April 2019 Trended Assessment Information
The Town of Kennebunk Assessing Division has completed its analysis of real estate sales from April 1st, 2018 to March 31st, 2019. Our analysis concluded that assessments throughout town as a whole were at approximately 70% of fair market value. As a result, ALL assessments across ALL property classes (absent Central Maine Power Facilities which are reassessed yearly) were trended by a conservative 75% ratio, resulting in an approximate 33% increase to the assessments overall. Any properties that may have increased more than 33% were due to incomplete construction from the prior year, new building permit activity, or changes made through our normal course of annual inspections.
Any increases in your property taxes (within rounding) from 2018 to 2019 was strictly a result of budget increases of the RSU 21, the Town, and County, which in total contributed to an approximate 5.6% increase in the Tax Commitment. In other words, if the assessments had not been trended, the prior years tax rate ($17.50 per thousand) would have increased and resulted in similar increases in taxes due to budget increases voted on by Kennebunk voters.
4/1/2019 Trended Assessment
Technically SpeakingTitle 36 § 327 sets Maine's minimum assessment ratio (assessments compared to sale prices) at 70% with a quality rating of 20 (a measure of assessment equity between similar properties). The International Association of Assessing Officers (IAAO), the universally recognized leader in property tax administration, sets a more stringent standard of 90-110% of market value, and a co-efficient of dispersion threshold (equivalent to quality rating) of 20. Our analysis showed while the measure of assessment equity between similar properties was excellent, our overall level of assessment (LOA) was not meeting professional standards.
On a positive note, these increases were off-set by increases in revenue sharing from the State of Maine as well as strong growth in new construction and development. Also, you will notice in your tax bill, for those that have applied and been approved for the Homestead Exemption, an increase to the full $20,000 allowance. This exemption results in a $275 reduction in your overall tax bill. If you do not have the Homestead Exemption, please go to our Exemptions and Tax Credits page and see if you qualify.
Should you have any questions regarding your assessment, please do not hesitate to call our office at 604-1309. As always, we appreciate your patience in responding to any messages and look forward to serving you.