RUMFORD – Although the tax rate has not yet officially been set by the Board of Assessors, Town Manager Steve Eldridge said Friday the rate for this year will rise to $19.15 per $1,000 valuation.
That’s a 3 percent jump from the current $18.63.
He said assessors are expected to sign the tax documents early next week, and bills should be mailed by the end of the week.
He said the new tax rate is the most the town can raise under the state’s recent tax-cap law, which is aimed at reducing homeowners’ property tax.
The increase is caused by a reduction in the town’s valuation, said Eldridge, adding that town officials had to make nearly a half-million dollars in cuts to the budget approved at the annual town meeting in order to keep the tax rate within the state’s mandate.
Without those cuts, Selectman Mark Belanger said at Thursday’s board meeting, the rate would have been more than $20.
“The cap was designed for growing towns, and those that were not growing were kind of penalized,” he said.
The chairman of the Board of Selectmen, Jim Thibodeau, said the tax cap had a unique impact on Rumford. He said the town has fixed costs that the board has no control over.
“We’re at a bare budget already. We didn’t try to raise the tax rate, but our fixed costs increased,” he said.
All services and personnel were retained under the town’s budget.
Eldridge said the town’s valuation was reduced by nearly $20 million, including $10 million from NewPage Corp. and $10 million because of the state’s new formula for Homestead Exemption reimbursement.
The town’s valuation fell from $622 million to $603 million for the current year. The overall municipal budget, including school and county taxes, is $14.4 million.
The first half of taxes is due by Oct. 1 without penalty. The second half is due by April 1.
Rumford’s neighboring towns of Mexico and Dixfield have or will have substantially higher tax rates. For Mexico, it’s $28.50, and for Dixfield, it will be $29 per $1,000 valuation if residents approve using a significant amount of surplus to offset taxes.
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