MAINE PROPERTY TAXES - questions (Oxford, Eastport: rent, assessors, home)

[WhoFanMe]

You've got to be careful about just comparing mill rates. One town's mill rate may be higher and assess at 100% of fair market value, while another might be lower and assess at 80% of fair market value. What is fair market value? It changes constantly and town assessors do their best, but they are not in the trenches every day. The other thing to consider is what do you get for your taxes? One town may include curbside trash collection in their taxes, while a neighboring town does not. What is that worth to you?

[RiverBird]

Originally Posted by WhoFanMe

You've got to be careful about just comparing mill rates. One town's mill rate may be higher and assess at 100% of fair market value, while another might be lower and assess at 80% of fair market value. What is fair market value? It changes constantly and town assessors do their best, but they are not in the trenches every day. The other thing to consider is what do you get for your taxes? One town may include curbside trash collection in their taxes, while a neighboring town does not. What is that worth to you?

Well said. But even within one town I see widely varying taxes on houses that doesn't seem to have anything to do with square footage or lot size. Sometimes a rundown property on little land has much higher taxes than a newer ranch on more land. There's no apparent reason as to how properties are assessed, at least when I'm perusing real estate sites.

[WhoFanMe]

Originally Posted by newenglandgirl

Well said. But even within one town I see widely varying taxes on houses that doesn't seem to have anything to do with square footage or lot size. Sometimes a rundown property on little land has much higher taxes than a newer ranch on more land. There's no apparent reason as to how properties are assessed, at least when I'm perusing real estate sites.

I agree. The assessing department at a municipality is not equipped to keep up with the current state of the real estate market, nor do they know the condition of the properties that they put a "value" on. The same size/lot houses on a street could sell for a difference of up to 50% if one is a distressed sale and the other is not.

[Maineah]

Originally Posted by WhoFanMe

You've got to be careful about just comparing mill rates. One town's mill rate may be higher and assess at 100% of fair market value, while another might be lower and assess at 80% of fair market value. What is fair market value? It changes constantly and town assessors do their best, but they are not in the trenches every day. The other thing to consider is what do you get for your taxes? One town may include curbside trash collection in their taxes, while a neighboring town does not. What is that worth to you?

In my situation the town did it's last assessment at the height of the Real Estate bubble just before prices fell. I'm quite sure the assessment for our home is far above the actual value now. Do they care ??? No.. I have complained though I have received no reassessment. We get the road plowed (barely) for our $5,000 a year in property taxes. No water, No sewer, No kids in school, No trash pick up, and no discount on fire insurance due to the distance to the fire barn. The house across the street from us was on the market for two years and finally sold for nearly $200,000 less than the original asking price. They were real quick to assess the property on the upswing but have been real hard to find now that values have dropped.

[flycessna]

The value the Municipalities use is supposed to be "what the house should sell for"... the problem is trying to correlate value to the home.. You cannot put a finger on antangibles.. Curb appeal, location, who are the nighbors, ect.. Which is why a realestate professional or an experienced investor can usually determine rather accurately what the current value of the home is and it is almost never close to what the municipality has listed.

Another problem is that value's are only important (with respect to municpalities) in that they represent the correct ratio when compared to other homes to determine the homes share of the overall town or cities tax burden..

If last vaulation was done in 2005 and your home is valued at 150k and you neighbors at 75k then you share of the overall tax burden is twice that of your neighbors..

In 2009 you decided to go down to city hall and argue your valuation because now everything has change and you know your house is not worth as much as it was and they agree reducing your valuation to 110,00 that screws up the whole pie..

You neighbor and eveyone else who has not complained about the accuracy of their value are paying a little bit more because you are paying less..

I dont agree with even the concept of property taxes base on "valuation".. some kind of an Impact fees associated with residential property..YES! but not valuation.

It's inconsistant and unfair!


If your looking at property in Maine take taxes as is that are given to you.. then research the town and see if they are raising taxes, lowering taxes, and or are going through a revaluation which could effect the taxes on the property.. Thats all you can do.. Some towns manage better then others and yet sometimes something majore happens that effects the towns overall budget.. All you can do is find the right home and then "due dilligents"!

[retiredtinbender]

Originally Posted by flycessna

The value the Municipalities use is supposed to be "what the house should sell for"... the problem is trying to correlate value to the home.. You cannot put a finger on antangibles.. Curb appeal, location, who are the nighbors, ect.. Which is why a realestate professional or an experienced investor can usually determine rather accurately what the current value of the home is and it is almost never close to what the municipality has listed.

Another problem is that value's are only important (with respect to municpalities) in that they represent the correct ratio when compared to other homes to determine the homes share of the overall town or cities tax burden..

If last vaulation was done in 2005 and your home is valued at 150k and you neighbors at 75k then you share of the overall tax burden is twice that of your neighbors..

In 2009 you decided to go down to city hall and argue your valuation because now everything has change and you know your house is not worth as much as it was and they agree reducing your valuation to 110,00 that screws up the whole pie..

You neighbor and eveyone else who has not complained about the accuracy of their value are paying a little bit more because you are paying less..

Exactly. That is why assessors are supposed to defend the valuation as much as possible. To keep it all equitable.You have to love a good argument and be pigheaded to be an assessor.

And there is a difference between appraisals and assessments . Appraisals are the agents best guess as to what you might get on the open market as of now. Assessments are based on sales (market value) over the past year or two (or in some cases, 3 years). This puts assessments as a old news, so to speak; what used to be and may still be but maybe not.

The State "owns" the tax methods according to the constitution. Municipalities are the scapegoats and get the grief.

[WhoFanMe]

Taxes are certainly important, but only a small part of all the equation in choosing a primary residence. Anybody shopping for a new home should sit down with a local loan officer and get pre-approved for a certain price range including principal, interest, taxes, insurance and if applicable homeowners or condo fees. The one constant about property taxes is that over time they go up. They may go down for a year, but then usually ratchet back up and then some the next year as the municipality struggles to maintain a balanced budget.

[WhoFanMe]

Originally Posted by retiredtinbender

Exactly. That is why assessors are supposed to defend the valuation as much as possible. To keep it all equitable.You have to love a good argument and be pigheaded to be an assessor.

And there is a difference between appraisals and assessments . Appraisals are the agents best guess as to what you might get on the open market as of now. Assessments are based on sales (market value) over the past year or two (or in some cases, 3 years). This puts assessments as a old news, so to speak; what used to be and may still be but maybe not.

The State "owns" the tax methods according to the constitution. Municipalities are the scapegoats and get the grief.

Quick clarification - licensed appraisers do appraisals for a fee. By "agents," I assume you mean real estate agents - they may do a market analysis for a customer or a broker price opinion for an institution.

[retiredtinbender]

Originally Posted by WhoFanMe

Quick clarification - licensed appraisers do appraisals for a fee. By "agents," I assume you mean real estate agents - they may do a market analysis for a customer or a broker price opinion for an institution.

Didn't mean to meld the two. That's what happens when I try to eat, think (fairly new concept for me) and type. Can't walk and chew gum either.

Thanks for clarifying WFM. Appreciate it.

[WhoFanMe]

Originally Posted by retiredtinbender

Didn't mean to meld the two. That's what happens when I try to eat, think (fairly new concept for me) and type. Can't walk and chew gum either.

Thanks for clarifying WFM. Appreciate it.

At least you're not eating through a straw yet.