Buckfield land assessments to jump more than 30 percent

BUCKFIELD — The Board of Assessors in Buckfield has acted on the recommendation of Town Clerk Cynthia M. Dunn, and will raise land assessments across the board.  Based on varying tax tables, rates will go up, on average, over 30 percent. 

However, assessors expect a negligible impact on tax bills, as the higher valuations should bring a resulting drop in the mil rate.  The 2003 mil rate was 20.10.

Based on the $1,360,610.74 budget approved at the annual town meeting in June, the 2004 mil rate had been estimated, under the old tax schedules, at 20.75 per $1,000 of assessed value.  Dunn stated that she would not be able to calculate the new mil rate until “everything has been plugged in” using the new valuations and accounting for changes in use, such as new constructions and subdivisions.  To do this, she is currently waiting on updated tax maps and individual property assessments.

According to Dunn, this reassessment of land values was long overdue.

“Keep in mind, the Board of Assessors is obligated to assess at fair market value,” said Dunn.  “Our buildings are good, it’s our land,”

Dunn observed that land valuations had “plummeted” in relation to market value “in just the last two or three years.”

“I’ve been here [as an assessor] for six years,” noted Board of Assessors Chairman Joanne Bly, “and I’ve never revised this.  We’ve looked at it, but we’ve never revised it.”

“Yeah, you look at it every year,” Dunn laughed.

In preparing for the annual assessors meeting, at which the tax commitment is set, Dunn had solicited land valuation information from several surrounding communities.  Sumner, Hartford, and Norway responded by sending copies of their tax tables.

“The other towns that I wrote to did not respond,” said Dunn.

Dunn also noted average land valuations throughout Oxford County, citing information provided by Mike Rogers of the Maine Revenue Service. 

According to Rogers’ report, the average valuation for a one acre developed lot in Oxford County is $20,000.  The first acre of an undeveloped lot averages $16,000.  The average for additional land, sometimes referred to as back acreage, or raw land, is $530 per acre.

By contrast, a one acre developed lot in Buckfield was previously assessed at $9,720.  The first acre of an undeveloped lot, referred to as a “potential building lot,” was $3,580.  Raw land was valued at $280 per acre.

“We are long ways in arrears, aren’t we,” noted assessor Oscar Gammon.

Although they are technically separate bodies, the make-up of Buckfield’s Board of Assessors, in practice, mirrors that of the Board of Selectmen.  As the board looked over the figures, they were, at first, reluctant to touch the land valuations.  However, it was Gammon who was most vocal in resisting any change.

“Well I’ll give you my opinion,” he said.  “I’ve sat and looked at this and thought a lot about it.  I am very afraid to do anything with these values until I find out what is going to happen with the [Pelesky] referendum. 

“I know by Mike Rogers’ figures that we are way, way low.  But, at the same time, do I want to drive the people in this town to vote for the tax cap?  No. 

“And I’m afraid that’s what would happen if we upped the value of people’s property significantly.”

Dunn noted that decreasing valuations, in relation to the State’s assessment of Buckfield’s overall fair market value, could jeopardize the homestead exemption for local taxpayers. Currently, Buckfield is at 82 percent of the State’s valuation.  When a town falls below 70 percent, it is required to undergo a full revaluation. 

Dunn noted that the state allows a 10 percent addition to the current percentage, meaning that Buckfield can give 92 percent of the homestead exemption available.  The goal then would be to get the valuation within 90 percent of the State valuation, so that the town could give the full 100 percent of the homestead exemption.

“I’m almost afraid that people won’t get that part of it,” cautioned Bly.  “They’re only going to see the increase [in taxes.]”

“Oh, when they get the tax bill, they’ll see it,” said Dunn.  “They’re looking for that $7,000 exemption, or whatever it is for that property.  But if they get a tax bill, and it now says $6,000, or $6,500, I have to believe they are going to question why.”

