After creation of a TIF District by a municipality and approval by VEPC, voters authorize municipal bonds or other debt to finance construction or improvement of public infrastructure to serve the TIF District. As the infrastructure is built and improved, the private sector follows with investments in new and renovated buildings. This private investment incrementally increases the value of the grand list. The boost in the value of the grand list and the generation of incremental revenue are the result of the TIF financing that paid for the infrastructure improvements that attracted new investment, business and visitors.
While the infrastructure debt is being repaid, the entire Original Taxable Value, or base level of annual property taxes generated within the District goes to the Education Fund. For Districts created and approved by VEPC after 2017, up to 70% of the increased property tax revenue is retained by the municipality to finance infrastructure debt. A minimum of 30% of the increased revenue is sent to the Education Fund. After 20 years, the grand list value of the properties within the TIF District are substantially increased because the infrastructure investment supports and enables increased private sector investment. From that point forward, the base and the entire increase in property tax revenue are paid to the Education Fund in perpetuity.
General Program Information
Overview (pdf)
Frequently Asked Questions (pdf)
Creating a TIF District in Vermont (pdf)
TIF Primer (pdf)
TIF District Application
Vermont Planning Atlas
Zoom in to the municipality you wish to view. You can click other layers to turn them on or off, as desired.
TIF Statute and Rule
VSA Title 24, see Subchapter 5
VSA Title 32, see Subsections f-I
TIF District Rule: Adopted May 6, 2015 (pdf)
Annual Reports
- Agreed Upon Procedures (AUP) Form for exisiting TIF Districts as part of their annual independent audits.
Burlington Waterfront TIF District AUP (pdf)
All Other TIF Districts AUP (pdf)