Municipalities and the developer of qualified projects may jointly apply to the Downtown Board for a reallocation of sales taxes on construction materials. Qualified projects must be located within a designated downtown district and may be eligible for a reallocation of sales taxes on construction materials. Reallocated taxes must be used by the municipality to support the qualified project.
The 2023 Sales Tax Reallocation Application and Guidelines are now available. Applications for State Sales Tax Reallocation credits are due July 3, 2023.
Read our Downtown Sales Tax Reallocation Annual Report to learn more about the program.
Program Essentials
- Applications must be for qualified projects within a designated downtown. The Board will not consider projects that are substantially completed before designation is granted to the municipality.
- Applications may be submitted either just prior to the start of construction or during construction of the qualifying project, but not after construction has been substantially completed.
- Applications will not be considered at the same Board meeting as a request for downtown designation.
- The application must demonstrate that the qualified project will be under construction within 12 months of the award date, and that the municipal project must be completed within 30 months of the award date.