Town Council Gets Preview of Proposed Tax Incentive Plan

By Alex Malm

During the April 18 Town Council meeting, Town Manager Michael Malaguti was given the opportunity to give a preview of a proposal that would be heard during a May 9 public hearing. He said that it is a reiteration of a program that was tabled in January.
He said that the proposal is to create tax incentives that would help to reallocate the tax burden so it lowers the burdens on residential homeowners and increases it for commercial properties.
Malaguti said that by having the incentives their goal is to be able to bring in industrial and commercial users into town. He said that by doing so it would then decrease the amount that residential property owners would have to pay for taxes.
Malaguti said that the previous proposal would’ve limited the program to certain areas.
Under the new proposal he said that it would be for the entire town of Londonderry.
“I am proposing a town wide program,” said Malaguti.
Malaguti said that it would be a trial period of 18 months and would stop after 18 months unless there is action taken by the Town Council.
He said that the previous proposal would’ve sunset after five years which was the maximum allowed.
Some highlights that Malaguti pointed to is that the Council would explicitly be required to decide before they are given the benefit.
Malaguti said that they would be looking to see if it is beneficial to the town and if it isn’t then the benefit would be given. He said that they are going to consider costs and determinants as well. For example he said they would look at how much infrastructure would be needed.
“We don’t want commercial development just for the sake of having commercial development,” said Malaguti.
Malaguti said under their charter they only have a limited amount of things they are able to do when it comes to tax incentives but the proposed program is one of them.
“We have a limited set of tools the state gives us to help taxpayers,” said Malaguti.
Council Chair John Farrell said that he has been talking about needing this type of program for about five years.
Malaguti also told the Council that he had received some calls from residents who wanted to watch meetings through the cable channel but the meetings weren’t recorded because there wasn’t any staff available to record it.
He said that they are now able to tape the meetings in the room even if someone isn’t available from the cable staff.
The Council also approved sending proposed ordinances for poultry and ground water protection to a public hearing. The plan is to have the public hearing on May 23.

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