On what basis is property assessed for taxation in New Hampshire?

Property in New Hampshire is assessed for taxation primarily based on its fair market value during a periodic assessment process. This means that assessors determine what the property would likely sell for in an open and competitive market. The fair market value approach ensures that assessments are equitable and reflect current market conditions, allowing for a fair taxation policy across all properties.

Assessors routinely conduct these assessments, which take into account various factors, including the property’s location, condition, size, and comparable sales in the area to establish its value. This method aligns with the principles of property appraisal, ensuring that property taxes are based on a realistic assessment of value rather than arbitrary figures.

Other methods mentioned, such as potential rental income, previous tax amounts, or the initial purchase price, do not accurately reflect a property's current market value and may lead to inequities in taxation. Using fair market value ensures a more standardized and fair assessment process for all property owners in the state.