Portland Revaluation

The City of Portland is beginning the process for its next revaluation for assessment purposes in accordance with Maine property tax law and the City Council’s June 16, 2021 Resolution. The Council’s resolution recommended that the Assessor and the City Manager, as necessary, conduct ongoing work to support City wide revaluations every five years, and that sufficient funds to support such city-wide revaluations be authorized and appropriated. Additionally, State property tax law guidelines require municipalities to be between 70% and 110% of market value. The last revaluation was completed in 2021. The market value to assessed value certified ratio for FY25 will be 90%, and is projected to be 82% for FY26 and 74% for FY27.

A declining assessment ratio is an indication of a lack of equity in property tax assessments. A lower certified ratio for the coming tax years will also have several impacts including reducing the amount residents receive from the Homestead, Veterans and Blind Exemption programs. For example, in FY25, a $25,000 Homestead Exemption will now only be valued at $22,500.

In order to comply with the requirements above, City staff will start the revaluation process this spring with the anticipated completion date in the summer of 2025, and implementation in FY26. This work will be done with current staff, a contracted revaluation company, and updated imagery.  The City has entered into a multi-year reassessment contract so the work can be conducted every two years until 2031 and help preserve equity in tax assessments.

The City’s Assessor is also recommending the City conduct a separate Personal Property revaluation. Personal Property is a State imposed tax on business equipment that every business in the State of Maine is subject to. The State has established a reimbursement program and an exemption program to aid businesses in recapturing or exempting some of the Personal Property taxes.

The City Assessor's Office is responsible for the inventory and depreciation of all business equipment located within the City to establish a taxable value. The current process of sending the annual declaration forms to collect and value Personal Property would be significantly aided by a full Personal Property revaluation. A contractor would conduct a complete street canvassing of the city to identify new businesses and list the equipment of existing businesses.