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We bought a house late last year. We haven't done anything to it, other than clean and move in. But since we bought it, the tax assessment has increased by $16k (over 6%). Apparently they are using the MLS comments as justification. All work done in the house was permitted and was done by the previous owner in 2006 and 2009. So I just don't get why are they now increasing the value since nothing has changed. There was a town wide reassessment done in 2013/2014. It's a small house, just 1,100 sqft with nothing fancy, no granite, no SS.
Is there something we can do? Is this normal procedure?
Anytime you buy a house, and pay more than the current estimated value, they're going to jack up the valuation to whatever your purchase price is. So if previous valuation was $300,000 (taxable value of $150,000 {50%} in many states) and you paid $400,000 for it, they will up the retail value to the purchase price. (or the taxable value to $200,000).
What NH towns change assessed value upon a real estate transaction? only upwards?
NH "assessed value" is the appraised value of property as of April 1 of each year. So the December bill reflects the value of property on the previous April 1, should not change until April 1st 2015.
Quote:
Originally Posted by Merjolie8
We bought a house late last year. We haven't done anything to it, other than clean and move in. But since we bought it, the tax assessment has increased by $16k (over 6%). Apparently they are using the MLS comments as justification. All work done in the house was permitted and was done by the previous owner in 2006 and 2009. So I just don't get why are they now increasing the value since nothing has changed. There was a town wide reassessment done in 2013/2014. It's a small house, just 1,100 sqft with nothing fancy, no granite, no SS.
Is there something we can do? Is this normal procedure?
The property tax year in New Hampshire runs from April 1st thru March 31st. So it's too early for you to have a new tax assessment since your transaction.
What town is this?
Quote:
Originally Posted by Regajohn
Anytime you buy a house, and pay more than the current estimated value, they're going to jack up the valuation to whatever your purchase price is. So if previous valuation was $300,000 (taxable value of $150,000 {50%} in many states) and you paid $400,000 for it, they will up the retail value to the purchase price. (or the taxable value to $200,000).
My town did not set the valuation at the sale price, it didn't change at all when I bought, only changed years later due to town-wide reassessment.
If a revaluation was done in 2014, this sounds like the result of that. Not uncommon.
As mentioned below, the reassessment was April 1st, 2013 thru March 1st, 2014. So it shouldn't be the result of that.
Quote:
Originally Posted by Nonesuch
NH "assessed value" is the appraised value of property as of April 1 of each year. So the December bill reflects the value of property on the previous April 1, should not change until April 1st 2015.
The property tax year in New Hampshire runs from April 1st thru March 31st. So it's too early for you to have a new tax assessment since your transaction.
What town is this?
My town did not set the valuation at the sale price, it didn't change at all when I bought, only changed years later due to town-wide reassessment.
Town in the Seacoast area. Not Exeter.
The assessment was slightly below purchase price, now it's within few hundreds of it. Was I in CA, it wouldn't be surprised, but I just thought the reassessment value will hold until the next one. I have also checked other recent sales and in many cases there's a big difference between sold price and assessment. I guess they're careful not to exceed purchase price to not justify an abatement.
Comparable sales in the area have probably gone up. It's on the town to defend the valuation if you feel you are over assessed and can prove it file an abatement.
Is there something we can do? Is this normal procedure?
Ask the town assessor. They can answer all your questions. They might have adjusted something for the whole town. Its likely its not just "you"
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What NH towns change assessed value upon a real estate transaction? only upwards?
