Staff Writer
WASHBURN — Town councilors are considering a possible revaluation of some property in the community as a way to maintain the town’s mil rate at 26.5 per $1,000 in valuation.
During the Sept. 10 Town Council meeting, Randy Tarr, the town’s tax assessor, discussed the current state of tax assessing and valuation in the community with Councilor Chair Keith Brown, Councilors Daren Churchill and Fred Thomas and Town Manager Bev Turner.
“Our tax ratio is at 80 percent; that’s what we base our exemptions on,” said Turner.
Tarr noted how homes in the area had recently been revalued and that Washburn’s quality ratio of 80 percent, and rating of 10 was good.
“I have some towns in the low 70s. When they fall below that, the state can request a revaluation,” said Tarr.
Brown commented on Mapleton’s property values and taxes noting Mapleton’s mil rate was low but property values were assessed high. “We’d like to balance ours,” he said. Tarr said that was like comparing apples and oranges, since the towns vary in services and other areas. “They (Mapleton) don’t have a police department,” said Tarr.
“Bringing the valuation up 20 percent will drop the mil rate, but taxes will be the same if the budget stays the same. It’s a numbers game,” Tarr said. “Caribou just went through a revaluation and has a mil rate of 19.3. The tax rate was 22-24. My taxes went up.”
Tarr said buildings in Washburn are “undervalued about 20 percent.”
“You were in the low 70s. We bumped it up,” he said.
Tarr said one area that should be considered for revaluation is land, since it’s been years since any changes were made.
“Right now land valuation is low. That’s an area that could be increased and brought up a little more, as well as house lot values. Homes are low right now – really not in bad shape, actually in good shape,” said Tarr.
Brown said it didn’t sound like it was a good idea, from Tarr’s point of view, to do a revaluation.
“You spend $100,000 to pick up about $50 more from the state for reimbursements. You’d be spending a lot of money for little in return,” Tarr said.
Turner said she’d asked Tarr if there was anything town officials could do to help the mil rate. Tarr felt changing land values was the best bet to stabilize the mil rate.
“Undeveloped is assessed at about $250 an acre. The state average is about $485 an acre for undeveloped. We could bring it up somewhere in the middle,” he said.
Turner said the last time something like this was done was around 2005-06 which involved home values.
Brown questioned how Washburn’s $250 an acre compared to neighboring communities. Tarr said he’d done a new revaluation in New Sweden and Stockholm, with land set at $500 an acre.
“We could go up a little and not hurt too bad,” said Thomas.
Brown said land values hadn’t jumped in nearly a decade.
“That will reduce your mil rate, barring increases in the budget,” said Tarr.
Tarr said Washburn wasn’t in an area to attract businesses and therefore had to look for alternative ways to attract people to the community. Thomas said “We’ve gotta be a bedroom community.”
Tarr said Caribou had seen a lot of businesses close and that it was “just the economy.”
“I think a land revaluation is something we need to look at. I don’t want to do anything to upset the apple cart with the farming community however,” said Thomas.
“If you averaged about $350 an acre — Caribou’s the closest area. They’re seeing about $700-750 an acre,” said Tarr.
Turner noted farmland in Washburn averaged about $300 an acre. Tarr said having it closer to $350 for tillable land would bring it closer to Presque Isle’s market.
“I think we should do that,” said Thomas, as he made the motion to have Tarr work on a ratio study regarding land values in Washburn. Churchill seconded the motion, with the measure passing by a vote of 3-0. Councilors Mike Umphrey and Kermit Fuller were absent.
Tarr used Presque Isle (with a mil rate of 23.5) and Caribou (with a mil rate of 19.3) land values to show how raising Washburn’s figure would bring it more in line with neighboring communities. Following Washburn’s Council meeting, assessors for Presque Isle and Caribou explained how their land valuations are broken down for tax purposes.
Presque Isle’s Tax Assessor Lona LaFrancis said “The city handles every parcel’s first acre as the base acre, then the next one is listed as secondary. The next eight acres are valued at a higher rate than remaining acreage.”
LaFrancis gave as an example Smith Farms’ property off of the Easton Road.
“The Smiths have about 147 acres there. The first acre is valued at $7,975, secondary acre is $800, the next eight acres are valued at $560, with the remaining acreage running $700 for tillable and $725 an acre for undeveloped,” said LaFrancis.
Elizabeth Obar, Caribou’s tax assessor, said acreage was valued in a similar fashion in her community.
“The base acre is $10,000 predominantly, the next five acres are $1,750, the next 25 run $750 and the next 50 are valued at $500. Everything over that is $250, with tillable running at $800,” said Obar, noting Caribou implemented a complete revaluation for the community in 2012.
