State Codes and Statutes

Statutes > Vermont > Title-32 > Chapter-124 > 3757

§ 3757. Land use change tax

(a) Land which has been classified as agricultural land or managed forest land pursuant to this chapter shall be subject to a land use change tax upon the development of that land, as defined in section 3752 of this chapter. Said tax shall be at the rate of 20 percent of the full fair market value of the changed land determined without regard to the use value appraisal; or the tax shall be at the rate of 10 percent if the owner demonstrates to the satisfaction of the director that the parcel has been enrolled continuously more than 10 years. If changed land is a portion of a parcel, the fair market value of the changed land shall be the fair market value of the changed land prorated on the basis of acreage, divided by the common level of appraisal. Such fair market value shall be determined as of the date the land is no longer eligible for use value appraisal. This tax shall be in addition to the annual property tax imposed upon such property. Nothing in this section shall be construed to require payment of an additional land use change tax upon the subsequent development of the same land, nor shall it be construed to require payment of a land use change tax merely because previously eligible land becomes ineligible, provided no development of the land has occurred.

(b) Any owner of eligible land who wishes to withdraw land from use value appraisal shall petition for a determination of the fair market value of the land at the time of the withdrawal. Thereafter land which has been withdrawn shall be appraised and listed at its full fair market value in accordance with the provisions of chapter 121 of this title. Said determination of the fair market value shall be used in calculating the amount of the land use change tax that shall be due when and if the development of the land occurs.

(c) The determination of the fair market value of the land as of the date the land is no longer eligible for a use value appraisal, or as of the time of the withdrawal of the land from use value appraisal, shall be made by the director. The determination shall be made within 30 days after the date that the owner or assessing officials petition for the determination and shall be effective on the date of dispatch to the owner.

(d) The land use change tax shall be due and payable by the owner 30 days after the tax notice is mailed to the taxpayer. The tax shall be paid to the commissioner for deposit into the general fund. The commissioner shall issue a form to the assessing officials which shall provide for a description of the land developed, the amount of tax payable, and the fair market value of the land at the time of development or withdrawal from use value appraisal. The owner shall fill out the form and shall sign it under the penalty of perjury. After receipt of payment, the commissioner shall furnish the owner with one copy, shall retain one copy and shall forward one copy to the local assessing officials and one to the register of deeds of the municipality in which the land is located. Thereafter, the land which has been developed shall be appraised and listed at its full fair market value in accordance with the provisions of chapter 121 of this title.

(e) The owner of any classified land receiving use value appraisal under this subchapter shall immediately notify the director of:

(1) the development of the land, as defined in section 3752 of this chapter;

(2) of any change or discontinuance of use of the classified land so that it is no longer eligible for use value appraisal or is eligible for a different use value appraisal under this subchapter; and

(3) of any transfer of ownership. A transfer of ownership, alone, will not affect eligibility of the parcel, and no new maps will be required solely because of a transfer, but failure to provide maps, a new application, or transfer information to the division of property valuation and review within 30 days of a request being sent by certified mail by the director will result in removal of the parcel from the program.

(f) The application for use value appraisal of agricultural and forest land, once approved by the state, shall be recorded in the land records of the municipality and shall constitute a lien to secure payment of the land use change tax to the state upon development. The landowner shall bear the recording cost. The land use change tax and any obligation to repay benefits paid in error shall not constitute a personal debt of the person liable to pay the same, but shall constitute a lien which shall run with the land. All of the administrative provisions of chapter 151 of this title, including those relating to collection and enforcement, shall apply to the land use change tax.

(g) Upon application, the commissioner may abate a use change tax levy concerning agricultural land found eligible for use value appraisal under subdivision 3752(1)(A) of this title, in the following cases:

(1) if a disposition of such property resulting in a change of use of it takes place within five years of the initial assessment at use value because of the permanent physical incapacity or death of the individual farmer-owner or farmer-operator of the property.

(2) if a disposition of the property was necessary in order to raise funds to continue the agriculture operation of the seller. In this case, the commissioner shall consider the financial gain realized by the sale of the land and whether, in respect to that gain, payment of the use change tax would significantly reduce the ability of the seller to continue using the remaining property, or any part thereof, as agricultural land.

(h) Land condemned as a result of eminent domain or sold voluntarily to a condemning authority in anticipation of eminent domain proceedings is exempt from the levy of a land use change tax under this section.

(i) Nothing in this section shall be construed as permitting an owner to engage in the development of land in violation of any conservation restriction in effect on said land.

