Vermont H 273: An act relating to funding water quality programs with revenue from the estate tax and the property transfer tax

Bill Text

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H.273 1
Introduced by Representatives Burtt of Cabot, Bishop of Colchester, Bos-Lun 2
of Westminster, Bosch of Clarendon, Cole of Hartford, 3
Dobrovich of Williamstown, Dodge of Essex, Feltus of Lyndon, 4
Galfetti of Barre Town, Greer of Bennington, Harvey of 5
Castleton, Hooper of Burlington, Keyser of Rutland City, Labor 6
of Morgan, Morgan, L. of Milton, Nelson of Derby, O’Brien of 7
Tunbridge, Pinsonault of Dorset, Powers of Waterford, 8
Pritchard of Pawlet, Surprenant of Barnard, Tagliavia of 9
Corinth, Toof of St. Albans Town, Wells of Brownington, and 10
Winter of Ludlow 11
Referred to Committee on 12
Date: 13
Subject: Agriculture; taxation; use value appraisal; eligibility; land use change 14
tax 15
Statement of purpose of bill as introduced: This bill proposes to amend the 16
eligibility requirements for the Use Value Appraisal Program by providing that 17
a farmer is eligible for the Program when the farmer earns at least 25 percent 18
of the farmer’s annual gross income from the business of farming. The bill 19
would also reduce the percentage rate of the land use change tax from 10 20
percent to six percent of the full fair market value of the changed land. In 21

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addition, the bill would define a “farmer” eligible for enrollment of agricultural 1
land to include a person who earns at least 25 percent of the farmer’s income 2
from the raising, feeding, or management of equines. 3
An act relating to the Use Value Appraisal Program 4
It is hereby enacted by the General Assembly of the State of Vermont: 5
Sec. 1. 32 V.S.A. § 3752(7) is amended to read: 6
(7)(A) “Farmer” means a person: 7
(A)(i) who earns at least one-half 25 percent of the farmer’s 8
annual gross income from the business of farming as that term is defined in 9
Regulation 1.175-3 issued under the Internal Revenue Code of 1986; or 10
(B)(i) (ii)(I) who produces farm crops that are processed in a farm 11
facility situated on land enrolled by the farmer in a use value appraisal program 12
or on a housesite adjoining the enrolled land; 13
(ii)(II) whose gross income from the sale of the processed farm 14
products pursuant to subdivision (i)(I) of this subdivision (B)(7)(A)(ii), when 15
added to other gross income from the business of farming as used in 16
subdivision (A)(i) of this subdivision (7)(A), equals at least one-half 25 percent 17
of the farmer’s annual gross income; and 18
(iii)(III) who produces on the farm a minimum of 75 percent of 19
the farm crops processed in the farm facility; or 20

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(iii) who earns at least 25 percent of the farmer’s income from the 1
raising, feeding, or management of equines. 2
(C)(B) The Agency of Agriculture, Food and Markets shall assist the 3
Director in making determinations of eligibility pursuant to subdivision 4
(B)(A)(ii) of this subdivision (7). 5
Sec. 2. 32 V.S.A. § 3757(a) is amended to read: 6
(a) Land that has been classified as agricultural land or managed forestland 7
pursuant to this chapter shall be subject to a land use change tax upon the 8
development of that land, as defined in section 3752 of this chapter. The tax 9
shall be at the rate of 10 six percent of the full fair market value of the changed 10
land determined without regard to the use value appraisal. If changed land is a 11
portion of a parcel, the fair market value of the changed land shall be the fair 12
market value of the changed land as a separate parcel, divided by the common 13
level of appraisal. Such fair market value shall be determined as of the date 14
the land is no longer eligible for use value appraisal. This tax shall be in 15
addition to the annual property tax imposed upon such property. Nothing in 16
this section shall be construed to require payment of an additional land use 17
change tax upon the subsequent development of the same land, nor shall it be 18
construed to require payment of a land use change tax merely because 19
previously eligible land becomes ineligible, provided no development of the 20
land has occurred. 21

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Sec. 3. EFFECTIVE DATE 1
This act shall take effect on passage. 2