Tax Reform Works for Saco!

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A Newsletter by the City of Saco, Maine	March, 2005	Return to newsletter index

Based on preliminary estimates, the City of Saco tax levy will actually be reduced by approximately $100,000 in the fiscal year 2006 budget process. This hasn't happened in Saco since 1979! This can be attributable to the tax reform package, also known as Public Law 2 that was approved by the governor in January of this year (See separate article on Public law 2). Basically, by the State providing more funding for education under the Essential Programs and Services Model of approximately $1.9 million, the school department has been able to reduce their respective levy on property taxes by just over $600,000. This is a preliminary estimate and could possibly even increase as revenues are solidified over time. With the tax levy limitation imposed on the city, the tax levy increase for city services has been minimized to approximately $420,000. The county, not required to comply with a tax levy limitation until January of 2006 has estimated an approximate $80,000 increase for the City of Saco in the fiscal year 2006 budget process. These 3 factors combined net to a total tax levy reduction of approximately $100,000 to the tax payers of Saco in fiscal year 2006. So, although valuations of property may be increasing to be more in line with state market averages, the mil rate will be reduced proportionately so that the same amount of tax will be levied as was last year. Although the law was embraced originally with some skepticism, it has proven to have met its purpose within the City of Saco.