Tax Dispute Settled

A three-year-old tax dispute between the College and the Town of Hanover has been settled out of court. Since 1967, when the town adopted "fair market value" assessments, the College has paid the taxes on its dormitories, dining halls, and kitchens under protest. The new assessments in 1967 raised the College's local tax bill by $100,000.

The net result of the settlement out of court is that the College will not receive any tax payments back, but agreement has been reached on a fair basis of assessment and the College while giving up its claim to a tax refund has gained certainty on tax matters in the future. New Hampshire is the only state in the nation that permits property taxes to be levied against the dormitories and dining halls of educational institutions.

Although these buildings were the original cause of the dispute, the agreement between the College and the Town of Hanover encompassed a much broader review of the College's local tax situation. Some properties were taken from the tax rolls or were given reduced assessments and others were added in a clearer definition of the state law. The College was especially anxious to have a firmer basis on which to plan for future construction.

The College for 1970 will pay the town $513,220 in taxes, or 21 percent of the total raised by the town.