NASHUA — Although the city's new tax rate has increased by more than 9 percent, about half of the homeowners in Nashua will not notice an increase in their property tax bills because of the recent citywide revaluation.
The New Hampshire Department of Revenue Administration has set the city's new tax rate at $23.50 per $1,000 of assessed valuation, which is up 9.35 percent from last year's tax rate of $21.49, or an increase of $2.01 per $1,000 of assessed valuation."Because it is a revaluation year though, it is hard to compare the rates. Everybody's bill is different," City Treasurer David Fredette said on Wednesday.
Mayor Donnalee Lozeau announced the new tax rate on Tuesday, also reminding city residents about the revaluation impacting the figures.
According to Lozeau, about 53 percent of local property owners will experience no increase in their tax bill.
"When revaluations decrease, the tax rate goes up," Fredette said. "That is how it works."
Still, he said, it is not necessarily accurate to compare last year's tax rate with the new tax rate because of the significant difference in property values. Without the revaluation, he said, the tax rate would have increased only about 2.5 percent.
"As you know, property values in general have declined due to changes in the economy. This is why revaluation is important — it serves to readjust the tax base to more accurately reflect what all properties are worth in the current market," Lozeau said in a recent letter to Nashua taxpayers. "With a property tax system, this is particularly important as it will ensure that all taxpayers are paying their fair share of the cost of those vital services that they expect from their local government."
The new tax rate is broken down into four separate sections — city, county, local schools and statewide schools.
The new city portion of the tax rate is up from $8.56 to $9.01, the county portion is up from $1.11 to $1.22, the local school portion is up from $9.39 to $10.72 and statewide school portion is up from $2.43 to $2.55.
According to the mayor, 53 percent of local taxpayers will see no increase or a decrease in their tax bill. About 21 percent of residents will see an increase of up to $200 in their tax bill, 16 percent will see an increase between $200 to $500 and 10 percent will see an increase of more than $500.
For a home assessed at $250,000 in Nashua, the new bill will be about $5,875 in property taxes under the revised tax rate. For a home assessed at that same figure in 2012, the bill was closer to $5,372.50, and in 2011 the bill was about $5,242.50 when the tax rate was $20.97.
Tax bills were mailed on Tuesday and are due on Dec. 17, according to Fredette, who said homeowners wishing to file an abatement have until March 1.