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Fishy Cover · 11-17-2006, 03:05 PM

The Citizen recently reported that the Meredith Tax rate has decreased from $16.25 per thousand to $10.74 per thousand as a result of the recent revaulation. A closer look at the numbers reveals that there actually is an increase of 7.7%. Here's why:

Assume a modest property that was assessed at $500,000 before revaluation and increased exactly by 63%, the rate by which the town's total valuation increased. After revaluation the assessment would be ($500,000*1.63 =) $815,000.

At the old tax rate and assessment this property owner would pay (500 x $16.25=) $8,125. At the new tax rate and assessment this property owner would pay (815 x $10.74=) $8,753. This is for a property that is the same proportional share before and after the revaluation.

This is an increase in taxes of $628 or 7.7%. The Citizen quoted Assessor Jim Commerford as saying "If we didn't have the revaluation, I'm sure the tax rate would have gone up". Does he think it did not go up? While it is true that the rate per se decreased this camouflaged an increase and I think that this way of presenting this information is deceptive and the public deserves a truthful explanation not this kind of spin.

11-17-2006, 03:05 PM	#9
Fishy Cover Senior Member Join Date: May 2004 Posts: 135 Thanks: 10 Thanked 13 Times in 12 Posts	Meredith tax rate actually increased The Citizen recently reported that the Meredith Tax rate has decreased from $16.25 per thousand to $10.74 per thousand as a result of the recent revaulation. A closer look at the numbers reveals that there actually is an increase of 7.7%. Here's why: Assume a modest property that was assessed at $500,000 before revaluation and increased exactly by 63%, the rate by which the town's total valuation increased. After revaluation the assessment would be ($500,000*1.63 =) $815,000. At the old tax rate and assessment this property owner would pay (500 x $16.25=) $8,125. At the new tax rate and assessment this property owner would pay (815 x $10.74=) $8,753. This is for a property that is the same proportional share before and after the revaluation. This is an increase in taxes of $628 or 7.7%. The Citizen quoted Assessor Jim Commerford as saying "If we didn't have the revaluation, I'm sure the tax rate would have gone up". Does he think it did not go up? While it is true that the rate per se decreased this camouflaged an increase and I think that this way of presenting this information is deceptive and the public deserves a truthful explanation not this kind of spin.