Vermont 2025-2026 Regular Session

Vermont Senate Bill S0118 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	BILL AS INTRODUCED S.118
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6	6	S.118 1
7	7	Introduced by Senator Ram Hinsdale 2
8	8	Referred to Committee on 3
9	9	Date: 4
10	10	Subject: Agriculture; economic development; stormwater permitting; land use; 5
11	11	property transfer tax; income tax 6
12	12	Statement of purpose of bill as introduced: This bill proposes to enact multiple 7
13	13	provisions related to economic development on farms. The bill would amend 8
14	14	the requirements for the seasonal application of manure to provide an 9
15	15	exemption from the ban when liquid manure is applied through direct soil 10
16	16	injection. The bill also would exempt farms in compliance with the required 11
17	17	agricultural practices from the three-acre stormwater permit. In addition, the 12
18	18	bill would amend the right-to-farm law to provide farms with additional 13
19	19	protection from nuisance or trespass claims. The bill also clarifies that farm 14
20	20	structures, including fences, are exempt from regulation under municipal 15
21	21	bylaws or ordinances. In addition, the bill provides that farm employee 16
22	22	housing is exempt from regulation under municipal bylaw or ordinance. The 17
23	23	bill would amend the eligibility criteria for accessory on-farm businesses and 18
24	24	for eligibility of agricultural land under the Use Value Appraisal Program. The 19
25	25	bill also would exempt certain transfers of property that is part of a farming 20
26	26	operation from the property transfer tax. In addition, the bill would exempt 21 BILL AS INTRODUCED S.118
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31	31	from the Vermont income tax certain net income from farming and net income 1
32	32	from the sale of certain farm property. 2
33	33	An act relating to agricultural economic development 3
34	34	It is hereby enacted by the General Assembly of the State of Vermont: 4
35	35	* * * Short Title * * * 5
36	36	Sec. 1. SHORT TITLE 6
37	37	This act may be cited as “The Food Security Act.” 7
38	38	* * * Seasonal Application of Manure * * * 8
39	39	Sec. 2. 6 V.S.A. § 4816 is amended to read: 9
40	40	§ 4816. SEASONAL APPLICATION OF MANURE 10
41	41	(a) Prohibition on application. A person shall not apply manure to land in 11
42	42	the State between December 15 and April 1 of any calendar year unless 12
43	43	authorized by this section. 13
44	44	(b) Extension of prohibition. The Secretary of Agriculture, Food and 14
45	45	Markets shall amend the Required Agricultural Practices by rule in order to 15
46	46	establish a process under which the Secretary may prohibit the application of 16
47	47	manure to land in the State between December 1 and December 15 and 17
48	48	between April 1 and April 30 of any calendar year when the Secretary 18
49	49	determines that due to weather conditions, soil conditions, or other limitations, 19 BILL AS INTRODUCED S.118
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52	52
53	53	VT LEG #381461 v.1
54	54	application of manure to land would pose a significant potential of discharge or 1
55	55	runoff to State waters. 2
56	56	(c) Seasonal exemption. The Secretary of Agriculture, Food and Markets 3
57	57	shall amend the Required Agricultural Practices by rule in order to establish a 4
58	58	process under which the Secretary may authorize an exemption to the 5
59	59	prohibition on the application of manure to land in the State between 6
60	60	December 15 and April 1 of any calendar year or during any period established 7
61	61	under subsection (b) of this section when manure is prohibited from 8
62	62	application. Any process established for the issuance of an exemption under 9
63	63	the Required Agricultural Practices may authorize land application of manure 10
64	64	on a weekly, monthly, or seasonal basis or in authorized regions, areas, or 11
65	65	fields in the State, provided that any exemption shall: 12
66	66	(1) prohibit application of manure: 13
67	67	(A) in areas with established channels of concentrated stormwater 14
68	68	runoff to surface waters, including ditches and ravines; 15
69	69	(B) in nonharvested permanent vegetative buffers; 16
70	70	(C) in a nonfarmed wetland, as that term is defined in 10 V.S.A. 17
71	71	§ 902(5); 18
