Downtown Sales Tax Reallocation
The Downtown Sales Tax Reallocation grant from the Vermont Agency of Commerce and Community Development supports downtown revitalization by reallocating sales tax on construction materials to fund local improvement projects.
Funder: Vermont Agency of Commerce and Community Development
Due Dates (Anticipated): July 2027 (Full application deadline, projected)
Funding Amounts: Up to $3 million available program-wide (shared with Downtown & Village Center Tax Credits); individual project amounts vary by municipal population and materials cost.
Summary: Supports joint municipal-developer projects in Vermont’s designated downtowns by reallocating sales tax on construction materials to fund local revitalization efforts.
Key Information: Applications must be submitted jointly by a municipality and developer for a qualified project within a designated downtown district.
Description
The Downtown Sales Tax Reallocation program, administered by the Vermont Agency of Commerce and Community Development (ACCD), enables municipalities and developers to jointly apply for a reallocation of sales taxes paid on construction materials for qualified projects located within Vermont’s designated downtown districts. The reallocated funds must be used by the municipality to advance the qualified project, supporting revitalization, economic development, and infrastructure improvements in downtown areas. The program is designed to foster public-private partnerships and to make challenging downtown construction projects financially feasible.
