Budget & Taxes (Sales Tax)

H 378 establishes a new program allowing Vermont municipalities to use tax increment financing (TIF) to fund housing infrastructure projects. It enables cities and towns to leverage future increases in property tax revenue - specifically from education and municipal property taxes - to finance infrastructure like utilities, brownfield cleanup, and transportation improvements that stimulate new housing development. Municipalities must create a housing infrastructure project plan, hold public hearings, and get approval from the Vermont Economic Progress Council before using TIF funds. The bill directly affects local governments seeking to finance housing-related infrastructure without increasing tax rates, with funds restricted to approved projects and related costs.