Bar Harbor enjoys many benefits from the substantial portion of its economy devoted to seasonal tourism and a season that begins earlier and extends later year by year. But the visitors who come to town (numbering in the millions) also stretch the resources of a town of 5200 people. Bar Harbor maintains expanded municipal capacities comparable to those of a much larger city to ensure that public health, safety, and infrastructure continue to function when hotels, campgrounds, inns, and other short-term rentals are at full capacity. Maine towns raise the vast majority of their revenues through property tax. Each taxpayer - whether a year-round homeowner, a seasonal property owner, a hotel, or other business owner - pays a property tax based solely on the value of that property. The rate is generally the same, regardless of the land owner's ability to pay. When the cost of providing services goes up, business owners can, within reason, pass on increases in property tax to their customers. Homeowners have no such safety valve. Many Maine citizens are pointing to a tax policy in place in most other states and ask whether this could help Maine towns balance the benefits of tourism with its impacts on fixed-income homeowners: Local Option Lodging Tax. Through this policy, towns incurring significant costs to maintain municipal services for visitors are permitted to levy a small tax on accommodations serving visitors of less than 30 days. Some Maine citizens are skeptical or opposed to such a change in town revenue-raising. Bar Harbor is in a unique position to hold a community forum on this issue: we generate the largest accommodation revenue in the state, face extraordinary town budget pressures, and are represented in Augusta by the co-chair of the Committee on Taxation, Nicole Grohoski.

This event is in-person only and will not be recorded.