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Tax Increment Financing - TIF

The purpose of a TIF District is to stimulate economic growth by funding the infrastructure needed to support development without raising taxes. The Town of Milton has two Tax Increment Financing (TIF) Districts – the Town Core TIF District and the Catamount/Husky TIF District (approved by the Milton Selectboard and Vermont Economic Progress Council).

TIF-Map-2010

What is a TIF?

A sophisticated financing tool, TIFs aren’t easy to explain in full. TIFs allow local municipalities to finance the municipal infrastructure to support economic development that would otherwise not occur.

How does it work?

The new values created by the economic development increase education and municipal tax revenue which pays for the cost of the infrastructure. A portion of the new revenue is also allocated to the State’s education fund and the municipal general fund to offset tax rate increases. The nature of what can be paid for with TIF is highly regulated through a detailed finance plan and is subject to voter approval. Milton’s TIF Districts have saved voters millions of dollars over the past decade and have contributed to the creation of hundreds of livable wage jobs.

You can learn more about TIFs at: http://accd.vermont.gov/strong_communities/opportunities/funding/tif