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Friday, September 12 2025
ONE BIG THING: Sharing the Responsibility for Portland’s Future
Last night, the Finance Committee had two big conversations about how we pay for City services: the Portland Senior Tax Equity Program (P-STEP) and the Payment in Lieu of Taxes (PILOT) Program. Both are about making sure the responsibility for funding our City is spread fairly, so that no one group is left carrying more than its share.
What Happened
The P-STEP Program was created in 2017 to help seniors—both renters and homeowners—who were struggling to keep up with rising housing costs tied to property taxes. The program was designed this way because state law recognizes that whether you rent or own, property taxes affect your housing costs. What many people don’t realize is that the state law enabling this program allows municipalities to design it for seniors, but does not require it to be limited by age. In other words, Portland could choose to expand this type of relief to younger residents as well. In the last couple of years, P-STEP has reached more households than ever, which tells us the need is growing. That success raises a bigger question: should this kind of relief be available to younger families too? After all, the rising cost of housing isn’t just affecting seniors.
We also discussed a revised draft framework for two approaches: a voluntary PILOT Program, and a municipal service charge. The service charge is authorized under state law (Title 36, section 508) and applies only to a narrow category of tax-exempt properties—those that generate rental income, but are otherwise exempt from property taxes. The law has been on the books since the 1970s, but Portland has not previously used it. It is mandatory rather than voluntary, but because it applies to a much smaller pool of properties, it would not replace a broader PILOT framework. Instead, Portland could use the service charge in conjunction with PILOT, ensuring that nonprofits benefiting from rental income, along with larger institutions like hospitals and universities, all contribute something toward the City services they rely on.
Why It Matters
Think about two neighbors on the same street. One is a retired senior who depends on a fixed income, and the other is a young family with kids in school. Both are facing rising costs, and both need the same services: safe roads, reliable emergency response, and schools that prepare the next generation. Expanding P-STEP to all ages would mean that both of those households could get help shouldering the cost of staying in their homes.
Or take another example: when a fire truck rolls out of the station, it doesn’t stop to check whether the property it’s headed to is taxable. Hospitals, colleges, and large nonprofits get the same protection and use the same infrastructure as everyone else. A PILOT Program would mean they contribute a small share back into the system that keeps their doors open and their staff and patients safe.
These aren’t abstract policy debates; they’re about whether Portlanders—young or old, homeowner or nonprofit—are all pitching in together to keep our community strong.
What Comes Next
The Finance Committee will keep working on both proposals this fall. No decisions have been made yet, but these conversations are setting the stage for policy changes that could have a real impact on households across the city.
ksykes@portlandmaine.gov 207-558-5764
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Kate Sykes for District Five 