Despite decrease in Laconia tax rate, rising home values mean a bill jump for many

LACONIA — Tax bills hit mailboxes across the city this week and, though the city tax rate went down this year, many city residents will see their bill increase.

The city tax rate, calculated by the state using the assessed value of property citywide and the amount of money the city must raise through taxes, was set at $14.85 this year — down more than $4, about 22%, from last year. This rate means that property owners pay $14.85 for every $1,000 of assessed value on their property. 

Of the total rate, $6.17 goes toward municipal services, $0.85 goes toward county services, $6.86 to local education and $0.97 to state education. 

“The tax rate went down because of the large increase in overall assessed value of property in the city,” City Manager Kirk Beattie said. 

Notably, this doesn't mean property owners will pay less in taxes this year.

Properties whose value went up at a greater rate than the citywide average will take on a greater proportion of the tax burden and saw a more significant jump in the bill year over year.

“A large number of property owners will see a somewhat large increase in their bills,” said Beattie, because residential properties saw the biggest increase in their assessed value. Those whose value “increased well over the average will see more significant bill increases.”

Total citywide property was assessed at just under $873 million, a 35% increase from last year.

The city performs its assessments annually, reassessing properties on a rotating five-year cycle. Citywide property value is calculated annually. This process is undertaken, rather than an all-at-once approach, to ensure citywide assessed values keep up with the market.

Those with residential condominiums had the largest increase in their assessed value this year at 44%, according to Beattie, and are among those property owners likely to see the largest increase in their bill.

Home values are on the rise because of a booming real estate market.

“Assessed value is a sales-driven figure,” Beattie said. “It takes into account the sale price of similar properties in similar neighborhoods.”

Beattie said there were more than 400 sales in the city this year. 

If anyone has a question or concern either about their assessment or about their tax bill, Beattie encouraged them to come to City Hall and work with Laconia’s Assessing Department. 

Tax bills are due at the end of the month.

To understand more about how tax rates and bills are calculated, visit tinyurl.com/63rdykhe and tinyurl.com/bdd8vd7v.