By Scott Taylor,Staff Writer

AUBURN – Homeowners should get a break on their tax bills after councilors decided to phase-in new property values.

The decision lessens a shift in the tax burden from commercial taxpayers to homes and apartments.

“Residential taxes increase, but just not as much,” said Councilor Bob Hayes. “It keeps the taxes on businesses roughly level. But commercial taxpayers do have the ability to absorb tax increases better than homeowners.”

The city unveiled preliminary property values in November, mailing notices and tax bill calculations to Auburn taxpayers. The notices showed tax bills for homeowners doubling and tripling in some cases and ignited a tax reform movement. Assessors have been meeting with property owners to review their property values since then.

The new values call for a property tax rate at $20.88 per $1,000 of value, based on the budget councilors adopted last month. More than half of Auburn homeowners would see their values increase by 50 to 100 percent under that plan. It would mean steeper tax bills for those homeowners.

Phasing the revaluation would mean taking only part of the new value this year. Instead of $1.89 billion, the city’s new assessed valuation would be set as low as $1.6 billion. That would set the property tax rate at $24.65 per $1,000 of value.

The revaluation also created a big shift in the tax burden. Before the revaluation, residential taxpayers accounted for 40 percent of city property taxes and commercial payers for 60 percent. Afterwards, residential payers accounted for 51 percent; commercial payers accounted for 49 percent.

Phasing the values in would keep businesses paying 54 percent of Auburn property taxes.

Councilors split about whether to use higher values and the $20.88 tax rate or lower values and higher rate. Councilors Eric Samson, Donna Lysons Rowell and Belinda Gerry all argued for using the higher rate but lower values to calculate taxes.

“I don’t think it’s going to give us the effect we want,” Samson said. Residential property taxes would still increase and the city will still have taxes distributed unfairly.

“It may get us the popular vote, but I’m not sure it’s the right thing for the city,” Samson said.

But others argued for lessening the residential tax burden now.

“If you give taxpayers a break now, there is a real chance that legislators will come up with true tax reform in the coming year,” said Brian Demers of 1085 Riverside Dr. “That could lessen property taxes on everyone.”

Phasing the values in will also push the due date back for taxes until October, according to City Manager Pat Finnigan.

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