Tax bills to be sent once state certifies Dover's tax rate

posted on: 10/23/2020

The New Hampshire Dept. of Revenue Administration (DRA) has not yet certified the City of Dover's tax rate. As a result, tax bills for Fiscal Year 2021 are not yet available. Once the DRA certifies the tax rate, tax bills will be prepared and mailed to property owners as soon as possible. Last year, the DRA certified Dover's tax rate on Nov. 18, which was delayed due to the state budget's late adoption.

The first half of the tax bill is due 30 days from the actual mailing date, and the second half is due by June 1, 2021.

In all New Hampshire communities, the DRA certifies the tax rate. During the budget season, the City estimates their best guess on the new property tax, but the tax rate is not official until the DRA certifies it in the fall. The estimated tax rate when City Council adopted the budget on May 13 was $25.75 per $1,000 assessed valuation.

The delay in the DRA certifying the tax rate this year is due to the ongoing COVID-19 pandemic. The DRA began posting some certified property tax rates for New Hampshire municipalities on Oct. 14. Last year, the DRA certified its first tax rate on Oct. 10.

The City of Dover's Tax Assessment Office sought and received an extension from the DRA to submit the City's Report of Valuation for Fiscal Year 2021 on Oct. 15 instead of Sept 1. The COVID-19 pandemic delayed the Tax Assessment Office's ability to perform field inspections and verifications of property sales and new construction. It’s a yearly process to ensure all properties within the City are assessed at market value. The DRA uses property assessments to calculate the property tax rate.

Because of the uncertainty of how the COVID-19 pandemic could affect non-taxable revenues, the Finance Department waited to submit its estimates of these revenues until after the fiscal year's first quarter ended on Sept. 30. Historically, the Finance Department provides its estimate of non-taxable revenues on Sept. 1, two months after the fiscal year's start on July 1.

"We have historical data, but the trends don't really apply to the current situation," said Finance Director Daniel Lynch indicating how COVID-19 may affect non-property tax revenues. "We needed a little bit more data to get a better estimate for the remaining nine months of the fiscal year."

Non-property tax revenues include motor vehicle registrations, building permits, excavation permits, dog licensing, fines, etc. On the School District-side, a significant portion of non-property tax revenue is generated by students who live outside the School District but pay tuition to attend Dover’s public schools.

The overall tax rate comprises four rates: city tax rate, state education tax rate, school local tax rate, and county tax rate. The tax rate is certified after the DRA calculates the appropriations approved by the City Council, School Board and county government. It then subtracts estimated non-property tax revenues, which leaves the amount to be raised by property taxes to pay for appropriations. This amount to be raised by property tax is then divided by Dover's assessed property values to arrive at property tax rates.

For more information, contact the City of Dover Finance Department at 6013-516-6030.