Equalization
To keep individual towns from under assessing property to lessen the tax burden the state uses equalization.
Equalization is the process carried out annually by Municipal Assessing Jurisdictions and the New Hampshire Department of Revenue Administration (DRA) which ensures that common property tax burdens are apportioned fairly and equitably among taxpayers.
Sales from a period of October 1 through September 30 of the following year are reviewed in each taxing jurisdiction. Municipal officials indicate whether the transaction is arm's length, and verify the selling price and assessed value. The Sales Ratios (Assessed Value/Selling Price = Ratio) are analyzed by DRA to determine the assessment to fair market value ratio for each taxing jurisdiction. A ratio of 100% indicates that the town is assessed at Market value.
|