PORTSMOUTH – City Assessor Rosann Lentz warned that “people can expect a 50 to 60 percent increase in the value of their homes” once the ongoing reassessment is completed.
“This is typical of what other communities are reporting, some may be higher,” Lentz said in an interview on Wednesday.
Lentz also confirmed City Manager Karen Conard’s report that the average single-family home tax rate will likely increase from $482,000 to $750,000 in fiscal year 2024.
The last complete revaluation of property values in Portsmouth took place five years ago.
“People will be shocked, that’s for sure, just like in any other community,” Lentz said.
How much a property’s assessed value increases “depends on where in the city you are, essentially your location,” Lentz said.
The value of commercial real estate is not increasing as quickly as that of residential real estate
According to Lentz, the reason why home values are rising faster overall than commercial real estate is the demand for homes.
At the same time, property values have risen “less for some than for others,” she said.
When asked if she thought there would be a shift in the amount of property tax in Portsmouth paid by homeowners versus commercial property owners, Lentz said, “I don’t know yet.”
“I can’t know until I have the final numbers in front of me,” she said. “The commercial business has not grown as quickly as the private business, I can say that,” Lentz added.
Here’s how Portsmouth residents can learn more about property revaluation
Lentz is scheduled to host a taxpayer reassessment forum on Wednesday, September 4, at 5 p.m. in the council chambers of City Hall.
Among the topics she will discuss are how assessments are handled in the state, how market value is determined, what taxpayers can do if they have questions about their assessed values and how they can prepare, the forum’s agenda said.
“Remember, our goal is to determine market value,” she said.
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In addition, a working session of the city council with Lentz on the re-evaluation is planned for Thursday, September 5, at 5 p.m. in the council chamber.
When do property owners in Portsmouth receive notices of their revaluations?
Lentz said final valuation numbers would not be known until the Sept. 4 meeting.
“I’m still checking the numbers…” Lentz said. “I just want to make sure my numbers are pretty solid before I do anything, because I check everything.”
Lentz expects that the owners will receive their notifications – with the new value information – in the fourth week of September.
Then, starting in the first week of October, property owners will have the opportunity to schedule either in-person or telephone hearings to question or contest their valuation, Lentz said.
The property owners will meet with representatives from Vision Government Solutions, a company hired by the city to conduct the revaluation.
“I just want people to be prepared. Portsmouth is no different than any other community,” Lentz said. “They should be prepared for the typical increases that have been reported in other communities, depending on how the market has evolved.”
She encouraged people to attend the Sept. 4 meeting, where they can ask questions or visit the city assessor’s page on Portsmouth’s website.
Lentz plans to continue adding more information to the website in the future, including a new tax calculator that will help people calculate their expected tax liability using the higher value and the expected lower tax rate, she said.
Mayor of Portsmouth: Property prices are ‘shocking’
Mayor Deaglan McEachern admitted: “As a child who grew up here, I am shocked by the current real estate prices in Portsmouth.”
“As an elected representative, it shows me that we need more housing at every level,” McEachern said in an interview Wednesday. “The only way prices can come down is if we make Portsmouth less attractive or we create more housing… If we don’t build more housing, the ones we have are much more valuable because this is the best place to live in America.”
He noted that the city’s last full reassessment was five years ago and that happened before the COVID-19 pandemic. But “a lot of people are going to look at that (their new assessments) and immediately be very frustrated, I expect that.”
As property values rise, Portsmouth’s tax rate falls, but the burden may shift
McEachern stressed that the City Council will set a new, lower tax rate once the reassessment is complete.
“The more property values rise, the lower the tax rate will be,” he added.
Although the value of most homes in Portsmouth has increased significantly, “that doesn’t mean taxes are going up for everyone,” he explained.
After a revaluation, it is usually the case that “the tax rate goes down” while “property values go up,” McEachern said.
“The more commercial value we have overall in the city, the less the housing burden will be on taxpayers,” he said.
McEachern and Lentz both agreed that people whose home values increase more than others are more likely to face a tax increase.
In addition, homeowners could expect higher taxes if the share of homeowners in the overall tax burden increases compared to owners of commercial real estate, it said.
Portsmouth wants to increase tax exemptions for seniors and disabled people
Due to rising property values, the City Council is also working with Lentz to increase property tax exemptions for elderly and disabled residents. A public hearing and vote is scheduled for the Council meeting on Tuesday, September 3.
“They are already the largest in the state,” the mayor said.
Lentz recommended increasing the exemption amounts in view of rising property values and the associated impact on tax relief, Conard said.
The proposal calls for raising the current exemption amount of $235,000 for residents ages 65 to 74 to $375,000, raising the existing exemption amount of $285,000 for residents ages 75 to 79 to $450,000 and increasing the exemption amount for residents ages 80 and older from $335,000 to $525,000, city records show.
The proposal also calls for increasing the current disability exemption from $235,000 to $375,000, city records show.
“We are doing everything we can to provide this property tax relief to our seniors and disabled people,” McEachern said.
