The Vermont Statutes Online

Title 32: Taxation and Finance

Chapter 123: How, Where, and to Whom Property Is Taxed

• Subchapter 001: SUBJECTS AND MANNER OF TAXATION

• § 3601. Repealed.

• § 3602. Manufacturing machinery

  Engines and boilers, electric motors, air compressors, traveling cranes, and machinery, so fitted and attached as to be a part of a manufacturing or other plant and kept and used as such, shall be set in the grand list as real estate.

• § 3602a. Facilities used in the generation, transmission, or distribution of electric power

  All structures, machinery, poles, wires, and fixtures of all kinds and descriptions used in the generation, transmission, or distribution of electric power that are so fitted and attached as to be part of the works or facilities used to generate, transmit, or distribute electric power shall be set in the grand list as real estate. Nothing in this section shall alter the scope of the exemptions in subdivisions 3803(2) and 3802(19) of this title, nor shall it alter the taxation of municipally owned improvements accorded by section 3659 of this title. (Added 1999, No. 49, § 24, eff. June 2, 1999; amended 2021, No. 71, § 14.)

• § 3602b. Communications property [Effective July 1, 2025]

  (a) All communications property shall be set in the grand list as real estate.

  (b) Communications property owned by a nonmunicipal communications service provider shall be taxed at appraisal value as defined in section 3481 of this title.

  (c) As used in this section, “communications property” means tangible personal property used to enable the real-time, two-way, electromagnetic transmission of information, such as audio, video, and data, that is so fitted and attached as to be part of a local, state, national, or international communications network, as well as facilities that are part of a cable television system as defined in 30 V.S.A. § 501(2). The term includes wires, cables, conduit, pipes, antennas, poles, and wireless towers.

  (d)(1) On or before May 1 of each year, the Division of Property Valuation and Review of the Department of Taxes shall provide the listers in each municipality with the valuation of all taxable communications property of any communications service provider situated therein as reported by such provider to the Division.

  (2) On or before March 31 of each year, each communications service provider shall submit to the Division a sworn inventory of all its taxable communications property in a form that identifies the valuation of its property in each municipality.

  (3) The Division shall prescribe the form of the inventory required under subdivision (2) of this subsection and the officer or officers who shall submit the sworn inventory.

  (4) The valuations provided to the listers pursuant to this section shall be used by the listers in determining and fixing the valuations of communications property for the purposes of property taxation. (Added 2023, No. 145 (Adj. Sess.), § 10, eff. July 1, 2025.)

• § 3603. Construction equipment

  (a) Construction equipment and other personal estate used in the construction or repair of highways, dams, reservoirs, public utilities, or buildings shall be listed and taxed on the same basis as other personal estate in the town in which it is located on April 1. Such equipment brought into the State after April 1 and prior to December 15 of any year shall be taxed as other personal estate for that year in the town in which it is first used for a normal full work shift. The owner or person in charge of any equipment enumerated in this section shall, upon request of the Treasurer or tax collector of any municipality, present evidence that it has been listed for tax purposes in a municipality in this State. The Transportation Board and other State agencies shall insert in all contracts for construction a term by which the contractor agrees to pay taxes assessed under this section and section 4151 of this title.

  (b) Nothing in this section shall be construed to tax as personal property registered automobiles or motor vehicles owned or used by public utilities authorized to do business in the State in the maintenance or construction of their properties nor shall this section be construed to amend section 3802 of this title. (Amended 1963, No. 92, §§ 1, 2, eff. May 14, 1963; 1977, No. 23, § 1, eff. March 29, 1977; 2021, No. 105 (Adj. Sess.), § 513, eff. July 1, 2022.)

• § 3604. Mines and quarries

  The interest of a grantee in severance from surface ownership in mines, quarries, or the right of mining and quarrying, shall be set in the list as real estate, but this section shall not apply to leases named in section 3609 of this title.

• § 3605. Water rights

  The interest of an owner in water rights, power rights, and flowage rights, or any of such rights, owned by severance from real estate interests set in the grand list to another and in connection with which such rights exist, shall be appraised and set in the grand list as real estate to the owner of such rights. This section shall not be construed so as to affect any exemptions from taxation granted under any existing statute.

