Costs of Development of Open Space
The tax revenue from the average new home developed in North Hampton does not pay for the increase in town and school costs.
Typical homes built in North Hampton recently have three, four or more bedrooms. These are the homes of growing families and not starter or retirement homes.
The cost of development can be shown with the following simple example.
Assume:
 1.5 Children per new home. $500,000 assessed value of new home.
Year 2000 tax rates.
Total annual infrastructure and school cost: $ 14,705.00
Town Costs:$ 1940.00 = $3.88 per 1000 with $500,000 assessed value
School Costs: $ 12,765.00 = 1.5 Children @ $8510* per child
Total taxes collected cost: $ 9,240.00
$18.48 per $1000 with $500,000 assessed value.
Increased cost to North Hampton of development : $ 5,465 per home
This simple example demonstrates that a typical new home in North Hampton costs the Town more than the tax revenue generated from that same home. It is the existing residents whose taxes are increased to offset the additional costs.
A new home must have an assessed value significantly in excess of $ 500,000 to offset the costs incurred. This value is well above the average of new homes in North Hampton.
* Cost per student of students attending North Hampton Elementary School.
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