Auburn will replace Lewiston as the Maine city with the highest property tax rate tonight if councilors accept their fiscal year 2004 budget.

Councilors are scheduled to set the rate at $29.38 per $1,000 of property value, a 94-cent increase over last year.

Lewiston councilors have set their rate at $28.89, the same as last year. If Auburn councilors pass the proposed budget Monday, that city’s tax rate will exceed Lewiston’s for the first time in more than 10 years.

“It’s never been a tit-for-tat situation, that we had to keep our tax rate below Lewiston’s,” Auburn Mayor Norm Guay said Friday. “In my experience, we’ve just tried to set a tax rate that provided for the best services for the community.”

The Twin Cities are usually at the top of the list of Maine property tax rates. Only tiny Frye Island and the Oxford County town of Mexico had higher rates in 2003 – $38.60 and $30.80, respectively.

Among Maine cities, however, Lewiston and Auburn top the list. Portland is the third highest this year, with a tax rate of $25.72 and Augusta is fourth with a rate of $24.85.

Mill rates only determine part of the tax bill, according to Lewiston Finance Director Dick Metivier. Property values play as big a role.

“If you were to look at comparable homes in Lewiston and Portland, the Portland home probably has higher property value,” Metivier said. “They may have a lower rate, but they probably pay higher taxes.”

Adjusting value

Lewiston’s tax rate should go down next month, however, when the results of a citywide land value survey come in. City Assessor Joe Grube said he expects to increase the total land value by as much as $60 million based on the survey. That will bring the city’s property tax rate down by $1 to $1.50.

“That’s just a projection at this stage, but we’re pretty confident of that range,” Grube said. “This isn’t new money for the city. All that new value, that’s being used to reduce the tax rate. The whole intent is to make taxes more fair across the board.”

Grube said the city has not updated its property values since 1988. A full revaluation is scheduled to begin next year.

“Basically, we’re bringing our assessed value more in line with market values,” he said. “For some, that will mean a decrease in their taxes. Others, if their property values increase, they’re going to pay more.”

Auburn taxpayers will get a similar break beginning with their tax bills in 2005, said Assessor Joe Downey. That’s when the results of a revaluation will be used.

“Right now, the prognosis calls for our property tax rate to go down to $22 or $23 in 2005, based on the new property values,” Downey said. “But that assumes that the budget itself doesn’t increase.”

Mayor Norm Guay made trimming the budget one of his top goals for next year. Auburn Councilor Rich Livingston expects that work to begin right away. City Manager Pat Finnigan is planning a department-by-department review beginning in July.

“We know she is very committed to analyzing those costs right away and working towards minimizing next year’s request,” Livingston said.

He added that Maine cities need some help. State legislators need to find a way spread the tax burden more evenly, he said.

“Ultimately, the long-term solution has to be statewide reform that shifts away from property taxes,” Livingston said. “Anything else, the problem is just being nibbled by ducks.”

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