1. An Overview of New Hampshire Assessing Practices and Procedures Local Government Center 73 rd Annual Conference Presented by David Cornell, CAE, MBA

2. Seminar Overview Goals of the Seminar  Market Overview  Discuss the three approaches to value  Cost Approach  Income Approach  Sale Comparison Approach  Exemptions and Tax Credits  Revaluation Requirements  The Equalization Process  The Abatement Process

3. Total Statewide Equalized Assessed Value

4. Percent Change-Total Statewide Equalized Assessed Value Note: Figures includes new construction & all utility values

5. Total Real Estate Transfers Per Year*

6. Foreclosure History By Equalization Year

7. Foreclosure 2014 Equalization Year

8. Which Real Estate is Assessed? RSA 72:6 Real Estate. – All real estate, whether improved or unimproved, shall be taxed except as otherwise provided.

9. Tax Exemption Properties RSA 72:23- The following real estate and personal property shall, unless otherwise provided by statute, be exempt from taxation:

10. RSA 72:23- 1. (a) Government Owned Properties owned by: State of New Hampshire City, Town, School District, or Village District Pay attention to the exceptions (leased property)

11. RSA 72:23- 1. (d)- UNH & Community College System

12. RSA 72:23- II- County Property Hospitals, court houses, registry buildings, county correctional facilities Except county farms

13. RSA 72:23- III- Religious

14. RSA 72:23- IV- Educational

15. RSA 72:23- IV- Educational- Continued Dormitories, dining rooms and kitchens-The limit is $150,000. The limit only applies to the building The land is exempt Brewster Academy v. Town of Wolfeboro

16. RSA 72:23- V- Charitable Owned, used and occupied by them directly for the purposes for which they are established. Income or profits must be used for the charitable purpose.

17. Approaches to Value Cost Approach Sales Comparison Approach Income Approach

18. Cost Approach Building Value Land Value Depreciation (All forms) Market Value

19. Sales Comparison Approach Identify Subject Property Find and Verify Sales of similar Properties Identify Units of Comparison Make Adjustments for the Differences Reconcile the Value Indicators

20. Income Approach Value is determined based the property’s capacity to generate income.  Important Terms  Potential Gross Income (PGI)  Vacancy and Collection Loss  Effective Gross Income (EGI)  Expenses  Net Operating Income (NOI)  Apply a Direct or Yield Capitalization Technique to Determine Value

21. Revaluation Requirement RSA 75:8-a Five-Year Valuation. The assessors and/or selectmen shall reappraise all real estate within the municipality so that the assessments are at full and true value at least as often as every fifth year

22. Equalization Process Why is Equalization Necessary? Shared Expenses Where Value is Calculated County Expense A Tool to Analyze Assessment Level and Uniformity

23. Equalization Process Valuation Example: Municipality A and B Have the Same Assessment Values Are they Equal?

24. Equalization Process Determining Appraisal Uniformity Coefficient of Dispersion (COD)

25. Equalization Process

26. Abatement Process RSA 76:16 “Any Person Aggrieved” is allow to file Must file after the final tax bill, and before March 1 Selectmen or assessors have until July 1 to decide (failure to respond is a denial). Taxpayers can file, on or before September 1, to the BTLA or Superior Court

27. Questions