NEWPORT — The recently completed revaluation of town property resulted in an astonishing increase of 81% in the total value of residential property and 41% in commercial/industrial property, which includes apartment complexes and multi-family dwellings of three units or more.

Finance Director Paul Brown said in a letter to residents that if  the current tax rate was recalculated using the new valuations,  it would decrease from $33 per $1,000 of assessed valuation to about $19.70 or a 40% decrease. However, the new property tax rate (town, school and county combined) for next year won't be known until it is set by the Department of Revenue Administration later this year. The tax rate raises money needed to pay part of the expenses in the budgets passed in the spring for the school district, town and county.  

The revaluation, done by Avitar Associates of Chichester, N.H., increased the grand list — the total value of property in town — by nearly 66% or $294 million to nearly $740 million.

Brown agreed that the surge in the real estate market during the COVID-19 pandemic contributed to higher values but even with the pandemic easing, housing sales remain strong

“We have continued to see sales in July that are pretty high,” Brown said.

Revaluations are required by the state every five years.

“We are locked into the state Constitution (requirement,)” Brown said. “Sometimes we have done them at the top of the tide and sometimes at the bottom.”

He emphasized that the overarching goal of reassessments is to assess all property types equally, meaning they are the same in relation to market value.

“We hope everyone is close to equal,” Brown said

Of the total number of residential properties in town, Brown said 2,113 went up in value and 591 decreased. Of the increases, 265 went up less than $100 in valuation.

Theresa Sherman, owner of Sunshine Realty in Newport, said the dramatic increase in the value of residential property did not come as a shock to her.

“I think we have been undervalued for a long time,” Sherman said.

While COVID played a role in the demand surge, Sherman said low inventory of homes for sale and the decision by many to refinance their homes were also contributing factors.

Stephan Hamilton, Claremont’s assessor, said Vision Appraisal will be conducting a revaluation of city property next year but would not speculate on whether the results could be similar to Newport. Like Sherman, he cited the lack of inventory as the main driver of higher values.

“The New Hampshire Housing Authority continues to project a shortage of 20,000 housing units in New Hampshire,” Hamilton said. “So it is the basic law of supply and demand. When there is an extensively short supply, it shows up in higher prices.”

Newport residents who disagree with their assessment can schedule a hearing with the town. If the assessment is not changed they can file for an abatement.

Patrick O’Grady can be reached at pogclmt@gmail.com.

CORRECTION: Newport residents won’t receive property tax rates based on new property assessments until they’re set by the Department of Revenue Administration later this year. An earlier version of this story incorrectly stated that Newport Finance Director Paul Brown estimated next year’s property tax rate based on the recently completed revaluation.

 

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