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Author Topic: How is the annual property tax % determined?  (Read 3535 times)

Kamekazi Seagull

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How is the annual property tax % determined?
« on: December 15, 2010, 11:28:04 pm »

I noticed that in the town of Exeter for example, the property tax is 22.62% and for a house that is accessed at $179,700 the annual payment was $4,065 which works out to be 2%  How is the annual property tax % determined?  

Also, how is the taxable value of a house accessed?  Does the price of what the house previously sold a factor in this equation?
« Last Edit: December 15, 2010, 11:33:18 pm by Junior Mint »
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Bazil

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Re: How is the annual property tax % determined?
« Reply #1 on: December 15, 2010, 11:59:55 pm »

Usually they set it at such a rate where they can pay all their bills.  They know the total property valuation of the town, then the set the rate so everything still gets paid for.  Ideally anyway.
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Pat McCotter

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Re: How is the annual property tax % determined?
« Reply #2 on: December 16, 2010, 03:06:20 am »

I noticed that in the town of Exeter for example, the property tax is 22.62% and for a house that is accessed at $179,700 the annual payment was $4,065 which works out to be 2%  How is the annual property tax % determined?  

Also, how is the taxable value of a house accessed?  Does the price of what the house previously sold a factor in this equation?

The 22.62 is not percent but permille, or mill rate - dollars per thousand. So your example yields 22.62 if you divide 4,065 by 179.7.
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John Edward Mercier

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Re: How is the annual property tax % determined?
« Reply #3 on: December 16, 2010, 04:32:18 am »

The previous sales price can... at least in the year that it is purchased. But after that the assessment may be higher or lower depending on the market.

The rate gets set based on addition of the individual pieces... SPT, county, municipal, school.
« Last Edit: December 16, 2010, 04:35:32 am by John Edward Mercier »
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Bazil

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Re: How is the annual property tax % determined?
« Reply #4 on: December 16, 2010, 01:34:04 pm »

The previous sales price can... at least in the year that it is purchased. But after that the assessment may be higher or lower depending on the market.

The rate gets set based on addition of the individual pieces... SPT, county, municipal, school.

I just bought a house and they are taxing me at the assessed rate, which is way more than I paid.  I doubt they would reassess it for any less than they did regardless of what I paid.
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Dreepa

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Re: How is the annual property tax % determined?
« Reply #5 on: December 16, 2010, 02:19:53 pm »

The previous sales price can... at least in the year that it is purchased. But after that the assessment may be higher or lower depending on the market.

The rate gets set based on addition of the individual pieces... SPT, county, municipal, school.

I just bought a house and they are taxing me at the assessed rate, which is way more than I paid.  I doubt they would reassess it for any less than they did regardless of what I paid.

Then you should contest it.  There is a form to fill out and you can contest it.
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rossby

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Re: How is the annual property tax % determined?
« Reply #6 on: December 16, 2010, 03:54:37 pm »

The previous sales price can... at least in the year that it is purchased. But after that the assessment may be higher or lower depending on the market.

The rate gets set based on addition of the individual pieces... SPT, county, municipal, school.

I just bought a house and they are taxing me at the assessed rate, which is way more than I paid.  I doubt they would reassess it for any less than they did regardless of what I paid.

http://www.nh.gov/btla/appeals/propertytax.htm
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maxxoccupancy

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Re: How is the annual property tax % determined?
« Reply #7 on: December 17, 2010, 09:26:31 pm »

Look for other houses in your area that have sold over the last year and enter that info in on your abatement.  Some towns, like Seabrook, actually prefer it when folks file an abatement.  That's just part of the culture of town government that is difficult to explain.
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cathleeninnh

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Re: How is the annual property tax % determined?
« Reply #8 on: December 23, 2010, 01:23:28 pm »

Filing for an abatement is rather SOP. Our town was seriously overvalued, so the entire town was revalued. The tax rate went from $9 to $21 per thou of assessed value. Our tax bill actually went down $150 per year to $3800 or so.

It is all in the valuation.
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KBCraig

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Re: How is the annual property tax % determined?
« Reply #9 on: December 26, 2010, 06:33:29 pm »

To more directly answer the question: the town knows the total valuation of property in the town. When the budget passes, it is simple mathematics to determine the rate.

Where x = total budget to be paid by property taxes; y = total property valuation divided by 1,000; and, z = property tax rate per $1,000 valuation, then x divided by y equals z.

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John Edward Mercier

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Re: How is the annual property tax % determined?
« Reply #10 on: December 26, 2010, 07:42:11 pm »

Its a little more complex because 'equalized valuation' is used on SPT, County, and School within a combined district.
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