The property tax base in Vermont's towns are overburdened as property taxes are usually the only funding method available to finance schools, police departments, highway work, recreation programs, and government in general. Attempting to offer their citizens a balanced program of services without exorbitant taxes, local officials are striving to increase the tax base by enticing developers to locate within their town boundaries. While officials may be considering the tax consequences of new development, some Vermonters are complaining of inappropriate land use decisions, which they attribute to the quest for increased tax bases. Each town's situation is different, and the impact of a development on the tax rate depends on many factors including the type of development, the capacity of the existing municipal and educational infrastructure, the services necessitated by the development, the services desired by the voters, and the role of state aid to education. Designed for estimation and planning in small towns, this workbook was prepared to help public officials and citizens in Vermont to project the direct costs and revenues associated with proposed developments in their towns and to estimate the effect on the property tax rate. The workbook contains step-by-step explanations, detailed tables of data, and worksheets to estimate changes in capital and operating costs and changes in the tax rate. A list of useful references and groups that can help is included, and other information sources are cited on data tables. (ALL)