§ 9601. Definitions
As used in this chapter unless the context requires otherwise:
(1) “Deed” includes any deed, instrument, memorandum of deed, memorandum of lease, or
other writing evidencing a transfer of title to property. “Deed” also means any agreement,
instrument, or memorandum evidencing an agreement or instrument in which the grantee
holds equitable title and is entitled to possession at any time during the term of
the agreement and in which the grantor reserves legal title to the property for a
period of time or until the grantee satisfies conditions specified in the agreement
or instrument, including a bond for a deed, title bond, contract for sale, contract
to convey, executory contract for sale, installment sale, and lease for a deed.
(2) “Person” means every natural person, association, trust, corporation, partnership,
limited liability company, or other legal entity.
(3) “Title to property” includes:
(A) those interests in property that endure for a period of time the termination of which
is not fixed or ascertained by a specific number of years, including an estate in
fee simple, life estate, enhanced life estate, perpetual leasehold, and perpetual
easement; and
(B) those interests in property enduring for a fixed period:
(i) equal to or exceeding 50 years;
(ii) less than 50 years if, by reason of a grant of right to extend the term by renewal
or otherwise, said interest may be extended to a period equal to or exceeding 50 years;
and
(iii) less than 50 years if there is granted a right to purchase the property and there
is granted the right to construct on the property a building or structure or to make
such major capital improvements as water systems, sewer systems, roads, or parking
facilities.
(4) “Town clerk” means any town clerk, city clerk, county clerk, or other official whose
duty it is to record deeds of property.
(5) “Transfer” includes a grant, assignment, conveyance, will, trust, decree of court,
transfer or acquisition of a direct or indirect controlling interest in any person
with title to property, or any other means of transferring title to property or vesting
title to property in any person.
(6)(A) “Value” means:
(i) in the case of any transfer of title to property that is not a gift and that is not
made for a nominal or no consideration, the amount of the full actual consideration
for such transfer, paid or to be paid, including the amount of any liens or encumbrances
on the property existing before the transfer and not removed thereby;
(ii) in the case of a gift, or a transfer for nominal or no consideration, the fair market
value of the property transferred; and
(iii) in the case of a controlling interest in any person that has title to property, the
fair market value of the property, apportioned based on the percentage of the ownership
interest transferred or acquired in the person.
(B) “Value” shall not include the fair market value of private alternative energy sources
as defined in section 3845 of this title.
(C) In the case of a life estate or an enhanced life estate, the grand list value of the
property at the time of the transfer, multiplied by a factor published by the Internal
Revenue Service for purposes of valuing life estates and remainders pursuant to 26 U.S.C. § 7520. This factor is based on the grantor’s age, published actuarial tables, and published
interest rate in the month of the transaction.
(7) “Commissioner” means the Commissioner of Taxes or any officer or employee of the Department
authorized by the Commissioner, directly or indirectly by one or more redelegations
of authority, to perform the functions mentioned or described in this chapter.
(8) “Certificate” means a certificate of compliance, affirmation, or exemption that is
a part of the property transfer return.
(9) “Commissioner of Health” means the Commissioner of Health appointed under 3 V.S.A. § 3051.
(10) “Property” means real property. The term does not include personal property transferred
with real property.
(11) “Principal residence” means principal residence as defined in section 10002a of this title, together with land that is beneath or directly contiguous to the dwelling and that
is transferred with the dwelling.
(12) “Controlling interest” means:
(A) In the case of a corporation, either 50 percent or more of the total combined voting
power of all classes of stock of such corporation, or 50 percent or more of the capital,
profits, or beneficial interest in such voting stock of such corporation.
(B) In the case of a partnership, limited liability company, association, trust, or other
entity, 50 percent or more of the capital, profits, or beneficial interest in such
partnership, limited liability company, association, trust, or other entity.
(C) For purposes of the tax imposed pursuant to section 9602 of this title, all acquisitions of persons acting in concert are aggregated for purposes of determining
whether a transfer or acquisition of a controlling interest has taken place; provided,
however, interests in any partnership, limited liability company, association, or
other entity originally purchased in connection with the federal low-income housing
tax credit program under 26 U.S.C. § 42 shall not be counted in determining a change in the “controlling interest.” The Commissioner
shall adopt standards by rule to determine when persons are acting in concert. In
adopting a rule for this purpose, the Commissioner shall consider the following:
(i) Persons must be treated as acting in concert when they have a relationship with each
other such that one person influences or controls the actions of another through common
ownership.
