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Maine Alliance for Road Associations

Road Assessment fees

  • 03 Aug 2012 7:24 PM
    Quote
    Message # 1038166
    Deleted user
    Can a Statutory Road Association charge the members an assessment for repairs greater than 1% of the owners property valuation in any calendar year?  We have several properties on our road that have very low appraised values & the $200 per year assessment would be greater than 1% of their appraised value.   
  • 04 Aug 2012 8:08 AM
    Quote
    Reply # 1038459 on 1038166
    Anonymous member
    The statute reads:

    The commissioner's or board's apportioning of the cost of repairs to the road undertaken pursuant to the provisions of section 3101 may not exceed 1% of an individual owner's property valuation in any calendar year. [2007, c. 625, §2 (AMD).]
  • 18 Aug 2012 6:36 PM
    Quote
    Reply # 1050537 on 1038166
    Deleted user
    How does a road association verify that it's fees does not exceed 1% of an individual owners property valuation?  With the potential for valuations to change every year this could become a very time consuming & costly task.

    Can other road associations tell me if this is something they verify & if so how they go about verifying this?
  • 20 Aug 2012 12:03 PM
    Quote
    Reply # 1051582 on 1038166
    Deleted user
    In regards to the 1% assessment fee for road associations.  We go directly to the town and request a copy of the real estate tax commitment book. It has the current owner, name, Assessment value and tax. I've created an excel spreadsheet with formulas.. However, most accounting applications can also do this calculation for you
    Last modified: 20 Aug 2012 12:04 PM | Deleted user
  • 10 Jun 2015 11:14 AM
    Quote
    Reply # 3381809 on 1038166
    Anonymous member

    Cliff Goodall writes:

    The 1% limit provision incorporates by reference Section 3101 which in subsection 1A uses the terms “repair and maintenance” together as one and more importantly so does subsection 5. This leads to the conclusion that the annual assessment must not exceed the 1% limit.

    What may not be clear is how to determine the municipal valuation.  It is limited to the parcels benefited by the road. Because the statute deals with separate parcels, the 1% limit applies for each assessment to each separate parcel owned. It would not be the total of all assessments of an individual applied to the total valuation of all of the lots owned by that individual that are benefited by the road.

    Some small associations may not be able to operate within the 1% limit. They may want to convert to a corporate structure with recorded deed modifications. This would free them from the restraints of the statute. 



    Last modified: 10 Jun 2015 11:15 AM | Anonymous member
  • 10 Jun 2015 11:18 AM
    Quote
    Reply # 3381811 on 1038166
    Anonymous member

    Is it possible for an association formed under the statute to write into its bylaws that hardship exemptions for fees over the 1% limit may be granted by majority vote, and then it woudl depend on whether or not the members were wiling to ake on the increase in assessments. 

    I'd heard about that being done but do not know if it applies to statutory road associations. Opinions?
  • 06 Jun 2016 4:15 PM
    Quote
    Reply # 4060158 on 1038166
    Anonymous member (Administrator)

    You might want to also read Cliff Goodall's answer to the May 2016 question on municipal valuation of lots in tree growth.

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