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WATERVILLE: Mayor, council at odds on excise tax issue
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BY AMY CALDER
Staff Writer
Kennebec Journal & Morning Sentinel 09/29/2009

WATERVILLE -- Mayor Paul LePage has vetoed a resolution councilors recently approved urging voters to reject a measure in November that would decrease the automobile excise tax.

LePage says the wording of the resolution is misleading and inaccurate, and that excise tax revenues are not all used for repairing and maintaining roads, as intended.

"If excise tax revenues were dedicated to repair, maintenance and construction, this (veto) would not be necessary," LePage wrote in his veto, dated Sept. 23.

Council Chairman Dana W. Sennett, D-Ward 4, disagrees with the mayor, but he acknowledges that LePage may be right about not all of the money being used for roads.

"I look at it as more of a necessary revenue stream for the city's well-being," Sennett said of the excise tax. "Unless we can have an additional revenue stream, I think it's essential to keep the excise tax the way it is now."

Voters on Nov. 3 will be asked: "Do you want to cut the rate of the municipal excise tax by an average of 55 percent on motor vehicles less than six years old and exempt hybrid and other alternative-energy and highly fuel-efficient motor vehicles from sales tax and three years of excise tax?"

Councilors on Sept. 15 voted 7-0 to not only to encourage residents to vote "no" on the question, but also to provide them with information about what councilors see as the potential negative impact of the measure.

They said that if passed, the tax measure would cut more than $80 million in revenues each year to Maine towns and cities which use the funds for plowing, treating, constructing, repairing and maintaining more than 13,000 miles and more than 800 local bridges.

Waterville would lose about $512,000 a year if the measure passes, it says.

The resolution says passing the measure would likely lead to a deteriorated transportation system, elimination of other city services and programs, or increases in the property tax rate.

LePage said Monday that that statement is misleading and deceptive.

He said the city spends some of the excise tax revenues for fire hydrants, manhole repair and maintenance, plowing snow in the winter and other projects not intended to be funded by those revenues.

"If it was all dedicated for what it was intended, we would never have to bond for roads -- that's my issue," LePage said. "Had we been doing this for the last 20 years like we were supposed to, we'd have the nicest roads in the state."

Councilors on Oct. 6 will consider overriding LePage's veto. An override requires a two-thirds vote of the council.

"It's going to come up before the council and they will vote to override the veto or they will vote to let the veto stand," City Clerk Arlene Strahan said Monday.

If all seven councilors vote, five would need to approve the override in order for it to pass, she said.

Amy Calder -- 861-9247

acalder@centralmaine.com

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