Newry tax rate goes up

Newry taxpayers will pay $50 more per $100,000 of valuation this year, after selectmen Monday set the 2010 mil rate at 8.85.

Last year’s rate was 8.32.

Tax bills were expected to go out yesterday (Wednesday).

The jump is attributed largely to an increase in the SAD 44 school share.

Selectmen said Monday they were reluctant to take more money out of the Surplus Account to reduce taxes. At the March Town Meeting, voters approved taking $75,000 from the account for that purpose.

There is currently about $975,000 in surplus, Town Administrator Loretta Powers said. But the town’s assessors recommend keeping enough in surplus to cover three months worth of town bills. The school share alone costs $620,000 for three months, she said.

Powers also noted that a total of $120,000 in back taxes is owed from 2008 and 2009, by approximately 50 properties. There have been a few bank foreclosures on vacation properties, she said.

In setting the mil rate at 8.85, Newry will have an overlay amount of $38,478 available to cover abatements and unpaid taxes. Last year’s overlay was $47,000. “We used all of that,” said Powers.

She said she particularly hoped to receive $38,000 in back taxes for 2008 from the Sunday River Golf Club. The business had indicated to her the taxes would be paid, she said.