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tummyman · 12-30-2021, 03:05 PM

Hi Fred W.
Let me try and help you though this question. First, you need to know that there are two displayed rates for tax bills. One is the rate set by the state for a "preliminary" tax bill sent out by M'boro in June. This rate is 50% of the prior year tax rate. So the first set of numbers by Cal are the preliminary rates set at 50% of the prior 2020 full year tax rate that was calculated for the December 2020 tax "final" bills for 2020. For example, the full year 2020 tax rate was $7.13....50% of it was the $3.55 set by the state for the 2021 'preliminary" bill this past June.

Now we get into what is happening to the full year tax rate of $6.98 that was used to calculate the December "final" bill you now have. First, the towns overall assessed valuations went up 10.3%....so your property assessment most likely went up, although it may or may not have gone up the 10.3% because each property has unique characteristics. The second thing is that the town elected to change the fiscal year to a July 1 - June 30 time frame instead of the former Jan-Dec. period. This meant that the town had to collect 18 months of tax revenue. However, they had to do this in the usual two billing installments...last June and now this December. So the tax bills are significantly higher this December than what would normally be expected due to the 18 month period. The town officials could have helped defray some of this added cost in the December bill in one of two ways. They could have voted to use an additional amount of unassigned funds to help reduce the tax rate. One member of the BOS (Chuck McGee) tried hard to allocate an extra $1 million dollars from this unassigned fund balance, but was rebuffed by the rest of the board, even though the balance is in excess of what the town has set as a guideline. The other way was for the board to go to NH DRA (they did not) and ask them to adjust the June billing rate to reflect the need to collect essentially 9 months of taxes in the preliminary June bill instead of using the state rate that amounted to collecting only 6 months of taxes. So now the December bill has to make this revenue shortfall up.

This now brings up a new problem that I have pointed out to the BOS Chair and the Town Administrator. The Town Administrator was no help and I had to go directly to NH DRA for guidance. The state has now given the town a 50% rate to be used in the tax bills next June. But because that rate is 50% of an 18 month budget, it is now overstated and if not adjusted, you will pay essentially 9 months of taxes next June and 3 months of taxes next December. I have been promised the BOS will take this up in the first part of the new year for some sort of resolution.

This whole thing can be confusing, but hope that I clarified it a bit. If you want to discuss it further, PM me and I'll call you.

12-30-2021, 03:05 PM	#41
tummyman Senior Member Join Date: Aug 2009 Location: Moultonborough Posts: 780 Thanks: 233 Thanked 631 Times in 228 Posts	Hi Fred W. Let me try and help you though this question. First, you need to know that there are two displayed rates for tax bills. One is the rate set by the state for a "preliminary" tax bill sent out by M'boro in June. This rate is 50% of the prior year tax rate. So the first set of numbers by Cal are the preliminary rates set at 50% of the prior 2020 full year tax rate that was calculated for the December 2020 tax "final" bills for 2020. For example, the full year 2020 tax rate was $7.13....50% of it was the $3.55 set by the state for the 2021 'preliminary" bill this past June. Now we get into what is happening to the full year tax rate of $6.98 that was used to calculate the December "final" bill you now have. First, the towns overall assessed valuations went up 10.3%....so your property assessment most likely went up, although it may or may not have gone up the 10.3% because each property has unique characteristics. The second thing is that the town elected to change the fiscal year to a July 1 - June 30 time frame instead of the former Jan-Dec. period. This meant that the town had to collect 18 months of tax revenue. However, they had to do this in the usual two billing installments...last June and now this December. So the tax bills are significantly higher this December than what would normally be expected due to the 18 month period. The town officials could have helped defray some of this added cost in the December bill in one of two ways. They could have voted to use an additional amount of unassigned funds to help reduce the tax rate. One member of the BOS (Chuck McGee) tried hard to allocate an extra $1 million dollars from this unassigned fund balance, but was rebuffed by the rest of the board, even though the balance is in excess of what the town has set as a guideline. The other way was for the board to go to NH DRA (they did not) and ask them to adjust the June billing rate to reflect the need to collect essentially 9 months of taxes in the preliminary June bill instead of using the state rate that amounted to collecting only 6 months of taxes. So now the December bill has to make this revenue shortfall up. This now brings up a new problem that I have pointed out to the BOS Chair and the Town Administrator. The Town Administrator was no help and I had to go directly to NH DRA for guidance. The state has now given the town a 50% rate to be used in the tax bills next June. But because that rate is 50% of an 18 month budget, it is now overstated and if not adjusted, you will pay essentially 9 months of taxes next June and 3 months of taxes next December. I have been promised the BOS will take this up in the first part of the new year for some sort of resolution. This whole thing can be confusing, but hope that I clarified it a bit. If you want to discuss it further, PM me and I'll call you.

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