tax fairness – Kate Sykes for District Five

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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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Sunday, September 7 2025

The Rich Got a Break. Working People Got the Bill. It’s time to Re-Balance the Books.

You may have heard by now that Portland just completed a citywide property revaluation, and new tax bills will be arriving in mailboxes any day now. Residential property values went up by an average of 43% while commercial rates rose only 19%. The mil rate (the tax rate per one thousand dollars of assessed value) has been lowered to $11.98, but that doesn’t mean your bill will go down, especially if your property value jumped significantly.

For many households, this will mean a higher cost of living in a city that’s already difficult to afford. It raises serious questions about tax fairness, economic stability, and how we protect long-term residents from being priced out of Portland.

And it speaks to the core of what’s broken in American politics.

For decades, the Democratic Party has told working people that the only way to fund public services is to raise taxes on the middle class, while avoiding real fights with the wealthy and powerful. Meanwhile, the Republican Party has slashed taxes for billionaires and corporations and paid for it by cutting the programs working families rely on.

I believe we can do better in Portland. We can tax those who can afford it, and use that revenue to help everyone: renters, working-class homeowners, seniors, and low-income families just trying to stay housed.

That’s why I’ve been advocating for the Finance Committee to expand the Portland Senior Tax Equity Program (P‑STEP). At our upcoming meeting on Wednesday, September 11, the committee will begin formal discussions about how we can do that responsibly, effectively, and equitably.

What Is P‑STEP?

P‑STEP is a local rebate program that supplements the Maine Property Tax Fairness Credit. It was originally created to help low-income seniors stay in their homes as costs rose around them. Since then, more and more seniors are using the program, but today the need goes far beyond this one age group.

What’s Being Proposed?

I’m asking the City to expand P‑STEP eligibility to all income-qualified residents—not just seniors—and to do so gradually over the next five years by:

Lowering the age threshold each year, until it’s fully removed in FY31.
Continuing to include renters and expand outreach to them, so they know how to access their rebate.
Keeping the program revenue-neutral by modestly adjusting the property tax rate so that those with the most valuable properties help fund relief for those with the least room to spare.

I’ve also asked the Finance Committee to request a formal mil rate modeling analysis from City staff, so we can understand what adjustments would be needed to make the expanded program work, without increasing the City’s budget.

Why Now?

Because the moment demands it.

Trump’s federal tax policy rewards the wealthiest Americans while shifting the burden onto working people. Local governments like Portland are left to pick up the slack, with fewer tools and tighter budgets every year. Increasingly, that gap is becoming unmanageable.

But all politics is local, and here in Portland, we already have the tools to fight back. We can expand an existing program that works, and help the people Trump left behind. We can rebalance the equation, right here, right now.

Make no mistake: there will be pushback. Some of Portland’s biggest property owners and corporations will try to keep passing their responsibility onto the rest of us. Some folks who’ve done quite well will claim they can’t possibly give more. But I didn’t run for office to protect the powerful. I ran to fight for working people.

So let’s get ready, with facts, with fairness, and with a plan. Tune in to the Finance Committee meeting on Thursday. Write all of your Councilors and the Mayor. Share this newsletter. Let’s move this forward together.

Finance Committee Meeting
Thursday, September 11
Time 5:00 pm
Remote Via Zoom

Thank you for being engaged and for continuing to demand fairness in how we govern. I’ll keep you posted as this conversation moves forward.

ksykes@portlandmaine.gov 207-558-5764

Friday May 30, 2025

ONE BIG THING: Understanding Your Property Revaluation Notice

Many of you have received your new property assessment from the City and are understandably concerned. I’ve heard from constituents whose property values have gone up significantly, and they’re worried that this means their taxes will skyrocket.

Let me explain what’s actually happening.

When the city revalues all properties, it resets the estimated market value of every parcel of land in Portland. This year’s revaluation increased property values across the city to reflect current market conditions, but the overall amount of money the City needs to raise through property taxes doesn’t change because of revaluation. Instead, the mill rate (the tax per $1,000 of value) is adjusted downward, and what changes is how that burden is divided among property owners.

Here’s an example:

Before revaluation: Your home was valued at $350,000 and the mill rate was $20 per $1,000.
→ Your tax bill was $7,000.
After revaluation: Your home is now valued at $500,000—but the new citywide mill rate drops to $14.
→ Your tax bill is still $7,000.

This means that even though your assessed value went up, your tax bill might stay the same—or even go down—depending on how your home’s increase compares to the citywide average.

