Bath residents are feeling the pinch from the recent increases in their property tax bills, which were mailed the second week of September.
“I didn’t know the reason why [my tax bill] went up,” said Bath resident Cheryl Young. “All I know is it just keeps going up, and I don’t know what we are going to do.”
Young bought her house in Bath with her husband in March 1998, paying $1,092 per year for annual taxes, but now she pays $4,800 in annual taxes for the same house and garage on a half-acre.
According to Bath Assessor Brenda Cummings, the property taxes went up due to the number of residential home sales this year.
Bath received another valuation update this year in order to remain at market value and avoid having state reimbursements cut for the Business Equipment Tax Exemption program and the homestead exemption.
Cummings is updating the state’s valuation study for 2024 so Bath is at market value. Without an update, state reimbursements to Bath for property tax exemptions would have been reduced by 15%–20%, along with a reduced value to the homestead and veteran’s exemptions.
What was the Property Tax Stabilization and why was it repealed?
Cummings said the tax increases have been particularly painful for seniors enrolled in Property Tax Stabilization in 2023 who didn’t have to pay the tax increase that went into effect last year. The state picked up the tab for the difference between their 2022 and 2023 tax amounts. Last year, Bath received nearly $2.7 million in state reimbursements for property tax exemptions. This year, state reimbursements are a little over $3 million and were more this year because of new, non-retail equipment, primarily at Bath Iron Works. The increase in taxes and overall growth in Bath did not reduce the tax rate as much as Cummings had hoped.
Seniors 65 and above living as permanent residents of Maine, regardless of income, were eligible to apply to the Property Tax Stabilization in 2022 to get their taxes paid for by the state in 2023.
Nearly 700 seniors had their property taxes stabilized at their value in 2022, meaning the property value went up, but the state paid the difference in property taxes. The property tax values have gone up again, and residents are now left to pay two years’ worth of increases. The Property Tax Stabilization was supposed to remain in place moving forward, but according to Cummings, it turned out to be significantly more expensive for the state to pay the bill than initially thought.
Young’s husband plans to retire in the next few years, and she is concerned that they cannot afford to live in their house.
“I can understand them going up over the years, but it just seems like the last few years, all of a sudden, it has jumped and jumped,” Young said.
Cummings said Bath’s tax rate fell from $16.90 to $16.50 per $1,000 of property value. Still, it was not enough of a drop to prevent many property owners from seeing significant increases, largely due to the Regional School Unit 1, county and city budget increasing by $2 million, or 10% from the prior year’s budget, along with reductions in state revenue sharing.
During its last session, the Legislature had to pass a different bill to pay for the rest of the Property Tax Stabilization because insufficient money was set aside. Cummings said the state Legislature is looking for new programs for upcoming legislation, like increasing the homestead exemption.
What are Bath and its residents left to do?
This year, these seniors are having to pay the full increase in taxes related to the 2023 and 2024 valuation updates. In response, the city has reopened enrollment in the Bath Tax Club, allowing Bath resident taxpayers to make monthly tax payments on their primary residence without interest. Residents had until Oct. 1 to sign up for the Tax Club with the treasurer’s office.
Young moved to Bath because her husband was retiring from the Navy and they wanted a less expensive place to live. Their house was built in 1830, which suited her because she had grown up in an old house like it. Young and her husband have slowly renovated the old house over the years, but she doesn’t believe they have enough renovations for their tax bill to be four times higher than when they moved in.
“I think the thing when I talk to people is that they forget it’s not the City of Bath’s money; it’s the taxpayers’ money,” Young said.
Young said that people in her church have left Maine because they can’t afford to live here anymore. Even though she has lived in the state her entire life, Young feels like she does not have as strong ties to Bath as she used to when she first moved in.
Tax bills are due Oct. 15.
Send questions/comments to the editors.
We invite you to add your comments. We encourage a thoughtful exchange of ideas and information on this website. By joining the conversation, you are agreeing to our commenting policy and terms of use. More information is found on our FAQs. You can modify your screen name here.
Comments are managed by our staff during regular business hours Monday through Friday as well as limited hours on Saturday and Sunday. Comments held for moderation outside of those hours may take longer to approve.
Join the Conversation
Please sign into your Press Herald account to participate in conversations below. If you do not have an account, you can register or subscribe. Questions? Please see our FAQs.