Derry taxes to climb 3.3% say town officials
November 03. 2013 11:56PM
DERRY — Property taxes are going up 3.3 percent this year, according to town officials.
The state Department of Revenue Administration has set a tax rate for 2013 of $31.49 per thousand of assessed valuation, an increase of $1.01 over the 2012 tax rate of $30.48, town officials said.
The school rate increased from $16.35 per $1,000 valuation in 2012 to $17.34 this year. And the state education rate rose slightly from $2.59 in 2012 to $2.62 this year.
The combined school and state education rates increased by 5.4 percent, according to officials.
A reduction in state adequacy aid of over $1.5 million was responsible for 0.65 percent of the increase in the school rate, said Jane Simard, business administrator for the Derry Cooperative School District.
Adequacy funding is calculated by the state and varies by school district, Simard said.
"We lost $1.5 million in adequacy," Simard said. "Some people went down, some stayed the same and some went up. It's different for every district. Ours obviously went down significantly."
Salary and benefits, including an increase in the N.H. Retirement System costs, were primarily responsible for the remainder of the increase in the school rate, Simard said.
Pinkerton Academy's tuition rate increased, but the overall costs decreased due to lower enrollment. The state education rate increased 3 cents.
The 2013 rate was unchanged for the town services rate of $10.39 per thousand of assessed valuation.
In Derry's 2013 budget, the Town Council had previously approved the flat rate, said Frank Childs, financial officer for the town.
"That's basically what the council anticipated when they approved it in May," Childs said. "They anticipated a 0 percent increase."
The county rate barely increased from $1.14 to $1.15 per thousand of assessed valuation, according to the town.
A comparison of the tax impact on an average home shows that the tax bill in 2012 for a home valued at $232,700 was $7,093. In 2013, that number jumps to $7,328, according to officials.
Overall valuation for the town increased by .7 percent due to the added property values from new construction and additions/remodeling of approximately $16.2 million, according to officials.
The net town appropriation to be raised by local taxation increased from $24,231,040 in 2012 to $24,389,046 this year, according to figures provided by the town.
The net school budget, to be raised by the local taxation, increased from $44,103,132 in 2012 to $46,805,274 in 2013, according to officials.
Property tax bills are expected to be mailed by Friday, Nov. 8, with payment due to the town by Tuesday, Dec. 10.