If your property went up less than the citywide average, your taxes could go down. If it went up more than average, they could go up—but not necessarily by the same percentage. We won’t know final tax bills until the new mill rate is set in August, after the City Council passes the FY26 budget.

I want to be clear that I’m committed to tax fairness and balancing the city budget—but not on the backs of working families, seniors, and people living paycheck to paycheck.

That’s why I’m working to:

Expand Portland’s Senior Tax Equity Program (P-STEP) to more residents, regardless of age.
Launch a PILOT program asking large nonprofits to contribute their fair share.
Strengthen financial oversight of city spending to ensure transparency and accountability.

I’ll be advocating for these ideas in the Finance Committee. In the meantime, if you have questions about your revaluation notice, you can contact Tyler Technologies at 1-844-651-3398 or visit tylertech.com/portland.

ksykes@portlandmaine.gov 207-558-5764

Tuesday January 28, 2025

Portland Deserves a Fair Tax System—Here’s How We Get There

Last night, the City Council held a sobering discussion about the challenges facing Portland’s FY26 budget. Proposed state budget cuts to General Assistance (GA) and shelter funding will force millions of dollars in costs onto Portland taxpayers. Without meaningful support from the state, these shortfalls will disproportionately hit Portland’s seniors, low-wage workers, and middle-income families—the very people already squeezed by the high cost of living, stagnant wages, and decades of policies that prioritize profits over people. As the largest regional provider of emergency shelter, Portland is shouldering the burden of Maine’s housing and homelessness crises. Our regressive property tax system only makes matters worse, forcing those least able to pay to subsidize the consequences of these systemic failures.

The Problem with Property Taxes

Portland’s property tax system levies the same rate regardless of income or ability to pay. For wealthy property owners, this tax is an inconvenience; for low-to-moderate-income families, it can be devastating. Wealthier residents benefit from rising property values, while renters and homeowners on fixed incomes often see their housing costs skyrocket, driving displacement and economic insecurity.

Meanwhile, we’ve seen little movement on state-level tax reforms to address this inequity, though Maine Municipal Association, which advocates for municipalities on issues, is pushing hard for relief through its legislative platform. Proposed bills to increase state reimbursement for General Assistance and homestead exemptions could provide some relief to property taxpayers, but Portland needs a solution that works for us today.

A Local Solution: Expand P-STEP

Portland’s Senior Tax Equity Program (P-STEP) provides property tax rebates to low-income seniors, including renters. It’s a vital but underutilized program, with just 322 participants last year. Compare that to the over 6,000 Portland residents who received the state’s Property Tax Fairness Credit (PTFC), and it’s clear we’re leaving relief on the table.

Expanding P-STEP offers a pathway to fairer taxation while addressing our budget challenges. Here’s how:

Improved Outreach: Many eligible seniors, especially renters, aren’t aware of P-STEP. Better outreach targeting renters directly could dramatically increase participation.
Phased Expansion: Over time, we can amend P-STEP to include all income-eligible residents, not just seniors. This expansion would effectively create a local progressive tax system, where rebates offset the tax burden for those least able to pay.

By ensuring 100% uptake of P-STEP and gradually broadening its scope, we can build a fairer, more sustainable tax system while protecting Portland’s most vulnerable residents.

Expanding P-STEP isn’t just about tax fairness, it’s about standing up to a system that prioritizes profits over people. It’s about saying “no” to austerity and “yes” to investing in our community. It’s about making sure seniors can age in place, families can afford groceries, and our city’s future is not at the mercy of regressive tax structures.

State-Level Advocacy: Join the Conversation

The challenges we face require bold solutions. Expanding P-STEP is one way Portland can lead the way on local tax reform, but we also need to continue advocating for state-level changes to bring more fairness and equity to Maine’s tax system.

Portland’s Legislative delegation and the City Council’s Legislative and Nominating Committee, on which I sit, are actively working to address tax fairness at the state level. We’re engaging with our state leaders to push for reforms that could provide much-needed relief for property taxpayers, including increasing state reimbursement for General Assistance and expanding support for our schools.

I encourage constituents to tune into our upcoming conversation with legislative leaders this Friday morning. These discussions are critical for advocating for the state-level support Portland needs, and your input matters.

Together, we can build a city where no one is forced to carry more than their fair share.

Send me an email and let me know your thoughts on this approach and how we can work together to ensure that fair taxation remains a top priority for Portland.