Downtown Sales Tax Reallocation

Economic Development Housing Community Development Planning Your Town’s Future Community Investment Program (CIP) Funding and Incentives Downtown Sales Tax Reallocation Vermont Community Development Program (VCDP) CDBG Disaster Recovery (CDBG-DR) Downtown and Village Center Tax Credits Downtown Sales Tax Reallocation Federal Rehabilitation Investment Tax Credits Downtown Transportation Fund Electric Vehicle Supply Equipment (EVSE) Grant Program Municipal Planning Grant (MPG) Bylaw Modernization Grants Housing Funders Roundtable Resources and Rules Current Initiatives Success Stories Events, Training and Workshops Designation 2050: Design the Future of Vermont Historic Preservation Tourism and Marketing About the Agency Downtown Sales Tax Reallocation Municipalities and the developer of qualified projects may jointly apply to the Downtown Board for a reallocation of sales taxes on construction materials. Qualified projects must be located within a  designated downtown district  and may be eligible for a reallocation of sales taxes on construction materials. Reallocated taxes must be used by the municipality to support the qualified project. The Application and Guidelines for the next round of funding will be posted in mid-June, 2027. Applications for State Sales Tax Reallocation credits are due July 1, 2027. Read our Downtown Sales Tax Reallocation  Annual Report  (PDF) to learn more about the program. Program Essentials Applications must be for qualified projects within a designated downtown. The Board will not consider projects that are substantially completed before designation is granted to the municipality. Applications may be submitted either just prior to the start of construction or during construction of the qualifying project, but not after construction has been substantially completed. Applications will not be considered at the same Board meeting as a request for downtown designation. The application must demonstrate that the qualified project will be under construction within 12 months of the award date, and that the municipal project must be completed within 36 months of the award date. Notice of Exception:  In accordance with federal law, some materials on this page are maintained for historical or reference purposes and are  exempt from the regulation  under ADA Title II standards. To request an accessible version of any document, please contact  Lindsay Pacheco at  [email protected].