The Select Board has completed the rate setting process with the NH Department of Revenue Administration. The 2017 property tax rate is $ 20.95 per $1,000 of assessed value. This represents a 1.4% increase over 2016.
The Board voted to use $375,000 of the Town’s Fund Balance to offset a large increase in local school taxation. The remaining fund balance at year end is now expected to be about $1.6 million. The general fund balance acts as both the town’s operating funds and “rainy day” savings.
The various components of the rate are as follows:
The largest factors driving the change in the tax rate include:
- The total assessed value of property in town increased by about $6 million, or 1%, which effectively reduces the tax rate for all properties.
- Local school appropriations increased, and revenues decreased. The net of these changes increased the tax burden by $684,000. This is the largest change impacting the total rate.
- The use of Town general fund balance reduced the tax burden by $375,000 and the total tax rate by 3%.
- Town revenue from sources other than property taxes increased by about $100,000; appropriations for all expenses increased by about $44,000. This produced a decrease in the town rate.
The Board’s decision to use fund balance is a one-time decision, which can be made during the rate-setting process. The same approach may or may not be taken next year. That decision will be based on the makeup of the Board, the available fund balance, cash flow requirements, and potential future expenses. Further, the DRA recommends a fund balance in the range of 8-17% of total appropriations, and Nottingham’s balance is now roughly 10%.
Tax bills will be mailed late this week and due Monday, December 11. June tax bills were based upon last year’s rate. The full year’s taxation at the new rate will be reflected in the December bills. Therefore in most cases, December bills will be slightly higher than June’s.