NORWAY – Town officials are concerned that a drop in excise tax revenue may cause tough budget choices in the next fiscal year.

“The change is far-reaching,” said Town Manager David Holt of the ramifications of decreased excise tax revenue. “We’re experiencing some losses now.”

Based on fiscal year 2009 numbers that budgeted $585,000 for motor vehicle excise tax revenue this fiscal year and the year-to-date total of $330,592 as of earlier this month, Holt is projecting a decrease of $60,000 in excise tax revenue for the next fiscal year, beginning July 1.

Combined with a projected loss in the town’s surplus account and state revenue sharing, it will combine to affect the town’s road improvement program, Holt said.

Holt said because there are fewer new cars being sold, that money is now being decreased as people decide to re-register older cars. Holt said the amount of excise tax declines every year for the six first years. “We collect a higher rate the first year,” he said

Despite the projected numbers and the documented loss in last year’s excise tax revenue, local car dealers say sales are far from doom and gloom.

“I don’t really see it,” said Derek Albert of Goodwin Motors. “I have February (numbers) in front of me and I will beat last February. I only need to sell two more cars.”

Albert said in fact the numbers overall show a 40 percent higher sale number this month than February of last year.

Doug VanDurme, sales manager of Bessey Motor Sales in Paris, said his numbers are down “a bit,” but based on numbers from across the state, the Paris-based Chrysler dealership is in the top three for sales.

VanDurme said the prices of new cars are down somewhat, which might account for less excise tax revenue. He said people buying the new cars may be registering them in other towns besides Norway.

“We count every sale as a happy occasion,” he said.

Holt said he also has concerns about a proposal to decrease the amount of excise tax people pay will also have an adverse effect on the town’s budget if the referendum passes.