Lewiston begins process toward citywide revaluation

LEWISTON — Residential data collection for a citywide revaluation is starting this month as the city begins work on its first full revaluation since 1988.

City staff and officials for several years have called for the overdue revaluation due to the city’s high property tax rate and the recent real estate market that has widened the gap between sale prices and assessed values.

For fiscal year 2024, Lewiston’s certified state ratio is 73%, which means that on average, the city is assessing properties at 73% of their full value as assessed by the state.

In recent years, officials have argued that the resulting impact to the property tax rate, which is $30 per $1,000 of assessed valuation, is a deterrent to economic development. City Assessor Bill Healey said that as of fiscal 2023, the property tax rate of $28.50 at the time would be $17.28 if the city was taxing at full value.

During a recent workshop with the City Council, Healey said residential properties are being assessed at an average of 66% of full value, while commercial and industrial properties are assessed at 74%. That difference will mean a revaluation will equalize those values, shifting some of the tax burden onto homeowners.

When the revaluation is complete, the large jump in valuation will likely cause the tax rate to decrease significantly. Healey said if the tax rate decreases at the same percentage as the valuation increase, property taxes will remain nearly the same. But, large swings in valuation would cause property owners to see higher taxes.

Residents are generally told to brace for property taxes to increase for about one-third of taxpayers, stay flat for one-third and go down for one-third.

Lewiston’s current assessment has impacted the Homestead Exemption as well. Because of the low ratio, Lewiston homeowners only see $18,250 exempted from tax, rather than the full $25,000. Healey said it could be lower for the upcoming tax year.

The city selected Tyler Technologies to complete the revaluation for $574,000. The company will conduct data collection on residential and commercial properties this year, and conduct residential callback appointments between August 2024 and April of next year. A final value review will take place in early 2026, and valuation notices will be sent to property owners in April 2026.

Healey said every taxpayer can meet with Tyler Technologies or someone from the assessor’s office before the final reassessments are sent out. After that, there is a formal appeal process.

The new values will be basis for the fiscal 2027 tax year.

As the process begins, city officials know that the public will have questions and concerns. City staff said a website dedicated to information on the revaluation will be rolled out soon.

Asked last week, City Administrator Heather Hunter said the city is also working on a variety of forums and possible video explainers. She said staff plans to release info throughout the process to “keep the info fresh.”

“The city will be rolling out an informational campaign including a website and online videos,” Mayor Carl Sheline said. “It’s important for residents to understand the process and why we’re doing a revaluation as this could potentially impact their property taxes.”

Healey said Tuesday that he hopes the website is up and running by March 1. He said the website will include pictures of the data collectors from Tyler Technologies, along with the vehicles they drive, so property owners recognize them.

While revaluations are typically done once every 15 or 20 years, many larger municipalities have either been preparing for or conducting revaluations recently due to Maine’s real estate market.

Auburn officials will vote this month on a plan that would begin a revaluation in 2026, to be implemented in 2029. Auburn assessor Karen Scammon said the city has seen many examples of homes being sold for more than twice the assessed value.