CHINA — China officials have voted to solidify this year’s property tax at a rate less than last year’s, though they warn that rising budgets elsewhere could lead to increased tax bills for the town’s property owners.
While China’s property tax rate is reduced for this year, town officials say increasing school and county budgets could lead to bigger tax bills for property owners. Rich Abrahamson/Morning Sentinel file
The Select Board voted Aug. 12 to set China’s property tax rate at $11.70 per $1,000 of assessed valuation, or 11.7 mils.
The rate is down about 4.5% from last year, when it was $12.26 per $1,000 of assessed valuation.
While the town’s tax rate is decreasing, officials said they expect increasing budgets elsewhere might increase residents’ tax bills.
China residents approved a roughly $4.8 million budget in June, which represents a $370,000, or 9%, increase from the previous year.
The town has not reassessed its property and home values in “a couple years,” according to William Van Tuinen, the assessor’s agent who conducted a revaluation this year and found China’s property and building values have gone up by as much as 20% since the town’s last revaluation.
With the increased property values, the town can cover its expenses with a lower tax rate, Van Tuinen said.
“The valuation’s higher, the tax rate’s a little lower, but it’s a little higher than it would be because you’re raising more revenue,” he said at the Select Board meeting.
Still, increasing school and county budgets could result in larger tax bills for many property owners in China, according to Select Board Chairman Wayne Chadwick.
Kennebec County’s budget earlier this year came in with a 28% increase to taxpayers, while voters approved Regional School Unit 18’s roughly $44 million budget in June.
“Everything went up: town, school, county — everything,” Chadwick said.
It remains unclear how much residents’ property tax bills will increase or decrease under the new rate. Van Tuinen said he “hasn’t figured that out” yet.
It is possible town officials could continue reducing the property tax rate in coming years, Van Tuinen said, because property values in China and much of Maine are expected to continue increasing.
“We’re in basically uncharted territory,” he said. “I’ve been in this business since 1977, and I’ve never seen anything like the real estate market we’re in. Real estate values have been going up year after year after year.”