“My question is, are we just fooling with the numbers so that the State says we can have this deduction,” asked Assessor Chris Hayward, “or are we actually raising taxes.  Are people actually going to end up paying more?”

“You’re mil rate comes down, you end up paying the same dollars,” answered Town Manager Glen Holmes.  “It all stays about they same.”

“I don’t want to see anyone’s taxes start jumping up,” said Hayward.  “So my thought is, it’s just a matter of fooling with the numbers, so that they get more of a tax credit, but they’re not really paying any more.”

“I’m hearing a numbers game, but that’s not what this is all about,” said Dunn.  “It’s not a numbers game.”

Dunn also noted that Buckfield had historically tried to keep raw acreage assessments low, as an incentive for large landowners to keep their property intact.

“That’s a wonderful idea,” she said,  “but when it gets us to a point that our land values are dragging us down.  We were at 96 [percent of market value], then we were at 92, now we’re down to the low 80s.  When is it going to get to the point where we are 70 and we are required to be revaluated?”

“Not far off,” agreed Gammon.

“If we have to do a revaluation, we have to hire someone to do that,” observed Hayward.  “And that costs us money.”

“You’re look at 50-odd thousand there,” said Gammon.

“The Board of Assessors has the power to make the correction now,” said Dunn.

“I don’t know, I’m stuck,” lamented Bly.  “Do we absolutely have to do it this year?”

Assessors noted that land valuations in Buckfield are currently far below recent selling prices.  Relying on his experience as an excavating contractor, Hayward noted that the values were also far lower than the cost of installing a well and septic system.

“Right now, property is hot,” said Hayward.

“You know, sitting here talking, maybe I’ve changed my opinion,” said Gammon.  “It’s a hard thing when an assessor has to look at this, but it has to be done.

“I’m not sure but we should bite the bullet, because we are so low,” he said.

Once it was finally agreed to update the land valuations, it was only a quick matter of picking round numbers.

Assessments for an in-town one-acre lot – defined as all developed lots within the service area of the Buckfield Village Corporation (Water Department) District – will go up 33.74 percent, from $9,720 to $13,000.  Smaller in-town lots will go up by even more significant amounts, with the greatest increase (53.5 percent) being for a quarter acre lot.

Assessments for an in-town home occupation lot will go up 30.9 percent, from $10,690 to $14,000.  In-town commercial lots will go up 32.2 percent, from $12,100 to $16,000.

Assessments for an out-of-town one-acre lot on a tarred road will go up 33.98 percent, from $7,520 to $10,000.  Assessments for an out-of-town one-acre lot on a gravel road will go up 13.64 percent, from $6,600 to $7,500.

Out-of-town home occupation lots will go up 23.97 percent, from $9,680 to $12,000.  Out-of-town commercial lots will for up 27.27 percent, from $11,000 to $14,000

Raw land, defined as that amount of land on a lot after the first developed acre, will go up 25 percent, from $280 per acre to $350 per acre.  In Buckfield, any lot that has not been developed has the first acre assessed as a “potential building lot.”  This rate will go up 39.66 percent, from $3,580 to $5,000.

“These are big jumps, but you need to do it, said Gammon.  “And we’re still low [compared to average Oxford County valuations.]

“In the future this should be done more often, so you don’t get as big a jump,” Gammon acknowledged.  “This is as much my fault as anyone’s because I was the last one who adjusted them.”

“I know, we just put it off because…” said Bly, before trailing off.

“I know, you were just waiting for me [to take the blame] weren’t you,” joked Hayward, who had just been elected to his first terms as selectman and assessor in June.

“Truthfully, we’ll have to look at it again next year, and get them [valuations] where they belong” said Gammon, “and then every two years after that.”

Dunn expects the new mil rate to be calculated “no later than the end of October,” with tax bills to go out soon thereafter.  Payments on the first half of the tax bill will be due by December 1, with the remaining portion due by June 1, 2005.