LEBANON — After weeks of delay, the state has set the city’s new property tax rate. At $21.53 per $1,000 of assessed value, the levy is a 18.1% decrease from the rate set last year.
But taxpayers should not celebrate the decrease, as increases in assessed values mean many property owners still will see tax bills increase under the lower rate.
Under the new rate, the owner of a home valued at $450,000 would pay nearly $9,700 in annual property taxes.
Each community’s rate is set by the state Department of Revenue Administration and normally is announced early in the fall. This year, the Lebanon tax rate was delayed because of a citywide property revaluation completed earlier this fall.
Completing a revaluation often drives down tax rates by increasing the total assessed value of property in a community.
Overall, property in the city not including utility infrastructure is now valued for tax purposes at about $3.36 billion, according to data from the Department of Revenue Administration. That’s a 28% increase from before the revaluation.
Every component of the city’s total tax rate — which supports spending on municipal services, schools, statewide education outlays and county government — decreased by at least 13%, according to a Thursday news alert from the city.
But even with the lower tax rate, many property owners still will see their tax bills increase.
In the revaluation completed this fall, the average increase of the assessed value of single-family homes in Lebanon was about 37%, according to a presentation Steve Whalen of Vision Government Solutions, or VGS, gave to the City Council earlier this month.
The city contracted with VGS to complete the revaluation, which was mandated by the state because assessed values had fallen too far below market rates. Before this year, the city’s last revaluation was in 2022.
The greatest average increase in values was to manufactured housing, which went up 95%, and the lowest was an average 17% increase for commercial land and buildings, according to the same presentation.
About 5% of Lebanon residents requested informal hearings to review their revaluations, Whalen reported. He said the company had not calculated what percentage of those hearings resulted in changes to assessments.
The first tax bills calculated using the new rate are expected to be mailed in early December and will be due 30 days from the date of mailing. Exact due dates will be printed on each bill.
The City Council is currently reviewing and finalizing its 2026 budget.
The City Manager has proposed a $78 million spending plan.
The council will hear public comments on the budget on Dec. 3 and Dec. 17, when it is expected to approve a final budget.