LEWISTON — A citywide revaluation is likely coming soon, and its final impact on taxpayers could depend on the outcome of the New England Clean Energy Connect project.

But, according to City Assessor William Healey, a revaluation is on the horizon regardless of what happens with the planned converter station in Lewiston.

A revaluation, typically implemented every 10 years, is done to assess the proper value of all real estate and personal property. Lewiston has not done a full revaluation since 1988, and a planned one in 2006 was tabled due to the recession.

According to up-to-date numbers from Healey, Lewiston homes, on average, are assessed and taxed at 76% of their full market value, while commercial and industrial properties in Lewiston are assessed and taxed at 81% of their value. A revaluation would equalize those values, shifting the tax burden slightly away from businesses and toward residential property owners.

Due to that expected shift, officials said Tuesday that the discussion over a revaluation was already causing anxiety among constituents.

Healey said the ratios are in “direct relation to how far off our assessments are from market value,” adding for example, that he’s seeing houses sold for $150,000 that are assessed at $80,000.

He said Lewiston currently meets state standards for assessments, but said “if current trends continue,” a revaluation will be required in order to stay in compliance.

“The further you get away from market value, the closer you get to inequity in assessments,” he said.

According to a council memo, if property values were based on full market value, the city’s tax rate would be much lower. Healey told the council that the “full value” tax rate would be closer to $23 per $1,000 of assessed valuation, rather than the current $28.

The memo states that if the tax rate decreases at the same percentage as the valuation increase, property taxes will remain nearly the same.

Healey said, “if we can’t drop the rate accordingly, you’re going to see a tax increase, no way around it.”

If the NECEC corridor project is ultimately completed, the city estimates it will add $304 million to Lewiston’s taxable valuation, a 10% increase. Healey said the new value could provide for a lower tax rate following the revaluation, but officials appeared wary of depending on the project.

As of this week, an effort to place a referendum question on the November ballot has succeeded, but at the same time, work on the transmission line is already underway, and the Lewiston converter station has been approved.

Mayor Mark Cayer said he didn’t want constituents to think that officials were counting on the converter station tax dollars just yet.

“We’re hoping for it, but I don’t want the public to think we’re counting on it,” he said.

Finance Director Heather Hunter said the city is hoping that once a revaluation is complete, it would allow the tax rate to drop enough to make any shift manageable, or remain “static” for homeowners.

Councilor Lee Clement said he’s already heard from one resident regarding the revaluation.

“It becomes a hot-button issue,” he said. “Everyone thinks it’s a grab for their wallet, but it isn’t necessarily so.”

When asked, Healey said it’s typical for revaluations to cause roughly one-third of property owners to pay more in taxes, one-third to pay less, and one-third to remain the same.

At least a portion of the funding for the revaluation is included in this year’s Capital Improvement Plan. As of now, the plan sets aside funding for the revaluation in each of the next few years, at which time the revaluation would take place.

As part of this year’s CIP process, the Planning Board urged the council to fund the revaluation now, rather than push it ahead several years, but all CIP expenses are ultimately decided during the annual budget process.

In response to questions from the Planning Board, Healey said the revaluation would take roughly two years to complete, and would likely begin in fiscal 2024 if partially funded over the next few years as proposed.

The estimated cost is approximately $642,500.