• § 3606. Standing timber

  The sale or conveyance of standing timber shall not affect the valuation of the underlying land. (Amended 1997, No. 71 (Adj. Sess.), § 7c, eff. Jan. 1, 1998.)

• § 3607. Orchard lands

  When the owner of land, cultivated or uncultivated, has planted the same to fruit trees, such land shall continue to be set in the list at the same valuation as similar land not so planted, but that is used for general agricultural purposes. Increase in the valuation of such land for taxation shall not be made for 15 years on account of trees growing thereon.

• § 3607a. Barns, silos, and other farm structures

  Barns, silos, sugarhouses, and bunkers used for silage storage shall be entered in the grand list at fair market value as defined in subdivision 3481(1) of this title, except that by a majority vote of those present and voting at an annual or special meeting warned for the purpose, a municipality may elect to exempt, or to appraise at less than fair market value, barns, silos, sugarhouses, and bunkers used for silage storage located within the municipality that are owned or leased by a farmer as defined in subdivision 3752(7) of this title and used by the farmer as part of a farming operation. An election to exempt or to reduce appraisals made under this section shall remain in effect for future tax years until amended or repealed by a similar vote of the municipality. (Added 1983, No. 215 (Adj. Sess.), § 3, eff. May 10, 1984; amended 1987, No. 249 (Adj. Sess.).)

• § 3608. Buildings on leased land

  Buildings on leased land or on land not owned by the owner of the buildings shall be set in the list as real estate.

• § 3609. Perpetual or redeemable leases

  Perpetual or redeemable leases upon which rent is reserved, except of lands exempt from taxation, shall have an appraisal value as personal estate at a sum of which the rent is six percent. (Amended 1965, No. 45.)

• § 3610. Taxation of perpetual leased lands

  (a) The term “perpetual lease” as used in this section includes every leasehold interest in land located in Vermont, and every estate in Vermont land other than fee simple absolute, arising out of or created by an instrument of lease that conveys to a person designated as lessee, the lessee’s heirs, executors, administrators, and assigns, the right to possess, enjoy, and use the land in perpetuity or substantially in perpetuity, whether or not the instrument of lease contains restrictions on the use of the subject land by the person designated as lessee and whether or not the subject land may be repossessed by the owner because of nonpayment of rent or of other default under the instrument of lease. The term “lessee” as used in this section means the person entitled to possess, enjoy, and use land subject to a perpetual lease.

  (b) The listers of each town and the appraisers of each unorganized town and gore shall list every perpetual lease in a separate record in which shall be shown as to each lease a brief description of the leased land, the fair market value of the land as appraised by them, the name of the lessor, the annual rental payable under the lease, and as of April 1 of each year the name and address of the lessee. If for any reason the lease is exempt under subsection (d) of this section, the reason for the exemption shall be noted.

  (c) For purposes of section 3481 of this title, the appraised value of each perpetual lease not exempt under subsection (d) of this section shall be its market value as determined by the listers or appraisers, taking into consideration all limitations upon the use of the land by the lessee that substantially diminish the value of the lessee’s right to occupy, use, or enjoy the land; but in no event is the appraised value of a perpetual lease to be in excess of the fair market value of the subject land as determined by the listers or appraisers.

  (d) A perpetual lease is exempt from taxation against the lessee if so provided by an express term of the original grant of the subject land by the State of Vermont, or by a statute in effect at the time of the grant providing for exemption in perpetuity of the leases, or if the subject land would be exempt under chapter 125 of this title if the lessee were the owner of the land.

  (e) Except as provided in subsection (d) of this section, every perpetual lease, whether or not the subject land is exempt from taxation, shall be set in the grand list as real estate against the lessee.

  (f) The annual rental payable under a perpetual lease shall be credited in each year against the tax payable in respect of that lease to the town in which the subject land is located.

  (g) Any tax levied by authority of this section shall be collected in the same manner as real estate taxes. The selectboard, treasurer, and collector of taxes have the same authority and are subject to the same duties, requirements and penalties with respect to the collection of the tax as is provided in the case of real estate taxes. A town may vote to collect interest on overdue taxes and for the payment of the taxes by installments as in the case of real estate taxes.

