Keene reassessment expected to shift tax bills in different directions

Keene property owners are likely to see higher assessed values after this year’s citywide reevaluation.

Keene property owners are likely to see higher assessed values after this year’s citywide reevaluation, but the tax rate is projected to move lower, according to City Assessor Dan Langille. The result could leave some owners paying less in property taxes while others see their bills climb.

Langille told the City Council on Thursday that the final assessments will be completed in September, followed by a new tax rate in November. The N.H. Department of Revenue Administration will calculate that rate using the updated values. He said he expects it to land in the low- to mid-$20 range per $1,000 of assessed value, though several factors could still affect the outcome. The rate currently built into the budget is about $37.50 per $1,000.

The city will not bring in more tax revenue than what is already set in the 2027 fiscal year budget, Langille said. He added that the expected revenue increase from the reassessment had already been accounted for, regardless of the final rate.

The reassessment is intended to keep the tax burden aligned with current market conditions. State law requires Keene and other municipalities to revalue all property every five years. The present tax rate is based on property values from April 1, 2021, while the new figures will reflect values as of April 1, 2026.

Preliminary assessment notices are scheduled to go out next week. Property owners who want to challenge their new valuation will be able to use contact information in the mailing to arrange a meeting with the assessing office.

The expected increases are substantial across most property types. Single-family homes are projected to rise 67 percent, with the median assessment moving from $215,000 to $363,000. Manufactured homes are expected to increase 140 percent, with the median value climbing from $37,000 to $98,000.

Those changes track with the broader housing market in the city, where median home prices have risen by more than $136,000 since 2020, increasing from about $249,000 to about $385,000.

Other residential categories are also slated for larger assessments. Multi-family properties with two to four units are expected to rise 68 percent, from a median of $225,650 to $383,850. Residential condos are projected to increase 64 percent, from $161,600 to $270,800.

Commercial and income-producing properties are also expected to gain value, though at a slower pace. Apartments with five units or more are forecast to rise 49 percent, commercial properties 31 percent, and industrial properties 29 percent.

Keene property owners can expect the new assessments to play a major role in determining whether their tax bill ends up lower or higher once the new rate is set later this year.