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Economic development committee urges selectmen to back five-year commercial/industrial tax exemption
Summary
The Loudon Economic Development Committee outlined a proposed commercial and industrial construction tax exemption under RSA 72:81 to encourage business investment, recommending a five-year sliding relief schedule and public outreach ahead of town meeting.
The Loudon Economic Development Committee presented a proposal to the Board of Selectmen on Tuesday to authorize a commercial and industrial property tax exemption under RSA 72:81 to attract new businesses and expand the town’s nonresidential tax base.
The proposal would let the town grant temporary relief on the increase in municipal and local school property taxes for qualifying new construction or rehabilitation for up to five years. "It's a tax incentive tool to help improve Loudoun's tax base," EDC member Ned Lassotte said during the presentation.
The committee recommended a five-year sliding exemption for the increased assessment on newly developed or rehabilitated property, with sample percentages of 50% in year one, 40% in year two, 30% in year three, 20% in year four and 10% in year five, followed by full assessment thereafter. "This is one of the few tools we have in New Hampshire," Mike Tardiff of the EDC said, urging education and outreach before town meeting.
Why it matters: The committee told selectmen the exemption is designed to delay, not eliminate, new tax revenue from development; if land remains undeveloped the town receives no additional tax revenue, and if developed the town collects more revenue over time as the exemption phases out. Presenters said the exemption could be applied townwide or limited to commercial/industrial zones by action of town meeting, and that the board of selectmen would approve individual requests and may attach conditions.
During discussion selectmen and committee members raised likely target areas for the incentive, including the commercial zone along Route 106, International Park Drive, the industrial park on Staniels Road, and reclaimed sand-pit parcels when they become available for redevelopment. Committee members said the exemption could be combined with other state or regional incentives and can be tailored with a public-benefit test the town meeting defines (for example job creation, new services, blight removal or diversification of local employment).
No formal vote was taken. The EDC said it will prepare warrant language, examples for public handouts and hold informational sessions ahead of town meeting to seek voter authorization to adopt the exemption provisions and to set any maximums on duration or percentage relief.
What’s next: The EDC and selectmen agreed the committee will draft warrant language, prepare education materials and appear at town meeting to explain the proposal. The selectmen emphasized that each application would be considered by the board on a case-by-case basis and that approval is discretionary.
Ending: The presenters asked the board for feedback and said they will return with proposed article language and public outreach plans in advance of the next town meeting.
