MANCHESTER — The Board of Mayor and Aldermen has approved a proposal to alter the tax cap to allow it to use any increase in property valuations in calculating the budget for the coming fiscal year.
The vote, at Tuesday’s meeting, sets in motion the process for having the change go on the November ballot.
The change would add one line to the tax cap ordinance, allowing for budget writers to factor in “additional estimated assessed value since the prior year” in crafting the municipal budget.
The annual growth in the budget would still be limited by the rate of inflation.
The increase in assessed value, through new construction, for example, could allow budget writers to reduce the overall levy on homeowners.
The board approved the motion unanimously.
— Ted Siefer, New Hampshire Union Leader