Mr. Peters, 

     I have received a letter from you concerning commercial development and how 
they relate to property taxes.    Unfortunately your questions are vague and really 
should be more specific.  I can tell you that most commercial property is beneficial 
to a municipality compared to residential property.  Usually new commercial development 
increases tax revenue to the municipality without the high expense associated with 
new residential buildings.  As an example the Pheasant Lane Mall tax bill is over 
$2 million annually, while expenses associated with the mall for the city do not 
come close to that, thus providing a positive cash flow for the city.  Compared 
this to a new single family home with 2 children attending public schools.  
The tax bill on the home may be $5,200 annually but it costs the city on average 
over $8,000 per student to educate.   The simple fact is that property taxes on a 
residential home seldom pays for all municipal expenses associated with that home.        

     Some of your questions relate to the Planning Division (impact fees) others 
relate to the Assessing Dept.  If you would like I can forward your letter to each 
group and have them respond back, but it might be better for you to come in and meet 
with us.

     The above figures are estimates and are not exact, also I realize that dollars 
are not the only factor in a community but this is how tax revenues and expenses 
relate to commercial development. 

David G. Fredette 
Treasurer/Tax Collector 
City of Nashua 
589-3185 
mailto:fredetted@ci.nashua.nh.us