AUBURN — City assessing staff are fielding questions about a recent letter sent to multiunit property owners as the city continues to grapple with property valuations in the face of high sales prices.

According to City Assessor Karen Scammon, roughly 1,100 letters were sent to the owners of buildings with two or more units, with questions relating to income and expenses. During a workshop with the City Council last week, Scammon said the information, which is voluntary, would be used for valuation purposes.

She told officials that staff considers the current market, as well as costs and income, when putting a value on multiunit properties, and the city already has up-to-date market info.

However, several local landlords later questioned the need for the letters, and told the City Council they were concerned the effort would simply result in higher taxes. Some also said the letters made it seem like a response was mandatory.

Donald Poisson, who operates a small number of apartments, said he’s kept rents “way under market value,” but said when landlords see tax increases, they have to raise rents.

“It sounds like you’re going to tax us on the amount of money we make,” he said. “So should I raise my rents now or wait until after you guys raise my taxes?”

The discussion last week highlights a continuing struggle for municipalities to navigate property assessments following a period of high sales prices, which in cities like Auburn and Lewiston, are often far eclipsing the current assessed values.

Last month, the city rolled out a plan to begin a full revaluation in 2026, with implementation in 2029. But assessing staff said that even before a full revaluation begins, annual market adjustments will be needed due to low sales ratios. Scammon told officials in January that multifamily buildings on average are selling for $178,000 over assessed value.

As of last Tuesday, the city had received 150 responses from landlords. Scammon told the council that the letter is “a request” for info, and is not mandatory. She said after the letters went out, her office received “a tremendous amount of calls,” but that once the letters were explained further, most people understood.

“We need to make sure our market, cost and income data are all supporting each other,” she said.

Some councilors suggested that the assessing office should have had a workshop with officials before sending out the letters.

During the later council meeting, one landlord said that while the letter said a response wasn’t mandatory, “the letter wasn’t too friendly I didn’t think.”

“I was told they aren’t going to raise the value of our buildings, but why is the city taking all this time to get this information if you aren’t going to raise our taxes?” he asked. “Every time you raise our taxes, we’re going to raise our rent. You might want to think about that.”

Former Councilor Andy Titus said the letter signifies questions about the “broader idea of taxation and revaluations,” including whether the city needs to maintain a ratio near 100%, which means on average, properties are assessed at their full value as assessed by the state.

“We spend a lot of money and aggravation trying to stay at 100%, but do we have to? It needs to be looked at,” Titus said.

Scammon has said the state has estimated Auburn’s ratio at 71% for 2024, and it is projected to drop further for 2025. Dropping below the state’s requirement puts the city at risk for losing its full Homestead Exemption Program and other funding, she said.

During the workshop, Scammon said that due to the recent changes to the Lake Auburn watershed septic ordinance, there are now nine properties in the watershed that are now considered buildable lots based on the ordinance language. She said the property owners were all recently sent letters informing them that the city will be considering the parcels buildable lots for the upcoming tax year, and “they will see a substantial increase in valuation.”

Copy the Story Link