Greenhouse Appraisal 



How New Hampshire Does It 



■ By David Seavey 



^^B Study was conducted by the 

 ^^^^ University of New Hamp- 

 ^^^^L shire Cooperative Exten- 

 ^V^^k sion to learn about cri- 

 ^^■^^^ teria, costs, and proce- 

 j^^^^^^ dures used by differ- 

 ent towns when appraising green- 

 houses. Information obtained from ten 

 towns indicated consistency within each 

 town, but emphasis on specific criteria 

 and values varied greatly between 

 towns. The criteria used to evaluate 

 include: 



1 . Market value: Would the green- 

 house add value if the property 

 was sold? 



2. Cost of the greenhouse structure 

 and equipment if replaced: Some 

 towns make adjustments for de- 

 preciation while others do not. 



3. Income generated: A greenhouse 

 containing a high value cash crop 

 may be assessed more than one 

 growing a crop of lesser value. 

 Most towns in New Hampshire 



place emphasis on the cost of the green- 

 house structure and equipment. 



Some Greenhouses Not Taxed 



Depending on where you live, a 

 plastic covered greenhouse may not be 

 taxed. Most likely, a greenhouse op- 

 erator in this situation would like to 

 maintain a low profile and continue his 

 good fortune. Therefore, towns not 

 taxing will remain nameless. 



One assessor cited a two-step test 

 used in greenhouse evaluation: 



1. Is the intent a permanent addi- 

 tion or structure standing alone? 



2. Can the greenhouse be moved 

 without damage to itself? 



If the intent is temporary and the 

 structure can be moved without dam- 

 age, the greenhouse is considered per- 

 sonal property and not subject to taxa- 

 tion. He cited a court case whereby 

 curtain rods were taxed but not the 

 curtains. Dover assessors will consider 

 not taxing certain equipment, such as 

 portable fans (personal property), if 



they can be removed without damage 

 to the permanent structure. At the other 

 end of the spectrum , one assessor stated 

 that "if it occupies space, it's taxable." 

 All commercial greenhouses in 

 Maine and Vermont are taxed. All 

 personal property in Maine is exempt if 

 under $1,000 in value. Most towns 

 reported they would not tax walk-in 

 row tunnels because they were not on a 

 foundation and did not have electricity, 

 a floor, furnace, ventilation or watering 

 system , and other equipment idenii f icd 

 with a greenhouse. 



Evaluation Services Available 

 Many New Hampshire cities and 

 towns pay a license fee and receive an 

 appraisal service, while others write 

 their own guidelines using "gut feel- 

 ing" while appraising. Some commu- 

 nities, such as Salem and Exeter, con- 

 sider their criteria as property of the 

 town and unavailable to outsiders. 



Not all towns use the same ap- 

 praisal company. Two of the most 

 commonly used are Magee & Magan 

 Corp. and Colar & Trumble, both from 

 Massachusetts. A guide put out by 

 Marshall & Swift, a New Jersey pub- 

 lishing company, is also frequently 

 used. Some assessors belong to the 

 International Association of Assessing 

 Officers which offers the services of 

 the United Appraisal Company. And 

 square foot values differ among the 

 companies. 



Appeal Process 

 If a greenhouse operator is un- 

 happy with his/her tax bill and fails to 

 reach a settlement with the local asses- 

 sor, the option of appealing to the State 

 Land and Tax Appeals Board is avail- 

 able. Plan on waiting about one year 

 for a hearing. The board will listen to 

 testimony on comparable properly; 

 age, life, and depreciation of structures 

 and equipment; cost figures, etc. from 

 both the tax payer and assessor. Keep 

 in mind that the State will send one of 

 their appraisers to evaluate your green- 

 house and he/she will use the New 



18 



Hampshire State Manual developed 

 from Marshall and Swift. A value will 

 be placed on all greenhouses taking 

 into consideration: commercial or 

 residential; quality and type of frame; 

 covering; square feet; type of floor and 

 walls; equipment such as benches, wa- 

 tering system, fumaces, space heaters, 

 exhaust fans, humidifiers, etc. 

 Marshall & Swift Evaluation 

 To further clarify greenhouse 

 appraisal and place this tax issue in 

 perspective, the following is criteria 

 developed by Marshall and Swift Evalu- 

 ation Service: 



Average costs per square foot 

 decline as the total square footage in- 

 creases. Figures are based on a com- 

 mercial straight wall (8 ft.) greenhouse 

 with either glass or fiberglass cover- 

 ing. Foundations, roof vents, lighting, 

 and water service are included; but 

 floor, heating or cooling and special 

 water spray devices orpipingareevalu- 

 ated separately. Many adjusunents are 

 made that willreduceorincrease square 

 foot costs: 



Amateur worknnanship: 



deduct 20-30% 

 Concrete stem wall: 



add $5.50 per linear foot 

 Continuous glass: 



add 10% 

 Curtain walls: 



deduct 5% 

 Double polyglazed: 



deduct 10% 

 Single polyethylene cover 



deduct 25% 

 Modified bow (3 ft. sidewall): 



deduct 20% 



Sec Chart 1. A 

 All value/sq. ft. figures represent 

 a national average computed by 

 Marshall & Swift. To find the value/sq. 

 ft. in New Hampshire, you must do 

 two additional steps. First, you must 

 multiply the figure representing the 

 national average by a "current cost 

 multiplier" which adjusts the regional 

 value to the national one. The current 

 cost multiplier for the eastern United 

 States is 1 .05. Then, you must multiply 

 that result by a "local multiplier" , 

 which adjusts the local value to the re- 

 gional one. The local multiplier for 

 New Hampshire is 1. 01, but this may 



