North Berwick select board sets tax commitment at 9.35 amid large revaluations of industrial properties

The Town of North Berwick Select Board voted to set the municipal tax commitment rate at 9.35 cents for the 2026 fiscal year during its meeting, citing unusually large increases in assessed values for several industrial parcels and the need to protect the town against potential successful abatement claims.

Town staff described a recent set of outside industrial and commercial appraisals that produced “substantial” increases in assessed value for major companies in town. “Pratt went from about $43,000,000 to $103,000,000,” the staff member said, and Hussey’s valuation rose from roughly $7,000,000 to about $16,000,000. The staff member told the board these appraisals were prepared by a qualified firm and that the town had already applied a partial reduction factor to the appraised values.

The staff member said the town’s total taxable valuation increased by roughly $155,000,000 this year and that new construction added about $12,000,000 in value. Because those industrial accounts can request abatements, the staff member recommended a larger overlay to protect the town’s budget if appeals reduced assessed values. “The overlay will help plus it will also protect us. So if there is a large abatement request … we’d have funds there to cover those,” the staff member said.

Nut graf: The board’s vote—moved and seconded on the floor and approved without recorded roll-call—implements a higher overlay than in some recent years to preserve revenue capacity while town staff and affected property owners review the new appraisals and any abatement petitions.

Board members and staff outlined how appeals would proceed. The staff member described an administrative process in which property owners may first consult with Verna (the town’s valuation staff), then present arguments to the board of selectmen; properties valued above $1 million may then petition the State Property Tax Review Board if unresolved. The staff member emphasized that the burden of proof for a reduction lies with the property owner and that the town had already reduced appraised values to roughly 90–93.7% before committing them to the tax roll.

The staff member noted examples of how the higher rate would affect large taxpayers: under the recommended rate of 9.35 cents, Pratt’s municipal tax bill would increase by an amount the staff rendered as approximately $528,000 and Hussey’s by about $130,000, figures the staff said illustrated the significance of the revaluation for certain accounts. The staff member also said most residential taxpayers would see a modest change compared with earlier projections: “The average tax increase to the actual homeowner in town with this, with these numbers is under a $100,” the staff member said.

Discussion also covered the town’s total budget increase and revenue offsets. The staff member reported the adopted budget rose by roughly $863,000 year over year and that state revenue-sharing and other revenues reduce the amount to be raised by local property tax. The staff member recommended the 9.35 rate largely to create an overlay of roughly $571,000 — larger than the “mid threes” overlays the town has used historically — to cover potential abatement outcomes and other budgetary uncertainty.

Votes at a glance

- Tax commitment rate: Motion to set tax commitment rate at 9.35 for fiscal 2026 (mover: not specified; second: not specified). Outcome: approved. (Recorded on meeting transcript.) - Warrants: Motion to approve warrants dated 08/12/2025 for $22,749.49 and 08/19/2025 for $895,638.57 (mover/second not specified). Outcome: approved. - Meeting schedule changes: Motion to adjust December and January meeting dates (mover/second not specified). Outcome: approved. - Executive session: Motion to enter executive session at 7:26 p.m. until 7:45 p.m., then adjourn (mover/second not specified). Outcome: approved.

The board and staff also discussed next steps: staff said the appraisals were delivered to the major taxpayers immediately after receipt so the companies could review them and decide whether to seek abatement. The staff member said the town expects some appeals and outlined the administrative and state-level review paths available to property owners.

Ending: The board passed the tax-commitment motion and several routine agenda items and then moved into executive session to consider other matters. Staff said it would submit the grant and budget materials and continue to engage with large taxpayers about the appraisals.