Revaluation FAQ

A Revaluation is the process of conducting the Data Collection and Market Analysis necessary to equalize the values of all properties within a Municipality for the purpose of a fair distribution of the tax burden. The purpose of a Revaluation is not to raise or lower the tax assessments or tax base of a municipality. The main purpose of a Revaluation is to establish fairness and equity among all property owners and all property types.

A revaluation is done to equalize the values within a municipality to ensure a fair distribution of the tax burden. It is not done to raise taxes. Property values change over time, but they do not all change at the same rate. Market value may have increased more for some neighborhoods and property types than for others, while others still may have decreased in value. A revaluation is done to make sure assessed values reflect changes that have occurred in the real estate market.

The Revaluation will be effective for the April 1, 2024 assessment date and reflected in the 2024-2025 Tax Commitment in August, 2024.

Sales that have taken place in the last three years indicate that the market value of property has increased. When the real estate market has higher prices, the ratio of assessed value to sale price grows further out of alignment; when this occurs, the “Certified Ratio” from the State reduces many reimbursements and exemptions. A Revaluation can bring State reimbursements and exemptions back to full value. If we do not conduct a Revaluation the homestead exemption, as well as several other exemptions and State reimbursements, will continue to decrease.

After the 2019 revaluation performed by KRT Appraisal, post-revaluation public workshops were conducted by Town Leadership and Assessing regarding how the revaluation process could be improved upon, which produced two meaningful outcomes:

1. to perform regularly scheduled revaluations; currently proposed to occur once every 5th year, unless special circumstances necessitate otherwise. Market update revaluations will be based upon existing property data and sales data from the preceding 2 years. This routine cycle will help to maintain a fairly apportioned property tax burden and provide predictability for taxpayers.
2. to use in-house Assessing staff, rather than an independent contractor, since Assessing has a “Scarborough-specific” base of knowledge of Town properties and real estate market. In addition to being able to provide a higher level of customer service throughout the process, using Assessing staff will reduce the cost.

The estimated cost related to the “in-house” revaluation totals $44,000, as compared to $391,000 for the one performed by KRT Appraisal in 2019. The statistical update was originally planned for 4/1/23, but was deferred to 4/1/2024 by recommendation of the Town’s Assessor (see FY23 Budget Book (Exhibit #3). The newly proposed timeline and associated costs are outlined in FY24 Budget Book (Exhibit #7).

Full Revaluations involve the interior and exterior inspection and re-measurement of all properties, which necessitates entry into each residence or building.

Statistical Revaluations use existing data to revalue all town properties, avoiding onsite property inspections except to confirm validity of data for a sample of properties. Sales are then analyzed to determine new town-wide values. With respect to each of these processes, the resulting valuation is exactly the same—the only difference is one is costlier to perform, while the other is cost-efficient.

By using the statistical approach to analyze existing data and recent real estate sales, the Assessor can readily determine whether the assessments represent 100% of the fair market value and if they are equitable among property owners and property types. If assessment inequities exist, it may be necessary for the Assessor to make appropriate adjustments to maintain fairness and equity.

All factors that may affect the market value of your property will also be considered, such as the cost to replace your building(s) less any depreciation, plus the value of the land could be used to estimate the market value. For income producing properties, the income and expenses may be considered.

The Assessor’s Office maintains a complete record of each property. Information is kept current through permit inspections, sales inspections, periodic re-inspection and exterior reviews; these records are available for your review in our office or on our Vision Online Database. The details on your property card are used to determine your new value. We encourage you to review your property card for accuracy.

Valuations formulas are complex. We use a proprietary relational database program that is commonly used for assessment purposes. Many data points are entered, including location, buildability, size, quality of construction, depreciation, amenities, outbuildings, etc. Then elements are priced out using various mathematical equations resulting in a total that should be a rough approximation of market value. The real question is whether the final total is in the ballpark (within 10%) of market value.

There are two very good methods of determining this. First, compare your property to similar, nearby properties that sold in the previous year. Your value should be in line with these sale prices. Second, if no recent sales are available, compare your assessment to other similar properties in your area using the data available in the Assessor’s Office or on the town website. Your value should be in line with these similar properties. Remember, very few properties are exactly alike. Your value should be comparable, but it seldom will be exactly the same as what seems to be a similar property.

Although a Revaluation may result in an adjustment to nearly each individual assessment; it does not mean that property taxes will increase. Please remember, assessments are only the base that is used to determine the individual tax burden of each and every taxable property. The overall operating budget, which is the amount that the Municipality must raise to operate the local government and support the many services each of us has come to expect is what truly affects individual property taxes.

No. The Town, School and County budgets determine the amount to be raised via taxation, regardless of the change in property values. Revising valuations ensures that the property tax burden is distributed according to a more accurate estimate of value.

We cannot say at this time, as the final tax rate (corresponding to the revaluation year) will not be set until the tax commitment in August, 2024. Your assessed value may have gone up, but the tax rate will most likely go down resulting in a moderate increase in taxes, or potentially even a decrease. (Keep in mind that the tax rate is based in part on Town, School and County budgets). Typically, if you see a big increase, it is because your property has been undervalued for some time or you’ve made improvements.

