Washington County Tax Bills Bring Surprise Credits for Most Towns

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Last year, Washington County asked municipalities to prepay their portion of a projected $8 million debt to avoid defaulting on its 2025 tax anticipation note. As more towns prepaid, the final debt amount dropped to just under $7 million. This means most towns that prepaid now have an unexpected credit on their 2026 tax bills, ranging from $1,586 in Talmadge to $58,813 in Lubec. The county is allowing towns to either apply the credits to 2026 taxes or request refunds.

Why it matters

The prepayments and resulting credits will help reduce the amount Washington County needs to borrow and pay interest on for its 2026 tax anticipation note, saving taxpayer money. This highlights how proactive financial planning by the county and municipalities can benefit local budgets.

The details

In 2025, Washington County set an $8 million figure for the tax anticipation note, but the final debt ended up just under $7 million. Since towns had prepaid against the higher $8 million amount, most now have a credit on their 2026 tax bills. The county is allowing towns to either apply the credits to 2026 taxes or request refunds. This will reduce the amount the county needs to borrow in 2026, lowering interest costs.

• In October 2025, Washington County sent letters asking municipalities to prepay their portion of the projected $8 million 2025 tax anticipation note debt.
• By mid-February 2026, the final 2025 tax anticipation note debt had dropped to just under $7 million.
• On March 9, 2026, the county announced the resulting credits on 2026 tax bills for towns that had prepaid.

What they’re saying

What’s next

The Maine Legislature's Committee on Taxation will hold a public hearing on Thursday on a bill that includes a one-time payment of $640,671 to cover the unorganized territories' portion of Washington County's 2025 tax anticipation note debt, plus interest.