Town of St. Johnsbury

802-748-3926

Created Date Friday, 30 March 2018
Modified Date Friday, 30 March 2018
Filesize 583 Kilobytes

TIF FAQs

  • What is Tax Increment Financing (TIF)?
  • What problems does TIF address?
  • How does TIF work?
  • What can TIF funds be used for?
  • What’s the impact on the education fund?
  • Aren't there some TIF districts that have failed?
  • I’ve heard that an informal consortium of communities in Vermont is interested in TIF.
  • Who are they and why are they pursuing TIF?
Created Date Friday, 30 March 2018
Modified Date Friday, 30 March 2018
Filesize 1.36 Megabytes

What is Tax Increment Financing

A tool that funds public infrastructure using incremental property tax revenue to repay municipal debt incurred to build/improve public infrastructure and related costs associated with the redevelopment of an identified area (District).

A “public-private partnership” - public action stimulates private investment.

Specific statutory requirements:

  • Infrastructure improvements must serve the TIF District and stimulate private sector development or re-development.
  • Development must provide employment opportunities.
  • Development must improve and broaden the tax base.
  • Development must enhance the economic vitality of the municipality, region or state.