The Scarborough Assessing Department is conducting a town-wide property revaluation this spring. A revaluation is done to maintain fair property taxation by ensuring that property values accurately reflect current market conditions.
“In two recent town meetings, the assessor presented information to the Town Council (Jan. 17) and the Finance Committee (Feb. 8) about the 2024 Revaluation process,” said Nicholas Cloutier, assessor for the Town of Scarborough. Cloutier said there are some key factors that could have an impact on residents’ 2024-2025 property tax bills.
Changes in the annual budget is one of the most significant factors. “Though this (setting the budget) is not a function of the Assessor or a product of the revaluation, the amount of money needed to be raised through property taxes could have an effect on your tax bill,” Cloutier said. “The Town Council will be diligently working on the 2024-2025 budget process in April-May, so any possible change in approved expenditures or planned revenues has not yet been determined.”
Factors, including the FY2025 budget, relative increases in assessed value, potential shifts in tax burden from commercial to residential properties, and the elimination of the State’s Senior Property Tax Stabilization Program, could impact property owners’ annual tax bills, Cloutier said, by affecting the amount needed to be raised through property taxes.
Additionally, property assessments may vary based on factors such as new construction, data corrections, or market trends. There might be a shift in tax burden from commercial to residential properties, although the extent is still uncertain. Furthermore, the elimination of the State’s Senior Property Tax Stabilization Program will result in increased responsibilities for eligible senior taxpayers, prompting the town manager to propose an increase in local assistance programs.
Cloutier said fluctuations in property assessments are anticipated. “In its essence, a revaluation is conducted to ensure that all properties are valued accurately, and therefore that all taxpayers pay their fair share,” Cloutier said. “It’s possible that your property’s assessed value may increase more than other people’s, or vice versa.”
It’s also likely there will be a shift in the tax burden from commercial to residential properties. “Although it is still too early in the process for us to know the new assessed values, we have observed that home values have risen faster than commercial real estate in neighboring communities who have performed a revaluation in the last one to two years,” Cloutier said. “To be clear, this potential ‘shift’ of the tax burden from commercial to residential is still unknown but is seemingly likely to occur to some extent based on preliminary information.”
As well, “The discontinuation of the State’s Senior Property Tax Stabilization Program adds complexity to the equation,” he said. “Over 1,800 Scarborough households benefited from the State’s former Property Tax Stabilization program. To help soften this unfortunate hardship resulting from the state’s decision to end this program, the town manager intends to include funding in the FY25 budget request to increase the maximum benefit amount by $250 for Scarborough’s local, income-based, senior Property Tax Assistance Program which benefits over 400 eligible senior households each year.”
Cloutier said transparency and timely communication regarding the revaluation process is important. “The Assessing Department greatly appreciates your patience and understanding as we work to complete the remaining tasks in the revaluation process,” he said. “As soon as we have a clear picture of the actual new assessment information, we will communicate this promptly.”
To assist residents in navigating the revaluation process, Cloutier outlined key milestones and provided a timeline:
• Nov 2023 – Apr 2024: Assessor to analyze all sales, commercial income and expense data, and update database cost tables.
• May 2024 – June 2024: Preliminary new valuation notices mailed to property owners.
• June 2024 – Aug 2024: Owners may appeal the appraised valuation of their property through informal hearings.
• Aug 2024: FY2025 Tax Rate set based on final town-wide taxable valuation and Town Council-approved FY2025 budget.
• Sept 2024: Tax bills mailed reflecting new assessment and new tax rate.
• Feb 2025: Formal appeals deadline.
Cloutier assured residents of ongoing efforts to provide assistance and clarification as needed. He said the Assessing Department aims to keep residents informed throughout the revaluation process to facilitate informed decision-making regarding their property tax obligations.
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