AUGUSTA, Maine - Officials representing hospitals, private colleges and other nonprofit organizations say a proposal that would require them to pay property taxes to municipalities would devastate their budgets.
Jeff Austin, a lobbyist for the Maine Hospital Association, said Republican Gov. Paul LePage's plan to remove the property tax exemption for nonprofits would likely cost the state's hospitals between $10 million and $20 million a year. He told the Appropriations Committee on Thursday that hospitals would be forced to pass on the cost to consumers.
The governor's proposal is part of his more than $6 billion budget plan. Allowing cities and towns to tax nonprofits is aimed at helping municipalities grapple with the potential loss of revenue sharing. LePage says that nonprofits need to pay their fair share.