Tax Increment Financing (TIF)

St. Albans - Stephen Goodhue
Taylor Park, St. Albans
Tax Increment Financing (TIF) Districts are a tool for municipalities to finance public infrastructure spending and spur downtown property redevelopment. Though the Vermont TIF program has undergone many statutory changes, it has been available and successful for many years.

Generally, a TIF District is established by a municipality around an area that requires public infrastructure improvements to encourage private real property development or redevelopment. The property values at the time the District is created are determined and the property taxes generated by that original value continue to be paid to the taxing authorities (municipality and the State Education Fund).

However, after VEPC approves the district, the municipality must additionally receive voter approval to incur debt to build public infrastructure. Then, once debt has been incurred, the municipality is allowed to retain a portion of the property tax revenue growth within the district to finance this infrastructure investment. These public improvements cause real property development and redevelopment to occur and, for 20 years, the portion of the property tax revenue growth which the municipality retains pays for the infrastructure debt. The tax revenue from the original value of the property and the remainder of the revenue growth goes to the taxing authorities. After the 20-year property tax retention period, 100% of the property taxes generated in the district go to the taxing authorities.

 

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 

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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)

Contact Us

Megan Sullivan, Executive Director 
802-798-2221

Abbie Sherman, Grant Program Manager
802-828-3230

One National Life Drive
Deane C. Davis Building, 6th Floor
Montpelier, VT 05620-0501

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