72	72	(D) within 50 feet of a potable water supply, as that term is defined in 19
73	73	10 V.S.A. § 1972(6); 20
74	74	(E) to fields exceeding tolerable soil loss; and 21 BILL AS INTRODUCED S.118
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79	79	(F) to saturated soils; 1
80	80	(2) establish requirements for the application of manure when frozen or 2
81	81	snow-covered soils prevent effective incorporation at the time of application; 3
82	82	(3) require manure to be applied according to a nutrient management 4
83	83	plan; and 5
84	84	(4) establish the maximum tons of manure that may be applied per acre 6
85	85	during any one application. 7
86	86	(d) Exemption for liquid manure injection. The prohibition on the 8
87	87	application of manure to land in the State under this section shall not apply to 9
88	88	the land application of liquid manure directly injected to soils, provided 10
89	89	manure is not applied: 11
90	90	(1) in areas with established channels of concentrated stormwater runoff 12
91	91	to surface waters, including ditches and ravines; 13
92	92	(2) in nonharvested permanent vegetative buffers; 14
93	93	(3) in a nonfarmed wetland, as that term is defined in 10 V.S.A. 15
94	94	§ 902(5); 16
95	95	(4) within 50 feet of a potable water supply, as that term is defined in 10 17
96	96	V.S.A. § 1972(6); 18
97	97	(5) to fields exceeding tolerable soil loss; 19
98	98	(6) to saturated soils; or 20 BILL AS INTRODUCED S.118
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103	103	(7) to snow covered soils, unless the application is approved by a 1
104	104	certified nutrient management technical service provider. 2
105	105	* * * Three-Acre Stormwater Permit; Agriculture * * * 3
106	106	Sec. 3. 10 V.S.A § 1264 is amended to read: 4
107	107	§ 1264. STORMWATER MANAGEMENT 5
108	108	* * * 6
109	109	(b) Definitions. As used in this section: 7
110	110	* * * 8
111	111	(6) “Impervious surface” means those manmade surfaces, including 9
112	112	paved and unpaved roads, parking areas, roofs, driveways, and walkways, from 10
113	113	which precipitation runs off rather than infiltrates. 11
114	114	* * * 12
115	115	(10) “Regulated stormwater runoff” means precipitation, snowmelt, and 13
116	116	the material dissolved or suspended in precipitation and snowmelt that runs off 14
117	117	impervious surfaces and discharges into surface waters or into groundwater via 15
118	118	infiltration. 16
119	119	* * * 17
120	120	(14) “Stormwater runoff” means precipitation and snowmelt that does 18
121	121	not infiltrate into the soil, including material dissolved or suspended in it, but 19
122	122	does not include discharges from undisturbed natural terrain or wastes from 20
123	123	combined sewer overflows. 21 BILL AS INTRODUCED S.118
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128	128	* * * 1
129	129	(c) Prohibitions. 2
130	130	(1) A person shall not commence the construction or redevelopment of 3
131	131	one-half of an acre or more of impervious surface without first obtaining a 4
132	132	permit from the Secretary. 5
133	133	* * * 6
134	134	(7) In accordance with the schedule established under subdivision (g)(3) 7
135	135	of this section, a person shall not discharge stormwater from impervious 8
136	136	surface of three or more acres in size without first obtaining an individual 9
137	137	permit or coverage under a general permit issued under this section if the 10
138	138	discharge was never previously permitted or was permitted under an individual 11
139	139	permit or general permit that did not incorporate the requirements of the 2002 12
140	140	Stormwater Management Manual or any subsequently adopted Stormwater 13
141	141	Management Manual. 14
142	142	(d) Exemptions. 15
143	143	(1) No permit is required under this section for: 16
144	144	(A) Stormwater runoff from farms in compliance with the required 17
145	145	agricultural practices adopted by the Secretary of Agriculture, Food and 18
146	146	Markets, provided that this exemption shall not apply to construction 19
147	147	stormwater permits required by subdivision (c)(4) of this section. This 20 BILL AS INTRODUCED S.118
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152	152	exemption shall apply to any farm subject to the permit requirement under 1
153	153	subdivision (c)(7) of this section. 2
154	154	(B) Stormwater runoff from concentrated animal feeding operations 3
