CHAPTER Rev 2800 EQUALIZATION OF ASSESSMENT FOR EACH TOWN,
CITY, AND UNINCORPORATED PLACE WITHIN THE STATE
PART Rev 2801 DEFINITIONS
Rev 2801.01
"Assessing officials " means:
(a) Governing body of
a municipality;
(b) Assessors of a
municipality; or
(c) County
commissioners of an unincorporated place.
Source. #8258, eff
1-15-05
Rev 2801.02
“Equalization” means the process by which adjustments are made to each
municipality’s locally assessed values to calculate the estimated market value
of the municipality.
Source. #8258, eff
1-15-05
Rev 2801.03 “Manual” means sections 1, 3, or 8 of the
manual, approved by the equalization standards board, in effect on November 29, 2005.
Source. #8258, eff
1-15-05; ss by #8816, eff 2-6-07
Rev 2801.04
“Multi-modal” means 2 or more different classes or strata of properties
assessed at statistically different ratios.
Source. #8258, eff
1-15-05
Rev 2801.05
"Municipality", means a city, town or unincorporated place.
Source. #8258, eff
1-15-05
Rev 2802.01 Equalization Manual.
(a) The department adopts sections 1, 3, and 8 of
the
(b) The equalization
standards board’s
(1) Online at www.revenue.state.nh.us.
(2) Calling (603) 271-2687; or
(3) Writing to:
Equalization Standards Board
Clerk
New Hampshire Department of
Revenue Administration
Source. #8258, eff
1-15-05; ss by #8816, eff 2-6-07
PART Rev 2803 DETERMINING THE AVERAGE LEVEL OF ASSESSMENT FOR
EACH TOWN, CITY, AND UNINCORPORATED PLACE WITHIN THE STATE
Rev 2803.01 Municipal
Assessment Data Sheets.
(a) Municipal
assessment data sheets shall be used as part of a sales assessment ratio study
used in the equalization process.
(b) Assessing
officials shall:
(1) Return the completed municipal assessment
data sheets to the department within 45 days of receipt of the sheets; or
(2) In the case of electronic filing, return the
filing within 45 days of notification by the department.
(c) The municipal
assessment data sheets shall be:
(1) Mailed or delivered to:
New Hampshire Department of
Revenue Administration
Equalization Bureau
(2) Submitted electronically in a format
compatible with the department’s electronic system.
Source. #8258, eff
1-15-05
Rev 2803.02 Inventory
of Property Transfer.
(a) An inventory of
property transfer shall be used to verify information on the municipal
assessment data sheets.
(b) Every buyer,
purchaser, grantee, assignee or transferee shall file an original Form PA-34,
Inventory of Property Transfer with the department no later than 30 days after
the later of the following:
(1) Recording date of the deed at the registry of
deeds; or
(2) The date of the transfer.
(c) The inventory of
property transfer shall be mailed or delivered to:
New Hampshire Department of
Revenue Administration
Equalization Bureau
(d) A copy of
completed Form PA-34 shall be filed with the municipality no later than 30 days
after the later of the following:
(1) Recording date of the deed at the registry of
deeds; or
(2) The date of the transfer.
Source. #8258, eff
1-15-05
Rev 2803.03 Equalization
Ratio.
(a) The weighted mean
ratio shall be used to adjust a municipality’s modified assessed valuation.
(b) An equalization
ratio of 1.00 shall be used if the weighted mean ratio with a 90% confidence
interval straddles 1.00.
(c) The weighted mean
ratio calculated to one tenth of one percent shall be used if the weighted mean
ratio with a 90% confidence interval does not straddle 1.00.
(d) An alternate ratio
may be determined in accordance with the equalization manual if the weighted
mean ratio does not accurately represent a municipality’s level of assessment.
