The bill H.420 aims to create a tax increment financing (TIF) project development program for municipalities in flood-impacted areas of Vermont, managed by the Vermont Economic Progress Council. It introduces a new subchapter titled "Project-Based Tax Increment Financing," which defines key terms such as "affordable housing," "brownfield," and "improvements." The bill outlines the process for establishing a project and project zone, including the development of a project plan, public hearings, and the approval process. To qualify for TIF, municipalities must be located in counties affected by major disaster declarations and demonstrate compatibility with local development plans.

Additionally, the bill specifies new provisions for property tax assessments within project zones, stating that all property taxes will follow the new regulations, while special assessments for operating expenses will not be classified as property taxes. It allows municipalities to retain a percentage of education and municipal property tax increments for project financing, with a maximum retention period of 20 years. The bill also expands the responsibilities of the Vermont Economic Progress Council to include project-based TIF and states that its decisions on project approvals will not be subject to contested case hearing requirements or judicial review. The act is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 32-3325