155	155	permitted under subsection 1263(g) of this chapter. 4
156	156	(C) Stormwater runoff from accepted silvicultural practices, as 5
157	157	defined by the Commissioner of Forests, Parks and Recreation, including 6
158	158	practices that are in compliance with the Acceptable Management Practices for 7
159	159	Maintaining Water Quality on Logging Jobs in Vermont, as adopted by the 8
160	160	Commissioner of Forests, Parks and Recreation. 9
161	161	(D) Stormwater runoff permitted under section 1263 of this title. 10
162	162	(2) No permit is required under subdivision (c)(1), (5), or (7) of this 11
163	163	section and for which a municipality has assumed full legal responsibility as 12
164	164	part of a permit issued to the municipality by the Secretary. As used in this 13
165	165	subdivision, “full legal responsibility” means legal control of the stormwater 14
166	166	system, including a legal right to access the stormwater system, a legal duty to 15
167	167	properly maintain the stormwater system, and a legal duty to repair and replace 16
168	168	the stormwater system when it no longer adequately protects waters of the 17
169	169	State. 18
170	170	* * * 19
171	171	* * * Right to Farm * * * 20 BILL AS INTRODUCED S.118
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176	176	Sec. 4. 12 V.S.A. chapter 195 is amended to read: 1
177	177	CHAPTER 195. NUISANCE SUITS AGAINST AGRICULTURAL 2
178	178	ACTIVITIES 3
179	179	§ 5751. LEGISLATIVE FINDINGS AND PURPOSE 4
180	180	The General Assembly finds that agricultural production is a major 5
181	181	contributor to the State’s economy; that agricultural lands constitute unique 6
182	182	and irreplaceable resources of statewide importance; that the continuation of 7
183	183	existing and the initiation of new agricultural activities preserve the landscape 8
184	184	and environmental resources of the State, contribute to the increase of tourism, 9
185	185	and further the economic welfare and self-sufficiency of the people of the 10
186	186	State; and that the encouragement, development, improvement, and 11
187	187	preservation of agriculture will result in a general benefit to the health and 12
188	188	welfare of the people of the State. In order for the agricultural industry to 13
189	189	survive in this State, farms will likely change, adopt new technologies, and 14
190	190	diversify into new products, which for some farms will mean increasing in 15
191	191	size. The General Assembly finds that agricultural activities are potentially 16
192	192	subject to lawsuits based on the theory of nuisance, and that these suits 17
193	193	encourage and could force the premature removal of the farmlands and other 18
194	194	farm resources from agricultural use. It is the purpose of this chapter to protect 19
195	195	reasonable agricultural activities conducted on the farm from nuisance 20
196	196	lawsuits. 21 BILL AS INTRODUCED S.118
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201	201	§ 5752. DEFINITIONS 1
202	202	For the purpose of As used in this chapter,: 2
203	203	(1) “agricultural Agricultural activity” means, but is not limited to: 3
204	204	(1)(A) the cultivation or other use of land for producing food, fiber, 4
205	205	Christmas trees, maple sap, or horticultural and orchard crops; the raising, 5
206	206	feeding, or management of domestic animals as defined in 6 V.S.A. § 1151 or 6
207	207	bees; the operation of greenhouses; the production of maple syrup; the on-site 7
208	208	storage, preparation, and sale of agricultural products principally produced on 8
209	209	the farm; and the on-site production of fuel or power from agricultural 9
210	210	products or wastes principally produced on the farm; 10
211	211	(2)(B) the preparation, tilling, fertilization, planting, protection, 11
212	212	irrigation, and harvesting of crops; the composting of material principally 12
213	213	produced by the farm or to be used at least in part on the farm; the ditching and 13
214	214	subsurface drainage of farm fields and the construction of farm ponds; the 14
215	215	handling of livestock wastes and by-products; and the on-site storage and 15
216	216	application of agricultural inputs, including lime, fertilizer, and pesticides; 16
217	217	(3)(C) “farming” as defined in 10 V.S.A. § 6001; and 17
218	218	(4)(D) “agricultural activities” as defined in 6 V.S.A. § 4802. 18
219	219	(2) “Generally accepted agricultural practices” mean: 19
