HOULTON, Maine — A request for a tax break from the Houlton Band of Maliseet Indians has been denied by the Houlton Town Council.
On Dec. 28, 2015, the board rejected a request by the Maliseets to waive $46,373 owed to the town as the measure failed with a 1-4 vote. Councilor Wade Hanson, who is employed by the HDMI, was the lone councilor to vote in favor of the request as councilors Jane Torres, Sue Waite-York, John White and Brent Dickison opposed the measure. Rosa McNally, who also is employed by the HDMI, abstained from voting.
Attempts to reach Tribal Chief Brenda Commander for comments were unsuccessful by presstime.
Under the Payment in Lieu of Taxes, or PILOT, program, the Maliseets have been asked to make payments in the past to offset losses in tax revenues from tax-exempt tribal lands. The town has had an agreement with the Houlton Band of Maliseet Indians that allows the tribe to request a waiver of some or all of its annual payment to the town, provided the Maliseets have done improvements that somehow benefit the town.
One of the major projects the tribe has done in the past, which was used to offset the PILOT payment included rebuilding Lowery Road. The town granted a waiver of $38,380 in 2011, but in 2013, a request for a waiver of $22,980 was denied. Grants earned by the tribe have also been used in the past to justify the PILOT request.
For 2014 and 2015, no requests were made by the Maliseets to waive the PILOT. However, none of those payments were ever received by the town.
For the years 2012 to 2015, the Maliseets owe the town $190,228 for payments in lieu of taxes, according to Houlton Town Manager Butch Asselin. Interest could potentially be assessed to those payments.
Houlton provides police, fire, public works and ambulance services to the residents who live on tribal land, located off of the Foxcroft Road. The residents there are also eligible to participate in activities at the town’s recreation department. Asselin said he understood the Maliseets argument that the tribe hires a lot of non-Native American individuals to work for them and therefore have a positive economic impact on the community.
“I think you have to look at it that there are services that other people pay for and there are a lot of people that would like to see the band contribute too,” he said.
Asselin said the tribe owns $10.6 million in assets in the community, which would equate to about $232,000 if those assets were taxed in a traditional manner.
In the 2016 municipal budget, the payment is included on the revenue side, but is also listed as an expense because the town is unsure when or if the payments will ever be made. The 2016 budget is the first time the town has listed the PILOT fee in such a manner.
“The money is owed to the town,” Asselin said. “What this means is we will have to work with the tribal council and chief Commander to come to a solution. It is not going to be something we resolve right away”
