Understanding Your Tax Rate

Are my taxes going to double?

There has been a lot of confusion around the new property valuations and property taxes. No, just because your valuation went up doesn’t mean the tax rate goes up.

Every year, the town figures out how much money it needs via our budgeting process. Only that amount of money is raised. That amount is divided by the total valuation of taxable property to give the town portion of the tax rate, x dollars per thousand of valuation.

All other things being equal, if the town's valuation doubles, the tax rate gets cut in half. The same amount of money is raised.

But, it is a bit more complex. Some individuals will end up paying more, some less. It all depends upon if your house appreciated more or less than the overall appreciation. Some houses have been undervalued relative to others. This is why the state makes us do a revaluation every 5 years, it gets everyone back on the same level.

The tax rate will change for November to cover what the town voted to spend at town meeting in March, adjusted for any additional income, etc. The new rate will be based on the new valuation. However, as always, the school is by far the largest portion of the tax bill, about 70%, and we have no control over that. You will see the tax rate go down. Again, the amount of tax money raised will be as always, what we voted to spend plus any adjustments.

The select board sets the tax rate for the town’s portion using the process above. The school and county rates are given to us. The only thing the town controls is the town budget, and we have some very dedicated people that work many hours each year to keep our budget under control.

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