220	220	(A) the requirements of 6 V.S.A. chapter 215, including permit 20
221	221	requirements or requirements of the Required Agricultural Practices; 21 BILL AS INTRODUCED S.118
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226	226	(B) the requirements of the Agency of Agriculture, Food and 1
227	227	Markets’ Vermont Rule for Control of Pesticides; and 2
228	228	(C) practices conducted in a manner consistent with proper and 3
229	229	accepted customs and standards followed by similar operators of agricultural 4
230	230	activities in the State. 5
231	231	§ 5753. AGRICULTURAL ACTIVITIES; PROTECTION FROM 6
232	232	NUISANCE LAWSUITS 7
233	233	(a)(1) Agricultural activities shall be entitled to a rebuttable presumption 8
234	234	that the activity does not constitute a nuisance if the agricultural activity meets 9
235	235	all of the following conditions: 10
236	236	(A) it is conducted in conformity with federal, State, and local laws 11
237	237	and regulations (including required agricultural practices); 12
238	238	(B) it is consistent with good agricultural practices; 13
239	239	(C) it is established prior to surrounding nonagricultural activities; 14
240	240	and 15
241	241	(D) it has not significantly changed since the commencement of the 16
242	242	prior surrounding nonagricultural activity. 17
243	243	(2) The presumption that the agricultural activity does not constitute a 18
244	244	nuisance may be rebutted by a showing that the activity has a substantial 19
245	245	adverse effect on health, safety, or welfare, or has a noxious and significant 20
246	246	interference with the use and enjoyment of the neighboring property No 21 BILL AS INTRODUCED S.118
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251	251	agricultural activity shall be or become a nuisance or trespass when the activity 1
252	252	is conducted in accordance with generally accepted agricultural practices. 2
253	253	(b) Nothing in this section shall be construed to limit the authority of State 3
254	254	or local boards of health to abate nuisances affecting the public health A 4
255	255	plaintiff alleging that an agricultural activity is a nuisance or trespass shall 5
256	256	have the burden of proving by a preponderance of the evidence that the 6
257	257	agricultural activity is not conducted in accordance with generally accepted 7
258	258	agricultural practices. 8
259	259	(c) The nuisance and trespass protection for an agricultural activity 9
260	260	provided for under subsection (a) of this section shall not apply whenever a 10
261	261	nuisance or trespass violation results from the negligent operation of an 11
262	262	agricultural activity. 12
263	263	§ 5754. LIBERAL CONSTRUCTION; SEVERABILITY 13
264	264	(a) This chapter is remedial in nature and shall be liberally construed to 14
265	265	effectuate its purposes. 15
266	266	(b) An agricultural activity shall not lose the nuisance or trespass protection 16
267	267	under section 5753 of this title due to: 17
268	268	(1) a change of ownership or a cessation of operation, in whole or in 18
269	269	part, of not more than 10 years; 19
270	270	(2) a change of crops produced; or 20 BILL AS INTRODUCED S.118
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275	275	(3) a change of a farming method or conversion of farming practices or 1
276	276	agricultural activities to other farming methods, practices, or agricultural 2
277	277	activities on a farm. 3
278	278	(c) If any provision of this chapter is held invalid, the invalidity does not 4
279	279	affect other provisions of this chapter that can be given effect without the 5
280	280	invalid provision, and for this purpose, the provisions of this chapter are 6
281	281	severable. 7
282	282	§ 5755. REQUIRED MEDIATION PRIOR TO SUIT 8
283	283	(a) A person shall not bring a court action based on a claim of nuisance or 9
284	284	trespass arising from an agricultural activity unless the person and the operator 10
285	285	of the agricultural activity, at least once, attempt to resolve through mediation 11
286	286	the issue or dispute that the person has concerning operation of the agricultural 12
287	287	activity. The mediation shall be conducted according to the provisions of the 13
288	288	Uniform Mediation Act set forth in chapter 194 of this title. 14
289	289	(b) The parties to the mediation may agree upon the use of a mediator to 15
