Nashua mailed notices of property tax valuation

By ANDREW NELSON, Telegraph Staff

Published: Wednesday, Sep. 22, 2004

NASHUA - Bill Chisholm opened up his mail Monday to find he was facing an estimated tax increase of nearly 21 percent for his house on Orlando Street.

That's a $638 increase this year, and means the Chisholms' property taxes will have gone up $1,000 in the two years since they bought the three-bedroom colonial in the middle-class Little Florida neighborhood. The house was recently assessed at $187,700, an increase of nearly 48 percent. "My income hasn't matched that," Chisholm said.

All across the city this week, families like the Chisholms have been sifting through a mailing from the city, figuring out what the new property assessments mean for their pocketbooks.

The city mailed out new property assessments to all of the city's 27,000 property owners over the weekend. This is the first time the city has updated the assessments across the board in four years.

Phone calls to City Hall that started slowly on Monday had picked up on Tuesday, as property owners called the Assessing Department, along with the mayor's office, to question city administrators.

Chief Assessor Angelo Marino said people are calling and asking questions about why the assessment update was done.

"We are trying to explain it best we can," he said.

The mayor"s office received several calls and a few e-mails about the updates, said Mayor Bernie Streeter. He said the update needed to be done, to reflect the current values of homes.

People are encouraged to take advantage of the senior citizens exemption and veterans tax credit programs offered by the city, Streeter said. Property owners have until March 2005 to apply to the Board of Assessors for an abatement to lower their assessment.

The assessment update raised the total assessed value of the city from $5.6 billion to $7.1 billion, while lowering the city's estimated tax rate to $19.87 per $1,000. The exact tax rate will be set in the fall by the state Department of Revenue Administration.

Chisholm, a 34-year-old recruiter for IT jobs, is one of the 34 percent of property owners in Nashua expected to face a tax increase of more than $500, according to city data.

More than eight out of 10 owners of multi-family homes will get a tax hit of more than $500.

Chisholm said the government never seems to be able to spend less, even though families, like his with three children, often do.

As his family looks to put down roots here, Chisholm said he fears what taxes will cost him five years down the road. The estimated taxes for his family's home are $3,735, an increase of $638.

A weakness in the system is the property tax does not reflect a person's ability to pay, said Chisholm, a Republican. An income tax would be fairer, but Chisholm said he fears the government would then have two ways to tax people - an income tax and property tax.

Robert Gravina of 25 Durham St. said it isn't the $280,300 assessment of his home that bothers him, but the tax rate and how the money is used. The assessment is an increase of 31.9 percent for him.

Gravina said his ex-wife owns a home in California valued at $1.5 million, but pays about $3,000 worth of taxes. His tax bill is estimated to be $5,578, an increase of nearly $400, or 7.7 percent.

Gravina, who is 61, said the taxes would encourage people without children in the school system to move out of the city. The bulk of city taxes goes to pay for the education system, which Gravina, a former college professor, said is greatly flawed.

"You are going to force people to go to Florida," said Gravina, who has lived here since 1968.

Roy Hugenberger faces a tough choice, not on his home, but on an investment property.

The assessment increased on his multi-family home at 32 Sargents Ave., but the lower tax rate is expected to make his tax burden about $38 less.

What bothers Hugenberger is an increase on a rental property he has owned for two years.

The multi-family property at 80 Blossom St. increased in value from $122,500 to $192,000, a jump of 56.7 percent. The taxes are going to an estimated $3,821 from $2,985, an increase of 28 percent.

That will put a squeeze on his tenants, he said.

"How do I impose and collect another $850 in rent to break even when I know tenant incomes are not keeping up with government spending, "Hugenberger wrote in an e-mail via The Telegraph's Reader Advisory Network.

The second property has not received large-scale improvements, but it is in good shape in a nice neighborhood, he said.

Hugenberger wrote that he is learning that real estate is "no longer going to be a positive experience because of a maligned tax system."
Other owners of multi-family units face similar situations. Assessing Department figures show that the average multi-family house was assessed at $135,900 before the update, and increased in value by 56 percent, to $212,000.

The average tax increase for the more than 2,400 multi-family units in Nashua is 27 percent.

As residents' assessments go up, some commercial owners are seeing a decrease in their tax burdens, reflecting a softer commercial real estate market.

One of the most valuable pieces of real estate in the city, the Pheasant Lane Mall, is now assessed at $125.5 million, a 13.6 percent increase.

However, with the estimated drop in the tax rate, the mall's owner will pay an estimated $2.5 million in taxes, a drop of nearly $200,000. That's a 7.3 percent decrease in taxes for the mall.

A phone call to the mall management was not returned Tuesday.

Marino said many commercial properties would see lower tax bills coming from the update, even though the properties' assessments rose.

The commercial properties did not increase at the same rate as the residential market, he said.

Overall in the city, there is a shift of about 4 percent of the total burden from commercial to residential property, Marino said.

