KENNEBUNK- Assessor Dan Robinson told the select board Oct. 25 that it would soon be time to examine property assessments.
That is not likely to happen in 2023 because there is not time to complete the work by April 1, but he suggested to the board that the prospect be examined for 2024 during upcoming budget deliberations.
Assessments were last adjusted in 2019, after the department calculated they had been at around 75 percent. Currently, assessments appear to be running around 78 percent, he said.
“If all our properties were at 100 percent of value, our tax rate (with all other factors staying the same) would be $11.37,” per $1,000 worth of property, Robinson told the board. The tax, or mil rate, is currently $14.25.
That 78 percent value is the reason the Homestead, Veterans, and other exemptions, are not given at their maximum, he said.
Robinson was speaking as he presented the state’s update on the value of the town by Maine Revenue Services, at $3.5 billion, up 13.5 percent from a year ago. He pointed out that the figure is based on a sales period from July 1, 2020, through June 30, 2021.
He said Kennebunk falls within the top five range of valuations for York County, after York and Wells and Biddeford, noting Kennebunk and Kennebunkport tend to each end up in fourth or fifth place. The town lands between slots five and seven, statewide.
“We are quite high value here, and sometimes people are quite surprised,” said Robinson.
He said it has been a “very robust” marketplace.
Select Board member Bill Ward asked if there was a trigger figure where a revaluation would be required.
“Technically, it is 70 percent,” said Robinson, but he went on to say to his knowledge, the state has not forced any community to undertake a revaluation.
He said right now the assessing department staff of three is looking at equity levels.
“That’s really the most important thing,” he said, “(that) the tax burden is being spread equally.”
“It sounds like recent sales, at very high prices, of homes has prompted this need … is that true,” asked board member Miriam Whitehouse.
Robinson said that was partially correct.
“We already had increasing prices anyway, but we didn’t know what would happen with COVID; we didn’t know if it would cause prices to decline,” said Robinson. He said there were many external factors causing people to move to the area, “and prices have gone up significantly and those kinds of things don’t appear as if they’re just blips right now, it seems to be where the market is going … all Maine coastal communities seem to be in the same boat.”
Whitehouse said there has been talk the market is starting to cool, and of possible recession.
Robinson said the town would incorporate whatever was happening in the market at the time an assessment is done. And he does not see any mass exodus of people moving back to more urban areas.
“We have an enormous amount of cash sales unaffected by mortgage rates,” said Robinson. “It is what you see by people moving from places that are more expensive than here …. when these kinds of things happen – even in 2008 and 2009, we were fairly insulated.”
Robinson went on to say that the market is so aggressive buyers come in with cash because of bidding wars. Remote working is a concept that is successful, “so they’re not necessarily getting called back to more urban areas.”
He said the department would monitor sales and determine if there is a leveling off.
“Really, what this is about is to make sure all properties assessed where they should be,” so the tax burden is distributed fairly, he said.
The board agreed to host a future workshop to discuss the matter more fully.
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