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Author Topic: Property taxes in NH  (Read 8170 times)

jordanz

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Property taxes in NH
« on: July 08, 2003, 11:24:37 am »

Another thread mentions high property taxes in New Hampshire. Can anyone explain how property is taxed in NH? What are the rates? When is property assessed? Etc...
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Michelle

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Re:Property taxes in NH
« Reply #1 on: July 08, 2003, 12:06:17 pm »

Hi Jordanz - As you probably know, NH has no income or sales tax, so the impact of high property taxes is effectively negated as shown by NH's lowest in the nation taxes as a percentage of gross income.

That said,

There is a (hated) statewide property tax in NH - currently $5.80 per thousand. Governor Benson has laid down a plan and timeframe for reducing this to $3.00 per thousand.

Most everything is controlled and funded locally in NH, so you will see widely varying property tax rates at the local level. In my city, they are among the highest in the state, but I could move 30 minutes from here and cut them nearly in half.

To determine the tax rate in each municipality, go to:
http://www.lpnh.org/nh-municipalities.htm
Click through to the community reports on the particular town/city that interests you, and you will find the tax rate for that town.

As far as assessments, this could vary, but to give you an idea, the recently appraised value of my home is about 25% higher than its recently reassessed tax value (i.e, hypothetical figures: if the home would sell for $100K, it is taxed on $75K).

You asked yesterday about Portsmouth. Yes, Portsmouth is an expensive place to live - try looking at the bordering towns if you like Portsmouth but don't want to live there. I live 10-15 minutes away where property costs significantly less.

Yes, there are certainly plenty of stores, movie theaters, and cultural offerings in and around Portsmouth. I find the question a little odd. Re: going to Boston to shop. I NEVER do. The only reason I would ever travel to Boston is to go to the airport. There are other's who consider the ability to commute to Boston a positive. It isn't a negative to me, it is just a neutral. It plays no part in my day-to-day life.
« Last Edit: July 08, 2003, 12:09:04 pm by Michelle »
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jordanz

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Re:Property taxes in NH
« Reply #2 on: July 08, 2003, 12:19:25 pm »

Thanks.

How often are properties assessed? Can your prop tax increse indefinitely?

We had this problem here in California. God Bless Howard Jarvis and Paul Ganns.
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Stumpy

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Re:Property taxes in NH
« Reply #3 on: July 08, 2003, 12:21:31 pm »

There is major advantage to New Hampshire’s tax system in the way they are collected.

Most other states either collect revenue by withholding small, seemingly insignificant amounts from paychecks, or by sales tax. Even though NH’s overall tax rate is among the lowest in the nation, New Hampshire’s residents must write large checks twice a year.

Most HATE the tax and this will help us to downsize gov’t. ;)
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RhythmStar

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Re:Property taxes in NH
« Reply #4 on: July 08, 2003, 12:30:05 pm »

There is major advantage to New Hampshire’s tax system in the way they are collected.

Most other states either collect revenue by withholding small, seemingly insignificant amounts from paychecks, or by sales tax. Even though NH’s overall tax rate is among the lowest in the nation, New Hampshire’s residents must write large checks twice a year.

Most HATE the tax and this will help us to downsize gov’t. ;)


Funny how making a smaller tax rate be paid in a lump seems so much more onerous that a far higher tax rate paid in nickles and dimes.

RS
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jenlee

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Re:Property taxes in NH
« Reply #5 on: July 08, 2003, 01:40:04 pm »

Even tho NH has no other taxes (?) property taxes are quite high. No getting around that no matter what else that state has going for it.

So yes NH pays very high property taxes. Which was what this question was about. Not the fact it doesn't have other taxes.
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jordanz

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Re:Property taxes in NH
« Reply #6 on: July 08, 2003, 01:45:42 pm »

Thanks for all the responses.

But, does anyone know when assessments occur? Is it once a year? If you're 60 and have lived in your house for 30 years, can they tax you out of your home?
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Michelle

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Re:Property taxes in NH
« Reply #7 on: July 08, 2003, 02:05:06 pm »

Thanks for all the responses.

