The bill H.420 establishes a tax increment financing (TIF) project development program aimed at supporting municipalities in flood-impacted communities in Vermont. Administered by the Vermont Economic Progress Council, this program allows these municipalities to utilize increments from statewide education property taxes and municipal property taxes to fund improvements. The bill introduces a new subchapter titled "Project-Based Tax Increment Financing," which defines key terms such as "affordable housing," "brownfield," and "improvements." It outlines the process for creating a project and project zone, including the development of a project plan, public hearings, and necessary approvals.

Furthermore, the bill sets forth criteria for municipalities to apply for TIF, including requirements related to disaster declarations and local significance. It establishes guidelines for incurring indebtedness and managing tax increments, while emphasizing the need for public information and voter approval for financing. The bill also introduces provisions regarding property taxes within project zones, allowing municipalities to retain a percentage of tax increments for debt incurred, with a retention period determined by the Vermont Economic Progress Council not to exceed 20 years. Additionally, municipalities are required to develop a reporting system for active projects and submit annual reports, while the Council's decisions on project approvals are not subject to judicial review. The act is scheduled to take effect on July 1, 2025.

Statutes affected:
As Introduced: 32-3325