Andrew Nelson can be reached at 594-6415 or .


	By ANDREW NELSON, Telegraph Staff Published: Wednesday, Sep. 22, 2004 NASHUA - Bill Chisholm opened up his mail Monday to find he was facing an estimated tax increase of nearly 21 percent for his house on Orlando Street. That's a $638 increase this year, and means the Chisholms' property taxes will have gone up $1,000 in the two years since they bought the three-bedroom colonial in the middle-class Little Florida neighborhood. The house was recently assessed at $187,700, an increase of nearly 48 percent. "My income hasn't matched that," Chisholm said. All across the city this week, families like the Chisholms have been sifting through a mailing from the city, figuring out what the new property assessments mean for their pocketbooks. The city mailed out new property assessments to all of the city's 27,000 property owners over the weekend. This is the first time the city has updated the assessments across the board in four years. Phone calls to City Hall that started slowly on Monday had picked up on Tuesday, as property owners called the Assessing Department, along with the mayor's office, to question city administrators. Chief Assessor Angelo Marino said people are calling and asking questions about why the assessment update was done. "We are trying to explain it best we can," he said. The mayor"s office received several calls and a few e-mails about the updates, said Mayor Bernie Streeter. He said the update needed to be done, to reflect the current values of homes. People are encouraged to take advantage of the senior citizens exemption and veterans tax credit programs offered by the city, Streeter said. Property owners have until March 2005 to apply to the Board of Assessors for an abatement to lower their assessment. The assessment update raised the total assessed value of the city from $5.6 billion to $7.1 billion, while lowering the city's estimated tax rate to $19.87 per $1,000. The exact tax rate will be set in the fall by the state Department of Revenue Administration. Chisholm, a 34-year-old recruiter for IT jobs, is one of the 34 percent of property owners in Nashua expected to face a tax increase of more than $500, according to city data. More than eight out of 10 owners of multi-family homes will get a tax hit of more than $500. Chisholm said the government never seems to be able to spend less, even though families, like his with three children, often do. As his family looks to put down roots here, Chisholm said he fears what taxes will cost him five years down the road. The estimated taxes for his family's home are $3,735, an increase of $638. A weakness in the system is the property tax does not reflect a person's ability to pay, said Chisholm, a Republican. An income tax would be fairer, but Chisholm said he fears the government would then have two ways to tax people - an income tax and property tax. Robert Gravina of 25 Durham St. said it isn't the $280,300 assessment of his home that bothers him, but the tax rate and how the money is used. The assessment is an increase of 31.9 percent for him. Gravina said his ex-wife owns a home in California valued at $1.5 million, but pays about $3,000 worth of taxes. His tax bill is estimated to be $5,578, an increase of nearly $400, or 7.7 percent. Gravina, who is 61, said the taxes would encourage people without children in the school system to move out of the city. The bulk of city taxes goes to pay for the education system, which Gravina, a former college professor, said is greatly flawed. "You are going to force people to go to Florida," said Gravina, who has lived here since 1968. Roy Hugenberger faces a tough choice, not on his home, but on an investment property. The assessment increased on his multi-family home at 32 Sargents Ave., but the lower tax rate is expected to make his tax burden about $38 less. What bothers Hugenberger is an increase on a rental property he has owned for two years. The multi-family property at 80 Blossom St. increased in value from $122,500 to $192,000, a jump of 56.7 percent. The taxes are going to an estimated $3,821 from $2,985, an increase of 28 percent. That will put a squeeze on his tenants, he said. "How do I impose and collect another $850 in rent to break even when I know tenant incomes are not keeping up with government spending, "Hugenberger wrote in an e-mail via The Telegraph's Reader Advisory Network. The second property has not received large-scale improvements, but it is in good shape in a nice neighborhood, he said. Hugenberger wrote that he is learning that real estate is "no longer going to be a positive experience because of a maligned tax system." Other owners of multi-family units face similar situations. Assessing Department figures show that the average multi-family house was assessed at $135,900 before the update, and increased in value by 56 percent, to $212,000. The average tax increase for the more than 2,400 multi-family units in Nashua is 27 percent. As residents' assessments go up, some commercial owners are seeing a decrease in their tax burdens, reflecting a softer commercial real estate market. One of the most valuable pieces of real estate in the city, the Pheasant Lane Mall, is now assessed at $125.5 million, a 13.6 percent increase. However, with the estimated drop in the tax rate, the mall's owner will pay an estimated $2.5 million in taxes, a drop of nearly $200,000. That's a 7.3 percent decrease in taxes for the mall. A phone call to the mall management was not returned Tuesday. Marino said many commercial properties would see lower tax bills coming from the update, even though the properties' assessments rose. The commercial properties did not increase at the same rate as the residential market, he said. Overall in the city, there is a shift of about 4 percent of the total burden from commercial to residential property, Marino said. Andrew Nelson can be reached at 594-6415 or .