(j) Land transferred to the United States Forest Service is exempt from the levy of a use change tax under this section, provided all of the following apply:

(1) land transferred is eligible for use value appraisal at the time of the transfer;

(2) the transfer is in consideration for the receipt from the United States Forest Service of land of approximately equal value, as determined by the commissioner; and

(3) the landowner has submitted to the commissioner in writing a binding document that would substitute the land received for the land transferred to the Forest Service, for the purposes of this chapter.

(k) Conservation and preservation rights and interests held by an agency of the United States or by a qualified holder, as defined in chapter 34 of Title 10, shall be exempt from the levy of a use change tax. Upon request of the agency or qualified holder, the commissioner may petition the director to release the conservation and preservation rights and interests from any lien recorded pursuant to this chapter. (Added 1977, No. 236 (Adj. Sess.), § 1; amended 1983, No. 19; 1983, No. 241 (Adj. Sess.); 1987, No. 57, § 6, eff. July 1, 1988; 1987, No. 130 (Adj. Sess.), § 3, eff. March 31, 1988; 1989, No. 222 (Adj. Sess.), § 43, eff. May 31, 1990; 1995, No. 29, § 40, eff. April 14, 1995; 1995, No. 178 (Adj. Sess.), § 289; 1997, No. 60, § 61, eff. June 26, 1997; 1999, No. 49, § 85, eff. June 2, 1999; 2001, No. 140 (Adj. Sess.), § 29, eff. June 21, 2002; 2003, No. 68, § 86, eff. June 18, 2003; 2005, No. 14, § 5, eff. July 1, 2006; No. 14, § 8, eff. May 3, 2005; 2007, No. 190 (Adj. Sess.), § 3, eff. June 6, 2008; No. 205 (Adj. Sess.), § 3, eff. June 10, 2008.)

State Codes and Statutes

Statutes > Vermont > Title-32 > Chapter-124 > 3757

§ 3757. Land use change tax

(a) Land which has been classified as agricultural land or managed forest land pursuant to this chapter shall be subject to a land use change tax upon the development of that land, as defined in section 3752 of this chapter. Said tax shall be at the rate of 20 percent of the full fair market value of the changed land determined without regard to the use value appraisal; or the tax shall be at the rate of 10 percent if the owner demonstrates to the satisfaction of the director that the parcel has been enrolled continuously more than 10 years. If changed land is a portion of a parcel, the fair market value of the changed land shall be the fair market value of the changed land prorated on the basis of acreage, divided by the common level of appraisal. Such fair market value shall be determined as of the date the land is no longer eligible for use value appraisal. This tax shall be in addition to the annual property tax imposed upon such property. Nothing in this section shall be construed to require payment of an additional land use change tax upon the subsequent development of the same land, nor shall it be construed to require payment of a land use change tax merely because previously eligible land becomes ineligible, provided no development of the land has occurred.

(b) Any owner of eligible land who wishes to withdraw land from use value appraisal shall petition for a determination of the fair market value of the land at the time of the withdrawal. Thereafter land which has been withdrawn shall be appraised and listed at its full fair market value in accordance with the provisions of chapter 121 of this title. Said determination of the fair market value shall be used in calculating the amount of the land use change tax that shall be due when and if the development of the land occurs.

(c) The determination of the fair market value of the land as of the date the land is no longer eligible for a use value appraisal, or as of the time of the withdrawal of the land from use value appraisal, shall be made by the director. The determination shall be made within 30 days after the date that the owner or assessing officials petition for the determination and shall be effective on the date of dispatch to the owner.

(d) The land use change tax shall be due and payable by the owner 30 days after the tax notice is mailed to the taxpayer. The tax shall be paid to the commissioner for deposit into the general fund. The commissioner shall issue a form to the assessing officials which shall provide for a description of the land developed, the amount of tax payable, and the fair market value of the land at the time of development or withdrawal from use value appraisal. The owner shall fill out the form and shall sign it under the penalty of perjury. After receipt of payment, the commissioner shall furnish the owner with one copy, shall retain one copy and shall forward one copy to the local assessing officials and one to the register of deeds of the municipality in which the land is located. Thereafter, the land which has been developed shall be appraised and listed at its full fair market value in accordance with the provisions of chapter 121 of this title.

(e) The owner of any classified land receiving use value appraisal under this subchapter shall immediately notify the director of:

(1) the development of the land, as defined in section 3752 of this chapter;

(2) of any change or discontinuance of use of the classified land so that it is no longer eligible for use value appraisal or is eligible for a different use value appraisal under this subchapter; and

(3) of any transfer of ownership. A transfer of ownership, alone, will not affect eligibility of the parcel, and no new maps will be required solely because of a transfer, but failure to provide maps, a new application, or transfer information to the division of property valuation and review within 30 days of a request being sent by certified mail by the director will result in removal of the parcel from the program.

