The Town of Merrimack is undergoing a valuation update for 2011. Can you explain this a little bit?

 

All properties in Town have been visited over the past several years by Town staff. This ensures the data that is used to compute the assessment is accurate. The Town has also undergone a software conversion from one computer assisted mass appraisal program to another. Taxpayers shouldn’t see big changes however some of the data is not displayed or accounted for differently. All taxpayers are encouraged to review their data online when it becomes available. I hate to say that errors exist but it is inherent and I wouldn’t want errors to perpetuate. Taxpayers share an obligation to ensure the data that will ultimately drive their assessment is accurate. The next step is analyzing all of the sales data in Town. Only arm’s length sales are used – this means good sales where no relationship between parties exist, no bank sales, foreclosures or short sales are relied upon. These are typically sold at below market conditions and should not be the basis for a fair market value opinion. Once all of the sales are analyzed a model is created based on that info. The model is comprised of base land and building values. The Town is driven parcel by parcel and field reviewed to ensure all of the info used to analyze the sales is then consistently applied throughout the Town. Oftentimes people see the Assessor out driving around during this process and because we aren’t visiting each home during this timeframe they assume we are doing a drive-by assessment. Remember, this isn’t the case as the homes have been visited previously even if you don’t remember seeing someone.

 

Does this mean every property in Town is going to be visited this year?

 

Every property will be reviewed from the street as the visits occurred previously to collect the physical data about each home. There may be occasions where we need to drive up a driveway to get a better look at the home if it isn’t visible from the street. My vehicle will be marked with a sign stating “Municipal Assessor” and I will be carrying a photo id. As we have so many properties to review in a limited window, we will not be stopping to engage in conversation. If you are concerned about a vehicle parked in front of your home you could call either the Town Hall or the Police Department to confirm if it is indeed the Assessor.

 

What is market value and who determines my property assessment?

 

Market value is determined by people, the real estate market and the general economy. Our current assessments were arrived at in 2006 and the market has since declined. The 2010 assessments were found to be at about 115% of market value. For 04/01/11 we are looking to bring assessments back to 100% of market value. This will mean for most residential properties they will see their assessment decline. However, not all property appreciates or depreciates at the same rate. The Assessor will research and analyze the values in any particular area or neighborhood to determine the 2011 market values. In effect what we are doing is placing a value on your property that we believe is representative of what you would sell your home for on April 1, 2011.

 

Will this process increase taxes?

 

Not necessarily. The tax burden is the amount the Town must raise to operate local government and support the many services each of us has come to expect, such as police, fire and schools etc. If the total value of the Town declines then the tax rate will increase to pay those same budgetary obligations. Typically there are not big shifts in the tax burden, however, as I said before not all properties appreciate or depreciate at the same rate. For example, if residential homes are selling at 115% of market value and residential condos in an area are selling at 125% of market value as indicated in the sales analysis, then when we bring values to 100% the condos may drop more significantly and actually see a tax decrease. This is just an example though to help you understand but I have no specifics as to whether any one group of properties is assessed differently than another.

 

How will taxpayers know if their assessment is equitable? And what can a taxpayer do if they feel their value is inaccurate?

 

Sometime in June we will be sending a notice of new value to every taxpayer in Town. At that time the letter will indicate how and where you can review your assessment and the assessment of others. The data will be available online and taxpayers will be able to do sales comparison searches. The assessing software has been converted to a different assessing program so taxpayers used to the old format will see some changes but the data should be largely the same. The two programs work similarly but there are differences. If a taxpayer is concerned with their assessment they should use the online tools to compare their property to the sales properties. Listings of all the assessments will be available on the counter at the Assessors Office but this will be for general assessment comparison purposes and will not provide the detail needed to truly compare. Should a taxpayer not have computer access at home the Public Library does have computers available for this type of review and research.

The letter will also provide instructions for arranging for an appointment to sit and discuss your assessment with an Assessor. This is a good opportunity to point out any physical data errors you feel may exist or discuss why you feel your assessment is inaccurate. Appointments will be scheduled by phone for an appointment to be held at a later date. Appointments will be at a central location and not at your home. If data errors exist staff will be available after your meeting with the Assessor to accompany you to your home and review the data. All taxpayers that request an appointment will be scheduled at a specific time and will receive at a later date a final notice of value. This is the value that will be used to compute the 2011 taxes.

 

 When will the new values go into effect?

 

The new values are effective as of 04/01/11 but will not go into effect until the December tax bill.

 

What can a taxpayer do once they receive their December tax bill, if they are aggrieved with their value?

 

Once the tax bill has been received the taxpayer would need to file an abatement with the Assessors office. Forms are available at the office or online at the Town website, the State of NH DRA or BTLA websites as well. Once you receive your notification of your abatement and you are still dissatisfied, the next step would be to file an appeal with either the State of NH BTLA or the Superior Court.

 

We hope this process is a smooth one but we understand not all taxpayers will be happy with their new assessments. Both the local and state appeals processes are very fair processes that have worked for many years to ensure taxpayers are treated fairly. The Assessors Office will attempt to answer taxpayer questions or concerns, but until the values are finalized and turned over all questions should be addressed through the informal hearing process.

 

If you are interested in discussing the sale of your Merrimack NH home, call our team of expert Merrimack NH Realtors today.

 

Merrimack NH has a very interesting story and Merrimack NH history can be found here.