Frequently Asked Questions

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

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.

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 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 this year across the State.

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