Frequently Asked Questions

Property tax administration is guided by the State Constitution, Title 36 of the Maine Statutes, and a body of case law that interprets these Statutes. Assessment practice is not guided by local ordinance. The Assessor is charged with establishing a list of all properties in town and estimating their fair market value.

For more information on State property tax law, visit Property Tax | Maine Revenue Services

The assessor will occasionally visit properties to validate the description of that parcel and any improvements to ensure the accuracy of the data on the property record cards, which are used to formulate each assessment; typically, this is done with conjunction with a building permit.

You do not have to allow the assessor into your home. We only request the inspection to be as fair and accurate as possible. However, if an assessor is denied entry, property owners forfeit their right to appeal the assessed value. In instances where assessors do not get into a property, estimates are made about the condition, quality, and level of finish on the inside of the home. 

The Assessor looks at a property the same way a potential buyer does. Example factors are location, interior condition, house size, kitchen quality, and bath quality. The Assessor examines many qualities and conditions and then looks for comparable properties that have sold in the neighborhood. Since no two houses are the same, adjustments are made for differing characteristics to determine the assessment therefore the assessment is an estimate of market value. The Assessing Department analyzes town sales and rental data, economic indicators, and other information to determine the value of the property. This information is used to develop assessments, through mass appraisal techniques, of all unsold property in the municipality.

The Assessor uses many tools to determine the value of each property within the municipality. There are generally three types of valuation approaches that all assessors employ while determining the fair market value (FVR) of a property:

1. The sales comparison approach, which is also known as the market approach, values a property by using recent local sales of similar or “comparable”
2. The cost approach calculates the cost to replace a particular property; then adjusts the cost of age, wear, and other factors to find the value of that property.
3. The income approach bases a valuation one what the potential future income would be for that property. It’s normally limited to income-producing property, while the other two approaches apply to all property types.

 Citizens establish market value through their ongoing transactions of buying and selling property. It is the duty of the Assessor to study these transactions and appraise properties accordingly. Market value is the most probably price that a property will bring if offered for sale in the open market and sold as an arms-length transaction (see what an arms-length transaction is, below). The purchase price does not necessarily represent true market value if any special circumstances are involved in the sale. At a given point in time, a pricing system is developed using recent sales data; this system is used to price all property in the community. At the time of implementation, the assessed value should be within 10% of proven market value. Over time, changes in the real estate market occur and because of these changes, the relationships between the assessed values and market values become inconsistent. Eventually these inconsistencies prompt a revision or complete replacement of the mass appraisal pricing system. The new valuations should again be closely aligned with market value.

An arms-length transaction in real estate refers to situations in which there is a transfer of property and the buyer and seller act independently of each other. This kind of transaction allows both parties to act in their self-interest to get the best deal and that neither party exerts pressure over the other. Examples of sales that are not considered arms-length transactions are:

• Those where the buyer and sellers are related parties such as family members (e.g. estates, divorces)
• Bank approved short sales, auctions, sales involved in bankruptcy, foreclosure, seller may have gone into a nursing home, seller relocation transfers, or other factors preventing a seller from a normal and usual marketing of the property.

Of course! It is best to call ahead at (207) 680-4220 or email assessor@waterville-me.gov to set up an appointment.

The assessment year is April 1^st of each year as set by state law. The ownership and condition of the property is fixed as of that date each year. Any ownership changes or improvements made to the property after April 1^st will not change the tax bill. Those changes will be reflected on the next April 1^st date.

The fiscal year is July 1^st through June 30^th. This is the year of the budget approved by the City Council each year. The tax bills are due every second Friday of October, December, March and June. They cover the period from July 1st to June 30^th.

The commitment date is the date set each year when the Assessor commits the City’s assessment roll to the Tax Collector to allow for the receipt of payment.

No, the question as to whether a property is taxable is what must be determined as of April 1^st, as well as the value of the property. All exemption applications need to be received by the Assessing Office prior to that April 1^st deadline to be applied to that following fiscal year.

The most frequent cause of value change is a change in the general real estate market. As the demand for property goes up, prices tend to go up. As the demand decreases, so do prices.

An individual property can also change in value due to changes in the property itself (improvements made to your property, and any changes discovered through inspection or online advertising if your property is listed for sale). If something is added, such as a garage, bedroom, bathroom, or pool, the value increases. On the other hand, fire, demolition, or depreciation from poor maintenance can decrease value.

The Maine State Constitution dictates that assessed property value is based on market value. In Waterville, like many areas across the State, residential property values have been increasing more rapidly than most other property types. This has caused a need for the Assessing department to adjust values in accordance with State rules. We would like to emphasize that valuation is based on market conditions—something that the City does not control.

No. With consulting other Assessors across the State, assessed valuations are rising significantly across the State this year.

The City Council and School Board approve annual budgets to pay for services in the coming year. The tax rate is calculated by dividing the amount needed to be raised (the budget, net of other revenues) by the town's total assessed property value.

For example:$13,000,000 to be raised/$700,000,000 total value of all taxable properties in town = $.017 tax rate. Thus each dollar value of property would be assessed $.017; or, as more commonly expressed, property would be assessed at $17 per thousand. (These numbers are for the purpose of an example only).

Each property owner's responsibility for their part of the town's annual budget is assigned to them according to the value of their property. This "share" is calculated by multiplying their individual property's valuation by the tax rate. For example, if the value of your property is $150,000, this number is multiplied by the tax rate (.017) to determine a tax bill of $2,550.

The due dates are set each year, usually the second Friday of October, December, March, and June. Each property owner pays part of his or her bill by each of these dates.

The amount of one's tax bill is determined by the size of the budget, which is established by the Council and the School Board. The Assessor does not determine the budget or collect the taxes.

On the other hand, the property owner's proportionate responsibility for that budget is determined by one's property valuation. If the owner believes that the current value placed on their property is inaccurate, unfair, or overvalued relative to the current real estate market, they may take the following steps, in order:

• Review the property record card (available in the Assessor's office or over the internet) to assure the accuracy of its data
• Check sale prices of similar homes in the area
• Provide evidence to the Assessor that the property is overvalued
• Request a valuation review by the Assessor
• Make a formal abatement request if not satisfied by the Assessor
• Make a formal appeal to the local Board of Assessment Review

No. In Article 9 section 9 of the State constitution we find that "the legislature shall never, in any manner, suspend or surrender the power of taxation". This has been widely interpreted by the courts as meaning that only the legislature can add or remove rules for real estate taxation. Having said this, the State does provide a few vehicles for reducing one's taxes, for example the Tree Growth program or the Farm and Open Space program. Also, the town could purchase the property in question and thus make it exempt from taxation (this does have the effect of raising everyone else's taxes by removing the property from the tax roll.)