Surcharge proposed for second homes, vacant houses in Maine

WGME -- Owning a second home or camp in Maine could soon come with a surcharge.

Some lawmakers are looking to impose a fee on properties that sit vacant for six months or more each year, in order to fund affordable housing.

The proposal is drawing opposition from the state's tourism industry.

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“We are in the middle of a housing crisis.”

Representative Christopher Kessler, D-South Portland, wants to boost funding for affordable housing, and reduce property taxes, by charging a “residential vacancy impact fee.”

“Maine has the most vacant homes in the country,” Kessler says.

A report based on U.S. census data finds 19 percent of all homes in Maine are vacation homes – some are used as short-term rentals.

“When you look at the numbers, that’s over 140k buildings,” Kessler says.

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Under legislation he’s proposing, a property is considered vacant if it hasn’t been occupied by the owner or a tenant for at least 180 days a year.

Owners would be charged half a percent of the assessed value.

For example, a $400,000 home would come with a $2,000 fee.

“This would not include seasonal camps. It would not include places where snowbirds may have an extra home that they go to,” Kessler says.

There’s a long list of exemptions , including for properties that aren't winterized, as well as low-income owners.

It wouldn't apply to anyone making less than 150 percent of the median income for the Portland-South Portland metro area, which is about $105,000 for a single person.

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“It’s very limited to those that can most afford it,” Kessler says.

Alison Sucy from the Maine Tourism Association says a fee would punish out-of-staters who buy property here and some Mainers with camps and homes that have been passed down for generations.

“The goals of this bill are definitely laudable, however this may not be the best way to go about achieving those,” Sucy said.

"When you actually look at how much the vacancy fee would cost on a typical Airbnb, that could be recovered in a couple nights bookings," said Kessler. "It’s certainly not going to be a severe detriment to the tourism industry.”

The Maine Realtors Association also opposes the bill

Broker Aaron Bolster sent CBS 13 a statement, saying in part: We view this as a tax on second homes. Maine residents should not be financially penalized for investing in real estate. This bill is clearly an assault on private property rights, not only for Maine residents, but nonresidents too.

A public hearing is scheduled for 9 a.m. on Wednesday.