To relieve property taxes for Wilton residents and compete with commercial development over the border in Milford, the town’s select board favored a prorated tax exemption for new business construction.
Board Chair Thomas Schultz said at a work session on Thursday that he wants to lower property taxes by expanding the town’s tax base. He also shared concerns that Milford’s development on the town border is pulling customers and tax revenue from Wilton.
“Milford is literally developing on Wilton’s doorstep,” he said.
As they work to set parameters for a new tax exemption for commercial and industrial properties, approved by voters on the warrant article earlier this year, select board members said they want to set Wilton apart. Businesses can apply for a tax exemption for new construction, additions or renovations in town.
To give Wilton an edge, the select board is looking at a 50% tax break on the improved assessed property value for six years, then a 10% decrease each year until 10 years have passed.
“What that does is it provides Wilton, given the other towns that have adopted it, we’re more generous and incentive than the others both in terms of value and in terms of longevity,” said select board member Frank Edelblut.
About a dozen towns in New Hampshire, including Milford and Salem, have opted to create similar programs, which are enabled by state law.
Wilton is leaning toward the prorated formula, similar to Salem’s.
The board has jurisdiction over how many years the exemption can last and what percentage each applicant receives but favored a formulaic approach to avoid subjectivity.
The exemption would only apply to municipal and local school taxes, not state education or county taxes.
Applicants must meet at least one public benefit to apply. The warrant article outlines five broad public benefits pulled from the state: increased tax revenue/enhanced economic growth; creation of needed services; redevelopment or revitalization of commercial and industrial properties; prevention of blight; and retention, creation or diversification of job opportunities.
The program’s overall goal is to promote economic growth and expand the town’s tax base while creating needed services and facilities not currently available in Wilton.
Following in Salem’s footsteps
Salem’s town council adopted the program in 2024 to promote redevelopment of commercial and industrial properties, foster economic growth and encourage smart development practices, according to the town’s website.
The program has the same requirements set by the state, but each town can decide how it defines public benefits and assesses applications.
Salem’s public benefits are similarly broad but tailored to the town’s goals. Its program also establishes additional public benefits specific to districts in their town, mixed-use buildings and the number of jobs created.
Salem’s rules extend for five years, with a tiered approach starting at 50% in year one, 40% in year two and so on for all approved applicants.
The Wilton Select Board liked this version for a standardized approach to each applicant, hoping to avoid subjectivity in determining how many years each applicant receives the exemption and the exemption percentage based on public benefits.
The other options would require the board to evaluate the applications based on the broad public benefits highlighted in the warrant article or add additional considerations, which Edelblut said he didn’t feel comfortable doing without voter input.
Set Wilton apart
After reviewing several options for the tax exemption model and information about Salem’s program, the board decided to use the prorated method but recognized that Wilton’s needs differ from Salem’s.
“What is an incentive for someone to do something in Salem may not be an incentive for somebody to do something in Wilton,” select board member Kermit Williams said.
Unlike Salem’s program, Wilton’s tax exemptions can last up to 10 years, and the select board wants to use that to its advantage.
Schultz noted that no one has applied for the community revitalization tax relief incentive passed in 2017, which provides homeowners and commercial businesses with a five-year tax break on building improvements.
“It might be of more value to go for a bigger amount,” Schultz said, to incentivize applicants for this new program. He said he’d be happy if they received at least one application a year.
Additionally, the board wants to require applicants to meet at least two of the public benefits outlined in the warrant article for approval, hoping to ensure they fit the town’s goals and the master plan.
This part of the application is still up in the air because the warrant article defines a public benefit as just one of the five listed, so the board plans to receive counsel from the town attorney before moving forward.
Once the town attorney addresses their questions, the board will finalize its plans and draft an application. The program will go into effect on April 1, 2027.