EAST MILLINOCKET – The town property tax rate will rise $1.14 per $1,000 of valuation to $22.71 starting next month, but town officials hope that taxpayers will apply for a state tax exemption program that will give them a slight property tax break if they qualify.

The Board of Selectmen voted unanimously to increase the mill rate from last year’s 21.57 mills during a special meeting Tuesday. First half-year tax bills are due Nov. 17; second half-year taxes are due Feb. 8, 2006, town Administrative Assistant Shirley Tapley said.

The board voted for the increase because the town lacks a fund or surplus balance to lower its tax commitment. Last year the town had a surplus of $300,000, Tapley said. The board also wanted to maintain an overlay, or surplus fund for errors and omissions that is required by law, of $50,134.

“The board actually worked very hard to decrease town budgets, and the budgets did decrease by a total of 3.25 percent,” Tapley said Tuesday.

In previous years, the fund has ranged from $50,349 to $100,000. Under state law, the overlay can be no more than 1.05 percent of the net tax to be raised.

Under computations provided by Tapley, a parcel valued at $50,000 would receive a $13,000 reduction of taxable value under the new homestead exemption rate, and be taxed at a net value of $37,000, resulting in a tax bill of $840.27.

In 2004, a $50,000 property would receive a homestead exemption of $7,000, leaving the taxpayer owing $927.51 at last year’s rate of 21.57 mills, Tapley said.

Taxes are figured by multiplying the mill rate (22.71 mills) times the total assessed value of a property, so a property valued at $1,000 would be taxed $22.71 under the new tax rate.

Under the Maine Revenue Services Homestead Exemption program, individuals who have owned homestead property – a house, mobile home or condominium – in Maine for at least 12 months and make the property they occupy on April 1 their permanent residence would receive an exemption of $13,000 on that property, according to the Revenue Services Web site, http://www.maine.gov/revenue/.

To receive an exemption, residents must complete an application form at the town offices by April 1.

Officials reviewing exemption claims may require additional information, according to the Web site.