Tax Abatements
The subject of tax abatements is a hot one and likely to remain that way for the forseeable future as Wolfeboro and other area towns go through revaluation. Wolfeboro is way behind most other municipalities as it has not been revalued since 1990 and a lot has happened since then.
The difficult part to understand is how the process works. Although tax assessors attempt to value properties at current market values, quite often homeowners don't agree. The most important factor is whether or not your property is assessed fairly against other similar homes. Whether or not you could sell your property for the same amount as the town assesses the property doesn't really come into play and this is where the confusion usually exists.
For example if your house is assessed for 25% more than your local real estate professional says they could sell it for, is not necessarily grounds for an abatement from the town. If the assessments on other homes are also 25% higher than they might sell for then the assessments and your tax bill is fair. However, if other homes are assessed at what they could sell for or "market value" then you do have a case for requesting an abatement.
If you are currently paying $5,000/year in taxes and your new assessment doubles, it's not likely your tax bill will double as the tax rate will likely go down. Your tax bill is simply a function of the amount of money needed to run your town and is based on so many dollars per thousand. So if the towns budget stays the same from one year to the next and everyone's assessment doubled the tax rate would then be cut in half so your tax bill would still be $5,000. Here's an example:
2001 assessed value: $200,000.00
Tax rate for 2001: $10.00/thousand
Total tax bill: $2,000.00
2002 new assessment: $400,000.00
Tax rate for 2002: $ 5.00/thousand
Total tax bill 2002: $2,000.00
The idea is to get the properties more in line with current market values while still taking care of the town's budgetary needs. If you would like more information or have any specific questions, please don't hesitate to call, or e-mail me at bob@spencerhughes.com. Also please feel free to go to appraiser BC Underwood's site for a more professional overview of the tax abatement process: click for web site...
