Vermont H 933: An act relating to technical corrections to municipal charters

Bill Text

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No. 164. An act relating to miscellaneous administrative and policy
changes to the tax laws.
(H.933)
It is hereby enacted by the General Assembly of the State of Vermont:
* * * Credit for Taxes Paid in Another State by an S Corporation * * *
Sec. 1. REPEAL
32 V.S.A. § 5916 (denial of tax credits for S corporations) is repealed.
* * * Property Transfer Tax * * *
Sec. 2. 32 V.S.A. § 9602 is amended to read:
§ 9602. TAX ON TRANSFER OF TITLE TO PROPERTY
A tax is hereby imposed upon the transfer by deed of title to property
located in this State, or a transfer or acquisition of a controlling interest in any
person with title to property in this State. The amount of the tax equals 1.25
percent of the value of the property transferred, or $1.00, whichever is greater,
except as follows:
* * *
(4) Tax shall be imposed at the rate of 3.4 percent of the value of the
property transferred with respect to transfers of residential property:
(A) residential property that is fit for habitation on a year-round
basis;
(B) that will not be used as the principal residence of the transferee;
and

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(C) for which the transferee will not be required to provide a landlord
certificate pursuant to section 6069 of this title.
(5) If a transfer would have been subject to the tax rate under
subdivision (4) of this section but for the transferee’s filing of a landlord
certificate of rent for which there is no bona fide landlord-tenant relationship
between the parties, the Commissioner shall assess tax at the rate under
subdivision (4) of this section on the transfer. To make this determination, the
Commissioner may consider whether the transferee and tenant are related
parties, whether the transferee charges the tenant fair market rent, whether the
transferee is an entity with a business purpose other than the avoidance of
property transfer tax, and any other factor the Commissioner deems relevant.
* * * Current Use; Land Use Change Tax * * *
Sec. 3. 32 V.S.A. § 3757 is amended to read:
§ 3757. LAND USE CHANGE TAX
(a) Land that has been classified as agricultural land or managed forestland
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. The tax
shall be at the rate of 10 percent of the full fair market value of the changed
land determined without regard to the use value appraisal. 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 as a separate parcel, divided by the common
level of appraisal. Such fair market value shall be determined as of the date

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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 notify the Director, who shall in turn notify the local
assessing official. In the alternative, if the Director determines that
development has occurred, the Director shall notify the local assessing official
of his or her the Director’s determination. Thereafter, land that has been
withdrawn or developed shall be appraised and listed at its full fair market
value in accordance with the provisions of chapter 121 of this title and
subsection 3756(d) of this title, according to the appraisal model and land
schedule of the municipality.
(c) For the purposes of the land use change tax, the determination of the
fair market value of the land shall be made by the local assessing officials in
accordance with the provisions of subsection (b) of this section and divided by
the municipality’s most recent common level of appraisal as determined by the
Director. The determination shall be made within 30 days after the Director
notifies the local assessing officials of the date that the owner has petitioned

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for withdrawal from use value appraisal or that the Director or local assessing
official has determined that development has occurred. The local assessing
officials shall notify the Director and the owner of their determination, and the.
Failing a determination of the fair market value of the withdrawn portion of the
parcel by the local assessing officials within 30 days as required under this
subsection, the Director shall establish the fair market value of the changed
land and notify the local assessing officials and the owner of the Director’s
determination within 30 days. The provisions for