HB 1629-FN-LOCAL – AS INTRODUCED
2006 SESSION
10/09
HOUSE BILL 1629-FN-LOCAL
AN ACT relative to property revaluation schedules in towns and cities and review by the department of revenue administration.
COMMITTEE: Municipal and County Government
This bill requires that the department of revenue administration ensure that all towns or cities have a completed property revaluation in the past 2 years or complete one by December 31, 2007.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2181
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to property revaluation schedules in towns and cities and review by the department of revenue administration.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Department of Revenue Administration; Assessment Review; Schedule for Revaluations. Notwithstanding the assessment review schedule in RSA 21-J:11-b, the commissioner of revenue administration shall be responsible for ensuring that each city, town, and unincorporated place has completed a property tax revaluation and assessment review within the last 2 years prior to the effective date of this act, or that the city, town, and unincorporated place shall complete such revaluation and assessment review not later than December 31, 2007. The commissioner shall notify each city, town, and unincorporated place, within 60 days of the effective date of this act, of the assessment review schedule developed in accordance with this act.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
06-2181
11/21/05
HB 1629-FN-LOCAL - FISCAL NOTE
AN ACT relative to property revaluation schedules in towns and cities and review by the department of revenue administration.
FISCAL IMPACT:
The Department of Revenue Administrative and New Hampshire Municipal Association state this bill will increase local expenditures by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or state and county expenditures.
METHODOLOGY:
The Department of Revenue Administration states it is in the third year of performing annual assessment reviews pursuant to RSA 21-J:11-a. Part of the review is to check on a municipality’s assessment ratio and co-efficient of dispersion (COD) which is a statistical measure of equity. The lower the COD number the better overall equity in the municipality. The New Hampshire Assessing Standards Board has set among its guidelines that a municipality must demonstrate a ratio of between 90 and 110 with a 90% confidence interval and a COD of 20 or less. Due to changes in market conditions, a town would not be able to achieve these numbers unless they had done recent valuation work. While an exact figure cannot be determined, it is presumed that for some municipalities, this bill could force them to spend money on revaluations that had not been planned for except as to how it fits in with their scheduled year of assessment review, which occurs every five years.
The New Hampshire Municipal Association states to the extent this bill would require municipal assessments to be at market value more often than once every five years, it would impose additional costs on municipalities. Currently, the cost per parcel for a revaluation is between $70 and $100, depending on municipality size, location, and other factors. To require all municipalities to conduct a revaluation by December 31, 2007 (or within two years prior to the effective date of this act) would condense work that is done over a five year period into two years which would increase costs. The Association is unable to determine the exact fiscal impact at this time.