290	290	assist in the resolution of the agreed upon issue or dispute, and the parties shall 16
291	291	share the cost of the mediator. If the parties to the mediation are unable to 17
292	292	resolve the relevant issue or dispute through mediation, the parties may agree 18
293	293	to submit the issue or dispute to binding arbitration pursuant to chapter 192 of 19
294	294	this title and shall share the cost of the arbitration. 20 BILL AS INTRODUCED S.118
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299	299	(c) A person bringing a court action based on a claim of nuisance or 1
300	300	trespass arising from an agricultural activity shall provide the court with a 2
301	301	sworn statement of an attempt to resolve the issue or dispute through 3
302	302	mediation. 4
303	303	* * * 5
304	304	* * * Municipal Land Use Regulation of Farming * * * 6
305	305	Sec. 5. 24 V.S.A. § 4413(d) is amended to read: 7
306	306	(d)(1) A bylaw under this chapter shall not regulate: 8
307	307	(A) required agricultural practices, including the construction of farm 9
308	308	structures, as those practices are defined by the Secretary of Agriculture, Food 10
309	309	and Markets; 11
310	310	(B) accepted silvicultural practices, as defined by the Commissioner 12
311	311	of Forests, Parks and Recreation, including practices that are in compliance 13
312	312	with the Acceptable Management Practices for Maintaining Water Quality on 14
313	313	Logging Jobs in Vermont, as adopted by the Commissioner of Forests, Parks 15
314	314	and Recreation; or 16
315	315	(C) forestry operations. 17
316	316	(2) As used in this section: 18
317	317	(A) “Farm structure” means a building, enclosure, or fence for farm 19
318	318	employee housing, housing livestock, raising horticultural or agronomic plants, 20
319	319	or carrying out other practices associated with accepted agricultural or farming 21 BILL AS INTRODUCED S.118
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324	324	practices, including a silo, as “farming” is defined in 10 V.S.A. § 6001(22), but 1
325	325	excludes a dwelling for human habitation. 2
326	326	(B) “Forestry operations” has the same meaning as in 10 V.S.A. 3
327	327	§ 2602. 4
328	328	(C) “Farm employee housing” means housing owned or controlled by 5
329	329	the farm employer, located on the farm premises and provided for the 6
330	330	occupancy of a farm employee and the farm employee’s family or household 7
331	331	members for no payment other than the farm employee’s labor. Payment of 8
332	332	utility and fuel charges paid by a farm employee does not affect the 9
333	333	designation of housing provided as a benefit of farm employment. Farm 10
334	334	employee housing shall meet the U.S. Department of Labor standards for 11
335	335	housing of H-2A temporary agricultural employees. 12
336	336	(D) “Farm employer” means a person earning at least one-half of the 13
337	337	person’s annual gross income from the business of farming as that term is 14
338	338	defined in Section 1.175-3 of the regulations issued by the U.S. Department of 15
339	339	the Treasury under the U.S. Internal Revenue Code, as amended. 16
340	340	(3) A person shall notify a municipality of the intent to build a farm 17
341	341	structure and shall abide by setbacks approved by the Secretary of Agriculture, 18
342	342	Food and Markets. No municipal permit for a farm structure shall be required. 19
343	343	(4) This subsection does not prevent an appropriate municipal panel, 20
344	344	when issuing a decision on an application for land development over which the 21 BILL AS INTRODUCED S.118
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349	349	panel otherwise has jurisdiction under this chapter, from imposing reasonable 1
350	350	conditions under subsection 4464(b) of this title to protect wildlife habitat; 2
351	351	threatened or endangered species; or other natural, historic, or scenic resources 3
352	352	and does not prevent the municipality from enforcing such conditions, 4
353	353	provided that the reasonable conditions do not restrict or regulate forestry 5
354	354	operations unrelated to land development. 6
355	355	(5) If a municipal bylaw or ordinance purports to regulate a practice 7
356	356	regulated under the required agricultural practices or to regulate a farm 8
357	357	structure, the owner or operator of a farm within the municipality may request 9
