be rolled into the regional infrastructure account, according to Simko.

The concept generated little opposition among commissioners who met Tuesday in Greenville. "Politically, it makes sense," Commissioner Tom Lizotte said Tuesday. "I think this certainly is an innovative idea."

"I've been kicking this around for a couple of years," Simko said of the concept, adding that he had even solicited comment and advice from town attorney Eric Stumpfel, the Maine Municipal Association and the Greenville Board of Selectmen. Encouraged by the comments made on Tuesday, Simko said he would continue working to refine the draft. It would require Legislative approval for it to be implemented, he said.

The concept, which could be used by any service center community, is intended to be done without negatively affecting the favorable property tax rate in the unorganized territories, Simko said.

"I'm seeking a win-win scenario for municipalities and the unorganized territories," he said.

Simko noted the huge differential in the tax rates, that of $8 per $1,000 valuation in the unorganized territories versus Greenville's tax rate of $17.90 per $1,000 valuation. Anyone wanting to invest in a home or business that could get the services provided nearby from a service center community would naturally locate in the nearby unorganized territories.

The lower tax rates in unorganized territories have the potential to attract new business ventures to the area, he said.

Under Simko's proposal, the fund would help with capital projects such as transfer stations, the airport, the Junction Wharf, the landfill, or any other infrastructure needs that would benefit residents throughout the region.
"This content originally appeared as a copyrighted article in the Wednesday, August 17, 2005 edition of the Bangor Daily NEWS and is used here with permission."