During a recent City Council meeting, Mayor Paul Callaghan addressed concerns regarding the citywide revaluation and its impact on some homeowners.

The 2024 tax rate in Rochester has been set at $14.85 per $1,000 of property value, representing a significant reduction of 42.3% from the 2023 rate of $25.74. This decrease is one of the largest percentage reductions in the region, made possible by a Full Statistical Revaluation that increased the city’s net assessed valuation by $2.3 billion.

The revaluation ensures that all properties are assessed at fair market value as of April 1, 2024. The previous citywide revaluation was completed in 2019, as required by New Hampshire’s State Constitution (Part 2, Article 6), which mandates revaluations at least every five years.

An increase in property value does not necessarily mean an increase in an individual property tax bill. The revaluation redistributes the tax burden more equitably, ensuring all property owners contribute their fair share based on current market values.

Rochester’s updated tax rate is now the lowest compared to neighboring communities with Somersworth at $18.70, Dover at $18.17, and Newmarket at $17.20.

Mayor Callaghan acknowledged that some homes, particularly single-wide mobile homes, have been impacted, noting that some mobile homeowners have seen valuations “double, and sometimes almost triple.” The increase is largely due to the revaluation aligning property assessments with the current real estate market.

In recent years, property values in Rochester have risen sharply, with many homes selling at historically high prices. As a result, properties that were previously undervalued saw larger increases in their assessments, leading to higher property taxes. Properties that were already assessed closer to market value may have experienced little to no change in their tax bills. In some cases, homeowners even saw a decrease in their taxes due to the city’s substantially lower tax rate.

The Mayor reminded residents that exemptions and tax relief are available to those who qualify, stating “We saw [the revaluation] coming and increased the income and exemption levels for the elderly and disabled,” adding that the current City Council has implemented further increases since then.

“In just over two years, there have been $20 million in additional exemptions for property tax relief,” said Callaghan. “Altogether, it’s $58 million in value that is exempted based on the work [the Council] has done in the past three years.”

To better assist residents, the Assessor’s Office has updated online resources to include:

• Information on exemptions and credits for elderly, disabled, and Veterans.
• A list of sales used in the revaluation process.
• A link to GIS online, for property owners to view property record cards.

Property owners who believe their 2024 assessments are overstated have the option to file for an abatement. Applications are being accepted until March 1, 2025. For more information on the abatement process, visit www.rochesternh.gov/assessing/pages/abatements-and-appeals.