People whose properties increase in value by more than 77% pay the corresponding percentage more in taxes. Those whose values rise by less than 77% pay less.
PORTLAND, Maine – Hundreds of Portland homeowners appeal to their new home values after the city completes its revaluation.
City tax agent Christopher Huff said the last reassessment was in 2006, resulting in a 77% increase in the city’s total tax base. As a result, the values of residential property, commercial real estate and land are rising. He said the average home ownership was up 82%.
People whose real estate increases in value by more than 77 percent pay that corresponding percentage more in taxes. Those whose values rise by less than 77% pay less.
“Obviously the Portland market is very different today than it was in 2006, and that explains some of the bigger increases in value we’ve seen,” said Huff.
The revaluation is a snapshot and shows the market value of homes, commercial properties and land as of April 1, 2020.
The city looked back on 45 months of sales, going back to April 2017, determining new property values and the taxes people will have to pay on them.
Maine requires cities and towns to reassess every 10 years.
Huff said previous Portland councilors had discussed revaluations but never voted on one. In 2018, the council finally approved one.
“Because we were not meeting Maine standards, we had to do this reassessment,” said Huff. “One of the things that we built into this project were tools and technologies to be able to do this at shorter intervals so that we don’t have these wild fluctuations in value, four, five years, I think everyone – the city and the taxpayers – it will certainly do better. “
The biggest property tax hikes are on property on the peninsula, Huff said.
“We would expect that because sales prices on the peninsula have risen dramatically over the past year,” said Huff.
People can challenge their new values. The deadline for an informal complaint is July 21st.
Tenants can also be affected. The city passed a rent regulation ordinance in 2021, but exceptions include increases in property tax.
“Tax Rate Rent Adjustment: If the Portland property tax rate changes, a landlord can increase the rent by the same amount that the tax rate increased,” according to a city FAQ document.
“The tax rate is estimated to decrease 42% from $ 23.31 to $ 13.49, and we expect this to decrease even further when everything is set and finalized by the end of summer,” Huff wrote in one E-mail.
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