§ 3800. Statutory purposes
(a) The statutory purpose of the exemption for congressionally chartered organizations
in subdivision 3802(2) of this title is to support certain organizations with a patriotic, charitable, historical, or
educational purpose.
(b) The statutory purpose of the exemption for public, pious, and charitable property
in sections 3832 and 3840 and subdivision 3802(4) of this title is to allow these organizations to dedicate more of their financial resources to
furthering their public-service missions.
(c) [Repealed.]
(d) The statutory purpose of the exemption for Young Men’s and Women’s Christian Associations
in subdivision 3802(6) of this title is to allow these organizations to dedicate more of their financial resources to
furthering their public-service missions.
(e) The statutory purpose of the exemption for cemeteries in subdivision 3802(7) of this title is to lower the cost of establishing and maintaining cemeteries.
(f) The statutory purpose of the exemption for property owned by agricultural societies
in subdivision 3802(9) of this title is to lower the cost of public access to agricultural events.
(g) The statutory purpose of the exemption for $10,000.00 of appraised value of a residence
for a veteran in subdivision 3802(11) of this title is to recognize disabled veterans’ service to Vermont and to the country.
(h) The statutory purpose of the exemption for property exclusively installed and operated
for the abatement of water pollution in subdivision 3802(12) of this title is to encourage real property improvements that abate water pollution by nonpublic
entities that would not qualify for an exemption as a government entity.
(i) The statutory purpose of the exemption for humane societies in subdivision 3802(15) of this title is to lower operating costs for organizations that protect animals to allow them
to dedicate more of their financial resources to furthering their public-service missions.
(j) The statutory purpose of the exemption for federally qualified health centers or rural
health clinics in subdivision 3802(16) of this title is to support health centers that serve an underserved area or population, offer
a sliding fee scale, provide comprehensive services, and have an ongoing quality assurance
program.
(k) The statutory purpose of the railroad property alternative tax method in subdivision 3803(1) of this title is to provide an alternative to the traditional valuation method in order to achieve
consistency across municipalities.
(l) The statutory purpose of the telephone property alternative tax method referenced
in subdivision 3803(2) of this title is to provide an alternative to the traditional valuation method in order to achieve
consistency across municipalities.
(m) The statutory purpose of the exemptions in Vermont permanent session law in 2008 Acts
and Resolves No. 190, 1892 Acts and Resolves No. 213, 1945 Acts and Resolves No. 204,
1939 Acts and Resolves No. 250, 1921 Acts and Resolves No. 31, 1921 Acts and Resolves
No. 262, 1910 Acts and Resolves No. 370, and 1900 Acts and Resolves No. 244 is to
provide relief to specific properties that have demonstrated an individual purpose
to the General Assembly.
(n) The statutory purpose of the exemptions for renewable energy plants generating electricity
from solar power in subdivision 3802(17) of this title and for energy storage facilities in subdivision 3802(19) of this title is to lower the cost of generating and storing electricity from solar power for smaller
plants and facilities.
(o) The statutory purpose of the exemptions for broadband infrastructure in subdivision 3802(20) of this title is to lower the cost of broadband deployment in unserved and underserved areas of
Vermont.
(p) The statutory purpose of the exemption under subdivision 3802(21) of this title for property owned by Native American tribes is to recognize those peoples as the
traditional land caretakers of Vermont and to lower their costs to allow them to dedicate
more of their financial resources to furthering their tribe-related activities.
[Subsection (q) repealed effective July 1, 2037.]
(q) The statutory purpose of the exemption under 32 V.S.A. chapter 125, subchapter 3 for new construction or rehabilitation is to lower the cost of new
construction or rehabilitation of residential properties in flood-impacted communities. (Added 2013, No. 200 (Adj. Sess.), § 15; amended 2021, No. 54, § 17; 2021, No. 71, § 13; 2021, No. 90 (Adj. Sess.), § 2, eff. July 1, 2022; 2021, No. 105 (Adj. Sess.), § 522, eff. July 1, 2022; 2023, No. 181 (Adj. Sess.), § 79, eff. June 17, 2024; 2023, No. 181 (Adj. Sess.), § 82(1), eff. July 1, 2037.)
§ 3802. Property tax
The following property shall be exempt from taxation:
(1) Real and personal estate owned by this State, except as otherwise provided; real and
personal estate owned by the United States; U.S. securities that are specially exempt
from taxation by the laws of the United States at the time of making the list, except
that this subdivision shall not prohibit a federal agency from making payments for
taxes on repossessed or voluntarily conveyed single family, multifamily living units,
or farm properties.
(2) Real and personal property owned by a post of any veterans’ organization chartered
by act of Congress of the United States or owned by a corporation the members or stockholders
of which are members of such post or its auxiliary, provided such real estate is used
for purposes of the post or its auxiliary or such corporation only, is used as the
principal meeting place of such post or its auxiliary in the exercise of its functions
and activities, and is not leased or rented for profit, and real and personal property
owned by and used for the purpose of its work by a nonprofit organization chartered
by act of the Congress of the United States, such as a Red Cross, boy scout, girl
scout, or boy or girl organization.
