MECHANIC FALLS — Officials are alerting residents that figures sent out recently in advance of the town’s property revaluation are estimates only, and that ultimately property taxes will go up for some, down for others and stay the same for many.
From a letter sent out two weeks ago by the tax assessing firm of John E. O’Donnell & Associates, homeowners learned that a sizable increase in their property valuations can be expected, though that doesn’t mean an individual’s tax will increase once a new tax rate is set.
Town officials and O’Donnell were quick to point out the figures are estimates. And they are cautioning property owners not to apply the current tax rate of $22.25 per $1,000 of assessed valuation, or the estimated new rate of $14.53 to the estimated valuation figure that appeared on the letters they received.
According to Town Manager Vic Hodgkins, the new tax rate will be set at a special Town Council meeting July 17.
It has been 11 years since the last revaluation. Since then, the value of property has risen dramatically everywhere.
The median price of a single-family home in 2012 in Androscoggin County was $133,250. By 2022, the median price was $279,000, according to the Maine Association of Realtors.
A similar increase has been observed in Mechanic Falls.
In an April 24 meeting with the Town Council, Mike O’Donnell and Matt Berube of O’Donnell & Associates said the new valuations will be based on the 2022 selling price of homes in Mechanic Falls so they will come as close as possible to 100% valuation.
In two more recent examples of Mechanic Falls home sales on the same street, Berube said one home sold for $172,000 in 2019, while another same-size home went for $248,000 in 2022.
On another street, one home sold for $175,000 in 2020 while a neighboring dwelling sold for $225,000 in 2021.
Berube pointed out a third property in town that sold for $175,000 in 2020 and in 2022 sold again for $230,000.
O’Donnell said all the proposed valuations for Mechanic Falls properties are listed on the O’Donnell website.
The COVID-19 pandemic had a huge impact in escalating real estate values in the state beginning in 2019. While sales have declined in 2023, prices haven’t.
According to the Maine Association of Realtors, between 2022 and 2023 the median sales price of a Maine home went from $340,000 to $358,250, a 5.37% increase, while in Androscoggin County, the median sales price went from $283,665 to $303,500, a 6.99% increase.
Town officials acknowledged receiving some grumbling from residents about the increased valuations and their concerns about facing higher property taxes. Officials said some property owners will see a tax increase, some will see a decrease, and some will see little change.
Paul Binette, an O’Donnell assessor, said he and two other assessors were in the town office three days last week to meet with residents who had questions on their assessment
Binette said usually 5% of property tax payers meet with them on such occasions. He said assessors listen to them, take their questions and make changes if necessary.
He said people he met with were cordial, and they usually wanted to know how and why things were determined.
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