The town of Newcastle reassessed the Lincoln Academy campus for the July 6 tax commitment and determined that, though the school itself is tax-exempt, the town may tax staff residences.
Newcastle Assessors’ Agent James “Jim” Murphy Jr. notified Lincoln Academy Head of School David Sturdevant of the updated assessment June 29. Murphy determined the staff residences in the new residence hall are taxable, along with pre-existing staff housing in the Hall House.
According to Murphy, Maine law states that employee housing is not tax-exempt, even on properties that are otherwise tax-exempt. Newcastle assessed the new residences at $726,900 and plans to tax the school $13,120.55 for the upcoming tax commitment.
Sturdevant said that in his experience, dormitory apartments are tax-exempt.
“At this time, we are doing more research, and I will be talking with the Newcastle selectmen at a meeting later in August,” Sturdevant said.
According to Sturdevant, faculty housing not attached to a dormitory, such as stand-alone residences or apartments in academic buildings, is not tax-exempt.
“Dormitory faculty apartments are essential to the program of the school, and without them, it would be impossible to have a dormitory,” said Sturdevant. “I believe that puts them in a different category.”
“We continue to work on this, so I am sure the situation will evolve,” he said.
Lincoln Academy has 185 days after the July 6 tax commitment to submit an abatement request, according to Murphy.
