Ellsworth residents raise alarm after waterfront tax bills surge; council asks assessor to return

A public commenter who sells real estate told the Finance Committee that a pending sale in Ellsworth stalled after the new tax bill nearly doubled, and council asked the city assessor to return to explain how valuations were calculated.

Rob McKinney identified himself as a local real estate agent and said a listed property at 223 Nevilles Way saw a tax proration jump from about $17,007 in 2025 to roughly $33,008 for 2026 after the new tax bills were issued. ‘‘Right before closing, they pulled the tax prorations... the tax bill on this particular property went from $17,007.29... and '25, and then increased to $33,008.00... which is almost double,’’ McKinney said.

McKinney said he was told the assessor uses 90% of a list price as a new assessed value when properties are listed, and he warned that using list prices could produce large, sudden tax increases for long-term residents who do not sell. ‘‘It seems if you did that to every property... we'd be collecting a lot more money,’’ he said.

Council members and staff explained the mechanics that drive disparate tax changes. A council member (S1) noted the mill rate actually fell from 17.45 to 15.66 but overall valuations climbed sharply: the city's total valuation rose from about $1.1 billion to $1.8 billion (a roughly $700 million increase), with waterfront values up about 31 percent, commercial up about 19 percent and non-waterfront residential up about 13 percent. That distribution, the speaker said, can leave some waterfront owners holding a larger share of the city tax burden despite a lower mill rate.

Councilors also discussed state thresholds and exemptions. Speakers referenced two state benchmarks: a 70 percent trigger that can prompt a full revaluation and a 90 percent threshold affecting state reimbursement and homestead/business equipment tax treatment. Council members reminded residents that the homestead exemption exists and must be filed by April 1 to reduce taxable assessed value for qualifying year-round residents.

The city agreed to invite city assessor Larry back to the committee at next week’s meeting to explain valuation sources and whether listing prices or comps were used in recent assessments. No formal changes to the assessment process were made at the meeting.

Supporting figures cited in the discussion included the example tax bills McKinney gave, the council's reported valuation increases (waterfront +31%, commercial +19%, non-waterfront residential +13%), and the mill rate movement from 17.45 to 15.66. Council members advised property owners that they can challenge assessments through the city assessor if they believe valuations are incorrect.