Tax bills will be sent out to all property owners at the end of May and are due on July 1, 2024. The Town of Wolfeboro calculates taxes and tax ratio rates using a straightforward process. The Town assesses the market value of properties to determine the property tax owed by each homeowner and then charges taxes based upon multiplying that assessed value by that year’s tax rate. Here's a simplified explanation of the process:
Assessment of Property Value
The Town, usually using a third-party assessment company, assesses the value of each property within its boundaries. This assessment considers factors like the size of the property, its location, condition, any improvements made to it, and recent sales of comparable properties in the area.
Properties are assessed every five years, or sooner, based on how far off the town is from a target range of 90 - 100% (of market value) ratio.
There are guidelines or requirements to ensure that assessed values align reasonably closely with market values. If the assessed values deviate significantly from market values, it may prompt a re-evaluation to achieve a fair and equitable distribution of the property tax burden. Note that individual property owners may dispute their property’s valuation, but not the tax rate, by the timely filing of a request for tax abatement with the Town Assessor’s office.
NH Department of Revenue (DRA) or local assessing authorities can provide information on triggers or circumstances under which a re-evaluation might be required and the desired range for assessed values in relation to market values.
Each January – March, the DRA reviews a representative sample of each Town’s property sales from the previous year to compare the actual sale price (taken from the Registry recorded Tax Stamps) to the Town’s then assessed value.
Town Tax Rate Determination
Once the total assessed value of all properties in Wolfeboro is determined, the NH DRA sets a tax rate. The tax rate is expressed as a certain amount per $1,000 of assessed property value.
The NH DRA establishes the overall tax rate for each municipality in accordance with RSA 21-J:3. Included within this tax rate is not only our Town property tax rate, but the additional rates used for calculating our Town’s share of taxes paid to Local Schools, State Schools, and Carroll County.
The equation for how the rate is calculated is:
Tax Rate = (Budgeted revenue) (x 1000)
(Total assessed prop. value)
In this equation:
Tax Rate: The amount of tax per $1,000 of assessed property value.
Budgeted Revenue: The total amount of money needed by the Town to fund its approved Town budget for services, infrastructure, and other expenditures.
Total Assessed Property Value: The combined assessed value of all taxable properties in Wolfeboro.
Calculating Individual Property Tax
To calculate property tax for an individual property owner, multiply the assessed value of your property by the tax rate and then divide by 1,000. This gives you the annual property tax owed.
Here’s how it works mathematically:
Prop. Tax = (Ass'd Indiv. Prop. Value x Tax Rate)
1,000
Tax Ratio Rates
The tax ratio is a way to ensure fairness in property assessments. It compares the assessed value of properties to their market value. If, for example, the assessed value is consistently below the market value, the Town may adjust the tax ratio to bring it more in line.
In summary, Wolfeboro calculates property taxes by assessing property values, and multiplying the assessed value by a State determined tax rate to find the annual tax owed. Tax ratio rates may be adjusted to ensure overall fairness in property assessments.
To get the most accurate and current information on this matter, contact the NH DRA or the Wolfeboro town assessor's office for details specific to the current regulations and practices.
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