As you may have noticed the Homestead and Veteran exemptions have been reduced on your tax bill. Instead of receiving the full exemption amount, Bowdoinham can only offer 91% of the exemption amount. The highest the Board of Assessors could declare for the Town’s FY2022 certified ratio was 91%. The certified ratio is determined by Maine Revenue Service through analysis of assessed values and sales data. Due to the increase property sales over the last year, we expect the Town’s certified ratio to continue to decrease, which means the exemption amount will also decrease.
To address this the Select Board had contracted with RJD Appraisal in 2019 to update the Town’s property cards over a four-year period, so that the Town could conduct a re-evaluation in year five to bring the Town back to 100%. By State Law, the Town has to be between 70-110%. Given the accelerated price of home sales the Select Board is looking at accelerating the Town’s re-evaluation process. To do this the Town would need to budget $25,000 for two quarters of the property card updates for next year.
Additionally, the Board is considering budgeting for the re-evaluation next year (FY23) so that we can claim a certified ratio of 100%. Otherwise, we could be looking at a certified ratio around 80% for FY22-23 and budgeting for the re-evaluation the following year (FY23-24).
25,000 (full value) x 0.91 (certified ratio) = 22,750 x 16.97(mill rate) = $386.07 (Tax Reduction)
6,000 (full value) x 0.91 (certified ratio) = 5,460 x 16.97(mill rate) = $92.66 (Tax Reduction)