(f) The application for use value appraisal of agricultural and forest land, once approved by the state, shall be recorded in the land records of the municipality and shall constitute a lien to secure payment of the land use change tax to the state upon development. The landowner shall bear the recording cost. The land use change tax and any obligation to repay benefits paid in error shall not constitute a personal debt of the person liable to pay the same, but shall constitute a lien which shall run with the land. All of the administrative provisions of chapter 151 of this title, including those relating to collection and enforcement, shall apply to the land use change tax.

(g) Upon application, the commissioner may abate a use change tax levy concerning agricultural land found eligible for use value appraisal under subdivision 3752(1)(A) of this title, in the following cases:

(1) if a disposition of such property resulting in a change of use of it takes place within five years of the initial assessment at use value because of the permanent physical incapacity or death of the individual farmer-owner or farmer-operator of the property.

(2) if a disposition of the property was necessary in order to raise funds to continue the agriculture operation of the seller. In this case, the commissioner shall consider the financial gain realized by the sale of the land and whether, in respect to that gain, payment of the use change tax would significantly reduce the ability of the seller to continue using the remaining property, or any part thereof, as agricultural land.

(h) Land condemned as a result of eminent domain or sold voluntarily to a condemning authority in anticipation of eminent domain proceedings is exempt from the levy of a land use change tax under this section.

(i) Nothing in this section shall be construed as permitting an owner to engage in the development of land in violation of any conservation restriction in effect on said land.

(j) Land transferred to the United States Forest Service is exempt from the levy of a use change tax under this section, provided all of the following apply:

(1) land transferred is eligible for use value appraisal at the time of the transfer;

(2) the transfer is in consideration for the receipt from the United States Forest Service of land of approximately equal value, as determined by the commissioner; and

(3) the landowner has submitted to the commissioner in writing a binding document that would substitute the land received for the land transferred to the Forest Service, for the purposes of this chapter.

(k) Conservation and preservation rights and interests held by an agency of the United States or by a qualified holder, as defined in chapter 34 of Title 10, shall be exempt from the levy of a use change tax. Upon request of the agency or qualified holder, the commissioner may petition the director to release the conservation and preservation rights and interests from any lien recorded pursuant to this chapter. (Added 1977, No. 236 (Adj. Sess.), § 1; amended 1983, No. 19; 1983, No. 241 (Adj. Sess.); 1987, No. 57, § 6, eff. July 1, 1988; 1987, No. 130 (Adj. Sess.), § 3, eff. March 31, 1988; 1989, No. 222 (Adj. Sess.), § 43, eff. May 31, 1990; 1995, No. 29, § 40, eff. April 14, 1995; 1995, No. 178 (Adj. Sess.), § 289; 1997, No. 60, § 61, eff. June 26, 1997; 1999, No. 49, § 85, eff. June 2, 1999; 2001, No. 140 (Adj. Sess.), § 29, eff. June 21, 2002; 2003, No. 68, § 86, eff. June 18, 2003; 2005, No. 14, § 5, eff. July 1, 2006; No. 14, § 8, eff. May 3, 2005; 2007, No. 190 (Adj. Sess.), § 3, eff. June 6, 2008; No. 205 (Adj. Sess.), § 3, eff. June 10, 2008.)


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State Codes and Statutes

Statutes > Vermont > Title-32 > Chapter-124 > 3757

§ 3757. Land use change tax

(a) Land which has been classified as agricultural land or managed forest land pursuant to this chapter shall be subject to a land use change tax upon the development of that land, as defined in section 3752 of this chapter. Said tax shall be at the rate of 20 percent of the full fair market value of the changed land determined without regard to the use value appraisal; or the tax shall be at the rate of 10 percent if the owner demonstrates to the satisfaction of the director that the parcel has been enrolled continuously more than 10 years. If changed land is a portion of a parcel, the fair market value of the changed land shall be the fair market value of the changed land prorated on the basis of acreage, divided by the common level of appraisal. Such fair market value shall be determined as of the date the land is no longer eligible for use value appraisal. This tax shall be in addition to the annual property tax imposed upon such property. Nothing in this section shall be construed to require payment of an additional land use change tax upon the subsequent development of the same land, nor shall it be construed to require payment of a land use change tax merely because previously eligible land becomes ineligible, provided no development of the land has occurred.

(b) Any owner of eligible land who wishes to withdraw land from use value appraisal shall petition for a determination of the fair market value of the land at the time of the withdrawal. Thereafter land which has been withdrawn shall be appraised and listed at its full fair market value in accordance with the provisions of chapter 121 of this title. Said determination of the fair market value shall be used in calculating the amount of the land use change tax that shall be due when and if the development of the land occurs.