(e) The criteria for an
alternate ratio in (d) above, shall be:
(1) The sample of sales does not contain the
minimum of 20 valid sales;
(2) An unexplained increase or decrease in the
ratio that is more than 10% different than the increases or decreases of the
ratios in any of the surrounding municipalities;
(3) An unexplained increase or decrease in the
ratio that is more than 10% different than the increases or decreases of the
ratios in any other municipalities within the same cooperative or regional
school district;
(4) Supplemental data and information provided by
the municipality shows that the sample of sales of properties is generally not
reflective of the property comprising the municipality’s valuation base;
(5) Data and information provided by the
municipality shows the weighted mean ratio is unduly affected by multi-modal
assessments in the municipality;
(6) A municipality requests, prior to the
calculation of the total equalized valuation, separate assessment ratios by
stratum provided that the strata:
a. Contain at least 20 valid sales; and
b. Have a confidence interval, calculated with a
90% confidence level, that is wholly outside the confidence level of other
strata;
(7) For (5) and (6) above, the municipality shall
have provided accurate assessed value information consistent with the strata
category used for the application of separate assessment ratios; and
(8) In applying the separate ratios, a single,
weighted overall ratio for the municipality shall be based upon the separate
ratios and the total assessed valuation of each strata to adjust:
a. Payments-in-lieu-of taxes;
b. Railroad tax monies;
c. Shared revenues;
d. Current use values for a municipality’s
equalization ratio; and
e. Compute the municipality’s total equalized
evaluation, where applicable.
Source. #8258, eff
1-15-05
Rev 2803.04 Revised
Ratio Studies.
(a) A municipality’s
ratio study may be revised if new or revised information is presented prior to the
expiration of the appeal period pursuant to RSA 71-B:5 II.
(b) Revisions shall include, but are not limited
to:
(1) Correcting assessment errors;
(2) Considering new verified information;
(3) Correcting a sale’s property code; or
(4) Reviewing the representativeness of the
sampling.
Source. #8258, eff
1-15-05
PART Rev 2804 FORMS AND DATA SHEETS
Rev 2804.01 Municipal
Assessment Data Sheets.
(a) For the property sales
listed on the municipal assessment data sheets sent to the municipalities from
the department, the assessing officials shall verify or provide:
(1) The previous tax year's assessment, before
applying exemptions or credits unless a full revaluation was conducted for the
current year;
(2) The current tax year's assessment, before
applying exemptions or credits;
(3) A statement explaining the change if there is
a difference between the prior and current tax year's assessments;
(4) Comments verifying, amending and adding to
the sales information that may affect the inclusion or exclusion of the sale;
(5) Specific comments regarding the inclusion or
exclusion of the sale in the ratio study; and
(6) Information the assessing officials have
knowledge of which would indicate that the sale or transfer might not reflect
an arms length transaction as listed in section 3.05.02 (b) of the equalization
manual.
(b) The municipal
officials shall include a dated and signed municipal assessment sheet
certification stating:
“We, the undersigned, do
hereby certify that the assessment and sales information provided by us on the
Municipal Assessment Data Sheets has been thoroughly reviewed by this Board and
is complete and accurate to the best of our knowledge.
We understand that this
information will be used by the NH Department of Revenue Administration to
calculate the municipality’s equalization ratio. The equalization ratio will be
used to calculate the total equalized valuation for this municipality.”
Source. #8258, eff
1-15-05; ss by #8816, eff 2-6-07
Rev 2804.02 Form
PA-34, Inventory of Property Transfer.
(a) The real estate
buyer, purchaser, grantee, assignee or transferee of each transfer shall complete
and file with the department the original Form PA-34, “Inventory of Property
Transfer”.
Source. #8258, eff
1-15-05; ss by #8816, eff 2-6-07
PART Rev 2805 APPEALS
Rev 2805.01 Appeals.
(a) Assessing
officials may contact the department prior to the calculation of the total
equalized valuation for:
(1) Revisions as stated in Rev 2803.04 (b); or
(2) Consideration of an alternate ratio
methodology as stated in 3.11 of the manual.
(b) Pursuant to RSA 71-B:5,
II, a municipality may appeal the total equalized valuations calculated at the
conclusion of the equalization process with the board of tax and land appeals.
Source.
#8258, eff 1-15-05
APPENDIX
|
RULE |
STATUTE IMPLEMENTED |
|
|
|
|
Rev 2801.01- Rev 2801.05 |
RSA 21-J:13 IX |
|
Rev 2802.01 – Rev 2804.02 |
RSA 21-J:13 IX |
|
Rev 2803.01- Rev 2803.04 |
RSA 21-J:13 IX |
|
Rev 2804.01 |
RSA 21-J:13 IX |
|
Rev 2804.02 |
RSA 21-J:13 IX |
|
Rev 2805.01 |
RSA 21-J:13 IX, RSA 71-B:5
II |