MOUNT DESERT REVALUATION
Most Frequently Asked Questions About a revaluation
What is a Revaluation?
A Revaluation is an update of all property assessments within the Town. The assessments are used to determine each property owners’ tax liability. The revaluation is designed to equalize the assessed value of all properties within a municipality for the purpose of a fair distribution of the tax burden, not increase taxes.
Why is a Revaluation needed in the Town of Mount Desert?
In 2003, it will have been 11 years since the last Revaluation was conducted in the Town of Mount Desert and in that time period the Town has continued to grow. Over time the real estate market changes, thus changing market values. Further, different types of properties will change at different rates (i.e. commercial versus residential), and different neighborhoods will appreciate faster than others. A revaluation will account for these changes in value and seek to restore equity between individual assessments. The State of Maine requires that cities and towns maintain a minimum assessment to fair market value ratio of 70% and an assessment quality rating of less than 20 so that all properties contribute an equitable portion of the total tax burden. The Town assessment ratio is currently at 59% with
a quality rating of 21.
Who will conduct the revaluation?
The assessor will conduct the revaluation in-house with contracted assistance to conduct the data collection, sales analysis and schedule development, and final review.
What happens during the first phase of a Revaluation, data collection?
A physical inspection of both the interior and exterior of each property is conducted where building dimensions and characteristics are noted -- this is the Data Collection phase of the project. Each Data Collector carries an identification badge issued by the Town, a letter of introduction on Town letterhead and their cars are registered with the Police Department and Assessor’s Office. Personnel will identify themselves and request an interior inspection of the property. The data collectors will not be arriving at a value of the property at that time. They will be collecting data regarding the real estate (i.e. condition, bedrooms, bathrooms, heat style and type, fireplaces, etc.) and after the interior inspection is completed a signature is requested as proof of the visit. Lastly, the
exterior will be measured and a digital photo of the structure will be taken.
Is it necessary that you view the inside of my property?
It is to your advantage to allow the representatives inside the property to obtain accurate real estate information for if they are not allowed to view the interior, the information will be estimated. Property owners would not buy a house without viewing the interior and it is extremely difficult to accurately estimate market value without gaining access to the interior of properties
What if I refuse to let the data collector into my property?
To ensure an accurate assessment, it is to your advantage to allow the data collector inside your property. By denying an inspection you may effectively lose some of your constructive ability to appeal your assessment. One of the first items that the local Board of Assessment Review asks is if assessment personnel have been afforded the opportunity to inspect the property. If not, the Board of Assessment Review usually denies the appeal.
What if I’m not at home at the time the data collector comes?
The data collector will measure the exterior of the buildings and leave a callback card at your door for you to call the Assessor’s office to schedule an interior inspection. Please note: An interior inspection cannot be made unless a person 18 years or older is present.
What is market value and who determines my property value?
Market value is determined by the activity in the real estate market and the general economy. The value of your property is based on an analysis of the market data (real estate transfers, etc.) for the full two calendar years prior to the completion of the Revaluation project. The market can generally be defined as you, the person who sold the property to you, and/or the person willing to buy it from you. It is the Assessor’s job to research and analyze the values in any particular area or neighborhood. In effect, they do what you would do to determine the selling price when putting your property up for sale. The Assessor has specific guidelines to follow. Factors that are examined for each property are location, size and quality of construction, age and condition of the improvements, site
characteristics, zoning restrictions (if any), etc.
Will a Revaluation increase taxes?
A Revaluation more than likely will result in an increase of nearly each individual value/assessment; it does not mean that all property taxes will increase. It is important to understand that assessments are the base that is used to determine the tax burden. The tax burden 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 such as schools, police, etc. If, the amount of money to be raised remained the same after the Revaluation as had been raised in the previous year and each property assessment doubled, the tax rate would be cut in half.
How will I know if my assessment is equitable?
There are two very good methods of determining this. First, compare your property to similar 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. This information is available in the Assessor’s Office. Your value should be comparable, however it seldom will be exactly the same as those similar properties.
How can my assessment change if I have not done anything to improve my property?
General economic conditions, such as inflation, changes to interest rates, employment levels, will influence the value of real estate. As property values change in the marketplace (sales), those changes must be reflected on the assessment rolls.
What is an Informal Hearing?
Toward the end of the Revaluation (mid-year 2004), every property owner will receive a notice of his or her proposed valuation based on the analysis performed. These values are not final until the hearings are completed and the Assessor signs the Tax Commitment. Along with the notice of new valuation, the property owner will receive instructions regarding the hearing appointments (typically you would be asked to call a specific phone number during specific daytime hours). At a hearing appointment, the property owner can voice concerns and/or discuss inaccuracies or discrepancies with a qualified appraiser who will review the property record card and explain the value. Should an inspection or review need to be done, the assessor/appraiser will make that determination and any changes that result will be sent
to the property owner. An informal hearing is NOT a forum to discuss taxes; it is strictly meant to address questions on the proposed valuation for your property. Homeowners are asked to come to the hearing prepared with questions and have compared their property to other comparable ones in their neighborhood.
If I disagree with my assessment after a hearing, what are my options?
If any property owner believes the assessment on their property is in excess of its fair market value, they may file an Application for Abatement at the Assessor’s Office. The filing period for this application is after the final tax bill is issued and within 6 months of the date of Commitment. Filing an Application for Abatement does not stay the collection of taxes; taxes should be paid as assessed. If an abatement is granted, a refund with interest will be made. If the Application for Abatement is denied, the property owner may then file an appeal with the Board of Assessment Review.
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