BY TIMOTHY LAROCHE
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CLAREMONT — As the city’s next operating budget takes shape, officials say they are eying a full revaluation of all properties within the city.
With less than a month left before the proposed 2019 Claremont operating budget is slated for release on May 2, City Manager Ryan McNutt said last week that he expects to propose money for a full revaluation of the city in 2019 to better reflect the tax base.
The city’s last full valuation of all land and buildings within its borders was completed in 2014.
“It would be good to get more solid information based on the rapid changes that have happened across lots of different real estate markets,” McNutt said.
In New Hampshire, the property tax rate is calculated by dividing the aggregate value of all properties in the city by the amount of money in the city budget.
When the City Council approved the current $16.3 million operating budget on June 14, a $696 million city valuation made for an estimated $15.03 city-portion of the tax rate.
However, assessment data released November 2017 pegs the city’s aggregate valuation at $701 million, a $5 million increase from 2016’s valuation. The higher total valuation dropped the city’s tax rate to $14.84 — a 19 cent decrease from initial estimates.
McNutt said that both he and newly-hired interim City Assessor Joe Lessard agreed that the full revaluation could reflect the city’s recovery from the 2008 Recession — which saw the city lose nearly $100 million in aggregate valuation — and recent growth. Since the last full revaluation, several large manufacturers including North Country Smokehouse have either moved to the city or expanded.
“There’s been a lot of changes in the United States that … it would benefit us greatly to have more accurate information,” McNutt said.
Under RSA 75:8-a, all municipalities must complete full revaluations at least every five years.
In the years in between the full valuations, the city undergoes partial revaluations of 20 percent of the city at a time. According to Department of Revenue Administration materials, the partial revaluations do not accurately track the city’s actual value — possibly creating a lag in value being reflected when the department sets the tax rate.
While no costs for the process have been released yet, McNutt said that costs will likely “be in the six-figures.” During 2015 budget development hearings, then-City Manager Guy Santagate said that costs of a full revaluation would likely fall around $400,000.
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