LEBANON — Lebanon released its new tax rates this week, with a letter by City Manager Shaun Mulholland warning residents of projected hikes to their tax bills.
Overall, Lebanon’s total tax rate decreased by 14.6% from 2021, due to sizable 20% increase — over $450 million — in the town’s total valuation.
The total tax rate decreased from $26.98 per $1,000 of assessed value in 2021 to $23.04 per $1,000 in 2022.
But the drop in rate “does not tell the whole story,” Mulholland wrote in a letter to residents.
The majority of the city’s surge in value derived from the housing market, in which the value of Lebanon’s single-family homes increased by an average of 27% from 2021.
In contrast, commercial and industrial properties, which have made up 40% of the city’s tax base in recent years, increased in value by 8% to 11%.
The differential of growth in residential homes versus commercial properties was so wide that it shifted 5% of the total tax burden from the commercial properties to Lebanon homeowners.
“Many residential property owners will see a significant increase in their property taxes as a result of this market shift when the tax bills are sent out in the coming days,” Mulholland stated.
The release of the new rates will allow Lebanon homeowners to project the full tax impact of their home’s change in value.
To illustrate through a hypothetical example, a house that was assessed at $238,000 in 2021 paid $6,442 in total taxes under last year’s rate. If that house increased in value by 36%, to $325,000, the homeowner will pay $7,488 under the new tax rate.
To learn more about the impacts of the revaluaton, visit the city website at https://lebanonnh.gov/149/Assessing-Division.
Patrick Adrian may be reached at 603-727-3216 or at padrian@vnews.com.