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Archive for the ‘Tax Abatements’ Category

Several communities have recently completed re-assessments that have left many people wondering how they can abate (reduce) their taxes.  Even if your city or town has not completed a “re-val” you can question the assessment by a process called tax abatement.

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In all New Hampshire communities, all assessments are paid on the market value of the property on April 1st of the tax year.  Therefore, for the 2016 tax bill, the assessment must reflect the “equalized” value of the property as of April 1, 2016.

Since prices/values can decrease and increase over the years, the state allows assessment to be higher or lower than market value provided that they are equitably assessed.  What does this mean?   Let’s say you live in Manchester NH and the average assessment is 110 percent of market value (example only) and your property is 10 percent over assessed.  In this case you are equally assessed (or equally over-assessed) and have no case for abatement.

 

How do you file an abatement?

Step One:  Obtain a copy of the tax assessment card from your community.  If the full card is not available online, I suggest you go to the town and obtain the full card which has the most detail.

 

Step Two:  Carefully review the card to accuracy.  Note the assessor’s ratings with regards to condition and quality.

 

Step Three:  Research comparable sales, enlist the assistance of a realtor friend or hire a professional appraiser.  If hiring an appraiser, select one that has experience in this type of assignment.

 

Step Four:   Complete the State of New Hampshire Tax Abatement Form.  Here is the link to download the form:       https://www.nh.gov/btla/forms/documents/municipal-abatement.pdf    The abatement MUST be filed no later than March 1st following the tax year (March 31, 2017 for 2016 tax year).

 

The abatement form summarizes the rules, deadlines and procedure for abatement.  If you need assistance in analyzing your property do not hesitate to call Jack Lavoie, SRA at 603-644-1000 or email at: jacklavoie@comcast.net   For more information, find us on our website at www.AppraiserNH.com

 

 

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Manchester NH and most of the other towns and cities in New Hampshire have sent out there final tax bills which means the clock starts for tax abatement season. If you are a homeowner and are paying property taxes, you may be eligible for a tax abatement. Your property taxes are based on your property assessment that your town or city assigns you. Most assessor’s do a great job, but there job is very difficult. They must design a computer/statistical model that will accurately appraise thousands of parcels at the same time. Even the best of models will not fit every property, which is why in every town, nearly a 1/3 (33.3%) of the properties are over assessed and a 1/3 are under assessed. It’s the 33% of the over assessed who can get a tax break on my plan (there I go again…lol).

taxes

Click for Tax Abatement Assistance

Many people look at their assessment and say to themselves “Oh, I could never sell my house for what it’s assessed for!” …lol That doesn’t mean your house is over assessed. Sounds confusing, but I will explain why.

In every town, it is the assessor’s goal to have assessments equal the true market value of the property. Every five years or so, the town does a complete revaluation of their town to do this. Each year thereafter, the assessment stays the same, but the market value could go up or down which means the assessments are higher or lower than market value. Here is the key…… As long as every property in the town is either over assessed or under assessed the same, then it is fair. You are only entitled to get a tax abatement if you are MORE over assessed than average person in the town. Here is an example.

If the “Assessment ratio” for the town is 110%, which means the average property is assessed at 110% of the actual market value, you will not be able to fight your taxes if your house is assessed at $220,000 and is only worth $200,000. The reason being is that your house is in line with the 120% assessment ratio ($220K is 110% of $200K). If your house is only worth $160,000, you may have an excellent case to get your $220,000 assessment reduced down to $96,000, since $192,000 is 120% of $160,000. If you can prove your home is worth $160,000, your assessor may reduce your assessment in this example to $192,000.

“Margin of Error” Most communities will only reduce your assessment if your “equalized assessment” is more than 10% higher than market value. This is because there is a reasonable “margin for area” due to complexity of assessing an entire community.

The State of New Hampshire Department of Revenue provides the official “Assessment Ratio” for each town in the State on an annual basis. That is one half of the equation. The other half is figuring out what your property is worth in terms of market value.

In abating your taxes, if will be necessary to provide “proof” of your market value estimate, as of April 1st of the tax year being appealed. This can done by hiring a Certified Appraiser like myself to provide a professional opinion of value. The appraisal with be attached to an official abatement form and will need to be filed in a timely fashion.

If you would like to contact me and find out if you are a candidate for a tax abatement, feel free to contact me @ jacklavoie@comcast.net. I do residential and commercial tax abatement appraisals throughout the state of New Hampshire should you need my assistance.

Tax bills will be mailed out soon. When you receive your tax bill, get the process going and you may be one of the 33% who can get an abatement!!

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I wrote this post on Tax Abatements last year, but I wanted to let you know again.. Give me a shout at 603-644-1000 if you need some guidance.

