Why do we have to do a revaluation, and why now?
The Maine Constitution requires each municipality to conduct a revaluation of property values every ten years. St. George last conducted a revaluation in 2009. The purpose of the valuation is to ensure that all properties are taxed fairly and equitably, by determining the “just value” of the property. For most properties this is the fair market value as determined by a professional appraisal firm.
Municipalities are penalized by the State if their town-wide value is significantly below fair market value. Currently, the State estimates that our town-wide value is approximately 70% of its fair market value, as a result of which, property owners may not receive the Homestead Exemption.
To comply with State law, St. George has contracted with KRT Appraisals to conduct a town-wide revaluation commencing in 2025, which will be completed and fix the value of properties effective April 1, 2027.
What does the revaluation process involve?
There will be a town-wide meeting to explain this process in the spring of 2025. We are providing residents with this information now to avoid confusion and encourage participation, which is in your interest. If property owners deny the appraisers access to your property, their estimate will be determined without all of the information necessary to determine an accurate appraisal, and could over-value your property.
KRT will begin by reviewing data about all town properties from tax maps, building permits, and other sources.
KRT will send out a mailing prior to visiting any property in St. George. They will then visit every property in town. KRT staff will wear ID badges and request access to see the inside of your home or business. If access is denied, they will make their best effort to determine the square footage, number of bedrooms and bathrooms, condition of the property, fixtures, etc.
KRT will then review real estate sales data from St. George for the period of April 1, 2025 – April 1, 2027, which will be used along with all other information about a property to establish its value.
Once values have been determined, KRT will mail each property owner a letter stating the appraised value. It will include an 800-number to call if you have questions or disagree with the value. KRT may adjust the value based on your input. If after that process, the property owner still disagrees with the value established by the appraiser, there is a hearing process for challenging the valuation.
How will the revaluation affect my tax bill?
Do not assume that your tax bill will increase even if the value of your property increases. The amounts that St. George pays the State and County for services are driven by the value of town properties as a whole. So an increase in town-wide value will increase what the town must pay the State and County. However, most of our real property tax bill pays for the programs and services St. George voters choose to support when we vote on the town’s budget at the annual town meeting - our fire and ambulance departments, road and harbor maintenance, town office services, parks and recreational programs, and the St. George school. The amount needed to fund those services and programs is unaffected by property values.
The bottom line is that, while some property owners’ tax bills may increase after the revaluation, others may decrease.
When will the new tax values go into effect?
The values will be set as of April 1, 2027 and will be reflected in property tax bills that are mailed out in August 2027.
Stay tuned! Our new website and notification system and new Town Facebook page will include information about the Spring 2025 public meeting, and when property visits will begin (next spring/summer after you receive a mailing from KRT).
For more information, see the KRT power point presentation about the process here.