By Tom Dolan
April 30, 2008 07:00 am Residential property taxes in Southern New Hampshire need to drop. If we can agree on that premise, then let's move on to the how. Londonderry's town officials so far have made selective targeted cuts in the town budget to help lower taxes. They've trimmed several line items, reduced employee benefits, and cut back public services. Two main problems have hindered this approach: 1) The needed political will to say "no" to every public consumer is not present; 2) and even if we had the will, we simply can't get there from here. This singular budget-cutting approach is flawed. An important piece is missing. The question that leaves many taxpayers scratching their scalps is: "The budget went up only 1 percent but my taxes went up 10 percent. How can that happen?" If we answer that question, the solution to the property tax problem will be become more clear. Answer: In the unprecedented run-up of residential property values over the past 10 years, the increase of commercial/industrial property values lagged considerably. This resulted in a major shifting of tax burden to the place where property values grew — people's residences. Let's work to shift the tax burden back to commercial/industrial taxpayers. It should be done sooner rather than later and it must be done fairly. Business growth is the vehicle. More and more businesses paying their fair share of property taxes means less of a burden on residential taxpayers. And with Londonderry in possession of the biggest and most lucrative industrial zone (near the airport) in the state, is it time to throw a party? No, not yet. As the airport access road is built and this valuable land is opened up for development, a "Field of Dreams" approach relying simply on serendipity could eventually work but it might be our great-grandchildren who first see any tax relief. Communities like Derry and Hooksett have already seen the light and local pols are competing hard for new businesses to locate in their respective towns. Community business development is becoming increasingly more competitive. Londonderry, as well, must actively seek out and compete for new business relocation into what many have said is the best location in New England. It is surrounded by major road arteries, an airport, sources of new power/steam, sewer utilities, and a well-trained work force. Londonderry officials can step up their activity to accelerate the rate of growth (while leaning out the site plan approval process) through strategic planning and professional business development techniques. Londonderry should cultivate a more business-friendly reputation among builders and real estate agents. It'll be a change of pace and a lot of unglamorous spade work for Londonderry Council members. But direct involvement and capture-teaming may indeed be just what the doctor ordered to secure new growing corporations to locate in Londonderry and achieve rapid economic development. Residential tax bills can't wait much longer.
Tom Dolan is a longtime Londonderry resident and former town councilor. E-mail your thoughts on his column to editor@derrynews.com or mail them to: Derry News, Box 307, Derry, N.H., 03038-4510.
—
Copyright © 1999-2008 cnhi, inc.