Vol. 4: your tax dollars
The Miles Campus Pays Nothing in Property Taxes. Damariscotta Property Owners Make Up the Difference.
MaineHealth holds $42 million in tax-exempt real estate in Damariscotta — nearly half of all exempt property in town. The result: a mil rate inflated by 1.755 mills that every other property owner pays, every year.
Damariscotta property owners subsidize MaineHealth to the tune of $777,292 every year — the value of the hospital system's charitable exemption on $42 million in real estate. That subsidy runs $2,130 per day. In return, the system claims a charitable mission. It is now considering ending the service that most directly defines that mission for this community.
$777K
Damariscotta's annual subsidy to the MaineHealth system$2,130
Per day, every day — rain, sleet, or closed birth center9.5%
Of every Damariscotta property tax bill is the MaineHealth surchargeWhat MaineHealth Would Owe vs. What It Pays
At the current mil rate of 18.500, MaineHealth's full $51.9 million portfolio — if assessed and taxed normally — would produce a tax bill of about $960,000 a year. It pays $179,000. The $777,000 gap is what the exemption costs everyone else.
Full potential: $51,947,300 × 0.0185 = $960,525/yr. MH pays $178,904 on $9.7M taxable assessment. Bracket shows the gap between full obligation and actual payment = $777,292 — the annual Damariscotta subsidy. FY 2025 Tax Commitment Book.
1.755 Mills Added to Every Other Property Owner's Bill
When $42 million in assessed value is removed from the taxable base, the same levy requires a higher rate from everyone else. Without the exemption, Damariscotta's mil rate would be 16.745 instead of 18.500 — a 9.5% reduction.
(exemption in place)
What the Exemption Costs at Your Assessed Value
Drag the slider to your property's assessed value and see your share of the subsidy.
MaineHealth Holds Nearly Half of All Exempt Property in Damariscotta
The town's total exempt property is $91.6 million across all holders — churches, schools, and other nonprofits included. MaineHealth accounts for $42.0 million of that: 45.9%. No other single organization comes close.
Source: FY 2025 Tax Commitment Book — total exempt $91,580,700; MaineHealth system exempt $42,015,800.
Every MaineHealth Parcel in Damariscotta
Thirteen parcels across eight accounts carry full exemptions. Five parcels are taxed normally — primarily medical office buildings and the Schooner Cove continuing-care facility.
Full parcel inventory — 13 exempt + 5 taxable (click to expand)
| Acct | Entity | Use / Location | Gross Value | Assessment | Tax | Code |
|---|---|---|---|---|---|---|
| 785 | Miles Properties, Inc. | Main hospital campus — 35 Miles St | $30,901,000 | $0 | $0 | 55 — Hospital |
| 786 | Miles Properties, Inc. | Coves Edge Intermediate Care — 26 Schooner St | $6,250,400 | $0 | $0 | 55 — Hospital |
| 1572 | Coves Edge, Inc. (c/o Miles Health Care) | Coves Edge Assisted Living — 51 Schooner St | $2,916,900 | $0 | $0 | 92 — Assisted Living |
| 1272 | Miles Memorial Hospital | Land & buildings — 4 Alewife Lane | $671,800 | $0 | $0 | 55 — Hospital |
| 1219 | Miles Memorial Hospital League | League building — 114 Church St | $376,100 | $0 | $0 | 48 — Charitable |
| 1134 | Miles Memorial Hospital | Land & buildings — 97 Bristol Rd | $404,200 | $0 | $0 | 55 — Hospital |
| 1271 | Miles Memorial Hospital | Land & buildings — 3 Alewife Lane | $293,600 | $0 | $0 | 55 — Hospital |
| 1082 | Miles Memorial Hospital | Land & buildings — 10 Alewife Lane | $201,800 | $0 | $0 | 55 — Hospital |
| 784 | Miles Health Care, Inc. | Schooner Cove CCRC — 35 Schooner St | $6,219,900 | $5,958,900 | $110,240 | Taxable* |
| 244 | Miles Health Care, Inc. | Webster/Vanwinkle Medical Bldg — 79 Schooner St | $1,629,000 | $1,629,000 | $30,137 | Taxable |
| 788 | Miles Health Care, Inc. | Medical Office Building — 5 Miles Center Way | $1,079,800 | $1,079,800 | $19,976 | Taxable |
| 789 | Miles Health Care, Inc. | Ortho Building — 39 Miles Way | $778,300 | $778,300 | $14,399 | Taxable |
| 1510 | Miles Health Care, Inc. | Vacant land — Main St | $224,500 | $224,500 | $4,153 | Taxable |
| System total | $51,947,300 | $9,670,500 | $178,904 | |||
*Account 784 carries a $261,000 partial exemption covering individual resident homestead and veteran exemptions only. Exemption codes: 55 = Leased/Hospital (36 MRSA § 652(1)(A)); 48 = Charitable; 92 = Assisted Living. Source: Town of Damariscotta FY 2025 Real Estate Tax Commitment Book (committed 08/07/2024).
Maine law exempts hospital real estate because the institution is supposed to provide a community benefit that substitutes for the taxes it doesn't pay. MaineHealth reports $795 million in community benefit systemwide in its most recent Form 990 — drawn across a seventeen-hospital network. Damariscotta's contribution to that system is $777,292 a year in foregone property taxes. What this community gets back is the question now before the town.
Town of Damariscotta, Real Estate Tax Commitment Book, FY 2025 (committed 08/07/2024, mil rate 18.500). Primary source for all parcel data, assessed values, and levy totals. Available at the Town Office, 21 School Street, Damariscotta.
Maine Revised Statutes, Title 36, § 652 — Property Tax Exemptions.
mainelegislature.org/legis/statutes/36/title36sec652.html MaineHealth, IRS Form 990 (tax year ending September 30, 2024). Community benefit at Schedule H Part I, line 7k: $794,649,248. Available via ProPublica Nonprofit Explorer.
MaineHealth, "Our Mission, Vision and Values."
mainehealth.org/about-mainehealth/our-mission-vision-and-values