Limestone mill rate jumps significantly following Wednesday vote

1 month ago

LIMESTONE, Maine – Limestone officials approved a significant mill rate jump after learning of higher expenses and fewer state reimbursements for local solar fields.

The select board unanimously voted for a rate of 31.5 mills per $1,000 of property value, compared with 22.69 mills last year. 

This year’s mill rate will result in an overlay of $104,450, a slight increase over the 2023 overlay of $103,663.

Tax bills will be sent to residents by Oct. 15, after which residents will have 30 days to pay. Those who pay within the 30 days will receive a 3-percent discount. A 4-percent interest rate for late tax payments will begin in January.

Tax assessor Brandon Saucier presented four mill rate and overlay options to the selectboard, with potential mill rates ranging from 30.6 to 31.8, and overlays from $24,207 to $131,198.

Saucier attributed the mill rate jump to higher county taxes and town and school tax appropriations, and decreased state reimbursement for solar fields that went online since 2023 and no longer qualify for the state’s Business Equipment Tax Exemption program.

Limestone’s county tax bill jumped from $128,707 to $253,776 because the county switched from a calendar to fiscal year, and charged municipalities a 6-month bill in 2024 and a fiscal year bill. 

At the annual town meeting in June, residents voted to raise the municipal tax appropriation from $1.7 million to $2.1 million, and the school’s appropriation from $1.4 million to $1.5 million.

Limestone’s taxable real estate totaled $71,107,960 this year, with $15,971,258 qualifying for Maine’s Business Equipment Tax Exemption program. While the taxable real estate increased from $69,296,250, the total that qualified for BETE dropped from $33,868,002, Saucier said.

The BETE reimburses towns at 50 percent, meaning that Limestone will receive $304,107, compared with $517,244 last year.

“We have an industrial warehouse on the [Loring] base that houses equipment for one solar company that had $19 million in BETE equipment last year, but now it’s less than $5 million,” Saucier said. 

Once solar farms go online, they no longer qualify for BETE, Saucier said.

Board members agreed that although the new mill rate will be a significant jump for the town, an increase could not be avoided.

Properties that Green 4 Maine purchased last year at Loring Commerce Center helped bring the 2024 tax rate down but things could look up again if more development happens there, said board chair Randy Brooker.

“We’re hoping that this is possibly a temporary jump,” Brooker said. “We can’t help things like the county tax and with inflation everything is costing more.”