AARP supports property tax relief for those who need it and opposes the arbitrary and dangerous Palesky tax proposal.

AARP opposes the Palesky proposal because it will almost certainly result in the reduction of services important to older Mainers, and because it is bad public policy to tie the government's hands in addressing critical needs of the citizens.

Too Extreme The Palesky proposal is too extreme. It will result in the loss of more than $530 million a year from local revenues; a 30% reduction statewide and in some municipalities a loss of nearly 60% of their revenue. The property tax is the mainstay of local government.

How will municipalities pay for essential services like police, ambulance and fire protection? How will they fund schools, garbage collection, libraries, code enforcement, snow removal, road maintenance and more? With the reduction of these essential services, the health, safety and well being of Maine families will be at greater risk.

Too Broad The Palesky proposal will give property tax breaks to many who do not need them. Twenty percent of Maine's residential property taxes are paid by out-of-staters. Maine ranks first in the nation in seasonal and recreational home ownership, and many wealthy out-of-state residents will ultimately reap generous tax benefits as in-state residents struggle to maintain basic local services. Maine is not a rich enough state to provide property tax breaks to both those who need them those who do not.

Won't Work The Palesky proposal will not work to reduce the overall tax burden in the long run. Its promise of tax relief is illusory. When municipalities are no longer able to provide essential services, such as fire, police and emergency medical, other sources for revenue will be sought. New taxes and user fees will inevitably be created.

The Palesky proposal will only hold down property taxes while Mainers pay the price in other ways.

AARP Supports a Better Proposal AARP supports property tax relief for those who need it. Many older Mainers are in need of property tax relief. No one should be forced out of his or her home because of taxes.

That is why AARP supports the updated Circuit Breaker property tax relief program. It is the best method to target that relief to those who need it most. The Circuit Breaker should be updated and fully funded so that targeted relief is available. The Circuit Breaker needs to be further broadened and improved to provide effective and responsible tax relief to more struggling taxpayers and in larger amounts.

AARP public policy does not support arbitrary, inflexible limitations on the ability of government to fund important services. Elections already allow voters to assert their will on taxes. A special law is not needed. If voters are dissatisfied, we now have the opportunity, by the election of city council members or by voting on the budget at town meetings, of making improvements.