Manchester NH and most of the other towns and cities in New Hampshire have sent out there final tax bills which means the clock starts for tax abatement season. If you are a homeowner and are paying property taxes, you may be eligible for a tax abatement. Your property taxes are based on your property assessment that your town or city assigns you. Most assessor’s do a great job, but there job is very difficult. They must design a computer/statistical model that will accurately appraise thousands of parcels at the same time. Even the best of models will not fit every property, which is why in every town, nearly a 1/3 (33.3%) of the properties are over assessed and a 1/3 are under assessed. It’s the 33% of the over assessed who can get a tax break on my plan (there I go again…lol).

Click for Tax Abatement Assistance

Many people look at their assessment and say to themselves “Oh, I could never sell my house for what it’s assessed for!” …lol That doesn’t mean your house is over assessed. Sounds confusing, but I will explain why.

In every town, it is the assessor’s goal to have assessments equal the true market value of the property. Every five years or so, the town does a complete revaluation of their town to do this. Each year thereafter, the assessment stays the same, but the market value could go up or down which means the assessments are higher or lower than market value. Here is the key…… As long as every property in the town is either over assessed or under assessed the same, then it is fair. You are only entitled to get a tax abatement if you are MORE over assessed than average person in the town. Here is an example.

If the “Assessment ratio” for the town is 120%, which means the average property is assessed at 120% of the actual market value, you will not be able to fight your taxes if your house is assessed at $120,000 and is only worth $100,000. The reason being is that your house is in line with the 120% assessment ratio ($120K is 120% of $100K). If your house is only worth $80,000, you may have an excellent case to get your $120,000 assessment reduced down to $96,000, since $96,000 is 120% of $80,000. If you can prove your home is worth $80,000, your assessor may reduce your assessment in this example to $96,000.

“Margin of Error” Most communities will only reduce your assessment if your “equalized assessment” is more than 10% higher than market value. This is because there is a reasonable “margin for area” due to complexity of assessing an entire community.

The State of New Hampshire Department of Revenue provides the official “Assessment Ratio” for each town in the State on an annual basis. That is one half of the equation. The other half is figuring out what your property is worth in terms of market value.

In abating your taxes, if will be necessary to provide “proof” of your market value estimate, as of April 1st of the tax year being appealed. This can done by hiring a Certified Appraiser like myself to provide a professional opinion of value. The appraisal with be attached to an official abatement form and will need to be filed in a timely fashion.

If you would like to contact me and find out if you are a candidate for a tax abatement, feel free to contact me @ jacklavoie@comcast.net. I do residential and commercial tax abatement appraisals throughout the state of New Hampshire should you need my assistance.

Tax bills will be mailed out soon. When you receive your tax bill, get the process going and you may be one of the 33% who can get an abatement!!

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In all cities and towns in New Hampshire, the deadline for filing your 2009 tax abatement is Monday, March 1, 2010. Towns will give you the whole business day, but it is a firm deadline and any abatements delivered or mailed on the following day will be DENIED. If you would like more info on tax abatements see our “Tax Abatement” archive posts on the right or click on the TAX ABATEMENT section of my website. Please remember, that is you are going to aquire assistance or an appraisal, time is of the essence. Completing an professional appraisal takes a bit of time and the earlier in the week you order one the better. Good luck!!

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As an appraiser, broker and short sale specialist in Manchester NH, I have observed the largest descrepencies between assessed values and current market alues in the Manchester NH multifamily market. Manchester apartment buildings have decreased in value at a much faster rate than other types of properties in the city or region. Many 3-Family apartment buildings are assessed from $275-$400K when they are currently selling for $150-$250K. My data shows that the multi family assessments in Manchester are 30-40 percent over true market value compared to the average city “overassessment” of 18%. With the high vacancy rate, dropping rents, higher insurance costs, owners cannot afford to be paying MORE than their fair share of taxes. The deadline for filing an abatement is March 31, 2010. To file an abatement you can download an ABATEMENT FORM from the city webstite. If you need a professional opinon of value to include with the application contact me and I will gladly assist with your TAX ABATEMENT

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It is January which means that many of my clients are seeking assistance in determining whether or not their properties are fairly assessed.  The deadline for filing for tax abatements is March 1st for all towns and cities in New Hampshire.  Yesterday, I finised up two reports for Granite Heights Condominiums in Hooksett, NH.  Today I am preparing a multi family appraisal for someone in Manchester NH’s “North End”.  This afternoon I will start to write a report for one of the largest houses in Bedford NH that is assessed in the MILLIONS.   Condos, Multi families and large houses….  All different, but all deserved to be taxed and assessed fairly.  I am one of the few appraisers who actually enjoys doing thins kind of work.  For more information on tax abatements in Manchester NH or any other city or town in New Hampshire emaile me at jacklavoie@comcast.net or click on the tax abatement link to the right.

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