The property tax serves as the major source of revenue for funding municipal expenses, the county tax obligation, the school district obligation and the statewide property tax enacted in 1999. The statewide tax formula is based on the number of students in the town, the number eligible for school lunch and equalized valuation. Equalized valuation is ascertained by the N.H. Dept. of Revenue Administration. The equalized figure represents the total assessed valuation including the adjusted ratio. This ratio is the difference between the assessed valuation compared to the previous year’s reported real estate sales. For example,
the 2000 assessed valuation of Jackson was $143,539,210. The year 2000 equalized valuation as calculated by the state was $169,215,231, reflecting the 78% adjusted ratio. The first year of the statewide property tax added 48% to the Jackson property owner’s tax bill.
The annual budget is prepared by the selectmen, and in January given an initial review by a “sounding board.” This is an informal group of citizens including department heads, employees, town officers and everyone interested in the budgetary process. The proposed budget is reviewed line by line and edited to reflect the concerns and comments of the board. The statutory budget hearing must be held at least 25 days prior to town meeting.
Anticipation is the guiding consideration in managing the town’s finances. Capital reserve funds are established for the purchase of highway, police and transfer site vehicles and equipment. Escalating property values require serious consideration of a town wide revaluation particularly in light of the statewide property tax. Increased traffic on town roads, increasing tonnage at the transfer site, and closer municipal supervision of new building projects, all add to the overall rise in municipal expenditures.
The 1988 purchase of the Gray’s Inn property, site of the new town office building, was the first long-term debt assumed by the town in recent history. The fifteen-year note will be paid off in 2003. Both the highway and fire departments need added garage space. The town has empowered the Planning Board to begin work on a Capital Improvements Plan that will itemize capital expenses for every segment of the community on a six-year projection. The plan will be reviewed annually to accommodate the economic climate and to verify dollar amounts, population changes and revenue projections.
Town Expenditures
*State statute requires that the appropriation warrant articles for the library and the cemeteries must reflect that total budget figure even though all or part of theses appropriations will be reimbursed from trust funds.
**revaluation of town
***includes $7.18 to the NH. statewide education property tax
Note #1 – In 1988 and 1989 this category included legal expenses, association dues, employees’ social security, Medicare and NH retirement, tax liens, abatements and refunds, SAR project, flood damage expenses and account transfers including transfers to investment accounts in 1995 and 2000.
Note #2 – In 1988 these funds were spent for a new police cruiser, grader wing and road reconstruction. In 1990 expenditures included a highway truck, police cruiser, the Jackson share of a new ambulance, bridge repairs, road reconstruction and reappraisal of the town. In 1995 the town purchased a new fire truck body and a new highway truck.
Note #3 – This includes payments to the Jackson school district, Carroll County tax, capital reserve appropriations and the State of New Hampshire.
Comparative Tax Rates
*In 1990 a town wide revaluation was completed and in 1994 the assessed valuation was refactored in response to a recession in the national economy.
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