We received some thoughtful emails this morning that pointed out a need to clarify some information about the Appraisal Update aritlce we posted yesterday. There were three questions that we felt needed more explanation.

Question 1) Don’t the new appraisals take into account the current real estate market slowdown while the town-wide assessment does not? Won’t that create inequity with the rest of the town whose values don’t reflect the slow down?

That is a good question. The appraisals that were arranged through the Taxpayers Alliance were “retrospective appraisals”. A retrospective appraisal is used to determine a property’s value at a specific date in the past, so that they are not skewed by current market trends. This type of appraisal is commonly used in abatement situations so that a property’s market value will be determined as of the date of the Town’s assessment. A retrospective appraisal is used to eliminate a conflict with the town-wide assessment.

The appraisals mentioned in yesterday’s email were all retrospective appraisals. The market value of those properties was determined as of April 1st, 2007, the same date as the Town’s reassessment. In fact, they use the same comparable sales as Avitar and the State of NH Dept. of Revenue Administration used for that same time period.

Question 2) Why did the email say, “If property values on the lake continue to decline, an appraisal done late this year may support an abatement claim for 2008.” That statement appears to be in conflict with the previous statement that the appraisals are equitable with the rest of town.

Another good question! This is just a case of poor wording. The point that we were trying to make is that a property owner can file an abatement to correct an improper assessment until the next reassessment occurs (which will be in 2011). You cannot file next year for an abatement for the 2007 tax year, that deadline has passed. But, you can file in subsequent tax years until the next reassessment occurs in 2011.

If an abatement is granted, it will only be valid from the year you file until the next reassessment occurs. Abatements are not applied retroactivley to prior years. Again, if you file for an abatement for the 2008 or later tax year, a retrospective appraisal would be necessary and/or the town would have to factor in general market trends in determining your abatement claim.

If market values were rising rapidly, then the increase in market value could conceivably catch up with the over assessment, making it more difficult to support an abatement claim. However, our point was only that real estate market trends look poor for quite some time into the future, so it may be worth considering having an appraisal done next year. Correcting the over-assessment for 4 out of 5 years is better than not having it corrected at all.

This is all very hard to say clearly, we're doing our best. The abatement process is not designed to be easy for property owners. Hopefully this information helps.

 

Question 3) Are people on the lake trying to get special treatment?

No. We believe we have proof that Avitar and the Town incorrectly valued our property by using a non-standard, unsupportable, land valuation method which grossly over inflated our assessment values. This land valuation method was only used on Pawtuckaway Lake properties. It was not used on any other waterfront or non-waterfront property in Nottingham. This has caused an inequity with the town-wide assessment that we believe should be fixed. Our only goal is, and has been, to correct this error.

We hope this helps clarify yesterdays article. If not, please let us know. We'd be happy to hear from you.

As many of you know, the Alliance negotiated a volume discount with a local company to assist property owners with appraisals for their 2007 abatement claims. A total of 51 Pawtuckaway Lake property owners, roughly 16% of the 327 total properties reassessed, took advantage of this program.

The Town of Nottingham required that all supporting material for abatements be filed by April 4th, 2008. The appraisers just finished the final appraisal and have supplied us with some information about the results (except for those property owners who chose not to share their data).

Many residents were in contact with us stating that they had filed an abatement with existing appraisals from refinancing, recent real estate sales, or using their own comparisons. Those properties are not included in these statistics.

Out of the 51 appraisals we have data for, 8 properties were assessed fairly and 43 properties were over-assessed.

12 properties were over-assessed between $75,000 and $116,000

8 properties were over-assessed between $51,000 and $74,000

13 properties were over-assessed between $26,000 and $50,000

10 properties were over-assessed between $5,000 and $25,000

8 properties were assessed fairly

Properties were over-assessed as much as 25.8% of their value.

The total over-assessment of all 43 properties was $2,302,100. The total taxes collected this year from the 43 properties on just the over-assessed value was $30,548. The total taxes that will be collected over the next 5 years (until the next town wide reassessment) will be $152,744, an average of $3,552 in taxes per household.

These figures represent just 16% of the properties on Pawtuckaway Lake that were reassessed.  These properties represent a very diverse group of properties ranging from $216K to over $650K.  They also represent a very wide diversity of frontage. Over-assessments occurred at all strata of property.

What is absolutely clear is that something was fundamentally wrong with the way the Town and Avitar calculated property values on Pawtuckaway Lake. These 51 property owners paid for retrospective property appraisals from State of NH certified appraisers’ to verify their feeling that they were over-assessed.  The results are in: the reassessment of Pawtuckaway Lake properties was flawed. And, if this diverse group of properties which only represents 16% of all the reassessed properties is any gauge, there are a lot of other property owners on the lake who are paying a great deal more than their fair share of taxes.

The State of NH and the Town of Nottingham have set aside an overlay of $70,000 to handle abatements this year. This group of 43 property owners’s abatement claims represent 44% of the overlay. Judging by the numbers, we suspect that many more property owners would have been entitled to an abatement.

For those that did not file for an abatement this year but suspect that they have been over-assessed, there is always next year. Remember, the values from this reassessment will be the basis for your taxes until 2011. If property values on the lake continue to decline, an appraisal done late this year may support an abatement claim for 2008.

Click here to download a pdf file with more appraisal details: Pawtuckaway Lake Appraisal Results

After many hours of discussion, NH licensed appraisers Chet Rogers and John Markle have agreed to offer Pawtuckaway Lake Taxpayers Alliance members a discounted abatement appraisal. The two appraisers have teamed together to gain efficiencies in producing appraisals and will pass the savings on to our members.

The team has experience performing abatement appraisals, waterfront appraisals, and retroactive appraisals. The special Alliance members price of $250 is available upon filling out the Rogers & Markle Proposal which is now available on the web site here: Rogers & Markle Proposal. Instructions, explanations, and contact information are available in the proposal.

They have also provided an example Abatement Application to help those using their service prepare their forms. The appraisals cannot be done until the snow melts so the Abatement Application forms need to specify that the appraisal will be following after the abatement application is submitted. This is detailed in their example form, available here as a pdf file: Example Form.  A blank Abatement Application you can use to file your application is available here: Blank Form

The Alliance provides this information solely as a service to it's members, the appraisers are not affiliated with the Alliance, and the services will be provided solely by the appraisers themselves. This listing is not to be construed as an endorsement of any particular appraiser.  Copies of the appraisers resumes and State of NH licenses have been provided to the Alliance. If you are a member and would like a copy,  email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   requesting that we send you a copy.

Even as I write this, I am downloading the documents necessary for me to obtain an appraisal of my property in connection with my plans to file an abatement request.  I want to take advantage of the offer made possible by the Taxpayers Alliance for a discount price on an appraisal before the offer expires.  We should all seriously consider filing for an abatement even if we believe the overall assessment of land and buildings is not extremely high and we feel we can "suck it up this year".

The message posted by Tom Duffy offers excellent reasons why as many of us as possible should file abatement requests this year, especially on the heels of the Special Town Meeting.  It seemed all too clear to most of us that the Selectmen were defensive at that meeting, while speakers were impassioned and well-informed.  The result of such a disconnect is that the Selectmen can claim not to understand what all the fuss is about or what the tax protesters want them to do about it.  Tragically, this attitude does nothing to demonstrate to aggrieved taxpayers that our elected officials listened or heard what we had to say.

It is therefore important that we continue to let them know that we remain, for the most part, dissatisfied with their treatment of this issue and of us as residents.  By filing abatement requests in large numbers (which cost nothing), we can send them this message.  By getting appraisals, which is not necessary for an abatement, we can establish a baseline of fair market value for both land and buildings.  Because next year or soon thereafter, you can be sure that buildings will be on the menu for review and reassessment!

So, join us, I encourage you all.  Discount appraisals are available until March 1.  February is just around the corner!

The Town of Nottingham has posted the following notice requesting volunteers for an Advisory Assessing Committee. "NOTICE: The board of selectmen, as a result of the special town meeting, is forming an advisory assessing committee. If you are interested in serving on this committee, please contact the town administrator either by phone 679-5022 or by email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . If you have any questions, call the town office 679-5022." The online newspaper The Forum has also posted an article about the commitee which you can read here: Forum Article

We encourage anyone who is interested in volunteering some time to ensure a fair, equitable, and transparent appraising and assessing process for Nottingham to sign up for this committee. This is one of the few tangible, positive outcomes from the Special Town Meeting and we should contribute our time to making the most of it.

I noticed Tom's appeal for people to proceed with their abatement requests. That indicates to me that some (many?) are not going to request an abatement. My experience with Avitar at the Board of Tax and Land Appeals (BTLA) indicates that the BTLA places weight on the number of appeals filed by taxpayers, even those filed at the municipal level!

The BTLA use the number of abatement appeals as a measure of how bad the situation is in a Town. Avitar and the municipality use low numbers of abatement appeals to portray the situation as a "minority" of disgruntled taxpayers... A small problem.... Inferring that each individual case is not an indicator of an overall problem and therefore without merit.

Even without an appraisal I would encourage everyone who feels their assessment is too high to file an abatement appeal. Filing for an abatement does not cost the taxpayer or the Town any money. With the money the Town set aside as an overlay and the evidence presented by those that do get appraisals, abatements may be granted at the municiple level with little "evidence".. , but "good cause" shown.

My reading of the contract between the Town and Avitar obligates Avitar to "defend" their opinion of assessed values, at no cost to the Town at the municipal level (even though Avitar is not the contract assessor at this time). Again, it is important for those that go on to the BTLA or Superior Court to be able to state the "number of appeals" at the Municiple level in support of their claims.

