The Vermont Statutes Online

Title 32 : Taxation and Finance

Chapter 233 : Sales and Use Tax

Subchapter 004 : ENFORCEMENT AND PENALTIES

• § 9819. Reallocation of receipts

  (a) Receipts from the tax imposed by this chapter on sales of construction materials used in qualified projects under 24 V.S.A. chapter 76A shall be allocated by the Commissioner of Taxes and paid to the municipality in which the project is located as follows:

  (1) in a municipality in which the population is 7,500 residents or less, all receipts from sales in excess of $100,000.00 of construction materials used in each separate qualified project located in that municipality;

  (2) in a municipality in which the population is greater than 7,500 residents but fewer than 30,000 residents, all receipts from sales in excess of $200,000.00 of construction materials used in each separate qualified project located in that municipality; and

  (3) in a municipality in which the population is more than 30,000 residents, all receipts from sales in excess of $1,000,000.00 of construction materials used in each separate qualified project located in that municipality.

  (b)(1) Beginning in fiscal year 2007, the Vermont Downtown Development Board, established under 24 V.S.A. § 2792, may certify for allocation to municipalities sales tax revenues under this section, so that the total shall not exceed $1,500,000.00, when considered together with the following:

  (A) credits awarded under subsections 5930cc(a) and (b) of this title, concerning qualified historic rehabilitation projects and qualified façade improvement projects; and

  (B) credits awarded under subsection 5930cc(c) of this title, concerning qualified code improvement projects.

  (2) A total annual allocation of no more than 30 percent of these tax credits in combination with sales tax reallocation may be awarded in connection with all of the projects in a single municipality.

  (c) As used in this section:

  (1) “Construction materials” means all materials purchased by the owner or owner’s representative, project manager, construction manager, general contractor, or subcontractor to be incorporated into a qualified project.

  (2) “Qualified project” means expansion or rehabilitation of contiguous real property that is or will be used at the completion of the expansion or rehabilitation as a structure in a downtown development district designated under 24 V.S.A. chapter 76A, but only to the extent that the expansion or rehabilitation becomes an integral component of the real property and the project does not seek qualification for either tax credit authorized under subsection 5930cc(a) or (b) of this title. “Qualified project” also means new construction of contiguous real property that will be used at the completion of the construction as a structure in a downtown development district designated under 24 V.S.A. chapter 76A, but only to the extent that the new construction is compatible with the buildings that contribute to the integrity of the district in terms of materials, features, size, scale and proportion, and massing of buildings.

  (d) The allocation shall be determined as follows:

  (1) The municipality and the owner of the qualified project shall submit to the Board a joint application for a reallocation of the sales taxes generated by the qualified project. The application shall describe the project to be constructed and shall include an estimate of the taxable cost of construction materials that will be used in the qualified project. The estimate shall be based upon the successful bid documents.

  (2) The Board shall review the joint application. If the project meets the requirements of this section and the requested allocation does not exceed the statutory limit set by this section, the Board shall approve the application and forward it to the Commissioner of Taxes who may authorize an allocation up to the approved amount. Fifty percent of the authorized allocation shall be paid to the municipality when construction is 50 percent complete as determined by the Board, and the balance shall be paid after completion of the project.

  (3) Tax revenues allocated to a municipality under this section shall be used by the municipality only for expenditures related to the support of the qualified project that generated those revenues. (Added 1997, No. 71 (Adj. Sess.), § 51a; amended 1997, No. 120 (Adj. Sess.), § 1b; 2001, No. 114 (Adj. Sess.), § 12, eff. May 28, 2002; 2001, No. 114 (Adj. Sess.), § 17, eff. July 1, 2003; 2005, No. 14, § 9; 2005, No. 75, § 13; 2005, No. 183 (Adj. Sess.), § 13.)