(3) Personal estate owned by inhabitants of this State situated and taxed in another state.
(4) Real and personal estate granted, sequestered, or used for public, pious, or charitable
uses; real property owned by churches or church societies or conferences and used
as parsonages and personal property therein used by ministers engaged in full-time
work in the care of the churches of their fellowship within the State; real and personal
estate set apart for library uses and used by the public and private circulating libraries,
open to the public and not used for profit; lands leased by towns or town school districts
for educational purposes; and lands owned or leased by colleges, academies, or other
public schools or leased by towns for the support of the gospel; and lands and buildings
owned and used by towns for the support of the poor therein; but private buildings
on such lands shall be set in the list to the owners thereof, and shall not be exempt.
The exemption of lands owned or leased by colleges, academies, or other public schools
shall not apply to lands or buildings rented for general commercial purposes, nor
to farming or timberlands owned or leased thereby; but this provision shall not affect
the exemption of so-called school or college lands, sequestered to such use prior
to January 28, 1911.
(5) [Repealed.]
(6) Buildings, land, and personal property owned and occupied by a Young Men’s Christian
Association or a Young Women’s Christian Association for the purposes of its work,
the income of which is entirely used for such purposes.
(7) Lands used for cemetery purposes and the structures thereon, trust funds and other
property belonging to or held by cemetery associations, and the lots of the proprietors
thereof.
(8) Household furniture and equipment of every person not regularly used as income-producing
property; household provisions; personal wearing apparel and ornament; private and
professional libraries; shrubs and plants located in a commercial greenhouse or nursery;
fowl; sheep; cattle; horses; goats; swine; bees; hay and produce sufficient to winter
out the stock; tractors and other machinery of a farmer, not used for hire or contract
purposes; real and personal farm property constructed and used for the storage of
manure and designed to avoid water pollution; tools and implements of a mechanic or
farmer; aircraft, automobiles, and motor vehicles, but not including trailer coaches;
and motorized highway-building equipment and road-making appliances as defined in
23 V.S.A. § 4(19) and (31) required to be registered as motor vehicles.
(9) Grounds and property owned and occupied by agricultural societies, so long as the
same are used annually for agricultural fairs.
(10) [Repealed.]
(11)(A)(i) Real and personal property to the extent of $10,000.00 of appraisal value, except
any part used for business or rental, occupied as the established residence of and
owned in fee simple by a veteran, the veteran’s spouse, widow, widower, or child,
or jointly by any combination of them, if one or more of them are receiving disability
compensation for at least 50 percent disability, death compensation, dependence and
indemnity compensation, or pension for disability paid through any military department
or the Veterans Administration if, before May 1 of each year, there is filed with
the Office of Veterans Affairs:
(I) a written application for the compensation or pension; and
(II) a written statement from the Military Department or the Veterans Administration showing
that the compensation or pension is being paid. Only one exemption may be allowed
on a property. Application for an exemption under this section based upon permanent
disability is only required to be filed with the Office of Veterans Affairs before
May 1 of the first year for which the exemption is sought, and the exemption shall
remain on the grand list until title to the property is transferred.
(ii) Only one exemption may be allowed on a property. Application for an exemption under
this section based upon permanent disability is only required to be filed with the
Office of Veterans Affairs before May 1 of the first year for which the exemption
is sought, and the exemption shall remain on the grand list until title to the property
is transferred.
(B) The terms used in this subdivision (11) shall have the same definitions as in 38 U.S.C. § 101, except that:
(i) the definitions shall apply as if federal law recognized a civil union or a civil
marriage in the same manner as Vermont law;
(ii) such definitions shall not be construed to deny eligibility for exemption in the case
where such exemption is based on retirement for disability and retirement pay is received
from a federal agency other than the Veterans Administration; and
(iii) the age and marital status limits in 38 U.S.C. § 101(4)(A) shall not apply.
(C) An unremarried widow or widower of a previously qualified veteran shall be entitled
to the exemption provided in this subdivision (11) whether or not the individual is
receiving government compensation or pension. By majority vote of those present and
voting at an annual or special meeting warned for the purpose, a town may increase
the veterans’ exemption under this subdivision (11) to up to $40,000.00 of appraisal
value. Any increase in exemption shall take effect for the taxable year for which
it was voted and shall remain in effect for future taxable years until amended or
repealed by a similar vote.
(12) Real and personal property exclusively installed and operated for the abatement of
pollution of the waters of the State of Vermont or waters within the purview of the
New England Interstate Water Pollution Control Compact in accordance with engineering
principles approved by the Vermont Water Resources Board. This type of property shall
be exempt as long as its operation meets with the approval of the Secretary of Natural
Resources.
(13), (14) [Repealed.]
(15) Real and personal property owned by a charitable, nonprofit organization devoted to
the welfare, protection, and humane treatment of animals, including any premises of
a custodian or caretaker that are attached to or are located on the grounds of such
an animal shelter.
