Vermont S 280: An act relating to forest carbon sequestration programs

Bill Text

BILL AS INTRODUCED S.280
2026 Page 1 of 9

VT LEG #385842 v.1
S.280 1
Introduced by Senators Gulick, Vyhovsky, Hardy, Watson and White 2
Referred to Committee on 3
Date: 4
Subject: Taxation; education property tax; property classifications; second 5
homes; school construction fund 6
Statement of purpose of bill as introduced: This bill proposes to create a new 7
property tax classification and an increased rate for residential properties used 8
as second homes and short-term rentals. The bill would further create a new 9
property classification for nonhomestead seasonal residential properties that 10
are taxed like nonhomestead nonresidential properties. Additional revenue 11
generated by the higher rate on nonhomestead residential properties would be 12
deposited in a new special fund for school construction. 13
An act relating to an increased education property tax rate for certain 14
residential properties 15
It is hereby enacted by the General Assembly of the State of Vermont: 16
Sec. 1. 32 V.S.A. § 4152a is added to read: 17
§ 4152a. PROPERTY TAX CLASSIFICATIONS 18
(a) The grand list of a town shall include one or more tax classifications for 19
each parcel of real estate. A parcel shall be classified using one of the general 20

BILL AS INTRODUCED S.280
2026 Page 2 of 9

VT LEG #385842 v.1
classes of real estate listed under subsection (b) of this section and based on the 1
considerations set forth in this section and guidance provided by the Division 2
of Property Valuation and Review. The listers and assessors shall annually 3
update the grand list to include a tax classification not later than June 1 of 4
every year, using information submitted to the Department of Taxes pursuant 5
to this section. The tax classification may be updated after June 1 when a 6
taxpayer files a, or corrects an erroneously filed, homestead declaration after 7
June 1. 8
(b) A parcel shall be assigned one or more of the following general classes: 9
(1) homestead; 10
(2) nonhomestead nonresidential; 11
(3) nonhomestead residential; and 12
(4) nonhomestead seasonal. 13
(c) As used in this section: 14
(1) “Homestead” means a parcel, or portion of a parcel, declared as a 15
homestead on or before October 15 in accordance with section 5410 of this 16
title for the current year. 17
(2) “Nonhomestead nonresidential” means a parcel, or portion of a 18
parcel, that does not qualify as “homestead” or “nonhomestead residential” 19
under this section. 20

BILL AS INTRODUCED S.280
2026 Page 3 of 9

VT LEG #385842 v.1
(3) “Nonhomestead residential” means a parcel, or portion of a parcel, 1
for which a homestead was not declared in accordance with section 5410 of 2
this title for the current year and that has a residential property, as defined by 3
the Commissioner by rule. 4
(4) “Nonhomestead seasonal” means a parcel, or portion of a parcel, that 5
would qualify as “nonhomestead residential,” except the parcel has no 6
residential property fit for habitation on a year-round basis. The 7
Commissioner shall adopt rules further defining residential property fit for 8
habitation on a year-round basis. 9
(d) A parcel with two or more portions qualifying for different tax 10
classifications under this section shall be classified proportionally based on the 11
percentage of floor space used. 12
(1) In the case of a homestead with 25 percent or less of floor space used 13
for a business purpose, the parcel shall be classified as a homestead pursuant to 14
subdivision 5401(7)(F) of this title. 15
(2) If a portion of floor space is used for more than one purpose, the use 16
for which the floor space is most often used shall be considered the primary 17
use, and the floor space shall be dedicated to that use for purposes of tax 18
classification. 19

BILL AS INTRODUCED S.280
2026 Page 4 of 9

VT LEG #385842 v.1
(e) The Commissioner shall amend existing forms, and publish new forms, 1
as needed to gather the necessary attestations and declarations required under 2
this section. 3
(f) Nothing in this section shall be construed to alter the tax treatment or 4
enrollment eligibility of property as it relates to use value appraisal under 5
chapter 124 of this title. 6
(g) Persons aggrieved by a decision to classify property for taxation 7
purposes under this section may appeal in the manner provided for property 8
valuation appeals under this title. 9
Sec. 2. 32 V.S.A. § 4152 is amended to read: 10
§ 4152. CONTENTS 11
(a) When completed, the grand list of a town shall be in such form as the 12
Director prescribes and shall contain such information as the Director 13
prescribes, including: 14
(1) In alphabetical order, the name of each real property owner and each 15
owner of taxable personal property. 16
(2) The last known mailing address of all such owners. 17
(3) A brief description of each parcel of taxable real estate in the town, 18
including a classification assigned pursuant to section 4152a of this title. 19
“Parcel” As used in this subdivisio