Alfano Law Office, PLLC

Alfano Law Office, PLLC
Phone: (603) 856-8411 • Fax (603) 290-5521
4 Park Street, Concord, NH 03301
  • Home
  • Real Estate Law
    • Road Law
    • Commercial Real Estate Law
    • Tax Abatements
    • Business Law
  • Estate Planning
  • About Us
    • Paul J. Alfano, Attorney
    • John F. Hayes, Attorney
    • David Howard, Attorney
    • Ariana Baldasaro McQuarrie, Attorney
    • Jason Curtis, Attorney
    • Privacy Policy
  • Articles
  • Contact Us
    • Directions
  • Road Law Guide
  • NH Tax Abatement
    • Tax Abatement Team
    • Grounds for Abatement
    • Municipal Application
    • Owners of Properties Outside New Hampshire
    • Transfer Tax Allocation
    • Recent Laws and Rulings
  • Resources and Links
    • Calendar and Key Dates
    • Equalization Ratio
    • NAPTA
Home » Blog » Sharing Financial Statements with Your Municipality – Is It Required?

Sharing Financial Statements with Your Municipality – Is It Required?

 

In the state of New Hampshire, you are never required to share your financial statements with your municipality. At least not in the context of real estate tax assessments. 

However, we have seen some municipalities in the state request both income and expense information from at least a few commercial landlords. Those owners did not question whether or not they were legally bound to share the information and simply gave the tax assessors the information that was requested. 

Ironically enough, commercial property owners and tax assessors have been battling this topic in the courts for many years. The commercial property owners keep winning, but that doesn’t stop the tax assessors from trying to get financial information from those owners who are not aware of the current laws. 

How is Real Estate Value Determined? 

When an appraiser or assessor determines the value of the real estate, they use three methods. Those methods include:

  • Comparable Sales
  • Income 
  • Cost

Most municipalities choose the cost method because it is simple to determine how much a person paid for the property. It is also fairly easy to find out how much money an owner spent to make improvements to the same property. After all, the improvement costs are normally disclosed when a building permit is obtained. 

The income method is much trickier when determining the value of a property. This method requires the assessor or appraiser to know the property owner’s gross income, expenses, and the capitalization rate, also known as “cap rate”. The cap rates are always readily available, but income and expenses are not. 

One of the many reasons why income and expenses are not available is because so many commercial property owners do not like to disclose what they are charging for rent. This is especially true in competitive markets. 

The income method also creates issues when it comes to confidentiality. There are no guidelines in place to ensure all of the income and expense information is kept confidential and that includes storage of the information. Currently, the New Hampshire RIght-to-Know Law states that any and all information used for tax assessments must be public. So, that really creates issues with keeping this type of information confidential. 

Municipalities will continue to try to get commercial property owners to reveal their financial information, despite it being illegal. I believe it will continue to be illegal for many years though since past attempts of passing new laws have failed continuously. 

Has an appraiser or assessor asked for your financial information? Or do you know someone this has happened to? Please contact me today, so we can discuss your situation and the options you have.

Filed Under: General

The above information is for informational purposes only and does not constitute legal advice.

Subscribe to the Alfano Law Property Rights Alert

Sign Up Now

For Email Newsletters you can trust.

NH Tax Abatement

  • Road Law Guide
  • NH Tax Abatement
    • Tax Abatement Team
    • Grounds for Abatement
    • Municipal Application
    • Owners of Properties Outside New Hampshire
    • Transfer Tax Allocation
    • Recent Laws and Rulings
  • Resources and Links
    • Calendar and Key Dates
    • Equalization Ratio
    • NAPTA

NH Real Estate Law Articles

  • Airbnb
  • Common Neighborly Legal Issues
  • Court Updates
  • Dealing with Neighbors
  • Easements
  • Estate Planning
  • General
  • Historic Designation
  • Legal Documents
  • Legal Terms
  • Legislation
    • Business Law
  • Living Trust
  • New Hampshire Property Tax Alerts
  • Private Road Maintenance
  • Private Roads
  • Property
  • Property Investments
  • Property Rights
  • Property Tax
  • Property Tax Law
  • Quieting Title
  • Real Estate Law
  • Revocable Trust
  • Road Law
  • Tax Abatement
  • Taxes
  • Zoning Boards of Adjustments

Recent Articles

Nonuse of an Easement vs. Adverse Possession: What is the Difference?

Easements sometimes sit dormant for decades, even … [Read More...]

A Landmark Decision on Short-Term Rentals and Zoning

Town of Conway v. Kudrick: A Landmark Decision on … [Read More...]

A Lesson in Preemption and Local Zoning Ordinances

Joy Street, LLC v. Town of Chesterfield: A Lesson in … [Read More...]

Confirm Your Boundary Lines Before Purchasing Property

When buying a new house, it is important to have a property … [Read More...]

Article Archives

  • Facebook
  • LinkedIn
  • Twitter

Alfano Law Office, PLLC, 4 Park Street, Concord, NH 03301 USA | Phone: (603) 856-8411
Copyright © 2023 · Alfano Law Office, PLLC. All Rights Reserved · Website design by InterActive Synergy, LLC