(16) Real and personal property owned by a federally qualified health center or a free
standing, federally designated rural health clinic, provided such center or clinic
is governed by a community board of directors, offers care on a sliding scale based
on ability to pay, is owned and operated on a nonprofit basis, is unconditionally
dedicated to public use that directly benefits an indefinite class of the public,
and confers a benefit on society. Notwithstanding any provision of law to the contrary,
this exemption shall apply without the need for a vote of the town or municipality
in which such property is located.
(17) Real and personal property, except land, comprising a renewable energy plant generating
electricity from solar power that has a plant capacity of less than 50 kW and is either:
(A) operated on a net-metered system; or
(B) not connected to the electric grid and provides power only on the property on which
the plant is located.
(18) [Repealed.]
(19) Real and personal property, except land, comprising an energy storage facility that
has a plant energy rating of less than 600 kWh.
(20) Real and personal property, except land, owned by an electric distribution utility
that comprises broadband infrastructure, including structures, machinery, lines, poles,
wires, and fixtures, provided the infrastructure is leased to a communications union
district or to an internet service provider working in conjunction with a communications
union district, and is primarily for the purpose of providing broadband service capable
of speeds of at least 100 Mbps symmetrical. This exemption applies only to broadband
infrastructure constructed on or after July 1, 2021.
(21) Real and personal property owned by a Native American tribe that has been recognized
pursuant to 1 V.S.A. chapter 23 or owned by a nonprofit organization that is organized for the tribe’s benefit and
controlled by the tribe, provided the property is used for purposes of the tribe and
is not leased or rented for profit.
(22) Real and personal estate owned by a county of this State, except land and buildings
outside of a county’s territorial limits shall be subject to municipal property tax
by the municipality in which the land or buildings are situated. Notwithstanding the
preceding provision, the exemption for public, pious, and charitable uses under subdivision
(4) of this section shall be available for qualifying county land and buildings outside
of the county’s territorial limits. (Amended 1959, No. 62, eff. March 26, 1959; 1961, No. 216, §§ 1, 2, eff. July 13, 1961; 1962, No. 3 (Sp. Sess.), § 1, eff. Aug. 2, 1962; 1963, No. 23, eff. March 28, 1963; 1963, No. 29, eff. April 2, 1963; 1963, No. 30, eff. April 2, 1963; 1963, No. 147; 1964, No. 16 (Sp. Sess.); 1965, No. 33, eff. April 20, 1965; 1966, No. 21 (Sp. Sess.), § 2, eff. March 3, 1967; 1967, No. 156, eff. April 15, 1967; 1971, No. 28, eff. Jan. 1, 1972; 1973, No. 9, § 1, eff. date, see note set out below; 1973, No. 91, eff. for the tax year beginning April 1, 1974 and thereafter; 1975, No. 101, § 3, eff. April 30, 1975; 1975, No. 160 (Adj. Sess.); 1977, No. 16, § 2, eff. March 22, 1977; 1977, No. 71, § 1, eff. date April 23, 1977 (first be effective for property taxes assessed for the year 1977); 1977, No. 170 (Adj. Sess.); 1977, No. 172 (Adj. Sess.); 1981, No. 70, eff. May 1, 1981; 1981, No. 222 (Adj. Sess.), § 10; 1987, No. 76, § 18; 1987, No. 147 (Adj. Sess.), § 1, eff. April 13, 1988; 1989, No. 26; 1991, No. 43; 1991, No. 187 (Adj. Sess.); 1991, No. 203 (Adj. Sess.), § 1, eff. May 27, 1992; 1993, No. 134 (Adj. Sess.), § 1, eff. April 26, 1994; 1995, No. 3, § 1, eff. March 9, 1995; 1995, No. 105 (Adj. Sess.), § 1; 1999, No. 49, § 44, eff. June 2, 1999; 1999, No. 91 (Adj. Sess.), § 23; 2005, No. 38, § 28; 2005, No. 207 (Adj. Sess.), § 25, eff. May 31, 2006; 2007, No. 190 (Adj. Sess.), § 23, eff. June 6, 2008; 2009, No. 1 (Sp. Sess.), § H.28, eff. June 2, 2009; 2011, No. 45, § 13g, eff. May 24, 2011; 2011, No. 111 (Adj. Sess.), § 1, eff. May 8, 2012; 2011, No. 127 (Adj. Sess.), § 2, eff. Jan. 1, 2013; 2013, No. 73, § 27, eff. June 5, 2013; 2013, No. 73, § 28, eff. Jan. 1, 2014; 2013, No. 174 (Adj. Sess.), §§ 26, 69, eff. Jan. 1, 2015; 2013, No. 200 (Adj. Sess.), § 21a; 2013, No. 200 (Adj. Sess.), § 22, eff. Jan. 1, 2017; 2021, No. 54, § 18; 2021, No. 71, § 12; 2021, No. 90 (Adj. Sess.), § 3, eff. July 1, 2022; 2021, No. 105 (Adj. Sess.), § 523, eff. July 1, 2022; 2023, No. 144 (Adj. Sess.), § 9, eff. June 3, 2024.)