Vermont H 420: An act relating to authorized spending of Class 2 Town Highway Roadway Program grants

Bill Text

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VT LEG #379806 v.4
H.420 1
Introduced by Representatives Boutin of Barre City, Bosch of Clarendon, 2
Casey of Montpelier, Galfetti of Barre Town, and Micklus of 3
Milton 4
Referred to Committee on 5
Date: 6
Subject: Taxation and finance; education property tax; tax increment financing 7
districts; municipal and county government; indebtedness; statewide 8
tax increment financing; TIF 9
Statement of purpose of bill as introduced: This bill proposes to establish a tax 10
increment financing project development program, administered by the 11
Vermont Economic Progress Council, to authorize municipalities in flood-12
impacted communities to use statewide education property tax and municipal 13
property tax increment to pay for improvements. 14
An act relating to tax increment financing for flood-impacted communities 15
It is hereby enacted by the General Assembly of the State of Vermont: 16
Sec. 1. 24 V.S.A. chapter 53, subchapter 7 is added to read: 17
Subchapter 7. Project-Based Tax Increment Financing 18
§ 1906. DEFINITIONS 19
As used in this subchapter: 20

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VT LEG #379806 v.4
(1) “Affordable housing” has the same meaning as in section 4303 of 1
this title. 2
(2) “Brownfield” has the same meaning as in 32 V.S.A. 3
§ 5404a(h)(4)(C). 4
(3) “Committed” means pledged and appropriated for the purpose of the 5
current and future payment of financing and related costs. 6
(4) “Coordinating agency” means a nonmunicipal entity that a 7
municipality designates to administer and coordinate a project. 8
(5) “Financing” means debt authorized by a municipality pursuant to 9
section 1909 of this subchapter, including principal, interest, and any fees or 10
charges directly related to that debt, to pay for a project. 11
(6) “Improvements” means: 12
(A) the installation or construction of infrastructure, including 13
utilities, transportation, public facilities and amenities, land and property 14
acquisition and demolition, brownfield remediation, site preparation, and flood 15
remediation and mitigation; and 16
(B) the funding of debt service interest payments for a period of up to 17
two years, beginning on the date on which the first debt is incurred. 18
(7) “Legislative body” means the mayor and alderboard, the city 19
council, the selectboard, and the president and trustees of an incorporated 20
village, as appropriate. 21

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(8) “Municipality” means a city, town, or incorporated village. 1
(9) “Original taxable value” means the total valuation as determined in 2
accordance with 32 V.S.A. chapter 129 of all taxable real property located 3
within a project zone as of its creation date, as adjusted pursuant to section 4
1910 of this subchapter. 5
(10) “Project” means an improvement or improvements authorized by a 6
municipality pursuant to section 1907 of this subchapter. 7
(11) “Related costs” means expenses incurred and paid by a 8
municipality, exclusive of the actual cost of constructing and financing a 9
project, that are directly related to the creation and implementation of the 10
municipality’s project, including reimbursement of sums previously advanced 11
by the municipality for those purposes and any costs of a coordinating agency. 12
Related costs may not include direct municipal expenses such as departmental 13
or personnel costs. 14
(12) “Project zone” means an area encompassing a project authorized by 15
a municipality pursuant to section 1907 of this subchapter, provided that no 16
parcel within the project zone shall be divided or bisected by the project zone 17
boundary. 18
§ 1907. CREATION OF PROJECT AND PROJECT ZONE 19
(a) The legislative body of a municipality may create within its jurisdiction 20
a project, which shall consist of improvements that serve a public purpose, and 21

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a project zone, which shall consist of the parcel on which a project is installed 1
or constructed and any immediately adjoining parcels. 2
(b) To create a project and project zone, a municipality shall: 3
(1) develop a project plan, including: 4
(A) a description of the proposed project and the proposed project 5
zone; 6
(B) a development financing plan; 7
(C) a pro forma projection of expected costs; 8
(D) a projection of revenues; 9
(E) a demonstration that the proposed project would not proceed 10
without the allocation of incremental tax revenues; 11
(F) evidence that the municipality is actively seeking or has obtained 12
other sources of funding and investment; and 13
(G) a development schedule that includes a list, a cost estimate, and a 14
schedule for the proposed project and projected private development to occur 15
as a result of the proposed project; 16
(2) develop a plan describing the project zone by its boundaries and the 17
properties therein, entitled “Proposed Project Zone (municipal name), 18
Vermon