Town-Wide Revaluation 2024

IT'S COMING: TOWN-WIDE REVALUATION 2024

HEY! DIDN’T WE JUST HAVE A REVALUATION?
It certainly feels that way - Our last town-wide revaluation took place in 2021. State law mandates that all municipalities in New Hampshire reassess properties town-wide at least once every five years.

WHY ARE WE HAVING ONE THIS YEAR?
Due to the continued volatility of the real estate market, our equalization ratio (the comparison of assessed values to market values calculated by the State Department of Revenue Administration) is way off – The low end of the acceptable range is 90%, and our latest ratio is 73.3%. This means Peterborough properties are largely underassessed. The ideal ratio is 100%, in which assessed values match fair real estate market values. The revaluation will bring our assessed property values more in line with market values.

WHY DOES THE STATE REQUIRE TOWNS TO REVALUE PROPERTY?
The State Department of Revenue Administration (DRA) provides municipalities with their individual tax rate each year. The DRA refers to the State, town, county, and school district annual budgets to calculate how much money needs to be ‘raised and appropriated’ by each town to satisfy all four taxing authorities.  

Because all towns are responsible for contributing to the State and their county, and because there are often multiple towns contributing to a single school district (as is the case with ConVal), the DRA must ensure that each town only pays its fair share. DRA keeps track of real estate activity state-wide, and compares the assessed values of each town to actual market activity. It then accounts for discrepancies by applying an equalization ratio to the town’s total assessed valuation (which is the other component of calculating tax rates each year, besides the sum of the budgets).

WHEN WILL I KNOW WHAT MY NEW ASSESSED VALUATION IS?
Our contracted Assessor’s Agent and the rest of the staff at Corcoran Consulting are hard at work compiling the data needed to establish new values. We will inform property owners of their new values via mail as soon as the work is completed, as far ahead of the issuance of the fall tax bills as possible.

ONCE I HAVE MY NEW VALUE, CAN I USE IT TO CALCULATE WHAT MY TAX BILL WILL BE?
Yes, but only once we also know what the new tax rate is - The tax rate for 2024 is not yet known. The New Hampshire DRA calculates the tax rate based on the total assessed value of the town,  and the sum of the municipal, school, county and state budgets. They usually don't provide the Town with our new tax rate for the year until October/November (the spring tax bill is an *estimate* based on the prior year's tax rate). Once the 2024 tax rate is known, property owners can calculate their annual taxes by multiplying the new rate per $1000 of their property's assessed value. 

 HOW IS PROPERTY VALUE ASSESSED IN THE FIRST PLACE?
There are dozens of factors that are taken into consideration when assessing property. Where is it? When was it built, and what condition is it in now? How is it used (residential or commercial)? How much living space is there? What kind of basement? Is there an in-ground pool? A beautiful view? Is it on a busy road? How many bathrooms? Recent renovations? Ideally, features that would significantly impact any given property’s fair market value (whether it would add or detract value) are accounted for.

Assessing is complicated, but there are rules in place to ensure that the same methodology is applied across the board. The Assessors’ Agent is required to provide a USPAP Report (Uniform Standards of Professional Appraisal Practice) which details how they arrive at the value for any type of property, whether it be open land, a single-family home, condo, apartment building, small office/store-front, or manufacturing facility. The USPAP Report is reviewed by the DRA and is public record – If you’d like to take a deep dive into assessing methods, come by the office and take a look!

HOW DO I KNOW IF THE TOWN HAS AN ACCURATE RECORD OF MY PROPERTY DETAILS?
By reviewing your Property Record Card (PRC). Property Record Cards are public record (you can view the details for any property in town) and can be accessed online via the GIS Parcel Viewer. PRC’s contain the bulk of the data specific to a property that is used to assess its value. The Parcel Viewer is a great resource and we encourage residents to check it out, but your PRC can also be sent to you via email or mail, or printed out for you at the Administration Office anytime during regular business hours.

It’s good practice to review your PRC when you receive your tax bill, and promptly bring any questions or concerns to our attention. PRC’s also include sales/transfer activity, permit activity, and a log of when assessing staff have visited the property for data collection purposes. There's a lot of information crammed onto PRC's - If you'd like some help learning where to look for what, our Assessing Clerk is happy to assist. 

AHH! THERE ARE DETAILS ON MY PROPERTY RECORD CARD (PRC) THAT AREN’T ACCURATE!
Please let us know so we can address it! Accuracy is key to establishing fair values. It is reasonable to assume that that the folks who know any property best are the owners. It is the responsibility of property owners to bring discrepancies or needed changes to the Town’s attention, especially as Assessing staff won’t enter homes/buildings without explicit permission and won’t trespass on posted properties.

If errors are discovered on a PRC, we make an appointment with the owner to review the property on-site. Once any needed corrections are made in the assessing database, the assessed value adjusts accordingly.

I DON’T THINK THE ASSESSED VALUE OF MY PROPERTY IS FAIR/ACCURATE – IS THERE ANYTHING I CAN DO?
Yes! On an annual basis (after the issuance of fall tax bills through the following March 1^st), you can file for an abatement (or reduction) of your assessed value for the previous tax year. Under State law, municipalities may abate “for good cause shown" (RSA 76:16). “Good cause” is generally established by showing an error in the assessed value (as a result of inaccurate physical property data, for example) or a making a case for disproportionate assessment.

After an abatement application is submitted, we reach out to schedule an appointment for a qualified professional to visit the property and confirm the details provided in the abatement application. A report is then provided to the Assessor’s Agent. If it is determined that the property was unfairly valued, the owner will receive a refund of overages paid in taxes, with interest (or a reduction of the amount owed, depending on payment status), and the assessed value will be corrected going forward. 

This is Our Town, and we should know what goes into our assessed values (and tax bills)! Don't hesitate to reach out to Assessing Clerk Ali Kreutz with any questions: akreutz@peterboroughnh.gov, or 603-924-8000, ext 112.