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creates a new land use change tax exemption for land withdrawn to develop 12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(n) Land withdrawn from use value appraisal is exempt from the levy of 15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(1) the withdrawn land fronts an existing public road; 17
(2) the land is withdrawn to develop affordable housing as defined in 24 18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