By Dawn De Busk

Staff Writer

NAPLES — It was a hot-button issue a few years ago in both Casco and Naples when a business that was frequently awarded bids for town work was actually in arrears on its personal property taxes.

That was resolved. 

Once again, the Naples selectmen were mentioning the names of business-owners who have fallen behind in paying the personal property tax that by state law towns are allowed to collect.

The biggest concern expressed by Naples elected officials is that some businesses pay those taxes and others do not. It should be fair and equitable across the board, the Naples selectmen said.

(Since The Bridgton News did not have the entire list of which businesses owe personal property taxes, it seemed unfair to mention the two businesses that happened to be brought up at a municipal meeting.) 

As opposed to property taxes that deal only with the value of real estate, personal property taxes are taxation on the value of items like commercial kitchen appliances, plow-trucks and other heavy equipment, computers and fax machines — the large ticket items that a business typically owns. 

In the coming year, the Town of Naples will most likely go through the process of budgeting the money for a personal property tax assessment. But an updated personal property tax assessment wouldn’t be ready until April 2021.

The topic was discussed during the Naples Board of Selectmen meeting on Dec. 16.

“Last month, you asked me to investigate the greater ability of the town to assess and collect personal property taxes. You have asked that we seek a better way to step up our businesses’ personal property assessments so that they are fairer and equally assessed,” Naples Town Manager John Hawley said.

“I talked with John O’Donnell, the company that currently provides our real estate assessments and asked for a quote from them for adding this level of service to what they are already doing to us,” Hawley said. “O’Donnell is not in a position to take on that additional workload, and they recommended G&K Associates.”

G&K Associates, a company out of Connecticut, exclusively does personal property taxes, Hawley said. The Town of Bridgton has hired G&K for its personal property tax assessments. The price for a first-time personal property tax assessment is $98,000, Hawley said.

“I reached out for a quote from G&K. They are looking at a rough estimate of assessing 250 accounts in the Town of Naples, strictly businesses for personal property tax. For them to come in and do that would be $98,000,” Hawley said. “I know that sticker shock is there. You have to remember we don’t have any of this data collected at this point.”

That $98,000 would be a first-time cost, he said. The ongoing maintenance would cost between $10,000 and $13,000, he said.

Chairman Jim Grattelo requested that Hawley contact Bridgton Town Manager Bob Peabody and ask when they started doing the personal property tax and what percentage of those taxes are paid once a system is established.

“The other thing is: We should put this out to bid,” Grattelo said.

Hawley indicated there are not many choices when it comes to this type of work.

“Really, these are the only people who specialize in personal property assessment. Actually, these guys [G&K] are out of Connecticut. There is nobody in Maine who does this,” Hawley said.

Grattelo and Turpin commented on the status on collecting this type of tax.

“Right now, we don’t have a fair and equitable system at all, and we are not capturing it at all,” Grattelo said.

Selectmen Kevin Rogers asked how much was being captured.

Turpin said $70,000 was an estimate but that was a drop in the bucket.

“We aren’t getting anywhere near what [is owed] and it is not fair system at all,” Turpin said.

Grattelo spoke.

“That is the debate. We need a system that is equitable and fair to everyone,” he said.

It might be said that taxes are not a laughing matter, but during the Dec. 16 meeting, there was a quite a bit of laughter and joking between the selectmen

At one point, Hawley was explaining that the town is seeking to get personal property taxes on businesses only, not private residences.

“Sometimes, when you are talking about personal property assessments — the State of Maine actually allow us to go to residents and assess you for your lawnmower and your snowblower and your … We are not doing that. I’ll quit first,” Hawley said.

He was getting back to the cost estimate, when the chairman took advantage of a brief pause to crack a joke.  

“So, if we ever want to get rid of John, we just start assessing snowblowers,” Grattelo said.

Hawley took it in stride. 

“Oh, it’s easier than that, snowblowers — don’t push me,” he said jovially.