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Merrimack council backs veto of state zoning bill and moves veterans’ tax‑credit increase to second reading
Summary
Councilors voted to send a letter supporting a governor veto of House Bill 457 (statewide limits on local occupancy/parking rules) and moved a separate item to second reading that would increase an optional local tax credit for service‑connected total disability from $4,000 to $5,000.
The Town Council discussed two state measures affecting local policy and taxation on June 26.
On zoning, councilors reviewed House Bill 457, which would limit municipal authority over occupancy rules and parking minimums by setting statewide standards. Councilors said the provision could reduce local control and increase parking and safety strains in neighborhoods and workforce housing areas. The council voted unanimously to register its support for a gubernatorial veto and to forward a letter opposing HB 457 to the governor’s office.
On tax policy, staff explained an amendment to RSA 72:35 that raises the optional tax‑credit upper limit for service‑connected, permanently and totally disabled veterans from $4,000 to $5,000. Councilors discussed fiscal impact estimates (the town’s current caseload was reported as 89 recipients) and were told the change would increase the municipal tax rate by roughly 2¢ per $1,000 if the council adopted the higher local maximum. The council moved the matter to a second reading and public hearing, which will allow formal ordinance readings on the required schedule.
Both measures drew councilor concern about state preemption (HB 457) and unanimous procedural support to pursue local next steps (letter on HB 457; second reading for the tax change). The council noted the tax-credit increase would not take effect until April 2026 if adopted.
