Abatement on Property Assessment

COMMONLY ASKED QUESTIONS REGARDING PROPERTY ASSESSMENTS

Abatement Form is available below in highlighted text!

Why does my property assessment always change? 

a)During a five year period, our contracted assessor performs cyclical house inspections to update the physical data of each property. The City is divided up into sections for this purpose. You can find out when your next inspection is by contacting the Assessor’s Dept.

b)Each year our contracted assessor will thoroughly review any building or demolition permits and adjust the assessment accordingly.

c)Every 5 years the Dept. of Revenue Administration requires a Full Statistical Update because the real estate market changes over time and the City’s Assessment must be updated to reflect current property sale prices. This was last done in 2022.

Final assessments are approved by the Berlin City Council and the Assessment Process is monitored by the Dept. of Revenue Administration. Each time there is an update, many factors are looked at including, but not limited to: characteristics of neighborhoods, building conditions, property and building sizes, property types and how recent qualified sales in Berlin apply to all these categories. As an example, if market sales show that single family ranches are selling at higher prices, the model will be adjusted accordingly.  An increase in property value does not necessarily mean an increase in your property tax bill. 

 How are my property taxes determined?  The City of Berlin’s tax rate is determined by the City Budget which is set annually by the Mayor and Council.  The budget is typically presented to the Council in March, and action must be taken by the council no later than June 19th of the fiscal year. The tax rate is set annually, usually in the Fall, by the NH Dept. of Revenue Administration. A tax rate is made up of the City Portion, Local School Portion, County Portion and the State Education Portion.

Your tax bills is then calculated as followed:

TAX BILL = ( (ASSESSMENT divided by 1,000) X TAX RATE)

Why do my tax bills always change?

A Tax Year is from April 1st to March 31st.  Tax bills come out twice a year, typically in June and December.  Since the new tax rate for a Tax Year is not finalized until the Fall of each year, the first tax bill in June is calculated using the previous year’s tax rate. By the time the December tax bills are calculated, there is a new tax rate which is used.

-The June bill is an estimate of taxes-calculated using the previous year’s tax rate

-The December bill is the final bill-the December amount owed will be the total year’s bill minus what was previously paid in June.

How do I apply to my municipality for an abatement? If you feel your assessed value is higher than market value, you have the opportunity to submit an abatement application with the Assessor’s Office. The window of opportunity to file is annually, after the December taxes are mailed out and no later than March 1st of the following year. You can obtain an abatement application form, either at the Assessor’s Office at City Hall, 168 Main St or electronically here: ABATEMENT APPLICATION after December Tax Bills are mailed out. 

How do I complete my abatement application? Full instructions come with the application.  “Good Cause” must be shown by the taxpayer. Generally, ‘good cause’ means:

• An error in the physical data: review your property record card for any errors in collected data. A card can be obtained from the Assessor’s Office or on the Berlin website 
• Market data – this should be supported by comparable and qualified sales in the City of Berlin. i.e. no foreclosures, inheritances, bank re-sales, etc  If you have any recent appraisals, please submit with the application.
• Level of assessment -- this should be supported by showing how the assessment was disproportionate by a) showing what the property was worth (market value) on April 1st of the year appealed, and b) that the property’s ‘equalized assessment’ exceeded the property’s market value.  To calculate the equalized assessment, simply divide the assessment by the municipality’s equalization ratio (assessment/ratio). Market value is a crucial issue, so taxpayers must have an opinion of the market value estimate which can be shown by obtaining an appraisal or presenting sales of comparable properties.
• Poverty or Inability to pay -- state in detail, with supporting documents, why an abatement of taxes is appropriate as opposed to some other relief such as relocating, refinancing, or obtaining some alternative public assistance.

           Burden of Proof-- Please note that the burden of proof that your ‘property assessment’ is incorrect lies with you, the taxpayer.To carry this burden, you must show what the property was worth on April 1st of the year appealed.Using comparable sales is an essential part of most appeals. It is required that you provide in writing all evidence of your claim.This information is essential for the contracted Assessor and the City Council to review your claim.A blank form or a simple statement of ‘we feel we are over taxed’ will result in a denial based on insufficient evidence.The taxpayer needs to show why the ‘assessment’ is wrong, and how the assessment has resulted in the taxpayer paying a disproportionate share of taxes.

How to Appeal the Municipality’s Denial of an Abatement? After a properly filed abatement application is denied by the Berlin City Council or deemed denied after the following July 1st, you can either:

• File an application for or letter requesting an abatement with the Board of Tax and Land Appeals, Governor Hugh J. Gallen State Office Park, 107 Pleasant Street Johnson Hall, Concord, NH 03301. Application forms can be obtained from the Board of Tax and Land Appeals 603-271-2578 or online at https://www.nh.gov/btla/. Forms must be filed by the following September 1st  after a denial from the Berlin City Council.

            OR

• File a petition for abatement the Superior Court in your county: Coos Superior Court, 55 School Street, Suite 301, Lancaster, NH  03584.