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Mexico tax rate may hold steady
MEXICO -- At one point, Town Manager John Madigan said it appeared the tax rate was in for a large increase. But now, it's looking like it may not change at all.
At the time Gov. LePage's two-year budget package was proposed, LePage proposed in his budget to eliminate General Revenue Sharing and the Homestead Exemption.
The Homestead Exemption allows homeowners not to be taxed on the first $10,000 worth of their property, which reduced many household property tax bills by several hundred dollars a year.
Madigan said the town would have been looking at a 5 mil increase.
Then Maine House and Senate voted to override LePage’s veto of the state budget for the next two years. After much debate of cutting, keeping or expanding the Homestead Exemption, it was left the same.
But General Revenue Sharing, in which the state gives a share of sales and income taxes to municipalities, was cut from $95 million to $65 million. The next year, it drops to $60 million.
Mexico's share of revenue sharing is $290,806, which Madigan said is $98,000 les than what they budget this past year. As a result, he said the tax rate "could stay the same at 25 mils."
He noted that the town has an offer for the old superintendent's building on Parker Street, which currently houses the police department. That sale "would more than offset that $100,000 (loss in revenue sharing)."
Madigan said the sale of the building would work out easier for him if it happens in the next month or so when the tax rate is set. He added it was agreed that the police department could stay in that building.