July 26, 2006
By: Rachel Rice of the Bangor Daily News

Mars Hill, ME—July 26, 2007—Local residents were in for a pleasant surprise when they opened their tax bills this month.

That's because they owed about 20 percent less than what they paid last year.

The mill rate in Mars Hill dropped from $24 per $1,000 of assessed property value in 2006 to $20 this year, Town Manager Ray Mersereau said Wednesday.

The Mars Hill Town Council unanimously approved the $20 tax rate at a special council meeting earlier this month.

Officials had been expecting to considerably lower the tax rate due to an anticipated $500,000 in tax increment financing money from Evergreen Wind Power LLC, which owns the newly built wind farm on top of Mars Hill Mountain. Mersereau said the first TIF payment came in on July 16.

The town manager pointed out that this year's tax rate is at an unprecedented low.

"This is to a level that, to my knowledge, we have never been to before," Mersereau said.

In fact, the town has only been close to this year's mill rate twice, and both times it was right after a revaluation of town property. In 1989, the rate went down to $20.50 and in 1979, it went down to $22.50.

"But this is without a revaluation, which is basically unprecedented," Mersereau said. "It's the best tax rate we've ever had here."

Under the new mill rate, a Mars Hill property owner would expect to pay about $1,000 in taxes on a $50,000 home. If the owner were eligible for the homestead exemption, the tax bill would drop to $754.

Mersereau said that one man who owned several pieces of property told him the total savings he saw on his tax bills would have been enough to pay for one of his individual bills.

The town manager said more good news is that property valuation is up significantly. Last year, it stood at $42 million, or $47 million if you counted the town's TIF districts. This year, it is at $67 million, or $112 million counting the TIF districts.

The town also saw about $1 million in new residential and business construction this year, not counting the wind farm project.

Town officials are hoping the good news will attract more people and businesses to the municipality.

"We wanted to make Mars Hill a more desirable place for investment," Mersereau said.

Tax bills went out in mid-July. Residents will get a 2 percent discount for paying their bills within 30 days. They have until Jan. 16 to pay before a 12 percent interest rate kicks in.

The next Mars Hill Town Council meeting will be at 7 p.m. Monday, Aug. 20, at the town office.

About First Wind
First Wind is based in Newton, Massachusetts. First Wind is an American-owned company, with a proven track record of developing, owning, and operating well-sited, community-friendly wind farms that increase energy independence. For more information on First Wind, please visit www.firstwind.com.

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For more information, contact:
John Lamontagne
Director, Communications
First Wind
617-964-3340