Tag Archives: comparing

NH Town Tax Rates: Comparing The Rate Of One Town With That Of Another Is Meaningless!

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by
Anura Guruge


A FEW Pertinent Posts:
  +++++ do a SEARCH (>>>>) on ‘Tax’ for others’ >>>>>
1. NH Property Tax Comparison — Nov. 26, 2012.
2. Alton, NH: 23rd Lowest Tax Rate — Nov. 26, 2012.
3. Alton, NH Property Tax ‘Impact’ Has Gone Up 4% Since Last Year
>>Nov. 28, 2012.

4. Alton Tax Base Went Down for 3 reasons — Dec. 18, 2012.


Given that one of my pictures is worth 360 words written by me, I hope this picture alone explains everything.

Given that one of my pictures is worth 360 words written by me, I hope this picture alone explains everything.


In the last month of so I have been getting 40 hits a day on my NH property tax posts. Thank you. I am glad I can be of help.

I guess folks have started getting their new mortgage rates for 2013 and have finally come to terms with what is happening with property tax rates.

There is, however, a key point that I am not sure that I have still managed to get through.

In NH, comparing the tax rate of one town, say Alton, with another, say Franconia, is meaningless and pointless.

Why? Because the tax rate is dependent, tied at the hip, to the property values of that town.

There are no standardized property values — and there can never be such a thing, because property values have to, in some form, reflect market demand and market prices.

Hence, the above example. Same house. Different assessed values. [This is a hypothetical example. I do not know exactly what the assessed value will be in Francoina. Just a guess.]

So it doesn’t matter that Franconia’s tax rate is $2.24 per $1,000 assessed value higher than Alton.

The tax bill in Franconia will be lower than Alton.

I don’t know why but people always overlook this tax rate ≈ assessed value relationship. It is an inviolable. Tax rate by itself means diddly.

In the end it is all a question of the town’s budget. They have to set the tax rate based on their property base.

So there is no point going on about the tax rate of one town versus that of the other. Just doesn’t work.

Hope this helps.