  (h) Commencing with the date of the filing by the listers of the grand list in the office of the town clerk, taxes lawfully assessed upon a perpetual lease shall be a first lien thereon, underlying all mortgages, assignments, attachments, liens, or other encumbrances thereon, and all subleases for the term of a natural life or lives, for a term of years or for any other duration. The tax lien shall remain in full force and effect for a period of 15 years, and it may be enforced separately against the perpetual lease in each parcel of the subject real estate. Notice to all parties having an interest in the perpetual lease shall be given as provided by law or as directed by courts. Courts of law may issue execution, as the facts warrant, to impress the tax lien upon the perpetual lease.

  (i) A perpetual lease is subject to sale in the same manner and subject to the same procedures, notices, defenses, and statutes of limitations as in the case of tax sales of real estate. Any person acquiring a perpetual lease, under the authority of this section, is subject to the person’s portion of the annual rental due the grantee. (Added 1967, No. 366 (Adj. Sess.), § 1; amended 2021, No. 105 (Adj. Sess.), § 514, eff. July 1, 2022.)

• § 3611. Assessment against State easements for flood control projects

  Lands over which the State has acquired or reserved an easement of flowage in the completion of its flood control projects shall be set in the grand list of the town to the owners thereof subject to such easement of flowage. The difference between the grand list so fixed and the grand list based on the appraisal next preceding the acquisition of such flowage rights by the State of Vermont, shall be set in the grand list to the State of Vermont. Taxes assessed thereon shall be paid out of the General Fund. (Amended 1957, No. 219, § 2, eff. July 1, 1961.)

• § 3612. Owner’s improvements

  In the event improvements shall be put on such land after acquisition of an easement of flowage by the State of Vermont in the completion of its flood control projects, such improvements shall be set in the grand list to the then owner of the land but shall not alter or change the grand list of the State on such flowage easements.

• § 3613. Appeal

  The State of Vermont shall have the same right to appeal from the appraisal of the listers and from the decision of the Board of Civil Authority as is given to any interested individual as provided by chapter 131 of this title.

• § 3614. Property on federal land

  Property of a railway or other corporation having a right-of-way over or location upon lands acquired by the United States shall be taxed as other similar property.

• §§ 3615, 3616. Repealed. 1979, No. 203 (Adj. Sess.), § 5, eff. May 7, 1980.

• § 3617. Repealed. 1991, No. 203 (Adj. Sess.), § 1, eff. May 27, 1992.

• § 3618. Business personal property

  (a) If a town does not vote to exempt business personal property under section 3849 of this title, such property shall be appraised at fair market value; or, subject to a majority vote of those present and voting at an annual or special meeting warned for the purpose, a town may provide that business personal property shall be appraised for any taxable year according to either of the following methods, which may be elected at the option of the taxpayer:

  (1) At 50 percent of its cost during the time that it has not been fully depreciated for federal income tax purposes under the laws of the United States. After the property has been thus depreciated, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost;

  (2) At its net book value during the time that it has not been depreciated to 10 percent of its cost or less for federal income tax purposes under the laws of the United States. After the property has been depreciated to 10 percent of its cost or less, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost. Business personal property manufactured by the taxpayer for his or her own use, shall be valued at the net book value for federal income tax purposes under the laws of the United States. After the property has been depreciated to 10 percent of its cost or less, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost.

  (b) The taxpayer may elect either of the methods set forth in subsection (a) of this section in the first year for which this election is effective. In any subsequent year the taxpayer may not change the method elected in the previous year except with the prior permission of the board of listers. All of the taxpayer’s business personal property shall be valued for any year according to only one of the two methods. Adjustments by the taxpayer or the federal authorities of the depreciation allowed or allowable on the property, for federal income tax purposes, shall not affect or change the appraisal of the property under this section for any year as to which, at the time of the adjustment in depreciation, the grand list has been lodged as required by section 4151 of this title.

  [Subdivision (c)(1) effective until July 1, 2025; see also subdivision (c)(1) effective July 1, 2025 set out below.]

  (c) As used in this section:

  (1) “Business personal property” means tangible personal property of a depreciable nature used or held for use in any trade, business, professional practice, transaction, activity, or occupation conducted for profit, including all furniture and fixtures, apparatus, tools, implements, books, machines, boats, construction devices, and all personal property used or intended to be used for the production, processing, fabrication, assembling, handling, or transportation of anything of value, or for the production, transmission, control, or disposition of power, energy, heat, light, water, or waste. “Business personal property” does not include inventory, or goods and chattels so affixed to real property as to have become part thereof, and that are therefore not severable or removable without material injury to the real property, nor does it include poles, lines, and fixtures that are taxable under sections 3620 and 3659 of this title.

  [Subdivision (c)(1) effective July 1, 2025; see also subdivision (c)(1) effective until July 1, 2025 set out above.]

  (1) “Business personal property” means tangible personal property of a depreciable nature used or held for use in any trade, business, professional practice, transaction, activity, or occupation conducted for profit, including all furniture and fixtures, apparatus, tools, implements, books, machines, boats, construction devices, and all personal property used or intended to be used for the production, processing, fabrication, assembling, handling, or transportation of anything of value, or for the production, transmission, control, or disposition of power, energy, heat, light, water, or waste. “Business personal property” does not include inventory, or goods and chattels so affixed to real property as to have become part thereof, and that are therefore not severable or removable without material injury to the real property, nor does it include poles, lines, and fixtures that are taxable under sections 3620 and 3659 of this title, nor does it include communications property taxable under section 3602b of this title.

  (2) “Net book value” of property means the cost less depreciation of the property as shown on the federal income tax return required to be filed with the federal authorities on or nearest in advance of April 1 in any year. (Added 1975, No. 101, § 2, eff. April 30, 1975; amended 1985, No. 169 (Adj. Sess.), § 3, eff. May 5, 1986; 1991, No. 203 (Adj. Sess.), § 4, eff. May 27, 1992; 2023, No. 145 (Adj. Sess.), § 11, eff. July 1, 2025.)

• § 3619. Time-share projects

  (a) As used in this section, a time-share project means a project involving real property containing time-share estates. A “time-share estate” is a right to occupy a unit or any of several units in a time-share project during separated time periods coupled with a freehold estate or an estate for years in a time-share property or a specified portion thereof.

  (b) With respect to property taxes, both real and personal, on time-share projects, each property owner of a time-share estate shall be liable for the payment thereof to the town. However, the owners’ association, corporation, or whatever entity is authorized by the project instruments to manage the common property, shall be the agent of the time-share estate owners for the payment of property taxes from the individual owners to the town. The town shall set in the grand list as real estate the units and common property of the project of which the time-share estates are a part and shall list the entire property to the association, corporation, or whatever entity is authorized by the project instruments to manage the common property, which entity assumes the rights and liabilities of any owner of property in the grand list. However, with respect to each other, each owner of a time-share estate shall be responsible only for a fraction of such assessments, property taxes, both real and personal, and charges proportionate to the magnitude of his or her undivided interest in the fee to the whole estate of which he or she is a part, as covered in the association’s, corporation’s, or entity’s bylaws or other project instruments.

  (c) A lien by the town for the collection of taxes owed by an owner of a time-share estate shall be imposed upon the entire property composing the time-share project. With respect to notification and sale for collection of taxes under chapter 133 of this title, the owners’ association, corporation, or whatever entity is authorized by the project instruments to manage the common property, and not the town, is responsible for notifying all time-share estate owners of any delinquency or other notice required under chapter 133 of this title, and for payment of the delinquent tax together with interest and penalties. (Added 1983, No. 18, eff. March 31, 1983.)

• § 3620. Electric utility poles, lines, and fixtures

  Electric utility poles, lines, and fixtures owned by nonmunicipal utilities shall be taxed at appraisal value as defined by section 3481 of this title, except as provided under subdivision 3802(19) of this title. (Added 1985, No. 169 (Adj. Sess.), § 1, eff. May 5, 1986; amended 2021, No. 71, § 15.)

• § 3621. Petroleum and natural gas infrastructure

  For purposes of the statewide education property tax in chapter 135 of this title, the Director shall determine the appraised value of all property and fixtures composing and underlying a petroleum or natural gas facility, petroleum or natural gas transmission line, or petroleum or natural gas distribution line located entirely within this State. The Director shall value such property at its fair market value, an assessment it shall reach by the cost approach to value by employing an actual cost-based methodology, adjusting that actual cost using a cost factor from industry-specific inflation indexes, and depreciating the resulting present cost using a depreciation schedule based on the property’s estimated remaining life; provided, however, that after the property has been depreciated to 30 percent of its present cost or less, exclusive of salvage value, the property shall be appraised at 30 percent of its cost. The Director shall inform the local assessing officials of his or her appraised value under this section on or before May 1 of each year, and the local assessing officials shall use the Director’s appraised value for purposes of assessing and collecting the statewide education property tax under chapter 135 of this title. (Added 2013, No. 174 (Adj. Sess.), § 32, eff. Jan. 1, 2015.)

• Subchapter 002: WHERE AND TO WHOM REAL ESTATE TAXED

• § 3651. General rule

  Taxable real estate shall be set in the list to the last owner or possessor thereof on April 1 in each year in the town, village, school, and fire district where it is situated.

• § 3652. Mortgagor deemed owner

  When real estate is mortgaged, the mortgagor shall be deemed the owner thereof for the purpose of taxation, until the mortgagee takes possession, after which the mortgagee shall be deemed the owner.

• § 3653. Unoccupied and owner unknown

  When the owner of unoccupied real estate is unknown to the listers, it shall be set in the list in the name of the original grantee or by such other description as in their judgment will best designate it. When a division of the original rights of grantees is made in whole or in part, each lot of every division shall be set apart in the list from other lots of the same right.

• § 3654. Undivided estate of deceased person

  Undivided real estate of a deceased person shall be assessed to such person’s estate or to his or her executor or administrator, or to the possessor thereof, until notice is given to the listers of the sale or division of the same and the names of the persons to whom it is transferred. When such estate is assessed to the estate, the executor or administrator shall pay the taxes assessed.

• § 3655. Facilities not within town limits

  For the purpose of taxation:

  (1) Wharves erected in Lake Champlain and not within the limits of a town shall be considered as being in the towns adjoining such wharves.

  (2) Utility lines, including submarine cables or pipelines, constructed or maintained in Lake Champlain and not otherwise within the limits of the towns of South Hero and Grand Isle shall be considered as being in whichever of those towns adjoin those facilities as if the northerly and southerly lines of those towns were extended easterly and westerly to the county lines. (Amended 1961, No. 244, eff. July 26, 1961.)

• § 3656. Repealed. 1997, No. 60, § 55.

• §§ 3657, 3658. Repealed. 1979, No. 203 (Adj. Sess.), § 5, eff. May 7, 1980.

• § 3659. Municipal lands [Effective until July 1, 2025; see also 32 V.S.A. § 3659 effective July 1, 2025 set out below]

  Land and buildings of a municipal corporation, whether acquired by purchase or condemnation and situated outside its territorial limits shall be taxed by the municipality in which such land is situated. Said land shall be set to such municipal corporation in the grand list of the town or city in which such real estate is located at the value fixed in the appraisal next preceding the date of acquisition of such property and taxed on such valuation. The value fixed on such property at each appraisal thereafter shall be the same per acre as the value fixed on similar property in the town or city. Improvements made subsequent to the acquisition of the land shall not be taxed; except that an additional tax not to exceed 75 percent of the appraisal of the land may be levied in lieu of a personal property tax. Electric utility poles, lines, and pole fixtures owned by a municipal utility lying beyond its boundaries shall be taxed at appraisal value as defined in section 3481 of this title. (Amended 1957, No. 219, § 2, eff. July 1, 1961; 1985, No. 169 (Adj. Sess.), § 2, eff. May 5, 1986; 1987, No. 195 (Adj. Sess.), eff. April 1, 1988.)

• § 3659. Municipal lands [Effective July 1, 2025; see also 32 V.S.A. § 3659 effective until July 1, 2025 set out above]

  Land and buildings of a municipal corporation, whether acquired by purchase or condemnation and situated outside its territorial limits shall be taxed by the municipality in which such land is situated. Said land shall be set to such municipal corporation in the grand list of the town or city in which such real estate is located at the value fixed in the appraisal next preceding the date of acquisition of such property and taxed on such valuation. The value fixed on such property at each appraisal thereafter shall be the same per acre as the value fixed on similar property in the town or city. Improvements made subsequent to the acquisition of the land shall not be taxed; except that an additional tax not to exceed 75 percent of the appraisal of the land may be levied in lieu of a personal property tax. Electric utility poles, lines, and pole fixtures owned by a municipal utility lying beyond its boundaries shall be taxed at appraisal value as defined in section 3481 of this title. Communications property, as defined in section 3602b of this title, owned by a municipality lying beyond its boundaries shall be taxed at appraisal value as defined in section 3481 of this title. (Amended 1957, No. 219, § 2, eff. July 1, 1961; 1985, No. 169 (Adj. Sess.), § 2, eff. May 5, 1986; 1987, No. 195 (Adj. Sess.), eff. April 1, 1988; 2023, No. 145 (Adj. Sess.), § 12, eff. July 1, 2025.)

• § 3660. Repealed. 1997 (Adj. Sess.), No. 71, § 22, eff. Jan. 1, 1998.

• Subchapter 003: WHERE AND TO WHOM PERSONAL PROPERTY TAXED

• § 3691. General rule

  Taxable tangible personal estate shall be set in the list to the last owner thereof on April 1 in each year, in the town, village, school, and fire district where such property is situated, with the exception that such personal estate situated within this State owned by persons residing outside the State or by persons unknown to the listers shall be set in the list to the person having the same in charge, in the town, village, school, and fire district where the same is situated and shall be holden for all taxes assessed on such list. However, tangible personal estate owned by nonresident persons or corporation, and used in this State by the State or a department or institution thereof, under lease, contract or other agreement, written or oral, may be set in the list in the town where so used, to such nonresident owner.

• § 3692. Taxation of boats, outboard motors, and trailer coaches

  (a) Except as otherwise provided, snowmobiles, trailer coaches as defined by 23 V.S.A. § 4 registered yearly for use on the highways and designed and used for recreational purposes except as provided by subsection (b) of this section, canoes, skiffs, sailboats, motor or power boats, boats, outboard motors, or any combination of boat and outboard motor, shall be taxed as personal property only when held as stock in trade, manufacturer’s inventory, or when used for income producing purposes, and in such cases shall be set in the list in accordance with section 3691 of this title.

  (b) A trailer coach shall be taxed as real property by the town in which it is located notwithstanding subsection (a) of this section if it is situated in the town on the same trailer site or camp site for more than 180 days during the 365 days prior to April 1. A trailer coach shall not be taxed as real property if it is stored on property on which the owner resides in another dwelling as a permanent residence. (Amended 1959, No. 70, eff. April 1, 1959; 1961, No. 127, eff. April 1, 1961; 1971, No. 73, § 5, eff. for tax years beginning after December 31, 1970; 1983, No. 162 (Adj. Sess.), eff. April 20, 1984.)

• Subchapter 004: STATE PAYMENT IN LIEU OF PROPERTY TAXES

• § 3701. Definitions

  As used in this subchapter:

  (1) “State-owned property” means

  (A) State-owned buildings, including buildings of the Vermont State Colleges that are tax-exempt under 16 V.S.A. § 2178; buildings of the University of Vermont and State Agricultural College used for educational and not commercial purposes; and buildings of the Agency of Transportation and the Department of the Military; but excluding the value of land on which the buildings are located, and excluding all highways and bridges and any land pertaining to them; and

  (B) State-owned lands that pertain to State correctional facilities.

  (2) “Assessed value of State buildings” means the estimation of the current cost of replacing a building, maintained for insurance purposes by the State agency or other entity responsible for insuring the building, depreciated by the age and condition of the building.

  (3) “Assessed value of State lands” means the fair market value of lands that pertain to State correctional facilities, as determined by the Division of Property Valuation and Review, subject to the provision of subsection 3704(b) of this title.

  (4) “Adjusted municipal grand list” means the total assessed value of any State-owned property located in a municipality, multiplied by the common level of appraisal for the municipality as determined by the Division of Property Valuation and Review, multiplied by one percent, and added to the grand list of the municipality as determined pursuant to chapter 129 of this title.

  (5) “Adjusted municipal tax rate” means the total sum of money voted by a municipality for all noneducational expenses pursuant to 17 V.S.A. § 2664 or 24 V.S.A. § 1309, divided by the adjusted municipal grand list of the municipality.

  (6) “Municipality” means an incorporated city, town, village, or unorganized town, grant, or gore in which a tax is assessed for noneducational purposes. (Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), §§ 23, 24, eff. July 1, 1997; 1999, No. 1, § 106a, eff. March 31, 1999; 2005, No. 207 (Adj. Sess.), § 7; 2021, No. 105 (Adj. Sess.), § 515, eff. July 1, 2022.)

• § 3702. Payment of grants authorized

  The Secretary of Administration shall determine annually the amount of payment due, as a State grant in lieu of property taxes, to each municipality in the State in which is located any State-owned property, in accordance with the provisions of this subchapter. (Added 1997, No. 60, § 53.)

• § 3703. Grant formula

  (a) The amount of a grant to a municipality authorized by this subchapter shall be based on the total assessed value of any State-owned property located in the municipality, multiplied by the common level of appraisal for the municipality as determined by the Division of Property Valuation and Review, multiplied by one percent, and multiplied by the adjusted municipal tax rate for the municipality in which the property is located.

  (b) [Repealed.]

  (c) The total of any grants under subsection (a) of this section for buildings owned by the University of Vermont and State Agricultural College shall be limited to a maximum of $750,000.00.

  (d) [Repealed.]

  (e) The Secretary of Administration shall have authority to reduce any payments under this subchapter to avoid multiple payments to a municipality in the same year in lieu of taxes with respect to the same property. (Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), § 26, eff. July 1, 1997; 1999, No. 1, § 106b, eff. March 31, 1999.)

• § 3704. Determination of assessed values; appeal

  (a) Prior to August 1, 1997, and to May 1 of each taxable year thereafter, the Secretary of Administration shall provide assessed values of State buildings and lands, as defined under this subchapter, to every municipality to which a grant is payable under this subchapter.

  (b) Any municipality aggrieved by the action of the Secretary under this section may, within 30 days of receipt of the assessed values, appeal to the Superior Court of the district in which the municipality is located. (Added 1997, No. 60, § 53.)

• § 3705. Adjusted municipal grand list and adjusted municipal tax rate

  (a) Prior to October 1 in each taxable year, the Division of Property Valuation and Review shall provide the Secretary of Administration with the following:

  (1) the adjusted municipal grand list for the prior assessment year, with the assessed values of all State-owned property shown separately, together with a statement of the common level of appraisal used to weight the assessed values of State-owned property;

  (2) the adjusted municipal tax rate to be used in assessing taxes on the prior adjusted municipal grand list; and

  (3) the total sum of money voted by the municipality for all noneducational expenses, pursuant to 17 V.S.A. § 2664.

  (b) Prior to issuing a grant under this subchapter, the Secretary of Administration may substitute his or her calculations of the adjusted municipal grand list or the adjusted municipal tax rate for a municipality if the Secretary finds that those calculations provided by the municipality under this section are in error or are inconsistent with assessed values as determined pursuant to section 3704 of this title. (Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), § 25, eff. July 1, 1997.)

• § 3706. Payment to municipalities

  Grants under this subchapter shall be made annually by the Secretary of Administration to each eligible municipality on or before December 1, 1997, and on or before October 31 in years thereafter. Nothing in this subchapter shall be construed or permitted to affect the tax exempt status of the University of Vermont and State Agricultural College, as provided by statute and guaranteed by that institution’s charter. (Added 1997, No. 60, § 53.)

