Within the foothills of Western Maine, an issue concerning taxes and property rights is brewing. Disgusted with rising taxes, one landowner, hoping to have his voice heard, closed access to a part of his property, which, until then, was used by snowmobilers and ATVers as ITS 82 and a piece of the trail network between Carthage and Dixfield.
Many people representing interests in maintaining the trail system spoke out against this man's method of protesting taxes, arising to an interesting debate.
Advocates for the snowmobile and ATV industries focused their arguements on two proclaimations. The first involves the revenue created by their industries, generally stated to be in the neighborhood of 400 to 450 million dollars per each. The second involves the funding source used to create and maintain trails, which, they state, is generated solely from snow machine and ATV registration fees, with additional money acquired thru a portion of the state gas tax, club membership dues and club sponsered fund raising events.
At first glance, the revenue arguement is very compelling, but upon taking a closer look, it can be seen that the majority of this revenue is not newly generated. It comes by way of shifting consumer purchases. Imagine, for a moment, that snowmobiles and ATVs had never been invented. Consumer purchases would shift to other products. Consequently, the net gain to proprietors of the snowmobile/ATV industry equals a net loss to proprietors of products outside these industries. The state neither gains nor loses sales tax revenue. To be fair, the point made by the preceding statements involves consumers residing within Maine. Out of staters attracted by snowmobile and ATV opportunities within Maine do bring in new revenue, but amongst these out of staters are ones purchasing land within Maine enticed by recreational aspects, paying big dollars thereby increasing land values which increases property taxs for everyone.
Does the revenues brought into Maine by out of staters using our lands for recreation offset the increase in property taxes incurred by Maine residents as pressures from out of state money increases land values?
Now, I would like to address the funding for creating and maintaining trails. Registration money is delivered to the state by way of towns where it is porportioned to the following receipients:
Resident registration
- 22% to general fund, state
- 26% to municipalities
- 52% to trail fund
Nonresident registration
- 18% to general fund
- 7% to if&w enforcement
- 75% to trail fund
Gas tax funds are set according to formulas that figure the amount of gas used by snowmobiles and ATVs. The trail fund receives approximately 85% of this money.
In reference to registration money going into the state's general fund, Mr. Bob Meyers (executive director of the Maine Snowmobile Association) has indicated that this money is closely watched by officials associatd with the snowmobile industry with a desire to influence expenditures which aid the snowmobile industry.
In reference to registration money to municipalities, Mr. Meyers indicated that most towns will pass this money to the local clubs.
Is taxpayer money being sought by clubs to fund their pursuits?
Recently, I spoke with Senator Bruce Bryant D-Dixfield concerning land upon which a snowmobile trail exists. The owner of this land has had an ongoing problem with litter from snowmobilers for 20 years. Senator Bryant told me the landowner had been approached about selling this land to the state as a way of maintaining snowmobile access thru this critical portion of the trail network. I asked Senator Bryant where funding for this land purchase would come. He mentioned the " Land For Maine's Future" program as a source. The "Land For Maine's Future" is definitely a taxpayer funded program establshed thru bond voted on by the citizens of Maine.
While surfing the web, I came upon the minutes of the selectmen's meeting for the town of Dixfield dated January 12,2009 where it was stated that, upon request from members representing the Poodunk Snowmobile Club, $1250.00 (money from salvage iron recovered from a bridge replacement project) was granted as requested. A special town meeting held April 23, 2009 was called to request from the taxpayers the authorization to spend an additional $35,337.00 to cover cost overruns incurred by this same bridge project.
Are you fed up with taxes? Landowners who have trails crossing their your land: are you ready to close your land to recreational users? Whether these trails are opened or closed, as I have presented to you above, will have no effect on taxes, unless a penalty tax is initiated against you or our state acquires the wisdom to lower taxes. Are you wondering, as I am, if the officials making decisions for the snowmobile/ATV industry are starting to creep towards acquiring taxpayer funds to further establish themselves?
My friend, the landowner I previously mentioned, who closed access across his land, has recently started printing "courtesy" cards which he is presenting to friends and neighbors allowing them access to his land for recreational purposes. His interest in his land is finally being respected.
Dan McKay
Dixfield, Maine