Every year the Town of Derry Assessing Department monitors qualified sales and the real estate market in general in Derry. The Assessor’s Office does this to make sure that current assessments are close to 100% of full, fair market value as required by the State of New Hampshire Department of Revenue administration. For the final 2015 tax year, Derry’s equalization ratio was 92.6%.
During this most recent year of qualified sales, the overall median assessment to sale ratio dropped down to 85%. This means that sale prices are approximately 16% higher than current assessments. We are seeing approximately 0.63% increase per month in the real estate market in Derry. If this real estate trend continues, and no update was completed, we would likely see a final 2016 median ratio of 81%.
Based on these studies, the Assessing Department has completed a town-wide update to all properties values for the 2016 tax year. Town wide assessments have been adjusted to account for the increasing real estate market.
The overall increase in valuation for the Town of Derry for 2016 is $285,338,776 or 10% from 2015’s total valuation. Current assessments are now reflective of full market value.
Frequently Asked Questions About Property Updates
Why must we go through another valuation update?
State law requires a full value reassessment at least every five years. This is so that assessments will reflect current market value, Statewide. As the real estate market changes (up or down), if assessments stay the same, this puts our assessments out of sync with the current market. The Town is required to have assessments between 90% and 110% of current market values when conducting a revaluation or update.
What if I disagree with the new assessment?
The normal abatement and appeal process is still available to all taxpayers. This involves filing an application after receipt of the fall tax bill (Nov/Dec 2016) and before the following March 1, 2017, requesting that the Town Council and assessors reconsider the assessment. If it is found that the application has merit, an abatement of taxes will be issued. If a taxpayer is still dissatisfied after the decision of the Selectmen, they may file with the Board of Tax & Land Appeals in Concord, or the Superior Court, but not both, prior to September 1, 2017.
What is the new tax rate?
The new tax rate will be established by the Department of Revenue Administration later this year. An increase in property value does not necessarily mean an increase in your property tax bill.