Board of assessors may improve the assessment/abatement process

By CHARLENE LOVETT
The events surrounding the administration’s recent decision to lower the Topstone building’s property value and abate back property taxes was the catalyst for a special meeting which the Claremont City Council held on Sept. 19. The purpose of the meeting was twofold: to educate both the council and the public on the assessment/abatement process, and to determine if the process needs to be maintained as is or modified. Legal counsel, the city assessor and city manager were present to respond to questions regarding this process. Citizens at the meeting were invited to make comments once the explanation of the process was completed.

At the beginning of the meeting, Shawn Tanguay, the city’s legal counsel, reviewed the role and responsibility of the council in the assessment/abatement process. Because we are a city council/city manager form of government and the charter contains a non-interference clause, the council has no role in the individual decisions that the administration makes regarding assessment/abatement applications. These decisions are at the operational or administrative level, and managed by the city manager. As the policy-making arm of our local government, the council’s role and responsibility is the overall assessment/abatement process and the evaluation of its execution. Consequently, Tanguay strongly recommended that the council focus on the process rather than the assessor’s decision to lower the assessment of the Topstone building and abate property taxes.

After legal counsel’s overview, the city’s interim assessor, Joseph Lessard, answered questions that the council had regarding the assessment/abatement process.  (Note: While my next op-ed will be a step-by-step tutorial on the assessment and abatement application process, this article is a general synopsis of the assessment/abatement discussion with the assessor.) The assessor considers a number of factors in determining the value of a property. It is much easier to determine the value of a residential property as there are more similar properties for comparison.  Commercial properties are more difficult; they are assessed using one of three approaches with the “income approach” being the most common. If either a residential or commercial owner believes that his/her property is over assessed, he or she can apply for an abatement. If the assessor denies the application, the property owner has the right to appeal that decision to the Board of Tax and Land Appeals (BTLA) or the New Hampshire Superior Court. The BTLA will issue an order demanding that the assessor meet with the applicant to negotiate a settlement prior to granting a hearing.

Since December 2017 the city has granted 79 abatements, totaling approximately $980,000. Many factors are considered when abating taxes. The assessor reviews the documentation provided by the applicant and, if there is good cause to abate them, the assessor has the authority to do so. Good cause can include such factors as current fair market value, inability to pay taxes and environmental concerns. Prior to 2014 the portion of taxes collected on the over assessed value of a property would be abated for the year in which the application was submitted. In 2014 the legislature changed the state statute, and assessors can now abate taxes for the years prior to the application. 

After hearing from the assessor, the council questioned City Manager Ryan McNutt on his role in the assessment/abatement process. As the city manager, he is responsible for the management of the assessor. While he does not necessarily know the details of all of the abatement applications, he is aware of those applications requesting a significant abatement. 

After the city manager’s input, the council heard from the public. Everyone who spoke was concerned with the administration’s decision regarding the Topstone building. Some citizens offered suggestions for improving the assessment/abatement process. While the council could not respond to questions specifically pertaining to the Topstone building, it could consider the public’s input regarding process improvements. One such suggestion was the establishment of a Board of Assessors (BOA).

The cities with a city council/city manager form of government that have adopted BOAs include Berlin, Concord, Keene, and Lebanon. Membership and responsibilities vary from one city to another. However, the boards do provide a mechanism for public input and oversight during the assessment/abatement process. Given recent events, it has become apparent that the establishment of a BOA in Claremont would be an improvement to the process. Consequently, the council agreed to have the Policy Committee, with input from the administration and legal counsel, draft an ordinance creating a BOA. Once drafted, it will go before the council for consideration. Given the impact that the assessment/abatement process has on property owners and the city, the council has made this a top priority.

 

Charlene Lovett is the mayor of Claremont and welcomes your feedback.  Please email questions, comments or concerns to her at [email protected].