New Hope's Tax Capacity Rate Explained

New Hope's Tax Capacity Rate Explained
Posted on 03/26/2021

The city of New Hope often gets questions from residents and potential residents about the property tax rate. This is because when comparing the property taxes New Hope homeowners pay yearly, New Hope's rate appears to be higher than neighboring communities. In 2021, New Hope's total tax capacity rate is 63.963%. This percentage, however, does not take into account that New Hope is one of the only communities in the area that does not levy special assessments for street infrastructure improvement projects.

In most communities, when a street project is done adjacent to a property owner's home, the property owner is billed for at least a portion of the project's cost. New Hope funds these projects through the city's annual street infrastructure levy. As a result, the cost of street improvements in New Hope is spread across all tax-paying properties without singling out individual properties for special assessments.

Removing New Hope's street infrastructure levy from the tax capacity rate comparison puts it on an equal playing field with neighboring communities. In that comparison, the total tax capacity rate for New Hope in 2021 decreases to 55.734%. The tables below illustrate the difference.

Tax Capacity Rate Comparison Grid