Revaluation Frequently Asked Questions
For tax rate details from the New Hampshire Department of Revenue, please see the "Property Tax Rates Explanations" document at the bottom of the page.
HUDSON, NH
2022 REVALUATION
Most Frequently Asked Questions About a Revaluation
What is a Revaluation?
A Revaluation is the process of performing all of the necessary Market Analysis and Valuation steps to determine accurate and equitable values for all properties within a municipality. The purpose of a Revaluation is not to raise taxes. It is to create an equitable distribution of the property taxes, based on market value, required to meet the needs of local schools, government and the county. The Revaluation will be completed for the final property tax bill of 2022.
Why is a Revaluation needed, for the 2022 tax year, in the Town of Hudson?
It has been 5 years (2017) since the last town-wide revaluation was conducted in the Town of Hudson and in that time period Hudson has continued to grow. Over time the real estate market changes, thus changing market values. Further, different types of properties will change at different rates (i.e. commercial versus residential). A revaluation will account for these changes in value and seek to restore equity between individual assessments. The State of New Hampshire’s laws require that cities and towns perform revaluation activities at least once every five years so that all properties can be brought to current market value and contribute an equitable portion of the total tax burden.
Nobody inspected the inside of my home so how could it be reassessed?
The Assessing Department maintains a complete record for each property. Information is attempted to be kept current through permit inspections, sales inspections, periodic re-inspections and exterior reviews. The records are available for review both online and during business hours at the assessing office. This information is used to develop the new assessments.
What is “market value” and who determines my property value?
Market value is determined by the activity in the real estate market and the general economy. The value of your property is based on an analysis of the market data (real estate transfers, etc.) for the year +/- prior to April 1, 2022. The market can generally be defined as you, the person who sold the property to you, and/or the person willing to buy it from you. It is the appraiser’s job to research and analyze the values in any particular area or neighborhood. In effect, they do what you would do to determine the selling price when putting your property up for sale Factors that are reviewed for each property would include location, size and quality of construction, age and condition of the improvements, site characteristics, zoning restrictions (if any), etc.
Will the new 2022 assessment reflect the market change over one year?
No. The last revaluation was completed in 2017. The new assessments in 2022 will be reflective of the market as of April, 1, 2022. So the changes seen is the difference between the two appraisal years; 2017 and 2022. We are required to revalue property at least every five years. If there is a need it can be done more often, subject to appropriations, in order to maintain equity amongst various property classes.
Will the final tax bill of 2022 Revaluation increase taxes?
A Revaluation may result in an increase, or decrease, of an individual property value/assessment; it does not mean that all property values/assessments will increase, or decrease. It is important to understand that assessments are the base that is used to determine the tax burden. The tax burden is the amount that the Municipality must raise to operate the local government, local schools as well as the county budget and its public services.
What has occurred with the tax rate in prior Revaluation years?
1968 – tax rate decrease from $61.00 to $31.00 – a tax rate decrease of 49.2%
1978 – tax rate decrease from $50.80 to $25.00 – a tax rate decrease of 50.8%
1991 – tax rate decrease from $57.82 to $22.46 – tax rate decrease of 61.2%
2002 – tax rate decrease from $25.41 to $17.45 – a tax rate decrease of 31.3%
2004 – tax rate decrease from $19.18 to $15.95 – a tax rate decrease of 16.8%
2007 – tax rate decrease from $17.22 to $15.01 – a tax rate decrease of 12.8%
2012 – tax rate increase from $16.62 to $19.95 – a tax rate increase of 20% (see below)
2017 – tax rate decrease from $21.97 to 19.72 – a tax rate decrease of 10.2%
(2012 was coming on the heels of the Great Recession which saw significant decreases in overall market values, i.e. less tax base, higher tax rate, more tax base, lower tax rate)
How will I know if my final 2022 tax year assessment is equitable?
There are two very good methods of determining this. First, compare your property to similar properties that sold in arms-length transactions (not short sales, foreclosures, auctions, etc) in the previous year. Your value (after the revaluation results come out in mid-to-late summer of 2022) should be in line, within 10% or so, with these sale prices. Second, if no recent sales are available, compare your assessment to other similar properties in your area. This information is available in the Assessor’s Office and on the Town website. Your value should be comparable, however it seldom will be exactly the same as those similar properties.
Is my final tax bill 2022 tax year assessment correct?
The following questions are good questions to keep in mind if you are determining if your final 2022 property assessment is accurate or not.
- Can I sell my property for that amount? or Would someone pay that amount for my property?
- Does the Assessing Department have the correct information on my property?
- How much are similar properties selling for?
- How are similar properties being assessed?
How can my new final tax bill of 2022 tax assessment change if I have not done anything to improve my property?
General economic conditions, such as inflation, changes to interest rates, employment levels, will influence the value of real estate. As property values change in the marketplace (sales), those changes must be reflected on the assessment rolls. The biggest impact to value is what the general public is willing to buy and sell property for. As time goes by a buyer/seller may be willing to pay/sell more for the same exact property as they would have several years ago. As property values change in the marketplace (sales), these changes are analyzed and used to build new assessments.
If I disagree with my new final tax bill of 2022 assessment, what are my options?
