Tax Bill FAQ (July 2024)

Watch the above video recording of the Tax Assessor's August 13, 2024 presentation to City Council on tax equalization and valuation adjustments. You can also view the Assessor's slide presentation.

Can I see my tax bill?

Fiscal Year 2025 tax bills were posted online the week of August 12, 2024. You can view and pay your bill on our Citizen Self Service portal (accessible via the "Online Services" button on the homepage).

What changes will I see on my tax bill this year?

• The City will send one annual tax bill mailing to taxpayers instead of bills each quarter.
• Payments will be due twice a year instead of four times a year.
• This fiscal year's payments are due on November 15, 2024 and May 15, 2025.
• Homeowners whose taxes are not escrowed as part of their mortgage are responsible for paying the amount due with the payment stubs provided. 
• You can also elect to pay your bill in its entirety upon receiving your bill, or make payments as frequently as you desire as long as the amount due is paid by the due date.
• In addition, many will see a tax increase over last year (read more below).
• Each property owner will see changes in their tax amount due based on the new assessed value of their property and the new mill rate. 

How can I pay my bill?

Once posted, you can pay your bill online or in person at City Hall at the Treasury office. You can also drop your payment off in the drop box at the rear entrance of City Hall or send your check via mail. You can elect to pay your bill using the payment stub provided with your bill, pay your bill in full, or make payments as frequently as you desire.

Why is the City only sending one bill per year instead of bills every quarter?

A single annual tax bill mailing is something many surrounding communities have adopted because it is more sustainable and saves resources. The City’s Finance department is already investing these savings to better serve you. For example, they have hired an additional cashier in the Treasury office to help reduce wait times, funded in part by the money saved sending fewer tax mailings.

Can I sign up for email reminders when tax bill due dates approach?

Yes. Sign up at: southportland.gov/signup 

Won't people forget to pay if there's only one annual bill and two payment due dates?

We don't expect for this to be the case. The Finance Director surveyed other surrounding communities. She found that several send one or two tax bills and have one or two payments due each year. She found that "none of the communities stated having higher delinquent payments or receiving feedback that older residents forget to pay if they do not receive an invoice." Read the memo.

What is the tax rate I will pay this year? 

The mill rate or “tax rate” is the dollar amount per $1000 of value that you pay in property taxes. Every South Portland property owner will pay the same mill rate, posted on your bill. The mill rate for this fiscal year is $13.20 (6.6% lower than year’s). This means that taxpayers will pay less per $1000 of property value than they did last year. However, the Assessing office has made adjustments to assessed property valuations to bring them more in line with market value, which is required by the State of Maine Constitution. This means that many will see a higher tax bill than last year, despite the lower mill rate.

Will my tax bill be higher this year than last year if my assessed property value increased?

Most likely, yes. Assessed values—which are based on market values per the State Constitution—have increased, especially for single-family properties. Many will see an increase on their tax bill this year. Property owners will see an increase if their assessed property value increased a greater percentage than the decrease in the mill rate. 

Why is my assessed property value increasing?

The Maine State Constitution dictates that assessed property value be based on market value. In South Portland, like many areas across the State, residential property values have been increasing more rapidly than most other property types. This triggered the need for the Assessing office to adjust values in accordance with State rules. We would like to emphasize that valuation is based on market conditions—something the City does not control.

Is South Portland the only municipality where assessed valuations are increasing?

No. In consulting with other Assessors across the State, assessed valuations in many municipalities—particularly for single-family properties—are rising significantly this year, from 12% on the low end to up to 60% on the high end.

Why does the Assessing office adjust property values?

The State requires municipalities to maintain fair and equitable valuations between all property types. This includes maintaining single-family assessed valuations within 10% of market value for the City to remain eligible for 100% of reimbursements and property owner exemptions. The improved data that the City reports to the State also helps reduce the mill rate.

Why is the Assessing office adjusting property values now?

Historically, the South Portland Assessing office has been able to make more incremental valuation changes. However, the gap between assessed values and market values in South Portland and many Maine communities has grown in recent years due to dramatic shifts in the real estate market. This is particularly true for single-family properties. This year, in order for the City to remain eligible for full reimbursement from the State and maintain 100% of Homestead (and other) exemptions that benefit taxpayers who qualify, adjustments to residential, commercial, and personal property valuations were necessary. This process, called equalization, contributes to a lower tax rate for all taxpayers.

Did commercial/industrial property values increase, or only residential?

Assessed values increased for both residential and commercial/industrial properties. However, recent sales data shows residential property values in South Portland have increased at a greater rate than commercial/industrial property values. Therefore, residential properties needed to be adjusted the most to meet the State Constitution requirement of a fair and equitable assessment. 

Does the City collect more money when property valuations go up?

No, the City does not collect extra tax dollars through the equalization process. It only ensures that the money the City collects in property taxes to support the budget that the City Council approved is distributed fairly and equitably among property owners according to property value, per the State Constitution. For every dollar a residential or commercial property owner pays more in taxes, someone else pays a dollar less, so the City does not collect additional tax revenue. The City of Bangor Assessing Department features a short video on their web page that helps explain how assessing and taxation work.

