The value Whitefield places on its gravel pits and transmission rights-of-way isn’t high enough, and there should be a tiered system for valuing land beyond base lots, with declining rates for larger holdings.
The citizens assessment advisory committee presented its report to the Board of Selectmen Feb. 14. Chair Dennis Merrill said the group met 14 times since late last fall, including with state tax officials and with towns having similar agricultural and rural characteristics. “Land assessing is pretty complicated and you can’t put everything in a neat box,” he said.
“Our goal was to come up with a fair and equitable (approach) for the majority of people,” Merrill explained, and to follow a “common sense” approach. The focus was on land, not buildings, and an overall finding was that Whitefield’s present land valuation rates lag behind “what a reasonable average market value might be” and behind State values.
“It’s way below what other towns use,” said Merrill.
According to the report, because of land undervaluation, the tax burden has been artificially shifted to structures. By correcting the imbalance, some buildings assessments could be lowered and the town’s mil rate would go down.
In its overview of property taxation, the report states that to be equal, “property taxes must be at the same rate for all comparable properties.” To be just, the determined value has to be based on a legally permissible use.
The report also addresses legal parameters for taxation policy and procedures by pointing out they are subject to the State constitution and laws. “Municipalities carry these out through assessment of individual properties, commitment of taxes and collection of taxes.” There can be exemptions relating to reduced values or current use, but these exemptions “must be created by the State,” not by the town.
Also, even though citizen boards can monitor taxation policy, qualified professional assessors are still needed, the report states.
The committee researched an issue that triggered taxpayer complaints following Whitefield’s 2010 town-wide assessment: the valuation of rear land and isolated land.
Whitefield currently uses only one rear land category – all of a parcel except its base lot. The practice “lumps too many sizes of parcels together to provide just value for all parcels,” the report states. A graduated scale with lower values per acre for big parcels would be fairer.
As for remote or isolated land, parcels with a defined right-of-way should have a lower valuation for the base lot. A parcel with no deeded right-of-way or easement should not have a base lot assessment since development is impracticable.
Inequities in valuation rates for public utility rights-of-way need to be addressed. The report points out that they are currently being improperly assessed at the same rate as undeveloped rear land when in fact the swaths used by CMP and a gas pipeline are “fully developed for specific commercial use and should be valued accordingly.” In some towns the committee looked at, such rights-of-way are valued at twice or three times the highest rear land rate.
In assessing parcels with water frontage, the town is asked to consider changing the one-size-fits-all $5000 rate for rivers and streams to a system of graduated amounts, similar to that for rear land. There should be three categories, said Merrill. Frontage up to 150 feet, from 150-500 feet and over 500 feet would be rated at declining values (respectively, $4550, $2730 and $1820). Lake frontage should also be tiered but at higher rates.
“We spent a lot of time on borrow pits,” said Merrill. Whitefield has seven categories for borrow (gravel) pits now. “This should be boiled down to one class for all pits five acres and above.” They are all commercial and should be taxed as such, he noted, not at different rates. “Keep it simple,” he advised, and develop a category for reclaimed pits.
The report also proposes changing the way the nine-hole Sheepscot Links golf course is assessed and gives an example rate of $25,000 per hole. The 18-hole Augusta Country Club in Manchester is assessed at $75,000 per hole.
In addition, various tax reduction programs, including the circuit breaker and homestead exemption plans, as well as farm, open space, and tree growth, are described as potentially helpful to landowners.
Some committee members checked their own files and were surprised.
Steve Smith said, “I’ve been paying on a porch and outbuilding since 1955 that I haven’t seen since I bought the place.”
Board of Selectmen chair Steve McCormick commented, “There’ll always be issues,” to which Smith responded, “Right, so there will be a constant tuning of the tax policy.”
Jim Fitz-Patrick noted, “The word has to get to the taxpayers that a good system is coming into shape. What is on the tax cards and computer is what the town thinks you have. Go look at it; correct it if it’s wrong.” He added that if property owners can’t do this minimal amount, they shouldn’t be complaining to the selectmen.
Merrill said a key goal is to “get as close to market value” as possible while keeping land and building assessments as close to each other as possible.
What taxpayers need to keep in mind is that an increase in property value doesn’t necessarily mean higher tax bills. “Assuming there are no changes in spending and other revenue sources, and if most properties increase in value, the mil rate may be expected to drop,” the report states.
The town, in its role as assessor, has duties to fulfill, as well. It falls short in sharing property descriptions with taxpayers and explaining the basis for taxation. “The Committee did not find any policy or precedent files that document the Assessors’ decisions and rationale on property tax matters,” the report finds.
The computer software program, Trio, was also targeted as inadequate. “It’s pretty antiquated,” said Merrill.
In addition, the town could ease the property tax burden by developing a capital improvements plan. Anticipating future expenses could help selectmen, the budget committee, fire department and others “to develop strategies that can minimize sharp changes in the tax rate one year to the next,” Merrill said.
The committee plans to post the report and its appendices on the town website, www.townofwhitefield.com.
McCormick acknowledged the work the select board has before it. “What we’ll do is start biting off pieces,” such as dealing with gravel pit and utility adjustments, he said.
Other advisory committee members are Wes Keep, Andy Berry, and John Delvechhio. All are willing to continue working on issues at the select board’s request.
It also acknowledged receipt of fire department rules and regulations from fire chief Tim Pellerin, as requested. The documents include sections on chain of command, a code of ethics and conduct, and a workplace harassment policy. Selectmen will review a sexual harassment policy from the Maine Municipal Association that includes a fraternization clause.
There is no board meeting Mon., Feb. 21, Presidents’ Day.
