City revaluation returns mixed bag of property tax bills

The revaluation of Eastport real estate has been completed, and, in anticipation of the city's valuation rising from $51.6 million to $106 million, taxpayers were mailed mock tax bills for the coming tax year to give them an indication of what the real tax bills will be following the approval of a fiscal year 2007-08 budget.

Waterfront property owners will see their tax bills climb, as will homeowners who thought their houses were worth $50,000, but willing sellers and willing buyers, mostly from out of state, have viewed them as worth $100,000. Shorefront property has skyrocketed in value all along the Maine coast, and prices for homes in the Eastport area are following a state trend.

Eastport Tax Assessor Robert Scott says the state takes all transfers of Eastport properties and assesses a value on for the city. "We are given an opportunity to say which were bona fide sales," he notes. The state will then come up with a report. Based on sales and increased value, the state may say the island is worth $96 million, and the city may be saying it is only worth $49 million. Communities are required to be assessed at 70% of their value, or the state will step in and assess the property.

Eastport's county taxes this year will be $164,225, up from $148,097. City Manager George Finch says he had expected the county tax to be higher. County taxes are based on what the state says the city is worth.

This year the state has said Eastport's valuation is $110,000,000. Eastport's revaluation came in at $106,000,000, which exceeds the state's 70% requirement. The state says market value is the just value. With the revaluation, taxpayers will get 100% of their homestead and veterans' exemptions. Because Eastport was not within 70% of its valuation in recent years, property owners eligible for the veterans' exemption were receiving $3,450 of the $5,000 exemption, and those eligible for the state's $13,000 homestead exemption had been receiving $9,000. In a few instances where the property valuation is low, getting the full exemptions will markedly reduce the tax bill.

Not all taxpayers will see an increase in property taxes. Of the nearly 1,500 properties that were revalued, about 600 will see their valuation increase, but their taxes will drop with the proposed 19.5 mill rate that will replace the current mill rate of 36. About 900 properties will see both their valuation and their tax bill increase. Waterfront property owners may see their property taxes double and in some instances more than double. The view from the window will be expensive.

Some property owners away from the water also will see their taxes go up substantially. According to the tax assessor, nearby homes will have sold at escalating prices or new homes have gone up in the neighborhood, thus increasing the comparable value of nearby homes.

With the decline of commercial taxpayers in Eastport, the tax burden has shifted to residential taxpayers to take up the slack. Businesses and industries pay taxes on their land and also pay a personal property tax on equipment to the city. In the past 10 years, Eastport has lost numerous commercial taxpayers. In 1997, the personal property valuation of various Eastport industries was: Fiber Extrusion, $3,109,472; Maine Aqua Foods, $480,000; Georgia-Pacific debarker, $337,000; Mearl Corporation, $197,000; Treat's Island Fisheries, $296,000. In 1997 Guilford Mill's personal property valuation was a little over $2 million. With the reduction in aquaculture operations, including several small operations, the loss was large. "They were pulling out cages by the dozen," comments Scott. Today the largest personal property taxpayers are Bangor-Hydro and Bangor Savings Bank.

Some taxpayers viewing the increase in their tax bill are asking, "Why mine?" Mina and Dana Bowen's house is located on a small 50' x 75' lot. There is no waterfront nearby, but their tax bill will double. The Bowens find it hard to believe. Dana Bowen works two jobs, and Mina holds a job, but they don't know if they can make it. "I don't know why they think people can afford the taxes along with fuel increases," she comments. "We have a daughter in high school. We may be forced to move after she graduates next year. People shouldn't be forced to move. Young people can't make it here." Mina blames much of the problem on people who move to Eastport from other areas and don't want business or industry to come in.

For Chris Bartlett and his young family, the cost of owning a home in Eastport will go up an additional $1,100. Bartlett has requested a written report from the tax assessor in an effort to know why his taxes have gone up that much. "We are going to have a hard time making it this year. We will have to figure it out and work it out." The Bartlett property on County Road is not shorefront property. "We will be paying higher taxes for a fresh breeze in the spring and a strong wind the rest of the year," comments Bartlett.

While young couples will find it difficult to pay higher taxes, older property owners on Social Security or other forms of fixed income will find even a small increase in taxes a burden they may not be able to afford. For many of them, their property is their only asset.