Mexico tax rate falls below $20

MEXICO — Selectmen unanimously set the property tax rate at $19.85 per $1,000 valuation at Wednesday night's board meeting. That's a $3 drop.

Town Manager John Madigan said he believes it's the first time in the town's history that the rate has dropped below $20.

Madigan said the reduction can be largely attributed to a revaluation that now brings the town up to 100 percent of the state value, and using $100,000 from surplus toward the tax liability. The town's value has also risen by about $20 million. This year's tax rate is $22.85 per $1,000 valuation.

Tax bills are expected to go out next week and the first half is due Oct. 23. The second half will be due in March 2010.

The board also passed a resolution against a statewide referendum that, if approved in November, would reduce the amount of excise tax towns would receive. It also voted to oppose the TABOR referendum that, if passed, would change the formula that limits state and local government spending and mandate referendum action on the adoption of municipal budgets.

Selectmen opposed passage of the change in excise taxes because of the impact it would have on the town. The resolution says that passage of the referendum question would cut more than $132,000 in revenue annually to the town. That money is used to maintain roads and bridges, etc.

Madigan said the TABOR referendum would eliminate home rule for towns officials who don't want to pass a municipal budget by referendum. Traditionally, towns have passed their annual budgets through the town meeting process. More and more, however, including Mexico, pass their budgets by referendum.

In other matters, the board learned of a Stephen and Tabitha King grant of $7,500 provided to the Mexico Public Library. The funds will be used to replace furniture and equipment.

eadams@sunjournal.com