“The circuit breaker is the best program for reducing property taxes for Maine families who need it most,” MECEP executive director Garrett Martin said in testimony prepared for delivery today before the legislature’s Joint Standing Committee on Taxation. “Most economists and tax policy experts share this view. Unfortunately, in recent years, reduced benefit levels and failure to streamline the application process and adequately publicize the circuit breaker’s benefits have undermined the program.”
Martin also cited a 2006 MECEP report entitled “Maine Property Taxes: Does the Circuit Breaker Relieve the Burden?” co-authored by Michael Allen and Richard Woodbury. Allen is currently Maine Revenue Services Associate Commissioner for Tax Policy and Woodbury is currently a member of the State Senate representing Cumberland County. In their report they conclude that the circuit breaker “does more than any other form of property tax policy to assure that people can afford the out-of-pocket burden of paying their property taxes.”
Martin testified in support of LD 816, “An Act o to Reduce the Property Tax Burden and Improve the Circuit Breaker Program” sponsored by State Representative Christine Powers and LD 956, “An Act to Improve and Simplify the Application for Benefits under the Circuit Breaker Program” sponsored by State Representative Peter Stuckey.
“Ultimately, delivering property tax relief to those who need it most offers significant benefits for direct beneficiaries and for Maine’s economy more broadly,” Martin added. “At a time when lack of consumer demand continues to be a drag on our economy, putting money – as much as $100 million – in the pockets of Maine families who need it most and are most likely to spend it is a win-win. It can help stabilize household budgets and help stimulate economic activity.”
