The RRA has recently completed a revamp of the City’s property tax stabilization policy. Working with the Mayor and the Board of Aldermen the RRA has crafted two new polices, one for industrial and commercial property and one for vacant/blighted industrial and commercial property. Two Rutland City businesses, The Vermont Farmer’s Food Center and Keith’s II Sports, have applied for and been granted five year tax stabilization agreements under the new policies.
Please use the links below to view each policy.
The motivation to formalize the tax stabilization process was spurred out of the desire to better market the City for recruitment of new business and to encourage existing City businesses to invest or re-invest in their facilities and equipment
The highlights of the policy require that a business be looking at making a tangible new financial investment in real property and/or machinery and equipment which will create new jobs within the City. An interested business would complete an application in which the scope of the project, level of financial investment, and projected job creation numbers and associated payroll are defined. If, based on their application, the business is deemed qualifying for stabilization the RRA will make a recommendation to the BOA in regards to the level of stabilization and its length of time. The BOA will have ultimate discretion as to the structure of the Tax Stabilization Agreement (TSA) that is entered into with the qualifying business.
Unlike some more formalized policies the terms have intentionally been left flexible in order to best serve the needs of the business. The envisioned timeframe for a stabilization period will be 5 years with a statutory maximum of 10. In the case of non-compliance there will be a recapture provision. The recapture language will ensure that the City realizes the benefits, (financial investment and new jobs), that are the basis for granting tax stabilization.
Stabilizing real and personal property taxes is one of the most established and widely utilized economic development incentives. Authority for municipalities to enter into local tax stabilization agreements for both commercial and industrial property is provided in V.S.A. Chapter 24, 2741.
In the future Rutland will benefit from having this incentive available to incent future investment and employment within the City. To use an economic development cliché, property tax stabilization is a viable tool in the City’s toolbox, and we want businesses to know it is available.
To view the applications please use the links below.