This is a file image of some of Hampton’s proud veterans, not necessarily connected with the referenced tax credit.
Shall the Town of Hampton vote to increase the amount of the property tax credit for the veterans’ optional tax credit previously adopted by the Town in 1991 from $500 to $750 in accordance with the authority provided by Chapter 148 of the Laws of 2018? (Majority vote required)
What it means: The Town currently offers a $500 optional veteran’s tax credit (RSA 72:28). A “yes” vote would increase the credit to $750, in the tax year beginning April 1st. The optional veterans’ tax credit would be subtracted each year from the property tax on the veteran’s residential property.
According to the Town Assessor, 793 Hampton veterans received the credit in 2018 totaling approximately $396,500 reduction in collected tax revenue. If the proposed increase is passed, the foregone tax revenue would increase to approximately $595,000 if all 793 veterans applied for the credit, an increase of $198,500.
Those in favor say: The credit was adopted in 1991 and hasn’t been increased since. Those in favor would like to continue the Town’s support for our veterans, and do not want to see longtime residents move due to property tax costs.
Those opposed say: Residents will need to consider their tax rate impacts and understand that budgets may need to be trimmed in other areas to account for the increased expense to help support veterans.
Fiscal impact: There is no direct “cost” so the Article reads “no tax impact”. However, there will be less revenue collected in the amount of $198,500. That will create an additional tax burden for the average Hampton home valued at $405,000 of $23.94. (Take your property value divided by 1000 and multiply by .059 to get your specific tax impact.) That cost will remain for future tax years.