During the Friday, Jan. 23 meeting at Skidompha Library in Damariscotta regarding a potential tax on nonprofits, two things were mentioned repeatedly:

Most nonprofits in the Midcoast performed duties and issued services the government didn't, and if taxed, those services would likely go away.

Representative Mick Devin, D-Newcastle, hosted the meeting at Skidompha to discuss and glean information from tax-exempt entities as Gov. Paul LePage's initial biennial budget has broached the subject of a possible tax.

Devin had a panel made up of local nonprofits to discuss what consequences a potential property tax would have on previously untaxed organizations.

The panel included Pam Gormley, Skidompha's director, Steven Hufnagel, Executive Director of the Damariscotta River Association, Leslie Livingston, Executive Director at Healthy Kids, and Wayne Printy, Chief Financial Officer for Lincoln County Healthcare.

Newcastle Selectman Pat Hudson said that because 12 percent of the assessed value of the town is tied up with tax-exempt properties, not everyone is paying their fair share of taxes. In addition to that, she added, when tax exempt and free-growth properties are added together, they represent 47 percent of the assessed valuation of the town that is not being taxed.

“Each year, we have to raise the tax rate — last year it was 17.4 mils,” she said. “So, I don't know what the answer is, but maybe tax exempt (organizations) should pay something.”

Hufnagel said that instead of making up a portion of the lost revenue sharing money, the proposed tax, which wouldn't include churches or tax-exempt entities valued at less than $500,000, could restrict nonprofits.

“When you want less of something, you tax it,” he said. “When you want more of something, you incentivize it.”

One of the issues raised by Damariscotta Selectman Jim Cosgrove, who also works for Newcastle Square Realty, has been that some land that has been put into easements has also taken some of the most potentially valuable land off the tax rolls forever.

Hufnagel said that the land is acquired with a larger plan in mind — such as linking areas via trails — but that it was acquired with the expectation that taxes wouldn't eventually be part of the equation.

“When we acquire land there is an understanding that (the property) won't be taxed,” he said. “At its worse, (the proposal) is a bait and switch.”

Gormley said Skidompha would likely have to trim its services if it was asked to pay property taxes.

“About 85 percent of our operating costs are raised,” she said. “We take very little from the town. (If the proposal was passed) we would have to cut some of our services or drop programs altogether.”

Printy said that not only does Miles Memorial pay taxes, but it also employs more than 1,000 people and that the presence of the hospital improves property values.

Devin, a democrat, said he was grateful for the governor's proposal, because it forced the state to have the conversation about the potential tax.

“Anything is possible, and in the next few months there are going to be a lot of discussions on this topic,” he said. “The budget (that is ultimately passed) might be an entirely different beast.

“Personally, I think the governor did us a favor by (forcing us) to have this conversation.”

Devin finished the meeting by urging those in attendance to write letters to both him and Sen. Chris Johnson, D-Somerville, about how the tax would affect each nonprofit.