LEWISTON — After years of discussions, a citywide property revaluation will likely begin in 2023, city staff said Tuesday.

The 18-month process will update the values of some 11,700 parcels in Lewiston, likely increasing the value of residential properties that are now assessed much lower than the actual market value.

Once the new values are implemented, Lewiston’s property tax rate is expected to decrease significantly, but for some homeowners a large swing in valuation could increase annual property taxes.

Lewiston has not done a full revaluation since 1988, and a planned one in 2006 was tabled due to the recession.

The city has been using the annual Capital Improvement Plan, which was adopted Tuesday by the City Council, to partially fund the $575,000 revaluation over a number of years. Now, officials say, the process is on the verge of beginning.

City Assessor Bill Healey told the council Tuesday that Lewiston homes, on average, are assessed and taxed at 74% of their full market value, while commercial and industrial properties in Lewiston are assessed and taxed at 81% of their value. A revaluation would equalize those values, shifting the tax burden slightly away from businesses and toward residential property owners.

Some officials have argued for years that Lewiston’s low assessments have led to an inflated property tax rate, which could be a deterrent for residents or businesses looking to relocate.

The issue became a point of contention during budget talks last year, at which time Healey told officials that if Lewiston properties were assessed at “full value,” the tax rate would be closer to $23 per $1,000 of assessed valuation, rather than the current rate of about $28.

When asked, Healey said it’s typical for revaluations to cause roughly one-third of property owners to pay more in taxes, one-third to pay less, and one-third to remain the same.

He said if officials keep the budget flat, any increase to tax bills should be offset by an equal decrease to the property tax rate. Still, he expects roughly 10% of property owners will file appeals.

He said staff will likely likely send out a request for proposals this summer. Once a vendor is selected, the revaluation would begin sometime in 2023. The new valuations would all be rolled out at the same time once the project is complete.

Mayor Carl Sheline said since the process hasn’t occurred in Lewiston in “quite some time,” there should be a robust educational component for residents.

Healey said revaluations “can be contentious,” but said “we’re here to answer any questions (residents) have.”

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