BIDDEFORD — Thanks to an increase in state revenue sharing and in local property value, Biddeford’s tax rate will be lower than earlier projections. That will be good news for many city homeowners.
As a result of these two changes, “the median single-family homeowner in Biddeford can expect a lower tax rate than anticipated for Fiscal Year 2020, said Communications Coordinator Danica Lamontagne.
On July 16, the City Council set the tax rate for Fiscal Year 2020 at $19.98 per $1,000 in taxable value, 8 cents lower than originally projected earlier this year. Last year’s tax rate was 19.70. At this tax rate, the owner of the median single-family home valued at $227,100 can expect to pay $4,145.85 in property taxes this year when factoring in the Homestead Exemption, versus $4,079.87 last year, an increase of $65.98.
Under the Homestead Exemption program, some property owners can receive an exemption of $20,000. Veterans and others can receive an additional exemption.
“When the City Council approved the Fiscal Year 2020 budget in May, we predicted a $20.06 tax rate. We are pleased to have been able to reduce that number by 8 cents to lower the impact on property taxpayers without any reductions in the originally approved budget,” said Mayor Alan Casavant. “We are especially grateful for the work our state delegation and Governor Janet Mills accomplished this year to help provide property tax relief.”
For Fiscal Year 2020, the city must raise about $48 million through property taxes. About $1.3 million goes toward county taxes, $23 million for education, $25.3 million for the city, and $1.6 million for TIF funding, less $3.1 million from state revenue sharing and direct state aid for tax relief.
Property taxes are due in equal installments, on Oct. 9 and April 8.
The stated budget passed by the Legislature increased state revenue sharing from 2 percent to 3 percent for this year, which means the state will provide Biddeford with an additional $495,000 in Fiscal Year 2020. During budget deliberations, it was projected that state revenue sharing would go one-half percent rather than a full percentage point. This additional revenue saves the median single-family homeowner $41.50 on their tax bill from earlier projections for the fiscal year that started July 1.
“Additionally, the amount of taxable value in Biddeford increased by $22.6 million since last year,” Lamontagne said. “This is due in part to state changes to the Business Equipment Tax Exemption program, but also to an increase in overall property values in Biddeford. City officials had originally estimated a $12.5 million increase in taxable value when the budget was first presented to the City Council.”
“Because of these changes, Biddeford’s tax rate increased just 1.4 percent this year,” City Manager James Bennett said. Initial projections called for a 1.8 percent increase this year, Lamontagne said.
“Most communities of comparable size around the state saw a larger increase of up to 5 percent in some cases,” Bennett said. “We are proud to have kept property tax bills stable this year while responding to the needs of the community.”
— Managing Editor Dina Mendros can be contacted at 780-9014 or dmendros@journaltribune.com
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