358	358	an opinion from the Secretary of Agriculture, Food and Markets as to whether 10
359	359	the municipal bylaw violates this subsection. If the Secretary of Agriculture, 11
360	360	Food and Markets determines that the municipal bylaw or ordinance does 12
361	361	regulate a required agricultural practice or a farm structure, farms withing the 13
362	362	municipality shall not be required to comply with the municipal bylaw or 14
363	363	ordinance. 15
364	364	(6) When farm employee housing is unused by a farm employee, the 16
365	365	farm employer may rent the farm employee housing as a short-term rental 17
366	366	subject to the State laws for short-term rentals. 18
367	367	Sec. 6. 10 V.S.A. § 6081(t) is amended to read: 19
368	368	(t) No permit or permit amendment is required for the construction of 20
369	369	improvements for an accessory on-farm business for the storage or sale of 21 BILL AS INTRODUCED S.118
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374	374	qualifying products or the other eligible enumerated products as defined in 1
375	375	24 V.S.A. § 4412(11)(A)(i)(I). No permit or permit amendment is required for 2
376	376	the construction of improvements for an accessory on-farm business for the 3
377	377	preparation or processing of qualifying products as defined in 24 V.S.A. 4
378	378	§ 4412(11)(A)(i)(I), provided that more than 50 percent of the total annual 5
379	379	sales of the prepared or processed qualifying products that come from products 6
380	380	not produced on the farm where the business is located do not exceed 7
381	381	$250,000.00 in annual sales. No permit or permit amendment is required for 8
382	382	the construction of improvements for an accessory on-farm business for 9
383	383	educational, recreations, or social events that feature agriculture practices or 10
384	384	qualifying products, as those terms are defined in 24 V.S.A. 11
385	385	§ 4412(11)(A)(i)(II). This subsection shall not apply to the construction of 12
386	386	improvements related to hosting events or farm stays as part of an accessory 13
387	387	on-farm business as defined in 24 V.S.A. § 4412(11)(A)(i)(II). 14
388	388	* * * Use Value Appraisal * * * 15
389	389	Sec. 7. 32 V.S.A. § 3752(1) is amended to read: 16
390	390	(1) “Agricultural land” means any land, exclusive of any housesite, in 17
391	391	active use to grow hay or cultivated crops, pasture livestock, cultivate trees 18
392	392	bearing edible fruit, or produce an annual maple product, and that is 25 acres 19
393	393	or more in size, except as provided in this subdivision (1). Agricultural land 20
394	394	shall include buffer zones as defined and required in the Agency of 21 BILL AS INTRODUCED S.118
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399	399	Agriculture, Food and Markets’ Required Agricultural Practices rule adopted 1
400	400	under 6 V.S.A. chapter 215. There shall be a presumption that the land is used 2
401	401	for agricultural purposes if: 3
402	402	(A) it is owned by a farmer and is part of the overall farm unit; 4
403	403	(B) it is used by a farmer as part of the farmer’s operation under 5
404	404	written lease for at least three years; or 6
405	405	(C) it has produced an annual gross income from the sale of farm 7
406	406	crops or the equivalent value of donated farm crops in one of two, or three of 8
407	407	the five, calendar years preceding of at least: 9
408	408	(i) $2,000.00 for parcels of up to 25 acres; and. 10
409	409	(ii) $75.00 per acre for each acre over 25, with the total income 11
410	410	required not to exceed $5,000.00. 12
411	411	(iii) Exceptions to these income requirements may be made in 13
412	412	cases of orchard lands planted to fruit-producing trees, bushes, or vines that are 14
413	413	not yet of bearing age. As used in this section, the term “farm crops” also 15
414	414	includes animal fiber, cider, wine, and cheese, produced on the enrolled land or 16
415	415	on a housesite adjoining the enrolled land, from agricultural products grown on 17
416	416	the enrolled land. 18
417	417	* * * Vermont Income Tax * * * 19 BILL AS INTRODUCED S.118
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422	422	Sec. 8. 32 V.S.A. § 5811(21) is amended to read: 1
423	423	(21) “Taxable income” means, in the case of an individual, federal 2
424	424	adjusted gross income determined without regard to 26 U.S.C. § 168(k) and: 3
