Did You Need Suspenders when You Got your Mail Last Week?
September 8, 2017
by Len Lathrop
Municipal government costs money and how much you have to pay is a very complicated process. The new assessed revaluations of your property, be it a home, commercial building, or retail building, were mailed last week. As the communiqué stated “the 2017 property revaluation is complete and all property in Hudson has been revalued.” The letter continued to state “the goal of the revaluation is to adjust assessments to reflect market value.” “The primary goal in a revaluation is to update records, fix errors and resolve disproportionate assessments.”
While there are many pieces that go into running, in this case, the town of Hudson, there are really two big ones, the budget of the town and school department and net taxable value of the town. To get this number, the assessor adds together all the property values that have just been established. Everything from houses and businesses to open land and even telephone poles, and our utilities, they come up with a multi-billion dollar number. Things that reduce that number are exempt properties, such as churches, schools (public and private) and others. Next you remove tax exemption for blind, disabled, elderly and others who qualify and then there is an exemption for veterans. Surely, there are others who qualify, but the bottom number is:
2016 – prior to April 1, 2017 – $2,641,720,555
2017 – as of April 1, 2017 – $3,073,463,485
That is a change of $431,742,930.
Next, add together the approved town budget and warrant articles and the school district budget and warrants – that the voters agreed to spend last March. Now it gets complicated, as there is revenue from many different sources that the town and school departments receive that affect that number, but the number is a number. Let’s say it is “X,” now the state will basically take their “X” and make it the dividend and the new total property value becomes the divisor become what is needed from each property owner to pay the bills.
This leaves the quotient, which equals what you have to pay per thousand.
The best project/estimate is that the current per thousand rate will drop from $21.97 to about $19.50 – but, a big but, because, until the state tells Hudson staff that is the number, it is only an educated guess.
So now you see the big numbers. The State of New Hampshire does the math, but the cost of running the town of Hudson is less revenue from external sources in order to determine the tax rate per thousand. You won’t know a final number until mid-November, when it is set by the state.
Some property owners’ tax bill will be higher and some will be lower, but there should not be any great changes unless you had major changes to your property that affected the property value.