Dear Editor:

Fair and equitable taxes is the resonating tone from all levels of government.  Let me tell why the TIF district creates more tax base and equity between commercial and residential taxpayers.

The TIF district, as proposed, is 2 percent of the total acreage of the town yet barely 1 percent of the total assessed value of the town. The TIF district represents 15 percent of commercial property in Boothbay. Compared to other areas of town the district currently pays less taxes per acre than other areas. Ideally the town should look for ways to create more value in those depressed parts of town.

I have provided this table to illustrate the effects of TIF districts to the tax base. East Boothbay Village has two small TIF’s and Barters Island has none. You can see that TIF’s prompt businesses to invest in themselves and create more tax base. More commercial tax base takes tax pressures off the residential property owners.

Many TIF’s return taxpayer money to businesses that create new tax base by an agreement called a Credit Enhancement Agreement or CEA. There is no CEA in this TIF district, so there is even more benefit to the town.

The sheltering mechanism in the TIF also shields our town during the growth period. This roughly equates to $800,000 of tax growth implications from State and County tax calculations. Without these protections, the town would pay $800,000 more from state subsidies and Lincoln County taxes over the next 30 years.

Be informed and vote November 5.

James D Chaousis II, Town Manager
Town of Boothbay