06/20/2018

Robust real-estate market will mean lower tax exemptions for Cape properties

The robust real-estate market in Southern Maine is good news/bad news for property owners in Cape Elizabeth, said town Tax Assessor Clinton Swett.

The good news, of course, is that properties are selling above assessed valuation. But the bad news is that the difference between market value and assessed value will mean lower property-tax exemptions under the state's Homestead, Veterans and Blind exemption programs.

In an announcement June 20, 2018, Swett said real-estate sales in Cape Elizabeth are 9 percent higher than their assessments from the previous year. "Now the bad news, this pushes the town's certified ratio (ratio of sale prices versus assessments) even lower to 89 percent for the 2018/2019 tax season. Last year, the ratio was 98 percent," Swett said.

The result is a $1,800 drop in the Homestead Exemption for 2018-19 compared to this year; $600 for Veterans and $300 for Blind exemptions. State statute requires that exemptions be adjusted by the percentage of full value at which taxable property is assessed, Swett said.

Here is a table showing the changes for the upcoming year:

If you have any questions regarding this article, please feel free to contact Clinton Swett, tax assessor, 207-799-1619 or Clinton.swett@capeelizabeth.org or stop by the office at Town Hall.