[Note: the Taxpayers Alliance will work on a template abatement form to help those who want to appeal without an appraisal. Look for this form to be posted on the website in a couple of weeks.]

You won’t apply for abatement? After all that complaining, you won’t pay for an appraisal? Ask yourself a simple question:  can I SELL my property for  the ASSESSED Value  in today’s market? Now, I’ll ask you: How would you feel if the Assessors came into your house and RAISED your assessment and taxes?
Oh, Yes! They can do that!

Why?  Because only the LAND portion was reassessed.  When they see any improvements you have “above the average” your assessment and taxes can go up.  Obtaining a FULL APPRAISAL now can have the effect of “locking in” your market value, especially with the many pictures that you will take (preferably with a date/time stamp camera). So, when you request an abatement, you will posess what every court needs to see –EVIDENCE with an expert opinion. Continued...

According to the NH Real Estate Appraiser Board, the State of New Hampshire does not require that all individuals holding themselves out to the public as a real estate appraiser be licensed. However, Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 requires that all appraisals performed in connection with federally related transactions (i.e. most mortgages) shall be performed only by certified or licensed individuals.

New Hampshire State law further mandates that any real estate appraisal service performed by an individual licensed or certified under the NH Real Estate Appraiser Board shall be subject to the supervision of the board. Continued...

State law provides a means for a Town's Assessors to put aside funds from each tax levy in a reserve that is called an Overlay. This account is established in anticipation that a certain percentage of the tax levy may end up being abated. Individual tax abatements are paid out of this fund. The final amount of the overlay account is determined by the Assessors and added to the tax rate without appropriation (meaning its only purpose is for abatements), In the State of NH the overlay cannot be greater than 5% of the tax levied.

For the 2007 tax year the Board of Selectmen, as the Town's Assessors, chose to set aside an overlay of $70,000. This is the pool of funds they set aside to be used to grant Nottingham residents abatements for the 2007 tax year.

What is an appraisal?

An appraisal is defined as an opinion of value by professional appraisal standards (Uniform Standards of Professional Appraisal Practice, see below). Appraisers consider appraising to be both an art and a science. You probably have an opinion of the value of your home. Your opinion and a professional appraiser's opinion may be the same. But appraisers are required to be objective and impartial in their analyses and opinions. A professional appraiser has been trained in appraisal methodology and looks at how your home compares with sales and listings of homes similar to yours, considers many factors such as price trends and proximity to a freeway, complies with professional standards, and usually completes a written report.  Continued...

A couple of additional sources for finding qualified appraisers in New Hampshire include the Federal Financial Institutions Examination Council on-line database of licensed appraisers available here: ASC Database.  Also, the New Hampshire Chapter of the Appraisal Institute has a list of Senior Residential Appraisers (SRA's) available here: NH SRA.  (These listings are not to be construed as an endorsement of any particular appraiser.)

Like most states in the United States, New Hampshire’s tax abatement process puts the burden on proof upon the applicant. In most cases this requires an appraisal report which then becomes the basis for the tax abatement appeal. The tax abatement process can be cumbersome and confusing. As a result, many property owners are reluctant to file a tax abatement application.  Continued...

Now that the tax bills are out, what are the options available for those residents negatively affected by the recent reassessment of Pawtuckaway Lake properties? An article detailing the recent work of the Taxpayers Alliance volunteers has just been posted. This article will explain the avenues that have been explored, the knowledge that was learned, and the conclusions that were reached about how to proceed from here.

As you will see, the path ahead is not clear and the decisions that have to be made are tough ones. We hope this article provides some assistance to our members in making these personal decisions. A copy of the article is available for download as a pdf file here: What's Next?

It was very disappointing for the Nottingham residents watching the Selectmen’s meeting on cable TV on December 17th, 2007. It was clear that the Board did not understand the intentions and expectations of the voters who petitioned and subsequently passed the six warrant articles at the Special Town Meeting, and therefore, the Board will possibly take action contrary to the intent of the articles passed or will be inclined to take no action.

To assist the Selectmen, the Taxpayers Alliance has prepared this list of articles, the intention of petitioning them, and the expectations of the voters who passed them at Special Town Meeting. We believe it was clear to everyone in attendance that inaction by the Board of Selectmen was not the mandate from the voters.

Click here for a copy of the Letter to the Board of Selectmen: Letter to BOS

At the December 15th, 2007 Special Town Meeting all six warrant articles petitioned by the Pawtuckaway Lake Taxpayers Alliance passed by majority vote. According to the Town Moderator, 389 Registered voters turned out for the six hour meeting. There was alot of healthy debate about taxation, assessing, standards, and oversight before the articles were brought to a vote by secret ballot. The following table shows the results of the vote on each Warrant Article: