§ 6301. Purpose
It is the purpose of this chapter to encourage and assist the maintenance of the present
uses of Vermont’s agricultural, forest, and other undeveloped land and to prevent
the accelerated residential and commercial development thereof; to preserve and to
enhance Vermont’s scenic natural resources; to strengthen the base of the recreation
industry and to increase employment, income, business, and investment; to enable the
citizens of Vermont to plan its orderly growth in the face of increasing development
pressures in the interests of the public health, safety, and welfare; and to encourage
the use of conservation and preservation tools to support farm, forest, and related
enterprises, thereby strengthening Vermont’s economy to improve the quality of life
for Vermonters and to maintain the historic settlement pattern of compact village
and urban centers separated by rural countryside. (Added 1969, No. 229 (Adj. Sess.), § 2; amended 2011, No. 118 (Adj. Sess.), § 2.)
§ 6301a. Definitions
As used in this chapter:
(1) “State agency” means the Agency of Natural Resources or any of its departments, Agency
of Transportation, Agency of Agriculture, Food and Markets, or Vermont Housing and
Conservation Board.
(2) “Qualified organization” means:
(A) an organization qualifying under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which is not a private foundation as defined in Section 509(a) of the Internal Revenue Code, and which has been certified by the Commissioner of Taxes as being principally engaged
in the preservation of undeveloped land for the purposes expressed in section 6301 of this title.
(B) an organization qualifying under Section 501(c)(2) of the Internal Revenue Code of 1986, as amended, provided such organization is controlled exclusively by an organization
or organizations described in subdivision (2)(A) of this section.
(3) “Taxation” and “tax” means ad valorem taxes levied by the State and its municipalities. (Added 1987, No. 200 (Adj. Sess.), § 42; amended 1989, No. 256 (Adj. Sess.), § 10(a), eff. Jan. 1, 1991; 2003, No. 42, § 2, eff. May 27, 2003.)
§ 6302. Power to acquire
(a) In order to carry out the purposes set forth in section 6301 of this title, any owner of real property located within this State or of any right or interest
in real property located within this State may sell, donate, devise, exchange, or
transfer that real property or any right or interest in real property located within
this State to a municipality of this State, a State agency, or a qualified organization.
A municipality of this State by the action of its legislative body or a State agency
may acquire such real property or any right and interest in real property located
within this State by purchase with any authorized funds, or by donation, devise, exchange,
or transfer, all as herein provided.
(b) For the purposes of this chapter, “real property” includes (without limitation) areas
covered by water, areas beneath the surface of the ground, air space, and any buildings,
other structures, and other improvements, and “real estate” as the same is defined
in 1 V.S.A. § 132.
(c) The General Assembly hereby declares that the acquisition of real property or any
right and interest in real property located within this State, for the purposes expressed
in section 6301 of this title, constitutes a public use and a public purpose for which public funds may be expended
or advanced.
(d) Prior to the acquisition of any right or interest in real property by a State agency,
the State agency shall submit a report thereon to the legislative body of the municipality
concerned, setting forth the location of the real property, the characteristics of
the right or interest to be acquired, and the consideration to be given therefor. (Added 1969, No. 229 (Adj. Sess.), § 3; amended 1983, No. 71, § 1; 1983, No. 158 (Adj. Sess.), eff. April 13, 1984; 1987, No. 76, § 18; 1987, No. 200 (Adj. Sess.), § 43; 2019, No. 131 (Adj. Sess.), § 18.)
§ 6303. Interests that may be acquired
(a) The rights and interests in real property that may be acquired, used, encumbered,
and conveyed by a municipality, State agency, or qualified organization shall include
the following:
(1) Fee simple.
(2) Fee simple subject to right of occupancy and use, which may be defined as full and
complete title subject only to a right of occupancy and use of the subject real property
or part thereof by the grantor for residential or agricultural purposes, subject to
the provisions of section 6304 of this title and to such other terms as the legislative body of the municipality, the qualified
organization, or the State agency may fix.
(3) Fee simple and resale of rights and interests, which may be defined as the acquisition
of real property in fee simple and the subsequent reconveyance of rights and interests
in such property to the former owner or to others, subject to the provisions of section 6304 of this title and to specified covenants, restrictions, conditions, or affirmative requirements
fixed by the legislative body of the municipality, the qualified organization, or
the State agency in its discretion and designed to accomplish the purposes set forth
in section 6301 of this title.
(4) Fee simple and lease back, which may be defined as the acquisition of real property
in fee simple and the lease for the life of a person or for a term of years of rights
and interests in the real property, subject to the provisions of section 6304 of this title and to specified covenants, restrictions, conditions, or affirmative requirements
fixed by the legislative body of the municipality, the qualified organization, or
the State agency in its discretion and designed to accomplish the purposes set forth
in section 6301 of this title.
(5) Less than fee simple. The acquisition and retention of any rights and interests in
real property less than fee simple.
(6) Lease. The lease of land or rights and interests in land for a term, with or without
an option to purchase.
(7) Preemptive rights and options to purchase. The acquisition of preemptive rights such
as a right of first refusal or an option to purchase land or rights and interests
in the land.
(b) The legislative body of a municipality, a State agency, or a qualified organization,
as the case may be, shall determine the types of rights and interests in real property
to be acquired, including licenses, equitable servitudes, profits, rights under covenants,
easements, development rights, or any other rights and interests in real property
of whatever character.
(c) Where less than fee simple ownership is acquired or retained, such right and interest
may, in the discretion of the legislative body of the municipality, the State agency,
or the qualified organization, include a right to enter in order to accomplish the
purposes of section 6301 of this title. (Added 1969, No. 229 (Adj. Sess.), § 4; amended 1987, No. 200 (Adj. Sess.), § 44; 2011, No. 118 (Adj. Sess.), § 7; 2019, No. 131 (Adj. Sess.), § 19.)
§ 6304. Sales of land
In any case where rights and interests in real property have been reconveyed or leased
back to a person by a municipality or a department, the use of land subject in the
reconveyance or lease back shall not be changed, and no residential, industrial, or
commercial construction except for the use of the owner or his or her family shall
be undertaken, except with the consent of the legislative body of the municipality
or the department or except as specifically provided in the instrument evidencing
the reconveyance or lease. In the event of the termination of any rights or interests
of such person, the legislative body of the municipality or the department shall pay
to such person an amount equal to the fair market value of that portion of such right
that remained unexpired on the date of such termination, unless such termination is
caused by the breach by such person of a term of the instrument by which he or she
acquired such right or interest. In any case of acquisition subject to a right of
occupancy and use, or acquisition and reconveyance, or acquisition and lease, under
subsection 6303(a) of this title, the legislative body or department shall give priority to the grantor thereof in
selecting the grantee or lessee, as the case may be. (Added 1969, No. 229 (Adj. Sess.), § 5; amended 2019, No. 131 (Adj. Sess.), § 20.)
§ 6305. Exchanges of land
In exercising its authority to acquire property by exchange, a department may accept
real property and rights and interests in the real property, and may convey to the
grantor of such real property or rights and interests in the real property any State-owned
property under the jurisdiction of the department, but only with the favorable advice
and recommendation of the Interagency Committee on Natural Resources. In effecting
such exchanges, the department may also utilize for exchange purposes any privately
owned land and rights and interests in the land donated or made available to it for
such purpose of an exchange. The land and rights and interests thus exchanged shall
be approximately equal in fair market value, provided that the department may accept
cash from or pay cash to the grantor in such an exchange, in order to equalize the
value of the property and rights and interests in the property being exchanged. Notwithstanding
any other provisions of law and with the approval of the Interagency Committee on
Natural Resources, State real property and rights and interests in the property may,
with the authorization of the department or other agency having custody thereof, be
transferred without consideration to the jurisdiction of a department designated under
section 6302 of this title for use in carrying out the provisions of this chapter. (Added 1969, No. 229 (Adj. Sess.), § 6; amended 2019, No. 131 (Adj. Sess.), § 21.)
§ 6306. Exemption from taxation
(a) The rights and interests in real property acquired by a municipality or State agency
under the authority of this chapter shall be considered as municipal or State-owned
land, as the case may be, with respect to taxation and State reimbursement in lieu
of taxes.
(b)(1) The Commissioner of Taxes may certify that real property acquired by a qualified organization
under this chapter is being held and maintained for the purposes expressed in section 6301 of this title. As a condition of that certification, the Commissioner may require that the qualified
organization provide adequate assurances that the property is being so held and maintained,
including written agreements with the Department of Taxes, deeds, covenants, or other
conveyances. Property that is so certified:
(A) if in the nature of an interest in fee simple, shall be assessed on the basis of its
actual use or may be enrolled by the qualifying organization in a current use program
under 32 V.S.A. chapter 124; or
(B) shall be exempt from assessment and taxation, if in the nature of an interest other
than fee simple.
(2) For purposes of this section, where a qualified organization holds a lease in the
property for a term greater than ten years, including renewal terms, or holds such
other interests as the Commissioner shall determine to be substantially equivalent
to an interest in fee simple, the organization shall be deemed to hold an interest
in fee simple.
