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NH, Mass. agree to $3.5M property tax dispute settlement

Part of the Merrimack River in Manchedster, N.H.
Gaby Lozada
Part of the Merrimack River in Manchedster, N.H.

Massachusetts has agreed to pay about $3.5 million to New Hampshire to settle a yearslong dispute over lost property taxes caused by infrastructure in New Hampshire that helps to prevent Merrimack River flooding that primarily benefits Massachusetts, authorities said Wednesday.

Some of the 15 flood control facilities constructed by the U.S. Army Corps of Engineers date to the 1940s, according to a statement from the office of New Hampshire Attorney General John Formella.

The states in 1957 entered into an agreement to ensure that Massachusetts paid affected New Hampshire communties some of the lost property tax revenue. But since 2014, the states have been unable to agree on the precise amount.

Massachusetts has now agreed to pay the full amount owed to New Hampshire dating to 2014, Formella's office said. The states have also agreed to come up with a formula to determine future reimbursements.

"After eight years of impasse, I am pleased that our two great states have been able to reach agreement on this settlement payment to compensate New Hampshire citizens for almost a decade of lost revenue," Formella said.

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