• § 3707. Rules

  The Secretary of Administration may adopt rules under 3 V.S.A. chapter 25 to carry out the provisions of this subchapter. (Added 1997, No. 60, § 53.)

• Subchapter 004A: AGENCY OF NATURAL RESOURCES LAND

• § 3708. Payments in lieu of taxes for lands held by the Agency of Natural Resources

  (a) As used in this subchapter:

  (1) “ANR land” means lands held by the Agency of Natural Resources.

  (2) “Fair market value” shall be based upon the value of the land at its highest and best use determined without regard to federal conservation restrictions on the parcel or any conservation restrictions under a State agreement made with respect to the parcel.

  (3) “Municipality” means an incorporated city, town, village, or unorganized town, grant, or gore in which a tax is assessed for noneducational purposes.

  (b) The State shall annually pay to each municipality a payment in lieu of taxes (PILOT) that shall be the base payment as set forth under this section, for all ANR land, excluding buildings or other improvements thereon, as of April 1 of the current year.

  (c) The State shall establish the base payment for all ANR land, excluding buildings or other improvements thereon, as follows;

  (1) On parcels acquired before April 1, 2016, 0.60 percent of the fair market value as appraised by the Director of Property Valuation and Review as of April 1 of fiscal year 2015;

  (2) On parcels acquired on or after April 1, 2016, the municipal tax rate of the fair market value as assessed on April 1 in the year of acquisition by the municipality in which it is located.

  (d) Beginning in fiscal year 2023, and thereafter in periods of not less than three years and not greater than five years, the Secretary of Natural Resources shall recommend an adjustment to update the base payments established under subsection (c) of this section consistent with the statewide municipal tax rate or other appropriate indicators. For years that the Secretary of Natural Resources recommends an adjustment under this subsection, a request for funding the adjustment shall be included as part of the budget report required under section 306 of this title.

  (e) Any adjustment to the acreage of any existing ANR parcel will result in the change of the base payment for the year in which the change occurs. A per acre payment will be determined for the parcel. This per acre payment will be either added or subtracted from the base payment as necessary for the number of acres that need to be adjusted.

  (f) The selectboard of a town aggrieved by the appraisal of property by the Division of Property Valuation and Review under subdivision (c)(1) of this section may, within 21 days after the receipt by the town listers of notice of the appraisal of its property by the Division of Property Valuation and Review in fiscal year 2017 only, appeal that appraisal to the Superior Court of the district in which the property is situated. (Added 1999, No. 1, § 106c, eff. March 31, 1999; amended 2005, No. 38, § 19, eff. June 2, 2005; 2015, No. 58, § E.701.1, eff. July 1, 2016; 2015, No. 172 (Adj. Sess.), § E.701, eff. June 8, 2016; 2019, No. 154 (Adj. Sess.), § E.701, eff. Oct. 2, 2020; 2021, No. 105 (Adj. Sess.), § 516, eff. July 1, 2022.)

• Subchapter 004B: PILOT SPECIAL FUND

• § 3709. PILOT Special Fund

  (a) There is hereby established a PILOT Special Fund consisting of local option tax revenues paid to the Treasurer pursuant to 24 V.S.A. § 138. This Fund shall be managed by the Commissioner of Taxes pursuant to chapter 7, subchapter 5 of this title. Notwithstanding subdivision 588(3) of this title, all interest earned on the Fund shall be retained in the Fund for use in meeting future obligations. The Fund shall be exclusively for payments required under chapter 123, subchapter 4 of this title, and for any additional State payments in lieu of taxes for correctional facilities and to the City of Montpelier. The Commissioner of Finance and Management may draw warrants for disbursements from this Fund in anticipation of receipts.

  (b) If the PILOT Special Fund is insufficient to pay the full amount of all payments in lieu of taxes under subchapter 4 of this chapter, then, after application of the cap in subsection 3703(c) of this title, payments determined under section 3703 of this subchapter shall be reduced proportionately. (Added 2005, No. 215 (Adj. Sess.), § 287; amended 2007, No. 192 (Adj. Sess.), § 6.011.1, eff. June 7, 2008.)