NASHUA — After a significant decrease last year, the city’s new tax rate is up about 2.6%, according to officials.
The state Department of Revenue Administration has set the new tax rate at $21.76, which is up from the previous rate of $21.21, per $1,000 of assessed valuation.
During the city’s prior budget process, Mayor Jim Donchess was anticipating a tax rate increase of up to 3%.
“During the last four years, the average rate increases have been kept under 2.5 percent,” says a release.
The new tax rate will result in an average increase of $11.50 per month for local property owners with a home assessed at about $250,000.
“I would like to thank the Board of Aldermen, other elected officials and city staff for their hard work. Their successful efforts over the last four years have directly contributed to maintaining a stable tax rate,” Donchess said in a statement.
Last year, the city’s tax rate dropped by nearly 18%. Despite the significant decrease at the time, many homeowners still had an increase in their property taxes because of a citywide revaluation.
During the revaluation process, the values of all properties in the city increased from $8.2 billion in 2017 to $10.3 billion in 2018 — an increase of $2.1 billion, or 25.6%.
Recently, aldermen voted 13-1 to spend up to $1.3 million on a full measure-and-list revaluation of all city properties.
“If we do not undertake this, I think we are going to see some pushback from the Department of Revenue Administration who will encourage the Board of Tax and Land Appeals to order us to do this,” Attorney Steven Bolton, corporation council for the city, said at the time.
It has been nearly 30 years since Nashua has conducted a full measure-and-list, which is when assessors attempt to enter homes to ensure that property card data is accurate.
Bolton said earlier that the full measure-and-list recommendation was initially made two years ago, stressing it is not a “knee jerk reaction” to criticism that the city’s assessing division has faced throughout the past year.