425	425	* * * 4
426	426	(B) decreased by the following items of income (to the extent such 5
427	427	income is included in federal adjusted gross income): 6
428	428	* * * 7
429	429	(ii) with respect to adjusted net capital gain income as defined in 8
430	430	26 U.S.C. § 1(h) reduced by the total amount of any qualified dividend 9
431	431	income: either the first $5,000.00 of such adjusted net capital gain income or 10
432	432	40 percent of adjusted net capital gain income from the sale of assets held by 11
433	433	the taxpayer for more than three years, except not adjusted net capital gain 12
434	434	income from: 13
435	435	(I) the sale of any real estate or portion of real estate used by 14
436	436	the taxpayer as a primary or nonprimary residence; or 15
437	437	(II) the sale of depreciable personal property other than farm 16
438	438	property and standing timber; or stocks or bonds publicly traded or traded on 17
439	439	an exchange, or any other financial instruments; regardless of whether sold by 18
440	440	an individual or business; and provided that the total amount of decrease under 19
441	441	this subdivision (21)(B)(ii) shall not exceed 40 percent of federal taxable 20
442	442	income or $350,000.00, whichever is less; 21 BILL AS INTRODUCED S.118
443	443	2025 Page 19 of 21
444	444
445	445
446	446	VT LEG #381461 v.1
447	447	* * * 1
448	448	(v) the amount of any federal deduction or credit that the taxpayer 2
449	449	would have been allowed for the cultivation, testing, processing, or sale of 3
450	450	cannabis or cannabis products as authorized under 7 V.S.A. chapter 33 or 37, 4
451	451	but for 26 U.S.C. § 280E; and 5
452	452	(vi) the amount of interest paid by a qualified resident taxpayer 6
453	453	during the taxable year on a qualified education loan for the costs of attendance 7
454	454	at an eligible educational institution; and 8
455	455	(vii) the amount of any net farm profit, provided the taxpayer’s net 9
456	456	farm profit during the taxable year did not exceed $10,000.00; and 10
457	457	(viii) notwithstanding subdivision (ii) of this subdivision (21)(B), 11
458	458	adjusted net capital gain income from the sale of real estate that is part of a 12
459	459	farming operation, provided: 13
460	460	(I) the buyer continued using the real estate as part of a farming 14
461	461	operation and is related to the seller by blood, marriage, civil union, or 15
462	462	adoption; or 16
463	463	(II) the buyer was an employee of the farming operation for a 17
464	464	minimum of 10 years prior to the sale; and 18
465	465	* * * 19
466	466	* * * Property Transfer Tax * * * 20 BILL AS INTRODUCED S.118
467	467	2025 Page 20 of 21
468	468
469	469
470	470	VT LEG #381461 v.1
471	471	Sec. 9. 32 V.S.A. § 9603 is amended to read: 1
472	472	§ 9603. EXEMPTIONS 2
473	473	The following transfers are exempt from the tax imposed by this chapter: 3
474	474	* * * 4
475	475	(5) Transfers between two spouses, or parent and child or child’s 5
476	476	spouse, or grandparent and grandchild or grandchild’s spouse, without actual 6
477	477	consideration therefor; and also transfers in trust or by decree of court to the 7
478	478	extent of the benefit to the donor or one or more of the related persons named 8
479	479	in this subdivision; and transfers from a trust named in this subdivision 9
480	480	conveying or releasing the property free of trust as between those related 10
481	481	persons and without actual consideration therefor. 11
482	482	* * * 12
483	483	(29) Transfers of property that is part of a farming operation, provided: 13
484	484	(A) the transferee will continue using the real estate as part of a 14
485	485	farming operation and is related to the seller by blood, marriage, civil union, or 15
486	486	adoption; or 16
487	487	(B) the transferee was an employee of the farming operation for a 17
488	488	minimum of 10 years prior to the transfer. 18
489	489	* * * Effective Dates * * * 19 BILL AS INTRODUCED S.118
490	490	2025 Page 21 of 21
491	491
492	492
493	493	VT LEG #381461 v.1
494	494	Sec. 10. EFFECTIVE DATES 1
495	495	This act shall take effect on July 1, 2025, except that, notwithstanding 1 2
496	496	V.S.A. § 214, Sec. 8 (reductions to taxable income) shall take effect 3
497	497	retroactively on January 1, 2025 and shall apply to taxable years beginning on 4
498	498	and after January 1, 2025. 5