Downtown Sales Tax Reallocation
The Downtown Sales Tax Reallocation grant helps fund infrastructure improvements in Vermont’s designated downtowns by redirecting sales tax on construction materials to support local development projects.
Funder: Vermont Agency of Commerce and Community Development
Due Dates: July 1, 2027
Funding Amounts: Typical awards: $100,000–$300,000+ in reallocated sales tax per project; total pool varies annually.
Summary: Supports infrastructure and development projects in Vermont’s designated downtowns by reallocating sales tax on construction materials.
Key Information: Joint application required by municipality and developer; project must be in a designated downtown.
Description
The Downtown Sales Tax Reallocation program, managed by the Vermont Agency of Commerce and Community Development, incentivizes investment and revitalization in Vermont’s designated downtown districts. Through this initiative, municipalities and developers of qualified projects can jointly apply to have sales taxes paid on construction materials reallocated to directly support their project. The program aims to reduce the financial burden of infrastructure development and encourage new construction or rehabilitation that benefits downtown communities. Typical uses of reallocated funds include improvements to utilities, stormwater management, sidewalks, lighting, and streetscapes.
