PHILLIPS — Taxpayers will see the property tax rate jump $1.50 per $1,000 of valuation when bills arrive in the mail, possibly next week.

Selectmen set the rate Tuesday at $17.80 for 2009, up from $16.30 last year, Town Manager Jim Collins said Wednesday.
One reason for the increase are attributed to the town’s share of Franklin County tax increasing $50,799 because of the county’s change in fiscal year and because the percentage paid by Phillips also increased, Collins said.

Another factor is the town’s valuation jumped to $76.25 million this year, resulting in a tax of $71,675, according to county information. Last year, the town was valued at $61.3 million and assessed $58,235 in county taxes. There is also the loss of nearly $46,000 in state municipal revenue sharing and $10,000 in tree growth tax reimbursement, Collins said.

“The Legislature and governor might have eased the state budget, but they just shifted these taxes on to the local property owners,” Collins said. “The property tax is a very regressive tax and it is taking the brunt of the budget woes.

“Our total of lost revenues and our county tax increase comes to almost $131,000, a large amount for a small community,” Collins said.

Town officials have also estimated a drop of $24,000 in excise tax revenue because of the pending statewide referendum in November.

“If it passes, (Maine Municipal Association) estimates we will lose another $36,000 next year, Collins said.

Voters approved a $1.6 million school and municipal budget in June for 2009-10.

Tax bills are expected to be mailed next week. The first half is due Oct. 1; second half April 1.

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