At the end of Monday’s Londonderry Town Council meeting, the councilors revisited the town’s Veterans Tax Credit and ultimately voted to increase the maximum benefit from $4,000 to $5,000, making the change effective immediately. The discussion came after questions were raised about whether the increase approved earlier in the year had taken effect as intended.
Town Council Chair Ron Dunn said he and other councilors believed the increase had already been implemented when they originally voted on it. After learning that was not the case, Dunn said he wanted to ensure the matter was corrected quickly and transparently.
Town Council Vice Chair Shawn Faber voiced strong support for making the adjustment right away.
“I wholeheartedly support that. We’ve got to take care of our veterans in this community,” Faber said during the meeting, emphasizing the importance of honoring those who served.
Earlier this year, Town Assessor Steve Hamilton briefed the Council on the legislative changes that made the increase possible. He explained that House Bill 99, which took effect on July 13, 2025, amended RSA 72:35, Ia in two significant ways.
“Recent legislation (HB 99, effective July 13, 2025) amended the provisions of RSA 72:35, Ia in two ways: it allows for the town to increase the maximum amount of the tax credit for qualifying veterans from $4,000 to $5,000 per year; and it eliminates a veteran who would qualify for another credit (such as the Standard Veterans, Optional Veterans, All Veterans credits) or exemption (such as a certain disabled veteran under RSA 72:36a),” Hamilton said.
Hamilton also clarified that the current Optional Veterans Tax Credit of $750 will no longer be combined with the disabled veterans credit going forward.
“Current adopted Optional Veterans Tax Credit of $750 will no longer be combined for qualifying disabled veterans,” he said.
Hamilton told the Council that the proposal before them was to readopt RSA 72:35, Ia with the increased maximum credit of $5,000. He noted that just under 80 Londonderry residents currently receive the credit, meaning the change would have a meaningful impact for many local veterans.
Town Manager Shaun Mulholland addressed questions about how to apply the increase retroactively for veterans who expected the higher credit this year. He explained that there is no mechanism for issuing a direct tax refund in this situation. Instead, any adjustment would need to be processed through an abatement, which requires following a statutory procedure.
Mulholland said the Town Council has the authority to issue abatements for just cause.
“That’s what the authority is to be able to do that,” he said.
Mulholland added that he plans to notify qualifying veterans that the Town Council is willing to consider abatements to ensure they receive the full benefit intended by the Council’s earlier vote.
Dunn said he would work with legal counsel to clarify the process and ensure the town follows the proper legal steps when issuing abatements.
Earlier in the meeting, during public comment, several residents addressed the issue, expressing frustration that the increase had not been implemented immediately after the Council’s original vote earlier in the year.
Resident Dennis Martin even called for the Town Manager to resign, arguing that the delay caused confusion and financial hardship for veterans who expected the higher credit.
Martin said, in reference to the delay in the Veterans Tax Credit, “I think what you’ve done, is a tragedy to veterans, and your a veteran yourself, and that’s kind of a kick in the teeth to another veteran.
The next Town Council meeting is scheduled for Jan. 12.