BIDDEFORD — The property tax rate in Biddeford is down by $1.82 cents per $1,000 worth of property, from $18.23 to $16.41 this year but property values are up across the city, fueled by a vigorous real estate market, meaning many will see a bump in their property taxes.
The value of property in Biddeford has increased on average by 16.67 percent over last fiscal year, according to city officials.
“Any property in the community that had a change in value of 16.67 percent would see a net change in their tax bill of 4.2 percent,” said City Manager James Bennett. In a memo to the City Council, he said that is due to an increase in the budget of 3.57 percent and a decrease in the tax rate resulting in a smaller reimbursement from the state for Homestead exemptions, and expected changes in business equipment reimbursement.
Overall, the city’s valuation grew by $440 million — which includes the value of new growth and the new assessments.
What does that mean for taxpayers?
A sampling of the impact prepared by the city shows a home built in 1989 valued at $257,600 on Indian Ridge Road with a $25,000 Homestead exemption paid $4,240 in property tax in fiscal year 2022. The property is valued at $304,500 in fiscal year 2023, and the property owner can expect a tax bill of around $4,586, an increase of $346.
An oceanfront home on Mile Stretch Road valued at $1.3 million in 2022 is valued at $1.6 million in 2023, with the tax bill increasing from $39,134 to $40,998, up $1,864.
A storefront property with apartments on Main Street valued at $1.2 million in 2022 is valued at $1.4 million in 2023, with the tax bill increasing from $22,805 to $23,963, or by $1,157.
According to Biddeford Assessor Nick Desjardins, 95 percent of values of single-family homes and 2–4-unit properties increased 16-20 percent; the value of 95 percent of all apartment buildings increased 17-19 percent; 91 percent of all water influenced properties increased 16-19 percent in value and 90 percent of the city’s condominiums increased in value by 16 to 20 percent. Value changes outside the ranges were mostly related to physical changes to individual properties, he said.
“The market is continuing to increase,” said Desjardins.
“If I’m not doing anything new to my home the values are adjusted according to tables (and applied to) every other home that hasn’t changed,” said Council President Norman Belanger at a workshop on the assessments.
“(To every home) that is consistent to your home in terms of those physical attributes,” said Desjardins.
Councilor Martin Grohman expressed concern that commercial property values seemed to be lagging.
“… I do think we as a city we say ‘lets invest in this commercial stuff, it’s going to be good, and it’s going to lower your taxes for residential people,’ and I get it, I buy the premise, we build this commercial tax base and bring more revenue … and the senior on Raymond Avenue won’t see their taxes go from $4,500 to $4,800, but that isn’t what happened,” said Grohman. “We’ve really got to explore this. It’s pretty concerning.”
Grohman said commercial property is hot right now.
Desjardins pointed out the city would be taking a deeper look at commercial property next year.
“The market sales on the commercial side from the last 12 to 18 months are all over the place,” said Bennett. He said using only sales to adjust values beyond what was done would risk the quality of the valuation process. He said the examination of commercial property would be intense.
“We have let the commercial essentially buoy the tax base,” said Councilor Amy Clearwater, speaking of trends over time. “It has been increasing much faster than the residential. I’ll just remind people that we as a community our residential values have been artificially depressed, essentially by the ‘trash town’ reputation that is wearing off … and we’re going to see jumps in residential value right now. Whether or not commercial keeps up with that I am not all qualified to say, but I think at this point that is part of what we’re seeing and there’s not much we can to do to protect ourselves from that.”
City officials were working to finalize the tax commitment this week. Property tax bills were expected to be in the mail soon.
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