Is there action City Council can take to limit the impact of valuation increases?

As explained in this FAQ, the Tax Assessor follows the State Constitution when adjusting property values to better align with market values. City Council and staff will be conferring with other municipalities and State legislators to explore what changes might be possible at the state level in the future to help limit the impact of major shifts in the real estate market on taxpayers. South Portland City Council will also vote on September 3, 2024 to add $100,000 in funding to our senior citizen property tax relief program.

How much did the City’s budget increase this year and how does this affect my tax bill?

The total approved FY25 budget, which includes both the School and the Municipal budgets, increased by 4.9%. Wages and benefits were the major drivers of the increase to the City portion of the budget. This increase will be reflected on your tax amount due.

What is the breakdown of where my property taxes will go this year?

Of the funds that taxpayers will pay to the City in FY25, 61% will go to the School Department, 35% will support Municipal operations, and 4% will go to Cumberland County.

I heard the City had a budget shortfall last year. Am I paying more taxes this year because the City overspent on its budget?

No. View our Myths vs. Facts post on this topic. 

Is the South Portland tax rate high compared to other communities?

No. This past fiscal year, South Portland’s effective tax rate was lower than all abutting communities and second lowest when compared to the 10 largest communities in Maine. This year, we expect that the City will continue to have a lower tax rate than many comparable Maine communities.

Are there any property tax relief programs available?

The State and City offer several property tax relief and tax exemption programs. More information on State tax relief programs can be found at maine.gov/revenue/taxes/tax-relief-credits-programs, or by calling Maine Revenue Services at 207-624-5600. State programs include:

• State Property Tax Fairness Credit: Form 1040ME and Schedule PTFC/STFC, filed with your Income Tax Return for the tax year the property tax or rent was paid, has increased to $2,000 as a tax return filing. Call 207-624-9784 for more information.
• State Tax Deferral Program: Asset limits were raised and income limits doubled to $80,000 for Maine Seniors having difficulty paying taxes. Applications are due in the Assessing office from January 1 to April 1.
• State Exemptions: Homestead (reduces taxable valuation by up to $25,000 as adjusted per State guidelines), Veterans, Veterans Widow/Widower, Disabled/Paraplegic Veterans, Blind, and Renewable Energy.

The City offers a senior citizen property tax relief program. If you qualified and received a Senior Property Tax rebate from the City last year, an application for this year will be mailed to you at the end of January. You can also find the application online or in the Finance office at City Hall. Applications are due May 1. For more information, visit southportland.gov/182/Property-Tax-Assistance-Program, contact the Finance Department at finance@southportland.gov, or call 207-767-7612. 

Finally, for those who believe they are financially unable to pay their property taxes, the City Council can consider financial hardship tax abatements. For more information, contact Social Services at 207-767-7617.

How do I apply for the Senior Tax Stabilization Credit this year?

You cannot. This program was put in place by State legislation and has been repealed. Some seniors will see an increase this year due to the rollback. The State has other property tax assistance programs in place that have been expanded to increase the number of taxpayers who may qualify. Please visit https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/property-tax-relief-programs or call Maine Revenue Services at 207-624-5600 for more information about these.

My property taxes are paid through my escrow account with my mortgage lender. Do I need to notify my lender that the City has changed to one annual bill?

No. The City sends a file to the escrow companies each quarter. Some pay quarterly and some pay the annual total. There is no change in this process, so you do not need to take any action.

How are interest and fees on late payments determined?

Interest and fees on past due taxes are dictated by State law. The City Council, per State statute, sets the tax payment, due dates and rate of interest to be applied to delinquent accounts as part of the Orders passed annually in the budget process. The City does not rely on late fees/interest in order to balance its budget and offers many ways for bills to be paid prior to the due date to avoid such charges.

Why does the City charge a fee to pay with a credit/debit card?

The City’s credit/debit card processor charges a fee for transactions conducted with a card. Rather than absorb this fee and have that cost paid by all taxpayers as a general budget expense, the City passes along that fee to the individual card users. This way, people who pay their taxes by cash or check are not subsidizing the cost of those who use cards. Most, if not all, Maine municipalities pass this fee along to the card users as South Portland does.

Whom do I contact if I have questions about my tax bill?

Contact the Finance Department, Treasury & Collections Division at 767-7612 or finance@southportland.gov. 

I think my assessed property value is too high. What should I do?

The goal of the Assessing office is to adjust property values closer to market value. If it appears your new assessment exceeds market value, please be sure to email the assessing office or call the Assessing office at 207-767-7604 for assistance. Staff will review your property file and determine if any adjustments are appropriate.

Whom do I contact if I have run into financial hardship?

If you have run into a hardship and your taxes are in lien, we encourage you to contact our General Assistance office at 207-767-7617 or email ga@southportland.gov for information about applying for an abatement.

How do I learn more?

Watch the Assessor's August 13, 2024 presentation to City Council. You are also welcome to contact the Assessing office if you have questions. Email the assessing office or call 207-767-7604.