Real Estate Tax Abatement Applications are Due By March 1^st

When is your real estate tax too high? Simply stated, it is when you are paying more than your fair share of your town or city taxes. The real estate tax is assessed based upon the fair market value of your property multiplied by the town or city’s tax rate. Since all municipal tax bills are based upon the same tax rate, the only potential source of unfairness or inequality relates to the actual assessment of a particular parcel.

Assessments should be based on properties’ fair market value, and will typically rely on formulas that incorporate values from many variables such as type of property, neighborhood, zoning, views, types of buildings, construction, size of lot, etc. Market values are influenced by the real estate market, which can rapidly fluctuate. Municipalities frequently use formulas in lieu of assessing each individual property using comparable sales. While the use of formulas typically produces accurate results, it is not reliable for every property.

If you feel that your assessment is too high, you will need to determine what the fair market value of your property actually is.  What would it sell for? Over assessment may be established by evidence that the property was on the market or sold for a lower price than its town assessment. However, it is usually not this simple to demonstrate over-assessment. Most individual home sites are appraised using the comparable sale method, yet commercial properties and apartment complexes will be appraised through the income method. The property’s ‘replacement value’ may also be used to support one or the other of these methods of valuation.

If you feel that your property is over assessed, you may wish to contact a New Hampshire attorney to assemble the necessary evidence in support of your request for abatement. An attorney can help you:

• Review the cost/benefit of filing for abatement;
• Locate recent sales of similar properties;
• Hire a professional appraiser to provide a reliable market value;
• Negotiate with the town assessor; and
• File the tax abatement application.

The real estate’s fair market value is determined as of April 1^st of the new tax year. Abatement applications must be filed by March 1^st, even if tax bills are sent biennially. The municipality will consider a timely application and render a decision by July. An appeal may be filed to either the Superior Court or the Board of Tax and Land Appeal, but must be received prior to September 1^st.

Wescott Law offers a variety of services relating to municipal, government, and real estate issues.  Our experienced attorneys are here to assist with any legal questions or issues you may have.