First, what is it? “Equalization is the process where the state makes adjustments to each municipality’s locally assessed values to calculate the estimate 100% value of the municipality.” NH Dept. of Revenue Administration
Simply put, it helps adjust your real estate’s assessed value to meet the current market value. Sometimes the assessment may not be up to date. Your town assessor determines what your real estate is valued at using different techniques than an appraiser. It’s not updated as quickly as the real estate market changes and why the assessment ratio is needed.
So to balance out the difference, and bring the assessment up to market value, the ratio is applied and that value is used to determine your total property tax…not the assessment value.
|Total Assessed Value (AV)
Total Market Value (MV)
|= Equalization Ratio|
If the town is at a 100% equalization ratio, then the Assessed Value is what’s applied to the tax rate.
You can find the equalization ratio’s by municipality on the
Department of Revenue Administration’s website:
2015 : http://revenue.nh.gov/mun-prop/property/equalization-2015/index.htm
2016’s will not be done until early 2017, after all the tax rates are determined: http://revenue.nh.gov/mun-prop/property/equalization-2016/index.htm
-Just my thoughts, simply. Jenn
From Everything Real Estate with Jenn, post How Is An Equalization Ratio Used In NH Property Tax Calculations?
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