LIVERMORE FALLS – If Gov. Paul LePage’s proposal to eliminate state revenue-sharing and the Homestead Exemption, and make changes to business equipment exemptions and commercial excise taxes, the town’s tax rate is estimated to increase about 14.5 percent, Town Manager Kristal Flagg said Wednesday.
That does not factor any loss of general assistance reimbursement or revenue losses to RSU 73, she said.
She said she gave an update to selectmen at their meeting Tuesday night on the affect of the governor’s proposal based on the current town budget of $2.3 million. She used a scenario of the budget remaining flat with no changes.
The total loss of estimated revenues would be $461,349.23, she said.
The total increase in the tax rate would be $3.02 per $1,000 of property value, she said.
The current tax rate is $20.80 per $1,000 of valuation and it would increase to $23.82, not including loss to revenue to the school district or the town’s reimbursement from the state on general assistance, she said.
There are 638 homeowners who receive the Homestead Exemption for their primary homes. People who receive the Homestead Exemption would see an increase of $238.20, Flagg said.
A home valued at $100,000, using a tax rate of $20.80, would pay $2,080. A home valued at $100,000 using the increase tax rate of $23.82 would pay $2,382, she said.
The total increase to taxes, including the homestead loss, is estimated at $540.20 for a home that is valued at $100,000, she said.