PARIS — Town Manager Vic Hodgkins told selectmen Monday the town’s mill rate will likely increase by 90 cents per $1,000 of assessed value, instead of the previous estimate of 60 cents.
The increase would be $16.80 per $1,000 of assessed value to $17.70.
Earlier this year, Hodgkins estimated an increase from $16.80 per $1,000 of assessed value to $17.40.
“Let me get the bad news out of the way first,” Hodgkins said. “As it looks right now, instead of a 60-cent increase, we’re looking at a 90-cent increase to the mill rate.”
Hodgkins clarified that the 90-cent increase was “not a lock either,” as the town was “still waiting on a couple of other things.”
Hodgkins said that the Homestead Exemption will increase from $15,000 to $20,000. The exemption is a form of property tax relief for residents who have owned homestead property in Maine for at least 12 months.
“Two years ago, Homestead Exemption was $10,000, and the year we’re heading into now, it’s moving from $15,000 to $20,000,” Hodgkins said. “With every $1,000 it increases, you’re paying that much less on a tax bill.”
He explained the Homestead Exemption increase also reduces the total value of the town.
“We’re losing roughly $6 million in value by the increase of $5,000 in Homestead Exemption,” he said.
Hodgkins said last year when the exemption increased from $10,000 to $15,000, “We were saved a little bit by an increase in the value of our town.”
“As of tonight, the expected mill rate will be $17.70, (barring) an 11th-hour miracle,” he said. “Even if one of these miracles don’t happen, the mill rate could actually be organically walked back to an 80-cent increase. All of these calculations won’t be done until after the town meeting.”
Selectmen Scott Buffington, left, Kathy Richardson, center, and Chris Summers listen as Vic Hodgkins talks about Paris’ projected mill rate for the 2017-18 fiscal year at Monday’s board meeting.
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