(3) A certification granted to a qualified agency shall first affect the April 1 grand
list following the date that all information deemed necessary by the Commissioner
has been provided by the qualified organization.
(c) After acquisition by a municipality, State agency, or qualified organization of a
right or interest in real property under the authority of this chapter, the owner
of any remaining right or interest in the real property not so acquired shall be taxed,
under the applicable provisions of 32 V.S.A. chapter 123, only upon the value of those remaining rights or interests to which he or she retains
title. The State agency or qualified organization, and the Department of Taxes, shall
cooperate with that owner and with the town assessing such tax in the determination
of the fair market value of any such remaining right or interest.
(d) Property held by a qualified organization and taxed or exempted under subsection (b)
of this section shall be subject to a conversion tax if the Commissioner determines
that it is no longer being held and maintained for the purposes expressed in section 6301 of this title. The amount of the conversion tax shall be five times the amount of the taxes avoided
by reason of the exemption in the most recent year. The conversion tax shall be paid
to the municipality in which the property is located. (Added 1969, No. 229 (Adj. Sess.), § 7; amended 1987, No. 200 (Adj. Sess.), § 45; 1997, No. 60, § 68c; 2013, No. 73, § 26, eff. June 5, 2013; 2019, No. 131 (Adj. Sess.), § 22.)
§ 6307. Enforcement
(a) Injunction. In any case where rights and interests in real property are held by a municipality,
State agency, or qualified organization under the authority of this chapter, the legislative
body of the municipality, the State agency, or the qualified organization may institute
injunction proceedings to enforce the rights of the municipality, State agency, or
qualified organization, in accordance with the provisions of this chapter, and may
take all other proceedings as are available to an owner of real property under the
laws of this State to protect and conserve its right or interest.
(b) Liquidated damages. Any contract or deed establishing or relating to the sale or transfer of rights or
interests in real property under the authority of this chapter may provide for specified
liquidated damages, actual damages, costs, and reasonable attorney’s fees in the event
of a violation of the rights of the municipality, State agency, or qualified organization
under the municipality or State agency.
(c) Conservation rights. The holder of conservation rights and interests may seek injunctive relief and damages
against any person who damages the holder’s rights and interests, irrespective of
whether the owner of the land is a party to the proceeding. This subsection shall
not affect any right of the owner of the land to join or intervene in any proceeding. (Added 1969, No. 229 (Adj. Sess.), § 8; amended 1987, No. 200 (Adj. Sess.), § 46; 2011, No. 118 (Adj. Sess.), § 3; 2019, No. 131 (Adj. Sess.), § 23.)
§ 6308. Rights in perpetuity unless limited
(a) If the legislative body of a municipality in the case of municipal rights or interests,
or a State agency in the case of State-owned rights or interests, finds that the retention
of the rights or interests is no longer needed to carry out the purposes of this chapter,
the rights or interests may be released and conveyed to the co-owner, to another public
agency, to another party holding other rights or interests in the land, or to a third
party. Where the conveyance is to a party other than another public agency or qualified
organization, the municipality or State agency shall receive adequate compensation
from that party for the conveyance of the rights or interests.
(b) The conveyance of rights or interests in real property less than fee simple made under
the authority of this chapter shall be perpetual, except if the conveyance is limited
by its terms to a specific period. (Added 1969, No. 229 (Adj. Sess.), § 9; amended 1975, No. 186 (Adj. Sess.); 1987, No. 200 (Adj. Sess.), § 47; 2011, No. 118 (Adj. Sess.), § 4.)
§ 6309. Agency of Agriculture, Food and Markets; leases
In the event that real property acquired by the Agency of Agriculture, Food and Markets
is leased to a lessee other than a governmental entity of the State of Vermont, the
lessee shall be taxed on the fair market value or the use value under the provisions
of 32 V.S.A. chapter 124 of the property by the municipality in which it is located. (Added 1983, No. 71, § 2; amended 1989, No. 256 (Adj. Sess.), § 10(a), eff. Jan. 1, 1991; 2003, No. 42, § 2, eff. May 27, 2003.)
§ 6310. Conservation easement holder; nonmerger
If a holder of a conservation easement is or becomes the owner in fee simple of property
subject to the easement, the easement shall continue in effect and shall not be extinguished. (Added 2015, No. 51, § F.8.)
§ 6311. Conservation rights and interests; tax liens
A tax lien shall not affect conservation rights and interests if the tax lien attaches
to the subject property under 32 V.S.A. § 5061 subsequent to the recording of the conservation rights and interests in the municipal
land records. (Added 2015, No. 84 (Adj. Sess.), § 1.)