| 1 | 1 | | BILL AS INTRODUCED H.134 |
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| 2 | 2 | | 2025 Page 1 of 3 |
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| 4 | 4 | | |
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| 5 | 5 | | VT LEG #379688 v.1 |
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| 6 | 6 | | H.134 1 |
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| 7 | 7 | | Introduced by Representatives Kimbell of Woodstock, Nelson of Derby, 2 |
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| 8 | 8 | | O'Brien of Tunbridge, and Waszazak of Barre City 3 |
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| 9 | 9 | | Referred to Committee on 4 |
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| 10 | 10 | | Date: 5 |
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| 11 | 11 | | Subject: Taxation; property tax; use value appraisal; current use; land use 6 |
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| 12 | 12 | | change tax 7 |
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| 13 | 13 | | Statement of purpose of bill as introduced: This bill proposes to change the 8 |
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| 14 | 14 | | land use change tax calculation used when a portion of a parcel is removed 9 |
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| 15 | 15 | | from use value appraisal so that the calculation uses proration based on acreage 10 |
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| 16 | 16 | | instead of valuing the removed portion as a separate parcel. The bill also 11 |
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| 17 | 17 | | creates a new land use change tax exemption for land withdrawn to develop 12 |
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| 18 | 18 | | affordable housing. 13 |
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| 19 | 19 | | An act relating to calculating land use change tax and creating a new land 14 |
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| 20 | 20 | | use change tax exemption for developing affordable housing 15 |
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| 21 | 21 | | It is hereby enacted by the General Assembly of the State of Vermont: 16 |
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| 22 | 22 | | Sec. 1. 32 V.S.A. § 3757 is amended to read: 17 |
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| 23 | 23 | | § 3757. LAND USE CHANGE TAX 18 |
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| 24 | 24 | | (a) Land that has been classified as agricultural land or managed forestland 19 |
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| 25 | 25 | | pursuant to this chapter shall be subject to a land use change tax upon the 20 BILL AS INTRODUCED H.134 |
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| 26 | 26 | | 2025 Page 2 of 3 |
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| 28 | 28 | | |
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| 29 | 29 | | VT LEG #379688 v.1 |
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| 30 | 30 | | development of that land, as defined in section 3752 of this chapter. The tax 1 |
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| 31 | 31 | | shall be at the rate of 10 percent of the full fair market value of the changed 2 |
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| 32 | 32 | | land determined without regard to the use value appraisal. If changed land is a 3 |
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| 33 | 33 | | portion of a parcel, the fair market value of the changed land shall be the fair 4 |
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| 34 | 34 | | market value of the changed land as a separate parcel prorated on the basis of 5 |
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| 35 | 35 | | acreage, divided by the common level of appraisal. Such fair market value 6 |
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| 36 | 36 | | shall be determined as of the date the land is no longer eligible for use value 7 |
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| 37 | 37 | | appraisal. This tax shall be in addition to the annual property tax imposed 8 |
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| 38 | 38 | | upon such property. Nothing in this section shall be construed to require 9 |
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| 39 | 39 | | payment of an additional land use change tax upon the subsequent 10 |
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| 40 | 40 | | development of the same land, nor shall it be construed to require payment of a 11 |
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| 41 | 41 | | land use change tax merely because previously eligible land becomes 12 |
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| 42 | 42 | | ineligible, provided no development of the land has occurred. 13 |
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| 43 | 43 | | * * * 14 |
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| 44 | 44 | | (n) Land withdrawn from use value appraisal is exempt from the levy of 15 |
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| 45 | 45 | | land use change tax under this section, provided: 16 |
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| 46 | 46 | | (1) the withdrawn land fronts an existing public road; 17 |
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| 47 | 47 | | (2) the land is withdrawn to develop affordable housing as defined in 24 18 |
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| 48 | 48 | | V.S.A. § 4303(1); 19 |
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| 49 | 49 | | (3) the withdrawn land is part of, or no more than three miles from the 20 |
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| 50 | 50 | | boundary of, a State designated downtown or village center, planned growth 21 BILL AS INTRODUCED H.134 |
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| 51 | 51 | | 2025 Page 3 of 3 |
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| 53 | 53 | | |
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| 54 | 54 | | VT LEG #379688 v.1 |
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| 55 | 55 | | area, or designated neighborhood as those terms are defined and used under 24 1 |
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| 56 | 56 | | V.S.A. chapter 139; and 2 |
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| 57 | 57 | | (4) the withdrawal does not result in the fragmentation of an existing 3 |
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| 58 | 58 | | parcel. 4 |
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| 59 | 59 | | Sec. 2. EFFECTIVE DATE 5 |
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| 60 | 60 | | This act shall take effect on July 1, 2025. 6 |
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