If any property owner believes the assessment on their property is in excess of its fair market value, they may file an application for abatement at the Assessor’s Office. The filing period for this application is after the final tax bill is issued (approx. December 2022) and before March 1, 2023. Filing an application for abatement does not stop the collection of taxes; taxes should be paid as assessed. If an abatement is granted, by the Board of Selectmen, a refund with statutory interest will be made. If the application for abatement is denied by the Board of Selectmen, the property owner may then file an appeal with the Board of Tax and Land Appeals or Hillsborough County Superior Court (but not with both).
What will the 2022 property tax rate be so a property owner can calculate what their property tax amount is?
The 2022 property tax rate will not be calculated by the State of NH Department of Revenue until sometime during the month of November +/-. The state needs a series of documents from the municipality, school district, county and state agencies in order to calculate the tax rate and it is anticipated that not all documents will be up to them until the months of October/November. We do anticipate that with the increased property tax base for 2022, as a result of the revaluation and the real estate market, that the tax rate itself will decrease, we do not know how much that will be. A decrease in the tax rate may, or may not, result in an increased property tax bill as that bills calculation is also dependent upon what an individual properties revised property assessment is.
Will the final tax bill 2022 revaluation increase taxes?
A revaluation may result in an increase or decrease of individual taxes depending on how a property value increased or decreased relative to the average change in the Town’s assessments. It does not mean that all property taxes will increase or decrease. Remember assessments are only the base that is used to determine the tax burden. The tax burden is the amount that the municipality must raise to operate the local government and support the many services each of us has come to expect, such as schools, police, etc. As an example, if the same amount of money is to be raised after the revaluation as the previous year and each assessment doubles, the tax rate would merely be cut in half.
Assessed Value and the Tax Rate.
The Assessing Department does not determine the total amount of taxes collected. The assessor’s primary responsibility is to find the fair market value of your property, so that you are only paying your fair proportion of the taxes in accordance with NH State Law. The amount of taxes paid is determined by applying a tax rate to the assessed value. The taxes are determined by the voter approved budgets needed by the municipality, school and county to provide the services of the community.
What role or consideration does the prior assessed value play in the 2022 revaluation?
The old assessed value is mostly irrelevant. The purpose of a revaluation is to revalue the property based on the sales information, costs, and economic conditions of the market period of the revaluation. Assessments are not changed by a certain percentage; the assessments are actually rebuilt based on the analysis of today’s real estate market.
Existing property information such as building materials and sizes, land area, etc. are reviewed for accuracy and used to form the basis of the assessment. However the largest driver of the value changes is a result of updating various cost tables and rates that are applied to the properties.
Will all of the final tax bill 2022 property assessments change at the same rate?
There are differences between individual properties and between neighborhoods. In one area, the sales may indicate a substantial increase in value in a given year. In another neighborhood, there may be a lesser change in property values.
Different types of properties within the same neighborhood may also show different value changes. For example, one–story houses may be more in demand than two–story houses or vice versa. Older homes in the same area may be rising in value more slowly than newer homes. Among the numerous factors to be considered that will cause values to differ are location, condition, size, quality, finish areas, garages, and many others.
The other factor to consider is the use of the property. Different classes of property may also increase or decrease at different rates based on economic conditions, supply & demand, etc.
What’s this going to do to my taxes?
Changes in assessed values brings absolutely no extra money into the town’s coffers. The town is only allowed to collect what the voters authorize it to collect via their votes on the town, school budgets (and what the State representatives and State senators authorize at the county and state level). Revaluations change the relative tax burdens between different types of properties because different types of property don’t always rise and fall in value at the exact same rates in the free and open marketplace.
I own a manufactured home in a park. They don’t appreciate, they depreciate.
Manufactured homes are also subject to the laws of supply and demand and, in periods where housing is at a premium, manufactured homes appreciate even as they get older.
Is there any kind of tax relief for people who may not be able to afford their property taxes?
The town offers property tax exemptions for residents 65 and older on their primary domicile. You have to have been a New Hampshire resident for three years as of April 1. The deadline to file is April 15th. These laws are for elderly people whose incomes may not have kept pace with inflation and now find they are unable to meet their property tax obligation. In order to qualify, your income from all sources cannot exceed $55,000 (married) or $45,000 (single). Assets cannot exceed $160,000, excluding the value of the home you are living in, up to 2 acres. See the assessing staff for details.
The town also offers an exemption to those residents who are on social security disability and are unable to work. This exemption has a five-year residency requirement and has income limitations of $55,000 (married) and $45,000 (single) and a $160,000 asset limitation, excluding the value of the home you are living in, up to 2 acres. The Town also offers a Blind Exemption, no income or asset limitation, see assessing staff for details.
The town offers tax credits, $600.00, to qualifying veterans who are New Hampshire residents. Honorable discharge and service for 90 days of active duty is a requirement, as well as 1 year residency for as of April 1st, an April 15th deadline to apply. The Town also offers disabled veterans tax credits, $3,000.00, for totally and permanently disabled veterans, filing deadline is April 15th. See assessing staff for details.
It is no secret that property taxes in New Hampshire are very high. The State does not have a general sales tax nor a general income tax. The property tax therefore is, by far, the primary source of government funding. These relief laws mentioned are in place to help us help you. If you need help, please don’t be afraid to ask. We will confidentially do everything we can to assist you within the limits of State laws and rules.
Also see the following web link for more information as well; https://www.hudsonnh.gov
Click on "Inside Town Hall”, click on "Assessing", and view the drop down list on the left hand side.
