Vermont § 1896 - Tax increments

§ 1896. Tax increments

• (a) In each year following the creation of the district, the listers or assessor shall
  include not more than the original taxable value of the real property in the assessed
  valuation upon which the treasurer computes the rates of all taxes levied by the municipality
  and every other taxing district in which the tax increment financing district is situated;
  but the treasurer shall extend all rates so determined against the entire assessed
  valuation of real property for that year. In each year, the municipality shall hold
  apart, rather than remit to the taxing districts, that proportion of all taxes paid
  that year on the real property in the district that the excess valuation bears to
  the total assessed valuation. The amount held apart each year is the “tax increment”
  for that year. Not more than the percentages established pursuant to section 1894
  of this subchapter of the municipal and State education tax increments received with
  respect to the district and committed for the payment for financing for improvements
  and related costs shall be segregated by the municipality in a special tax increment
  financing account and in its official books and records until all capital indebtedness
  of the district has been fully paid. The final payment shall be reported to the treasurer,
  who shall thereafter include the entire assessed valuation of the district in the
  assessed valuations upon which municipal and other tax rates are computed and extended
  and thereafter no taxes from the district shall be deposited in the district’s tax
  increment financing account. (b) [Repealed.] (c) Notwithstanding any charter provision or other provision, all property taxes assessed
  within a district shall be subject to the provision of subsection (a) of this section.
  Special assessments levied under chapters 76A or 87 of this title or under a municipal
  charter shall not be considered property taxes for the purpose of this section if
  the proceeds are used exclusively for operating expenses related to properties within
  the district, and not for improvements within the district, as defined in subdivision 1891(4) of this title. (d) Amounts held apart under subsection (a) of this section shall only be used for financing
  and related costs as defined in section 1891 of this subchapter. (e) In each year, a municipality shall remit not less than the aggregate tax due on the
  original taxable value to the Education Fund. (Added 1985, No. 87; amended 1987, No. 204 (Adj. Sess.), § 2; 2005, No. 184 (Adj. Sess.), § 2d; 2007, No. 66, § 24, eff. July 1, 2006; 2007, No. 190 (Adj. Sess.), § 57, eff. June 6, 2008; 2013, No. 80, § 6; 2013, No. 174 (Adj. Sess.), § 11, eff. June 4, 2014; 2015, No. 57, § 63; 2023, No. 72, § 35, eff. June 19, 2023.)