Tax Abatements 2008 - 2009

          Commercial real estate values have reduced similarly. Bottom line: Now is the time to file for a tax abatement. The tax abatement process is fairly simple. The process starts with a form you file with the Town. The Town then has several months to respond. After the Town responds, if they do not grant the abatement, you can file in either the Board of Land and Tax Appeals (BTLA) or the Superior Court in the county where the property is located.

          This process usually takes approximately one year, but, at the end of the year you can often get the reduction in your taxes which will travel forward with the property until the next reassessment by the Town. So, in some cases, the reduction in your taxes can last for many years. In sum, it is certainly worth the time and effort to file for the abatement. However, the tax abatement process can be confusing and difficult for the average person. As a result, many property owners in New Hampshire are reluctant to file a tax abatement application. The form itself is intimidating.

          In New Hampshire, a tax abatement procedure requires an appraisal. Often you can get the appraisal conducted after you file but you must file timely. The average price of a residential appraisal is approximately $300.00. There are several easy steps the property owner can take to determine whether or not the property is over assessed.

          Are there properties in your neighborhood that are similar type that have sold for less money? You can get your tax assessment card from the Assessor’s Office and also ask for the tax assessment card of similar properties. You can also look on the Town reports, they often indicate what the similar properties are assessed for. Furthermore, property sales are reported in the newspaper.

          Many realtors will conduct a “current market analysis” for free which estimates what the property is worth on the market. As part of that property analysis they typically attach several similar properties that have sold recently in your area.

          Remember that the New Hampshire Department of Revenue establishes an equalization ratio for every municipality in order to calculate what the municipality states the property is worth in a given year. You have to divide the total assessed value by the equalization ratio. Do not let this intimidate you, it is fairly simple. Many of the properties have a current equalization ratio of 80 or 90 percent of the assessed value.

          Often some of the data on the tax assessment card or in the Town records are incorrect. Sometimes they state more bedrooms or a bigger property than you actually own. Sometimes the data has information that is inaccurate regarding the age of the property, etc. So you need to review the card carefully. Again, the average property in New Hampshire has declined 20% in value in one year, so filing a tax abatement is worth it. In that case, the market data for the property can show that the property is over assessed. Note that the value must be recognized as of April 1, of the tax year.

          When filling out the form you have to note that your property is “disproportionately” assessed when compared to other similar properties. Typically, legal counsel that have experience in these matters work with appraisers who are familiar with such cases and have years of experience. If you have a hearing, you need to hire such an appraiser. In most cases, most property owners rely on the assistance of a real estate attorney to help them in handling their claim and to help them determine the market value of the property in a way that can be used for the litigation process.

          The filing deadline for the tax abatement application is March 1st following the tax year you want to appeal. The municipality then has until July 1st to respond to the abatement. Often the municipality does not respond. If they do not respond, then the applicant has to file by September 1st. The applicant can choose whether or not to file in the New Hampshire Board of Land and Tax Appeals or in Superior Court.

          The less expensive and more informal way is to file with the BTLA. BTLA takes longer and is more relaxed. The Superior Court will clearly require an attorney to represent you, but it is a quicker process and somewhat more reliable. The BTLA is very delayed and it can take more than 18 months or two years for a hearing.

         Note that your overpayment will be refunded plus 6% interest and you will receive an abatement for the tax year, which is often reflected as a credit on your statement for the following year.

          McGrath Law Firm has experience in filing tax abatements and only recommends that such cases be filed when the outcome will be successful for the client. We have been successful with many tax abatements and are intimately familiar with the process and the best appraisers in the industry. Give us a call for a free consult