Frequently Asked Questions

A property tax bill is a bill based on the total assessed value of your property (land and or buildings less any exemptions). Your total assessed value is then multiplied by the tax rate which creates your tax bill. Per the State of Maine Constitution, all real estate and personal property located within the State of Maine is subject to taxation unless specifically exempted by a state statute.

The following are just some of the many services funded through your yearly tax bill:

• Schools/Education
• Police, Fire and Rescue
• Road Repair
• Public Works
• Parks and Recreation
• City Hall Services
• Library
• County Services

According to the Maine Constitution and State Law, property is assessed as of only one day a year; that day is April 1st.

The April 1st assessment date is used for 3 reasons:

1. Sets Owner of record
2. Sets Property Valuation Date
3. Sets Taxable Status for all properties

Assessments are based on fair market value by the following 3 methods:

1. Comparison of sales prices of similar properties within your neighborhood (less foreclosures)
2. Property replacement value minus depreciation
3. Income potential for income-producing properties

The property tax rate (also known as a mil rate) is the amount per $1,000 dollars of property value which is used to calculate your tax bill.

Example: If the tax rate is $18.30 divided by $1,000 and your property's value is $200,000 then your tax bill would be $3,660. (18.30 ÷ $1,000 × $200,000 = $3,660)

The tax rate is calculated every year by taking the Tax Levy (municipal, school and county budgets combined less all revenues) and dividing it by the Taxable Valuation (all the City's taxable real estate and personal property combined).

Aggregate of Budgets ÷ Aggregate of Taxable Value = Tax Rate

The municipal and school budgets are approved and controlled by your elected City Council members.

The county budget is prepared by the county budget committee and controlled by the Cumberland County Commissioners. Each municipality within Cumberland County is allocated a percentage of the total county budget.

Once all budgets are passed, they are certified to the local Assessor to be used in calculating the yearly tax rate.

Assessor Duties

The Assessor is expected to:

1. Assess property no less than 70% and no more than 110% of fair market value.
2. Assess all property fairly and equitably (ensure similar properties are treated the same way).
3. Assess the owner of record as of April 1st of each year.
   • If you sold property after April 1st, please forward the tax bill to the new owner if you should get it. We will make every effort to send the tax bill to the new owner.
   • If you purchased the property after April 1st, we will make every effort to send you the tax bill for each quarter.

State of Maine Duties

The State of Maine provides property tax relief programs:

1. Revenue Sharing (sent to the City to help lower the tax levy)
2. Property Tax Fairness Credit Filed with State Income Tax
3. Homestead Exemption
4. Veterans Exemption
5. South Portland Property Tax Assistance Program filed with the Treasury Office

South Portland Electronic Billing

South Portland has electronic bill payment available. The City of South Portland has available a Citizen Self Serve Online payment feature for real estate tax, personal property tax and general bills.