Boothbay Harbor recently mailed notices to property owners giving the “full market value” of their property as of April 1. Included in the notice was the 2022-23 property tax assessment which for some increased as much as 60% over last year’s tax.  

According to the notices, a town-wide revaluation was completed for the 2022-23 tax year and the tax amount “is based on the new estimated tax rate of 8.5 mils.”

Town tax assessor Robert J. Duplisea Jr. of RJD Appraisal told the Boothbay Register a property’s value is only one factor in determining the tax; an important factor is the town’s annual budget.

The 2021-22 commitment for Boothbay Harbor was $4.89 million with a total taxable valuation of $617 million. For 2022-23, the expected commitment is $5.15 million with a valuation of $988 million, which represents a 60% increase in valuation.  

Duplisea said the revaluation was in the works for a few years because the last town-wide revaluation was in 2003.

Town Manager Julia Latter said, “Typically towns revalue every 10 years, this has been 20 years.”

Duplisea further explained, the state has a ratio for property assessment, which means property assessments have to fall between 70% and 110% of the sales price. With property selling at increased prices and valuation at the 2003 rate, “We would have failed the assessing standards and the state would have mandated a revaluation,” he said.

“The most recent sale prices were strongly influenced by COVID,” Duplisea said. “The revaluation should have been done in 2020, but we suggested that the town hold off for one year to make sure that the higher prices weren’t just a one-year uptick.”

“But another year has gone by and the prices are holding,” he explained. For the revaluation, the assessor looked at sales in Boothbay Harbor for the previous three years up to April 1, 2022. “Looking at the trend gives us an adequate amount of data,” he added. He said 265-275 properties sold in the town over the past three years.

For property owners with limited means who are dealing with heating oil costs double last year’s costs, higher prices at the pump and increased interest rates, a property tax hike has come as an unwelcome surprise. Latter said there has been no discussion about allowing a payment plan of additional installments and that would require a special town meeting to change the two installments previously agreed upon by voters.

Those who would like to discuss their assessment will be able to meet with RJD Appraisal’s representatives at the town office July 25-28 by appointment. Meetings are in person, over Zoom, or over the phone. Call the town office at 633-3671 to schedule an appointment.

While the first installment of the new tax is due in September, help may be on the way for senior taxpayers next year: LD 290, a bill to stabilize, or freeze, property taxes for some Mainers, was approved by the Legislature in May and becomes effective Aug. 8. To qualify, a taxpayer must be at least 65, a permanent Maine resident and have owned their qualifying residence for at least 10 years, according to information from Maine Municipal Association legal services.

Asked about LD 290, Sen. Chloe Maxim of Nobleboro said, “It has to be a priority of our state to make sure people can afford to stay in their homes, especially folks who can’t afford an increase in their property taxes.”

According to Rep. Holly Stover, "One of the most consistent and biggest concerns local people have is their property taxes. They want to age in place and stay right here in our beautiful community. I support legislation that helps our community members stay here at home."

Stover cited other help for taxpayers including revenue sharing to bolster municipalities, increasing the state commitment to cover 55% of local education costs and legislation that will cover up to 100% of Maine's disabled veteran’s property taxes.

Sharon Huntley, director of communications for the state’s Department of Administrative and Financial Services, explained:  “Maine Revenue Service is finalizing applications as well as guidance documents for the program currently and anticipates having them available on their website shortly before the law goes into effect on Aug. 8 ... For example, individuals who file during the upcoming application period that ends December 1, 2022, will have their tax “frozen” at the tax amount they were assessed for the April 1, 2022 tax year. They will continue to pay that tax amount in subsequent years as long as they continue to file an annual application, since each application looks back to the tax billed to them in the prior year.”

If the taxpayer doesn’t file an application by the deadline each year, they will be billed at the “normal” tax rate but could file an application for the following year, she added. Under the law, the state will make up the difference for the town between the “normal” and frozen tax amount.

There has been some confusion that applicants need a homestead exemption to qualify for the freeze. Asked about this, Huntley replied, “The law does not require that they actually receive the homestead exemption, just that they be eligible. So, the property does need to meet the definition of homestead found in the homestead exemption statute, which basically requires that the property be their permanent residence.”

Huntley continued, “Applications need to be filed by December 1, 2022.  If approved, the stabilization will be in effect for the April 1, 2023 tax year.  What that means is that the amount of tax billed to the taxpayer for the April 1, 2023 tax year will be the same as the amount billed for the April 1, 2022 tax year. The taxes that are being assessed this summer (and) fall will end up being the stabilized amount that gets carried forward.”

Other programs from Maine Revenue Services for property tax relief can be seen at https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/property-tax-relief-programs