KEENE, N.H. (MyKeeneNow) Dan Langille, the city assessor for Keene, spent Tuesday morning breaking down some of the most frequently misunderstood parts of the local property tax system during an appearance on WKBK Radio’s Good Morning With Dan Mitchell.

Langille covered everything from tax-exempt properties and payment in lieu of taxes (PILOT) agreements to tax increment financing districts and the city’s ongoing revaluation, which is required by state law every five years.

Nearly A Quarter Of Keene Property Is Tax-Exempt

Langille said the city receives roughly $1.5 million annually in voluntary PILOT payments from six or seven organizations, including the local hospital and Covenant Living. PILOTs are not mandatory taxes but negotiated contributions from otherwise tax-exempt entities.

Under state law, property tax exemptions fall into three primary categories: religious, educational and charitable. To qualify as charitable, a property must be owned, used and occupied for a clearly defined mission that benefits a broad segment of the public.

“These exemptions are dictated by state legislation,” Langille said, noting they are separate from federal IRS nonprofit status.

Government-owned property — including municipal buildings, county facilities and public schools — is also exempt.

Langille said about 23 percent of Keene’s total property is tax-exempt, a figure comparable to communities that host major institutions such as universities, hospitals or serve as county seats. Conservation land may be fully exempt if state-owned, or taxed at a reduced “current use” rate if privately held.

How TIF Districts Work

The conversation also turned to tax increment financing districts, commonly known as TIFs.

Langille explained that when a TIF district is created, a base property value is established for a defined area. If the city invests in infrastructure improvements — such as roads, utilities or parking — and property values rise as a result, the additional tax revenue generated from that growth is set aside to pay off the bonds used to fund the improvements.

Importantly, property owners inside a TIF district still pay the full tax rate. The TIF changes how the city allocates that incremental revenue internally.

Keene has used TIF districts in areas such as Railroad Square and downtown. Currently, the downtown TIF remains one of the primary active districts.

Revaluation Underway

Langille emphasized that the citywide revaluation now in progress is routine and required by state statute. The city has contracted with Vision Government Solutions to assist with the process.

City staff are currently in the data collection and verification phase, reviewing recent sales, building permits and property records. Property owners receive advance notice if staff plan to visit, and officials aim to visually confirm the characteristics of every property to ensure records are accurate.

The valuation date is set for April 1. After data collection concludes, the outside firm will analyze hundreds of sales to determine land values, building costs per square foot and neighborhood adjustments. Proposed values will be reviewed over the summer and eventually presented to the City Council before notices are mailed to property owners.

Keene’s total assessed property value is currently just under $3 billion.

Don’t Panic About The Tax Rate

Langille cautioned residents not to multiply their new assessment by the current tax rate — about $34 per $1,000 of value — to estimate future bills.

“When the total assessed value of the community goes up, the tax rate comes down,” he explained, adding that the rate could fall into the $20 range after revaluation.

The amount a homeowner ultimately pays depends on how their property’s value changes compared to the community as a whole. If the citywide value increases by 65% and a particular home rises by less than that, the owner could see a smaller tax impact — or even a decrease — despite the higher assessment.

Total tax revenue is driven by approved municipal, school and county budgets, not by the revaluation itself.

Addressing Listener Concerns

Langille also fielded questions from callers.

One asked whether homeowners with scenic views, such as of Mount Monadnock, pay a separate “view tax.” Langille said there is no separate charge; market value already reflects what buyers are willing to pay for such features.

Another caller suggested assessing homes at their sale price and increasing them annually by inflation until the next sale. Langille said that approach, used in some states with broader tax bases, could create inequities in New Hampshire, where property taxes are the primary revenue source. Two identical homes purchased at different times could end up with dramatically different tax bills.

He also addressed concerns that a single out-of-state buyer overpaying for a home could skew neighboring assessments. The assessing office analyzes large pools of sales data and filters out extreme outliers, he said, focusing instead on median trends.

Appeals And Next Steps

After assessment notices are mailed, property owners will have an opportunity to review their data and meet with the revaluation firm if they believe something is incorrect. Once final tax bills are issued, residents can file for an abatement through the assessing office if they believe their property is overvalued.

Applications are available online and through the Assessing Office at City Hall on Washington Street, which is open weekdays from 8 a.m. to 4:30 p.m. Property owners who remain dissatisfied after a local decision may appeal to the New Hampshire Board of Tax and Land Appeals or Superior Court.

Throughout the interview, Langille stressed that accurate data and public engagement are key.

“Budgets drive taxes,” he said, encouraging residents to participate in local and school district budget discussions if they are concerned about long-term tax trends.

Listen to the full interview: