Ratio Studies used in the computation of State Valuation are
created according to the following guidelines:
A.
Representative Sampling. The
number of Samples included in the Ratio Study must be sufficient to provide a
reliable analysis. The Samples included in a Ratio Study must reasonably
reflect the distribution in the Municipality of the property classes described
in subsections .04(A) through (E).A minimum of 12 Samples is required for a
Ratio Study.
B.
Segregated
Ratio Studies. Segregated Ratio Studies are used when the State Tax
Assessor determines that the Samples do not reasonably reflect the distribution
in that Municipality of property classes described in subsections .04(A)
through (E). Segregated Ratio Studies are also used when the Average Ratios
among the property classes deviate by more than 10-percentage points. The State
Tax Assessor requires a minimum of eight Samples within each class of property
to conduct a Segregated Ratio Study.
C.
Expanded Sales Period. If the
Base Sales Period does not contain the minimum number of Samples required by
subsections A or B, or if the State Tax Assessor determines that the Samples
included in the Base Sales Period do not reasonably reflect the distribution in
the Municipality of the property classes described in subsections .04(A)
through (E), the Base Sales Period is expanded as follows:
1. An 18-month period that begins on the
April 1 immediately preceding the April 1 assessment date under review and runs
through September 30 of the tax year under review. For example, if the
valuation period under review is based on an assessment date of April 1, 2019,
the Base Sales Period is July 1, 2018 - June 30, 2019. The 18-month expanded
sales period is April 1, 2018 - September 30, 2019.
2. If an 18-month sales period does not yield
the minimum number of Samples required by subsections A or B, Samples are drawn
from a 24-month period that begins on January 1,15 months prior to the April 1
assessment date under review, and runs through December 31 of the tax year
under review. For example, if the valuation period under review is based on an
assessment date of April 1, 2019, the 24-month expanded sales period is January
1, 2018 - December 31, 2019.
3. The
State Tax Assessor may expand the 24-month sales period described in paragraph
2 when the State Tax Assessor determines that additional Samples are needed to
ensure that the Ratio Study is representative of the sales in that
Municipality.
D.
Appraisals. When the number of Samples during both the Base Sales
Period and the expanded sales period are less than the minimum number required
by subsections A or B, the minimum number of Ratio Study Samples is obtained by
combining the available sales with appraisals conducted by the Bureau using the
State assessment manual maintained by the State Tax Assessor pursuant to
36 M.R.S.
§331.
E.
Segregated Ratio Study Sales
Periods. Segregated Ratio Studies follow the expanded sales period
procedure outlined above; however, the timeframes for different Segregated
Ratio Studies in each Municipality do not need to be the same. For example, a
Segregated Ratio Study of residential Nonwaterfront Property may require only
the Base Sales Period to meet the minimum number of Samples required by
subsections A and B, whereas a Segregated Ratio Study of Commercial Property
may need the 18-month expanded sales period to obtain the minimum number of
Samples required by subsection B.
F.
Invalid Ratios; Amended Ratio
Studies. For cause, the State Tax Assessor may determine that an Average
Ratio is invalid. Cause includes, without limitation, the use of "welcome
stranger" assessments (where property values are adjusted only when properties
are sold) and other assessing practices that result in inequitable valuations.
To determine the validity of Municipal Assessed Value
information used in a Ratio Study, the State Tax Assessor compares the current
year's assessed value to the prior year's assessed value for a random sampling
of properties in the Municipality. This random sampling does not include
properties where significant improvements to, or deletions from, the property
have occurred from the prior year to the current year. The random sampling must
exclude any property that was sold during the period covered by the Ratio
Study. The random sampling is weighted to reasonably reflect the distribution
in the Municipality of all of the classes of property described in subsections
.04(A) through (E).
When the State Tax Assessor determines that a Ratio Study is
invalid, the State Tax Assessor will adjust the Municipal Assessed Value of the
Samples in the Ratio Study to develop an amended Ratio Study that the State Tax
Assessor determines is a more reliable indicator of current assessment levels.
The State Tax Assessor may consider sales data for transactions that have
occurred after the expanded sales period to develop an amended Ratio
Study.
