In an exciting development for homeowners in Saco, Maine, city administrator John Bohenko has unveiled a promising proposal in the fiscal year 2025 budget that could lead to significant property tax reductions. Under this proposal, residents stand to benefit from a substantial cut in property taxes, offering relief to many households.
Bohenko's proposal suggests a notable reduction of 70 cents per thousand dollars of a property's assessed value. This adjustment would lower the property tax rate from $14.75 in the 2024 fiscal year to $14.05 in 2025, potentially resulting in substantial savings for homeowners. For instance, a homeowner with a median house value of $515,000 could see their tax burden lightened by $355.35, as highlighted by Bohenko during a recent council meeting.
"The council wanted to pay attention to the needs of our residents," emphasized Bohenko, "Last year we had a major increase for people in their taxes, and we heard it."
The proposed change aims to alleviate tax burdens for approximately 85 percent of residential taxpayers in the city, following a $3 million increase in city revenues over the past year. Bohenko's commitment to addressing residents' concerns underscores the city's dedication to enhancing affordability for its citizens.
"Last year we had a major increase for people in their taxes, and we heard it. The council wanted to pay attention to the needs of our residents," stated Bohenko during an interview with local news outlet WMTW.
Maine's average effective property tax rate stands at 1.24 percent, with the typical resident paying $2,756 annually in property taxes, according to SmartAsset. Bohenko's proposal is aligned with efforts to enhance affordability for homeowners in Saco, positioning the city more favorably in comparison to national property tax rates.
"Maine is ranked 36th in the nation for property tax rates," noted Bohenko, "We aim to provide relief to our residents without compromising essential services."
The proposed $73.3 million budget, which encompasses municipal spending, school department expenses, and county taxes, reflects an increase of nearly $1.1 million from the current fiscal year. Bohenko, who assumed the role of Saco City administrator in October 2023, expressed his commitment to maintaining the city's high-quality services, ranging from public safety to education.
"As we move forward, I look to continue the City's tradition of providing high-quality services to our citizens through public safety, emergency assistance, recreation, education, resource recovery, and other essential day-to-day operations," Bohenko affirmed.
As residents await further developments on the proposed budget, the potential property tax cut offers a glimmer of hope for homeowners in Saco, Maine, signaling a positive step towards enhanced affordability and community well-being. Stay tuned for updates as the budget proposal progresses through the legislative process.