Residents of Maine's unorganized territory said they are shocked by the recent spike in property values and concerned about what it might mean for their property tax bills.
Keith Smith said he's lived on Moosehead Lake for more than 20 years. His home sits on less than an acre of land, and the property's value is more than double what it was last year. And he said the neighboring back lot he owns has jumped to five times its previous value.
"And we live in the unorganized territory, we get no services, and so, you know, why the increase? I mean, that's drastic," he said.
Sharon Huntley, spokesperson for the Maine Department of Administrative and Financial Services, said the revaluation was based on review and analysis of data on property sales, construction and other related costs. She added that property taxes may not necessarily increase with revaluations, which are needed to prevent inequities.
Huntley said the last revaluation in the unorganized territory was five years ago, and that property values across the state have increased since then.
But Smith said short-term rentals in the area are driving up home prices. He said his neighbor purchased land for more than its value, and uses it for rental income.
"One of them is half of what our property is, right? But he paid an enormous price for it, because he uses it commercially," Smith said.
He said that leaves year-round residents like him unable to pay higher property taxes.
