GORHAM – Gorham officials say its property taxpayers would be burdened by reduced revenue sharing from the state under proposed law changes now under consideration.

According to a town figure, Gorham stands to lose more than $543,000 in revenue sharing funds under law changes proposed by the state. Gorham Town Manager David Cole told the Town Council Tuesday that the decrease would represent a tax rate hike of 42 cents per $1,000 of valuation for Gorham property owners.

Cole said state revenue sharing was implemented in 1972. Under the program, the state shares 5 percent of its sales tax revenue with municipalities, which are forbidden to have a local sales tax. Under the current law, revenue sharing would generate an estimated $1.7 million this year for the town of Gorham.

Gov. Paul LePage is proposing in his budget to instead set an annual allotment to communities from the state, which he feels would give municipalities a predictable amount each year.

The Town Council voted Tuesday 4-2 (Matt Mattingly and Noah Miner opposed; Phil Gagnon absent) to ask the town’s legislative delegation to support the revenue sharing program under current law.

“I’m not sitting around watching a half million come out of our pockets,” said council Chairman Matt Robinson. “They’re passing the burden on to Gorham to raise taxes.”

With less revenue from the state, Gorham officials would either have to raise property taxes or cutback local services provided to its residents.

Miner advocated attracting more businesses to Gorham to broaden the town’s tax base. “Let’s get more business in here,” Miner said.

But, Robinson said the town is already trying to draw businesses.

The Gorham Town Council printed agenda said the state has diverted money from towns and cities to pay for state budget problems and proposed law changes would further encourage reduction of revenue sharing funds.

“Year after year, we get less money,” Councilor Mike Phinney said. “Now, they’re playing with the numbers so we don’t get so much revenue sharing.”

In other Town Council action, it approved 6-0 a special election for Tuesday, June 14, to elect a School Committee member to fill a vacancy with a term to expire April 1, 2012.

Appointed by the School Committee, Janet Williams now fills the vacancy after Marie South resigned. “I’m pleased to be on the board at least until June,” Williams said earlier this week.

The Town Council directed Town Clerk Christina Silberman to have nomination papers for the post available on Monday, March 21.