LIVERMORE FALLS – Selectmen set the tax rate Monday at $20.30 per $1,000 of valuation, nearly $3 less than last year, but voted to increase valuations on houses to 30 percent, and land and outbuildings by 25 percent.

So even though the school and municipal expenses are less than they were the year before, most likely property owners will see their taxes increase.

A house valued at $100,000 last year was assessed $2,320 in taxes, and this year under the new tax rate, that same house would be valued at $130,000 and assessed $2,639 in taxes, assessing agent Ron Trepanier said.

All in all, the town is looking at raising $95,000 less in taxation, Town Manager Martin Puckett said, but properties are selling well above the town valuations.

The state requires towns to value properties at at least 92 percent of the real market value and the properties that are selling are at about 73 percent of the value they’re selling for, Puckett said.

The town is required to expose what the properties in the area are selling for and what the town values them at, he said.

“Everything is selling for about 25 percent higher,” he said.

One option is they could do nothing but then the Homestead Exemption, veterans exemption and tree growth would all be reduced, he said.

In addition to losing money in tree growth and other exemptions, Trepanier said, all of the industrial property is being valued at 100 percent and it is not fair that residential is being valued at less.

Most of the sales of properties he reviewed, Trepanier said, sold for 50 percent to 100 percent more than the town valued them.

The other option is to increase the ratio up to 92 percent, Puckett said, and the town would still get the full amount of the exemptions.

The town’s last revaluation was in 2001-02 and he recommended the board start thinking about doing another revaluations, which he estimated would cost between $80,000 and $150,000.

Last year, selectmen raised valuations across the board by 6 percent to stay in compliance with state law.

When calculations were done this year, Trepanier said, the 6 percent was wiped out and they went from the valuations received in 2001-02.

Trepanier said there has been a trend that shifts more tax responsibility to residential properties.

He also said there is significant value in the town not being taxed while others are subsidizing those bills due to new buildings, sheds, additions and so forth not being on the tax rolls.

“I personally don’t think we have much choice. … We can’t afford to loose the revenues coming from the state and we probably should look at doing a revaluation,” Selectman Louise Chabot said.

She motioned to increase the property value as recommended, set the tax rate at $20.30 and look at a revaluation and timeline for it to be done. It was unanimously approved.

Tax bills are expected to be mailed out at the end of the week and the 1 percent discount if people pay their taxes within 30 days will be extended two days until Sept. 21. The town office will be closed Sept. 18 and 19 for staff to attend mandatory election training.