A notice stating the proposed assessed value will be mailed to each property owner. The goal is for this phase to be completed by May of 2024. The mill rate (the rate used to calculate property taxes due) is determined after the municipal, county, and school budgets and values are finalized. We commit taxes at the end of August and tax bills go out by the beginning of September; it is only at that time that we can tell you what your tax bill will be.

Every year, the Assessing office provides advanced notice via mailed letters to all owners whose property will experience an increase of more than $25,000.  These notifications are usually sent in late June or early July, which provides time to review and discuss with the Assessing office before values are committed for taxes in late August.

In a revaluation year, advanced notifications of preliminary property valuations will be provided to ALL property owners.  In the months leading up to the 2024 revaluation process, the Assessing office will communicate expectations for the timeframe of these notifications.

There can be several reasons, such as:

• The property was undervalued before
• Your location has improved in value
• We had been using mistaken information about the property
• Changes in the real estate market

It is possible that the information we had on their property was already more accurate, or that they did not maintain their property as well, or that we discovered missing information about your property. It is also possible that there is inaccurate information on your property’s assessment record. This is one reason we send out a notice of proposed valuation for your review in advance of tax commitment. Thousands and thousands of pieces of information have been entered into our system over the years, so it is possible for errors to occur. Please let us know of any data corrections. Some changes may cause value increases and some may cause decreases. Assessment data is available online our Vision Online Database.

It is likely that most property values will change, however, they will not all change at the same rate. Market value may have increased more for some neighborhoods and property types than for others. The values of some neighborhoods and property types may have even stayed the same or decreased in the current market. The purpose of the revaluation is to make sure that the assessments reflect those changes in market value.

Not necessarily. Individual properties within the same neighborhood differ in characteristics and different neighborhoods command different values. In one area, the sales may indicate a substantial increase in value, while another neighborhood may see a lesser change in property values. Different types of properties within the same neighborhood may show different value changes. For example, older homes may be rising in value more slowly than newer homes in the same neighborhood, or one-story homes may be in more demand than two story homes, or vice versa. There are numerous factors that will cause values to differ between properties including, but not limited to, location, condition, size, age, quality, and building style.

Not necessarily.  There are a number of reasons why individual properties or groups of related properties could experience a change in their assessment in any given year, whether or not there is a town-wide revaluation.  Some common examples include:

• New Value Created

Construction of new buildings; renovations or additions to pre-existing buildings; subdivisions of larger parcels into smaller lots.

• Property Changes

Change in a property’s permitted use; physical damage to a building.

• New Information

Survey displaying different acreage than lot size on record or an area designated as wetlands; review of deeds outlining an encumbrance like an easement; discovery of errors or inconsistencies requiring correction.

Market value is defined as the amount a typical, well-informed buyer would be willing to pay a willing seller for a property. For a sale to be considered a qualified sale used to determine market value, it must be an arm’s length transaction -- the buyer and seller must not be related, the buyer must not be under pressure to buy and the seller must not be under pressure to sell, the property must be on the market for a reasonable length of time, the payment must be in cash or equivalent, and the financing must be typical for that type of property.

People (including you); the person who sold your house to you; and the person who is willing to buy it from you determine the market value of your property. Some people will pay more than fair market value for property, while others may have purchased their property at a bargain price, or some property may have been purchased years ago when prices and values were considerably different. The true test is what your property is worth now in today’s real estate market. Is your property’s assessment in line with recent sales prices of similar properties?

If you believe the assessment on your property is in excess of its Fair Market value, you are afforded the opportunity to appeal. You should first notify the Assessor’s Office to set up an informal hearing. When questioning the assessment value, ask yourself three questions:

1. Is my data correct? (living area, bedrooms, baths, lot size, etc.)

2. Is my value in line with others on the street?

3. Is my value in line with recent sale prices in my neighborhood or comparable areas?

If you believe the new assessed value does not represent fair market value of your property, you will be afforded an opportunity to have your concerns addressed through informal hearings, as well as more formal processes. Details regarding the appeal process will be published in the coming months to ensure taxpayers are fully aware of their rights and options.

Towards the end of the Revaluation Project, every property owner will receive a notice of their proposed valuation based on the analysis performed. When a property owner has a question or concern about the proposed valuation, they are asked to schedule a date and time to discuss the valuation process and get answers to any questions they may have. An informal hearing is not a forum to discuss taxes; it is strictly meant to answer questions on the property valuations.

Property owners are asked to come prepared with questions and should have already compared their property to other similar sale properties in their neighborhood. Once the hearing is finished, a determination will be made on the need for further review and if changes are warranted.

If you still feel entitled to relief after meeting or speaking with the Assessor, you should file a formal appeal in accordance with Maine State Statute, Title 36, §843: Appeals.

Yes. You should pay your taxes under protest for two (2) major reasons:

1. To avoid interest being added and avoid any court costs including attorney’s fees, if your non-payment is referred for collection.

2. So you will not lose your right of appeal for nonpayment as required by law.