Proactive commercial taxation possible in Vermont

Encourage property improvement

Matt Dietrichson, Jan 12, 12.

Planners in Newport City, Vermont are considering “reformed tax structures” to give downtown property owners an incentive to fix up their buildings and not see a tax increase, according to The Newport Daily Express:

As it is now, taxes increase when property owners improve their buildings, but property owners who let their buildings go in disrepair see a decrease in taxes. The intent of a reformed tax structure is to give property owners an incentive to fix up their buildings and not see a tax increase.
“Some people are holding to their empty store fronts, waiting for the deal of the century,” Dreher told the council. “They’re (the buildings) appraised at $300,000 and they’re going to turn around and sell them two years from now for $10 or $11 million when the biotech is in place. They don’t have any incentive to do anything with the properties because their taxes are so low.”
Communities elsewhere in the United Sates that have done this have seen improved economic development and healthy growth, Dreher said.
The problem with the proposed taxing system is that it is not legal in Vermont, at least not yet. Dreher has asked the Department of Housing and Community Affairs to look into changing legislation. MORE