(c) The determination of the fair market value of the land as of the date the land is no longer eligible for a use value appraisal, or as of the time of the withdrawal of the land from use value appraisal, shall be made by the director. The determination shall be made within 30 days after the date that the owner or assessing officials petition for the determination and shall be effective on the date of dispatch to the owner.

(d) The land use change tax shall be due and payable by the owner 30 days after the tax notice is mailed to the taxpayer. The tax shall be paid to the commissioner for deposit into the general fund. The commissioner shall issue a form to the assessing officials which shall provide for a description of the land developed, the amount of tax payable, and the fair market value of the land at the time of development or withdrawal from use value appraisal. The owner shall fill out the form and shall sign it under the penalty of perjury. After receipt of payment, the commissioner shall furnish the owner with one copy, shall retain one copy and shall forward one copy to the local assessing officials and one to the register of deeds of the municipality in which the land is located. Thereafter, the land which has been developed shall be appraised and listed at its full fair market value in accordance with the provisions of chapter 121 of this title.

(e) The owner of any classified land receiving use value appraisal under this subchapter shall immediately notify the director of:

(1) the development of the land, as defined in section 3752 of this chapter;

(2) of any change or discontinuance of use of the classified land so that it is no longer eligible for use value appraisal or is eligible for a different use value appraisal under this subchapter; and

(3) of any transfer of ownership. A transfer of ownership, alone, will not affect eligibility of the parcel, and no new maps will be required solely because of a transfer, but failure to provide maps, a new application, or transfer information to the division of property valuation and review within 30 days of a request being sent by certified mail by the director will result in removal of the parcel from the program.

(f) The application for use value appraisal of agricultural and forest land, once approved by the state, shall be recorded in the land records of the municipality and shall constitute a lien to secure payment of the land use change tax to the state upon development. The landowner shall bear the recording cost. The land use change tax and any obligation to repay benefits paid in error shall not constitute a personal debt of the person liable to pay the same, but shall constitute a lien which shall run with the land. All of the administrative provisions of chapter 151 of this title, including those relating to collection and enforcement, shall apply to the land use change tax.

(g) Upon application, the commissioner may abate a use change tax levy concerning agricultural land found eligible for use value appraisal under subdivision 3752(1)(A) of this title, in the following cases:

(1) if a disposition of such property resulting in a change of use of it takes place within five years of the initial assessment at use value because of the permanent physical incapacity or death of the individual farmer-owner or farmer-operator of the property.

(2) if a disposition of the property was necessary in order to raise funds to continue the agriculture operation of the seller. In this case, the commissioner shall consider the financial gain realized by the sale of the land and whether, in respect to that gain, payment of the use change tax would significantly reduce the ability of the seller to continue using the remaining property, or any part thereof, as agricultural land.

(h) Land condemned as a result of eminent domain or sold voluntarily to a condemning authority in anticipation of eminent domain proceedings is exempt from the levy of a land use change tax under this section.

(i) Nothing in this section shall be construed as permitting an owner to engage in the development of land in violation of any conservation restriction in effect on said land.

(j) Land transferred to the United States Forest Service is exempt from the levy of a use change tax under this section, provided all of the following apply:

(1) land transferred is eligible for use value appraisal at the time of the transfer;

(2) the transfer is in consideration for the receipt from the United States Forest Service of land of approximately equal value, as determined by the commissioner; and

(3) the landowner has submitted to the commissioner in writing a binding document that would substitute the land received for the land transferred to the Forest Service, for the purposes of this chapter.

(k) Conservation and preservation rights and interests held by an agency of the United States or by a qualified holder, as defined in chapter 34 of Title 10, shall be exempt from the levy of a use change tax. Upon request of the agency or qualified holder, the commissioner may petition the director to release the conservation and preservation rights and interests from any lien recorded pursuant to this chapter. (Added 1977, No. 236 (Adj. Sess.), § 1; amended 1983, No. 19; 1983, No. 241 (Adj. Sess.); 1987, No. 57, § 6, eff. July 1, 1988; 1987, No. 130 (Adj. Sess.), § 3, eff. March 31, 1988; 1989, No. 222 (Adj. Sess.), § 43, eff. May 31, 1990; 1995, No. 29, § 40, eff. April 14, 1995; 1995, No. 178 (Adj. Sess.), § 289; 1997, No. 60, § 61, eff. June 26, 1997; 1999, No. 49, § 85, eff. June 2, 1999; 2001, No. 140 (Adj. Sess.), § 29, eff. June 21, 2002; 2003, No. 68, § 86, eff. June 18, 2003; 2005, No. 14, § 5, eff. July 1, 2006; No. 14, § 8, eff. May 3, 2005; 2007, No. 190 (Adj. Sess.), § 3, eff. June 6, 2008; No. 205 (Adj. Sess.), § 3, eff. June 10, 2008.)


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