Governor Peter Shumlin: Announcement Regarding Tax Increment Financing Districts

Description

In support of several mayors and town officials, Gov. Peter Shumlin proposes legislation relating to the state’s tax increment financing (TIF) districts to ensure communities benefiting from the TIFs have clear rules to follow while ensuring oversight and enforcement, when needed, by the State.
Standing with the Governor to highlight the need for clarification were lawmakers, mayors and officials from cities (Milton, St. Albans, Winooski, Burlington, Barre and Newport) that have received TIF approval, as well as business and community leaders.
Asking lawmakers to address this issue this session, the Governor outlined a proposal that would provide rulemaking, oversight and enforcement, clarify ambiguities in the current law, and safeguard taxpayer dollars.
The Administration proposes resolving the disagreements created by the reports issued last year by the State Auditor’s office. Cities and towns identified in that report have disputed its findings, and the state’s ability to enforce any violations identified in the report is hampered by the lack of a clear enforcement mechanism in the current law. The Governor proposed to remedy this going forward by ensuring a clear path for state enforcement of municipality deficiencies in TIF implementation.
Finally, recognizing the unfortunate timing of last year’s final TIF designation, the Governor proposed allowing a seventh TIF district for South Burlington.