But, does anyone know when assessments occur? Is it once a year? If you're 60 and have lived in your house for 30 years, can they tax you out of your home?

Jenlee thinks I didn't answer your question, Jordanz. Let me know if I didn't and I'll try to clarify.

I've owned my home in Somersworth since 1997 (?). In this time, I *think* it has been reassessed twice. Nobody has come to my house or on my property or anything (not that I would let them in!), I think they do it through some sort of formula, but I'm not really sure.

Theoretically the taxes could continue to increase the same as they could anywhere, but I can't possibly imagine the citizens allowing that. Taxes are probably the #1 issue in NH, and people are vigilant about keeping them low. Because we all write a large check twice a year rather than paying them in small intermittent amounts through sales and income tax, increases are vividly and painfully apparent.

Of course, your local property tax rates are in direct proportion to the your town's budget, so the fact that every NH town votes on their town and school budgets line-by-line in the form of warrants, giving the citizens control over their budgets, is very key.
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jgmaynard

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Re:Property taxes in NH
« Reply #8 on: July 08, 2003, 04:15:06 pm »

I believe Keene re-asseses every 10 years. We are paying $33/$1000, which includes ALL local, school and county taxes, in addition to the
ever-hated-soon-to-die-an-agonizing-death state-wide property tax. :D

JM
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RhythmStar

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Re:Property taxes in NH
« Reply #9 on: July 08, 2003, 04:52:47 pm »

OTOH, in Holderness, NH you can buy a large home on acreage in the woods near wonderful lakes, and be only 35 miles, to 100 miles from anywhere in the state (as the crow flies), for less than 200K.

http://www.lakesregionrealestate.com/main.htm

159K -- 4BR, 1 mile from school, 5 acres of wooded land, tax $1701 a year.

:)

RS
« Last Edit: July 08, 2003, 04:54:11 pm by RhythmStar »
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EMOR

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Re:Property taxes in NH
« Reply #10 on: July 08, 2003, 04:57:13 pm »

OTOH, in Holderness, NH you can buy a large home on acreage in the woods near wonderful lakes, and be only 35 miles, to 100 miles from anywhere in the state (as the crow flies), for less than 200K.

http://www.lakesregionrealestate.com/main.htm

159K -- 4BR, 1 mile from school, 5 acres of wooded land, tax $1701 a year.

:)

RS
That is good? Man alive housing prices in NH will eat you alive. A place like that in Wyoming would go for 120K or less.
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RhythmStar

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Re:Property taxes in NH
« Reply #11 on: July 08, 2003, 05:09:52 pm »

Here in Orange County, CA, there are no comparable places (no natural trees, no natural lakes).  However, based on the size alone, we're talking a multi-million dollar spread.   5 acres on the coast could easily run over $10 million.   Of course, here that 5 acres could be made into 20 single family homes that each could sell for over a million.  (edited because I typed too fast).

RS
« Last Edit: July 08, 2003, 05:12:03 pm by RhythmStar »
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Mogray

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Re:Property taxes in NH
« Reply #12 on: July 08, 2003, 05:38:08 pm »

OTOH, in Holderness, NH you can buy a large home on acreage in the woods near wonderful lakes, and be only 35 miles, to 100 miles from anywhere in the state (as the crow flies), for less than 200K.

http://www.lakesregionrealestate.com/main.htm

159K -- 4BR, 1 mile from school, 5 acres of wooded land, tax $1701 a year.

:)

RS

The numbers in this listing illustrate the need for clarification on how property valuation is done for tax purposes.  If $159K is a good number for the value of this house and the Holderness tax rate is $18.36 per $1000 (http://www.nhes.state.nh.us/elmi/htmlprofiles/holderness.htm), though I'm not sure exactly what the different tax numbers mean or how they apply, then the taxes on this property would be about $2919 per year.  However, the tax rate is from 2001, the taxes referenced in the above post are from 2002, and the 159K is a guess at the 2003 value.

