BOWDOINHAM — Selectmen voted unanimously Tuesday to increase the tax rate by 40 cents per $1,000 of assessed value for the 2020-21 fiscal year.

The new tax rate is $16.87 per $1,000 of assessed value, which is a 2.4% increase. That is an increase of $80 for a home assessed at $200,000.

According to Selectman David Engler that leaves the town with an overlay of about $18,000. That is money raised through taxes the town reserves for property tax adjustments, known as abatements, and to run the town in the event residents don’t pay their property taxes, Engler said.

The town also must raise taxes to support their portion of Sagadahoc County and Maine School Administrative District 75 budgets.

The tax rate, while an increase, is lower than the projected tax rate increases provided by the town in July.

On July 14, Bowdoinham residents approved a $2.18 million municipal budget, which is a $205,888 or 10% increase over the 2019-20 spending plan.

Depending on revenue from the state and whether voters cut the capital reserve budget, the tax rate increase would range between 3.8% and 4.7% or $126 to $156 for a home assessed at $200,000, Woodin said. Voters did not nix the capital reserve budget.