Anticipated Tax Rate Increase

The tax rate for 2013 will be set at the end of October or the beginning of November.  The anticipated tax rate is projected to be fairly high due to a number of factors.  The tax rate for 2012 went down by approximately $5 per thousand due to savings the School District was able to realize in that year.  This resulted in a large budget surplus that cannot be realized in 2013.  This will result in a large tax increase in the Fall 2013 tax bills.  The projected tax rate will go from the present $24.21 to an amount that will be over $30 per thousand.  The exact amount cannot be determined at this time. 

The tax rate will also be affected by several other factors.  The town will be undergoing a revaluation of its taxable property in 2013.  This will affect individual taxpayers differently as the market value of their respective properties has changed.  The equalization rate is presently between 118% and 120%.  The revaluation will bring the rate back to 100% or close to it.  This will also impact the values of individual properties.  The total assessed value of the town changes from year to year.  We do not know if that will be up or down this year until the revaluation is complete.  The value of some of the older mobile homes has dropped considerable.  Most banks and mortgage companies will not write mortgages for mobile homes older than 1978.  This shifts more of the tax burden onto the remainder of the assessed properties.  The legislature is presently debating the next biennial budget.  It is unknown at this time whether funding to school districts will be impacted by budget cuts at the state level.  Reduced funding to the school district could result in additional funds that would need to be raised at the local level to provide the same level of service. 

The Board of Selectmen and the School Board are working closely to make taxpayers aware of the anticipated tax increase.   Property owners who have tax escrow accounts should make arrangements to ensure that the escrow deductions are adequate. Those who do not have tax escrow accounts should take the necessary steps to save the funds needed to pay the anticipated tax amounts.