South Berwick’s property tax rate has been set at $13.96 per $1,000 of assessed valuation, a 58-cent decrease from last year’s rate of $14.54. But that doesn’t necessarily mean all residents’ tax bills will be lower.
The Town Council, which establishes the annual tax rate in its role as the town’s Board of Assessors, set the rate for the current fiscal year at its Aug. 8 meeting.
Town, school and county costs all have gone up because of increases in wages, benefits and utilities, according to Town Manager Tim Pellerin, who addressed inflationary pressures on the town budget at the Annual Town Meeting.
The tax rate, or mill rate, is calculated by first determining the funds the town must raise to cover its own municipal budget; adding to that South Berwick’s share of funding for school district and county services; and estimating an amount set aside in an overlay to cover tax abatements that might be granted during the year. Overlay funds not expended in a given year go into the town’s undesignated fund.
The town’s total property valuation in the past year has increased from $951.5 million to $1.12 billion as new construction, land splits and sales activity are rolled into the valuation.
The total value of the town’s real estate and other taxable property such as business equipment, plus revenues from other sources such as fees, excise taxes and state revenue sharing, are used to arrive at a final dollar figure the town must raise through property taxes.
The town’s portion of revenue generated by property taxes represents 33% of the total amount raised, with the other 67% going to fund school and county services, Pellerin said.
Property tax and personal property bills for the July 1, 2023-June 30, 2024 year have been sent out, with half the bill due on Sept, 30 and the balance by the end of March 2024.
