Property Taxes

The principal tax of the City is the tax on real and personal property. There is no limit as to rate or amount. A single tax is levied for state, county, municipal, and school purposes. For New Hampshire municipalities the “assessment year” for taxing purposes runs from April 1 to March 31 of the following year. Taxes are due in Manchester in two installments, on July 1 and December 1 (subject to deferral if tax bills are sent out late). Interest accrues on delinquent taxes at a rate of 12 percent per annum from the due date to the date of payment. Real property (land and buildings) is subject to a lien for the taxes assessed upon it (subject to any paramount federal lien and subject to bankruptcy and insolvency laws). The City places a lien on delinquent property prior to May 1 of the following year. From the date of the tax lien, a two-year period of redemption is allowed the owner, during which time payment of taxes, interest, and costs will be accepted and the lien released. During the redemption period, 18 percent interest per annum is charged. Beyond the two year period of redemption, properties are deeded to the City (unless either the lien has been sold by the City, or the City has notified the collector that it will not accept the deed because acceptance could result in liability under environmental statutes imposing strict liability on owners). Except for any paramount federal lien and subject to bankruptcy and insolvency laws, tax liens take precedence over all other liens, and tax collector’s deeds are free and clear of all encumbrances.

The amount to be levied in each year is the amount appropriated or required by law to be raised for municipal expenditures less estimated receipts from other sources and less appropriations voted from available funds.

Tax Levy Calculations

The annual tax rate and tax levy are typically established by the State of New Hampshire Department of Revenue Administration (DRA) in October or November of the fiscal year, based on adopted appropriations of the City and Hillsborough County and anticipated non-property tax revenues. Tax rates and levies are established separately for the state, county, municipal, and school portions.

Property Tax Rate is calculated using the following formula:

(Appropriation - Non Property Tax Revenue) / Assessed Value = Tax Rate

Tax Rates and Tax Levies

The following table sets forth the City’s tax rate per $1,000 valuation, the gross tax levy, and the tax levy per capita for each of the last five fiscal years.

(1) Based on the Office of State Planning - current year unavailable.
 

Property Tax Rates

The following table sets forth the City’s tax rate, by City, School, and County, for each of the last five fiscal years.

(1) Rates are based on assessed value of property. Assessment rate for real property is 100% percent.
(2) Tax rate reflects revaluation year.