Claremont
McNutt’s comments came in response to a report by Assessor Marlene Jordan that showed the city has 69 percent of its land, or about 18,300 acres, in current use, which substantially reduces the tax bill in exchange for keeping it undeveloped.
Current use is a program established in the 1970s and was intended to curtail development of farmland and forest.
The 257 parcels, less than 5 percent of the total number of city properties, have a total assessment of $1.1 million and bring in just under $47,000 in revenue.
“That doesn’t even pay for a fireman,” said Councilor Bruce Temple.
The city collects about $28 million in taxes for the city, schools and county, according to Finance Director Mary Walter.
The Department of Revenue oversees the program and values property per acre based on whether it is farmland, forest land, unproductive or wetlands.
“There is potential (tax) revenue there,” McNutt said about parcels that have had a change of use. “We are going to endeavor to find every applicable parcel we can and pull it out of current use. We hope to get them out of current use as soon as possible.”
In her report to the council, Jordan said her department is continuing to review all properties enrolled in current use to ensure the paperwork on file is “complete and accurate.”
“If a property owner has developed or changed the use of the property, a land use change tax will be issued for the portion of the land that no longer qualifies for current use assessment,” Jordan wrote.
Change in use can include physical changes such as building a road, beginning construction, installation of utilities or removal of topsoil, Jordan told the council.
Any change in assessment can be challenged by the property owner and the burden of proving that the new city new assessment is inaccurate rest with the property owner.
Some councilors were perturbed that the program adopted by the state, with no state funding, ends up costing municipalities revenue.
“They pass a land-use law and out-of-state owners get their land almost tax free,” said Councilor Vic Bergeron.
Also Wednesday night, the council voted 8-1 to begin the process of forming a finance committee made up of three councilors.
Mayor Charlene Lovett has been urging the council to have a finance committee so it can spend more time analyzing the city’s fiscal framework and make recommendations to the full council.
“We don’t have a mechanism in place to do that,” Lovett said, assuring councilors this was not an attempt to interfere with the city manager’s budget formation or micromanage the city budget.
Councilor Nick Koloski, the sole vote against, said he was not comfortable with the committee’s charge. “The description is too broadbrush,” he said. “I can’t support that.”
The vote is only for one year, after which it would have to be approved again for the committee to continue.
Patrick O’Grady can be reached at pogclmt@gmail.com.
