Research Projects - City Sales Tax
City Sales Tax – Silk Purse or Sow’s Ear? Likely Impact and Response for a Healthcare Organization in Bangor, Maine
Authors: David Pilotte
In the City of Bangor January 2005 Comprehensive Plan Survey, one response to the question of preferences for funding municipal services and public improvements was a local sales tax. A steady migration to bedroom communities by people who work and shop in Bangor has been the catalyst for this question and answer. The purpose of this research is to understand how a city sales tax would affect Affiliated Healthcare Systems (AHS). AHS is a company whose mission is to engage in for-profit businesses and to provide funding to Eastern Maine Healthcare Systems with the goal of reducing regional healthcare costs. It is important that those who manage the AHS companies understand the impact any new taxes would have. This research seeks to answer this question and explore how strategically AHS would respond to implementation of an additional sales tax. Methodology includes focused synthesis incorporating information gathered from the City of Bangor Planning and Community Development, the State of Maine Taxation Committee, and interviews with individuals with corporate and political backgrounds. Also included, is data for secondary analysis of the 2005 Community Comprehensive Survey results, current regional tax structures, and measurements of sales tax volume within the AHS companies. The intent of the study is to bring insight to the issues around the implementation of a city option sales tax and provide AHS management with knowledge of the dynamics of this potential event.