Is property taxed at fractionals of the full property value or what?  Maybe someone from NH can describe what the tax numbers mean, i.e. how are "Total Tax Rate", "Equalization Ratio", and "Full Value Tax Rate" used to calculate property taxes.  And does this Holderness number include the "dreaded" $5.80 state property tax?

Inquiring minds want to understand.

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Rearden

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Re:Property taxes in NH
« Reply #13 on: July 08, 2003, 05:53:40 pm »

OTOH, in Holderness, NH you can buy a large home on acreage in the woods near wonderful lakes, and be only 35 miles, to 100 miles from anywhere in the state (as the crow flies), for less than 200K.

http://www.lakesregionrealestate.com/main.htm

159K -- 4BR, 1 mile from school, 5 acres of wooded land, tax $1701 a year.

:)

RS
That is good? Man alive housing prices in NH will eat you alive. A place like that in Wyoming would go for 120K or less.

I'm not saying this to be a wiseacre; I really want to know:

Can you buy five acres of FORESTED land in Wyoming?  Most of the real estate I've seen seems to be either moonscapish or no better than grassy.  The vast majority of real forested land seems to have been taken by the feds and turned into national parkland.  

Can you find some forested land for sale, and post the link here?  I looked, but couldn't find any.  Thanks.
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Rearden

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Re:Property taxes in NH
« Reply #14 on: July 08, 2003, 06:05:52 pm »

OTOH, in Holderness, NH you can buy a large home on acreage in the woods near wonderful lakes, and be only 35 miles, to 100 miles from anywhere in the state (as the crow flies), for less than 200K.

http://www.lakesregionrealestate.com/main.htm

159K -- 4BR, 1 mile from school, 5 acres of wooded land, tax $1701 a year.

:)

RS

The numbers in this listing illustrate the need for clarification on how property valuation is done for tax purposes.  If $159K is a good number for the value of this house and the Holderness tax rate is $18.36 per $1000 (http://www.nhes.state.nh.us/elmi/htmlprofiles/holderness.htm), though I'm not sure exactly what the different tax numbers mean or how they apply, then the taxes on this property would be about $2919 per year.  However, the tax rate is from 2001, the taxes referenced in the above post are from 2002, and the 159K is a guess at the 2003 value.

Is property taxed at fractionals of the full property value or what?  Maybe someone from NH can describe what the tax numbers mean, i.e. how are "Total Tax Rate", "Equalization Ratio", and "Full Value Tax Rate" used to calculate property taxes.  And does this Holderness number include the "dreaded" $5.80 state property tax?

Inquiring minds want to understand.

  -- Mogray


I'm not from NH, I'm from MD, but I think I can answer at least part of your question.  Yes, the Holderness number includes the state property tax.  The state gets a check from each town every year.  Did you see the Newington site?:

http://www.newington.nh.us/pirates.htm

I love that site.  What a riot.

Anyway, there is a difference between the "market value" and the "assessed value."  The market value, what the house sells for, is almost always higher than the assessed value.  If it isn't, then you should have sold back when it was, because that indicates a market collapse, usually due to government interference.  To continue, the assessed value is simply the square footage value of the land plus the value of the improvements.  These numbers usually are pulled out of the assessor's rear end.

Traditionally, the market value runs 20-30% higher than the assessed value.  The taxes are based on the assessed value.  Hence, a house that sells for $159k should only have an assessed value of (-25%) $119,250.  Divide by a thousand, and multipy by $18.36, and you get.....<scribble, carry the one, erase, scribble>  $2189.  Not too far from the actual reported taxes.

Just for fun: a tax bill of $1701 at a rate of 18.36 per thousand gives an assessed value of $92,647.  This is only 58% of the sale price, instead of the usual 70-75%.  My advice?  Offer $130K.  The asking price is set too high.


Folks from NH -- is my technique correct?

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