NEWRY — Selectmen have dropped the assessments of all time shares in town by 25 percent, noting the steady decline in their resale value over the past decade.
Town Administrator Loretta Powers said of some quarter-share time shares that used to sell for $80,000 to $100,000, “you can’t give them away for $5,000.”
She provided an example of one time share that was worth $28,400 10 years ago. It declined steadily over the years to $21,000 and then $13,510, she said. Under the new assessment, it would be worth $10,660, she said.
Powers said there are a total of 1,664 quarter shares in town, all at Sunday River Resort.
“A lot of people are walking away from them,” she said, in part because they must still pay association fees.
Selectman Jim Largess, who said he is on the board for the time share/condo associations at Sunday River, said lowering the assessments “is the right thing to do.”
He made the motion Tuesday to make the reduction 25 percent, and he and Board of Selectmen Chairman Gary Wight voted for it. Selectman Wendy Hanscom was absent from the meeting.
Resident Doug Webster asked how much revenue the town would lose as a result of dropping the assessments.
Powers said according to the town’s assessing agent, the loss would be “very little,” and would be made up for in large part by 18 new houses that came on the tax rolls in 2014.
She said the town should also start to think about doing a townwide revaluation. The last one was done about 10 years ago.
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