By Dawn De Busk

Staff Writer

CASCO — There is a handful of new businesses that will be on the Casco assessor’s radar for personal property tax collection.

On the flip side of the coin, there are about nine (9) businesses that have shuttered their doors and left behind thousands of dollars in unpaid personal property tax bills owed to the Town of Casco.

Personal property tax is different than property tax based on real estate. First, personal property tax is based on equipment that a business owns. That can include computers and fax machines and copiers or commercial-grade ovens and coolers or heavy machinery used by the company. By state law, the towns in Maine are allowed to collect personal property tax from businesses.

On Tuesday, the Casco Board of Selectmen heard from Town Assessor Ben Thompson, of Cumberland County Assessing, about personal property taxes.

He planned to be in the Casco town office on Wednesday morning and then to drive around town later in the day.

“In the afternoon, I will be doing a personal property canvass. See what new businesses we have,” Thompson said.

He said he was preparing to fill out the business personal property forms, the 706-A forms.

“We are gearing up and getting ready to run as fast as we can,” he said.

Casco Town Manager Courtney O’Donnell provided the board with some numbers.

For the most part, business-owners are forthcoming with personal property tax payments.

“Most folks do pay,” she said.

For the fiscal year 2018-19, the total amount of personal property tax to be raised was $164,733. The amount that was unpaid is $2,316.

For the fiscal year 2019-20, the total amount of personal property tax bills sent out was $161,372. The amount left to be paid is $10,350.

There are nine accounts that appear to be out of business, and thus far are no longer being billed, she said.

Those nine business represent 26 bills that amount to about $3,250. It is likely that the selectmen will write-off the unpaid bills after the town manager confirms the businesses no longer exist.

“I’d like to dig into this a little further and come back with recommendation on how to move forward,” O’Donnell said.

O’Donnell asked the assessor to explain the Business Equipment Tax Exemption (BETE).

Thompson answered her questions.

The exemption could be applied to “any property that has been put into place for businesses from 2008 forward,” he said. “A 2002 excavator that came into Maine to be taxed in 2009 — they could apply for the BETE.”

“They have to apply for the BETE, if they don’t they will not receive the exemption.

The state takes that information and reimburses the town 50%,” Thompson said.

Also, if the business already owed the town $10,000 or more, the town “could file with the state and preclude them from getting the BETE,” he said.

According to O’Donnell’s research, it is much more difficult to collect back personal property tax than property tax. The Maine Municipal Association (MMA) refers to the tax-collection process as “complex, difficult to use and requires attorneys.”

On Tuesday, the selectmen were given a sheet listing all outstanding personal property tax, a sample lien form, information provided by MMA on the topic of collecting outstanding bills, and the most recent town policy on this particular tax.