Vermont § 1910b - Original taxable value; tax increment

§ 1910b. Original taxable value; tax increment

• (a) As of the date the housing development site is created, the lister or assessor for
  the municipality shall certify the original taxable value and shall certify to the
  legislative body in each year thereafter during the life of the housing development
  site the amount by which the total valuation as determined in accordance with 32 V.S.A. chapter 129 of all taxable real property within the housing development site has increased or
  decreased relative to the original taxable value. (b) Annually throughout the life of the housing development site, the lister 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 housing development
  site is situated, but the treasurer shall extend all rates so determined against the
  entire assessed valuation of real property for that year. (c) Annually throughout the life of the housing development site, a municipality shall
  remit not less than the aggregate education property tax due on the original taxable
  value to the Education Fund. (d) Annually throughout the life of the housing development site, the municipality shall
  hold apart, rather than remit to the taxing districts, that proportion of all taxes
  paid that year on the real property within the housing development site that the excess
  valuation bears to the total assessed valuation. The amount held apart each year is
  the “tax increment” for that year. The tax increment shall only be used for financing
  and related costs. (e) Not more than the percentages established pursuant to section 1910c of this subchapter
  of the municipal and State education tax increments received with respect to the housing
  development site 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 incurred
  for the housing infrastructure project has been fully paid. The final payment shall
  be reported to the treasurer, who shall thereafter include the entire assessed valuation
  of the housing development site in the assessed valuations upon which the municipal
  and other tax rates are computed and extended, and thereafter no taxes from the housing
  development site shall be deposited in the special tax increment financing account. (f) Notwithstanding any charter provision or other provision, all property taxes assessed
  within a housing development site shall be subject to the provisions of this section.
  Special assessments levied under chapter 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 housing development site and not for improvements within the housing development
  site. (Added 2025, No. 69, § 20, eff. July 1, 2025.)