(ii) When persons are not commonly owned or controlled, they must be treated as acting
in concert only when the unity with which the purchasers have negotiated and will
consummate the transfer of ownership interest supports a finding that they are acting
as a single person. If the acquisitions are completely independent, with each purchaser
buying without regard to the identity of the other purchasers, the acquisitions must
be considered separate acquisitions. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 291 (Adj. Sess.), § 13, eff. 60 days after April 9, 1970; 1971, No. 68, § 1, eff. April 15, 1971; 1971, No. 168 (Adj. Sess.); 1975, No. 225 (Adj. Sess.), § 2; 1975, No. 226 (Adj. Sess.), § 1; 1979, No. 105 (Adj. Sess.), § 35; 1981, No. 56, § 1; 1987, No. 200 (Adj. Sess.), § 1; 1989, No. 119, § 20, eff. June 22, 1989; 1989, No. 222 (Adj. Sess.), §§ 18, 19, eff. May 31, 1990; 2019, No. 71, § 9; 2021, No. 105 (Adj. Sess.), § 587, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 2, eff. January 1, 2022; 2023, No. 6, § 389, eff. July 1, 2023.)
§ 9602. Tax on transfer of title to property
A tax is hereby imposed upon the transfer by deed of title to property located in
this State, or a transfer or acquisition of a controlling interest in any person with
title to property in this State. The amount of the tax equals 1.25 percent of the
value of the property transferred, or $1.00, whichever is greater, except as follows:
(1) With respect to the transfer of property to be used for the principal residence of
the transferee, the tax shall be imposed at the rate of 0.5 percent of the first $200,000.00
in value of the property transferred and at the rate of 1.25 percent of the value
of the property transferred in excess of $200,000.00, except that no tax shall be
imposed on the first $250,000.00 in value of the property transferred if the purchaser
obtains a purchase money mortgage funded in part with a homeland grant through the
Vermont Housing and Conservation Trust Fund or that the Vermont Housing and Finance
Agency or U.S. Department of Agriculture and Rural Development has committed to make
or purchase; and tax at the rate of 1.25 percent shall be imposed on the value of
that property in excess of $250,000.00.
(2) [Repealed.]
(3) With respect to the transfer to a housing cooperative organized under 11 V.S.A. chapter 7 and whose sole purpose is to provide principal residences for all of its members
or shareholders, or to an affordable housing cooperative under 11 V.S.A. chapter 14, of property to be used as the principal residence of a member or shareholder, the
tax shall be imposed in the amount of 0.5 percent of the first $200,000.00 in value
of the residence transferred and at the rate of 1.25 percent of the value of the residence
transferred in excess of $200,000.00; provided that the homesite leased by the cooperative
is used exclusively as the principal residence of a member or shareholder. If the
transferee ceases to be an eligible cooperative at any time during the six years following
the date of transfer, the transferee shall then become obligated to pay any reduction
in property transfer tax provided under this subdivision, and the obligation to pay
the additional tax shall also run with the land.
(4) Tax shall be imposed at the rate of 3.4 percent of the value of the property transferred
with respect to transfers of:
(A) residential property that is fit for habitation on a year-round basis;
(B) will not be used as the principal residence of the transferee; and
(C) for which the transferee will not be required to provide a landlord certificate pursuant
to section 6069 of this title. (Added 1967, No. 146, § 1; amended by 1969, No. 144, § 6; 1987, No. 200 (Adj. Sess.), § 2; 1993, No. 49, § 16,; 1997, No. 50, §§ 6, 43; 1999, No. 62, § 272; 2005, No. 75, § 5; 2007, No. 176 (Adj. Sess.), § 14; 2011, No. 45, § 33; 2019, No. 71, § 10; 2023, No. 181 (Adj. Sess.), § 73, eff. August 1, 2024.)
§ 9602a. Clean water surcharge
There shall be a surcharge of 0.22 percent on the value of property subject to the
property transfer tax under section 9602 of this title, except that there shall be no surcharge on the first $200,000.00 in value of property
to be used for the principal residence of the transferee or the first $250,000.00
in value of property transferred if the purchaser obtains a purchase money mortgage
funded in part with a homeland grant through the Vermont Housing and Conservation
Trust Fund or that the Vermont Housing and Finance Agency or U.S. Department of Agriculture
and Rural Development has committed to make or purchase. The surcharge shall be in
addition to any tax assessed under section 9602 of this title. The surcharge assessed under this section shall be paid, collected, and enforced
under this chapter in the same manner as the tax assessed under section 9602 of this title. The Commissioner shall deposit the surcharge collected under this section in the
Clean Water Fund under 10 V.S.A. § 1388, except for the first $1,000,000.00 of revenue generated by the surcharge, which
shall be deposited in the Vermont Housing and Conservation Trust Fund created in 10 V.S.A. § 312. (Added 2015, No. 64, § 38, eff. June 16, 2015; amended 2017, No. 85, § I.9; 2023, No. 181 (Adj. Sess.), § 74, eff. June 17, 2024.)
§ 9603. Exemptions
The following transfers are exempt from the tax imposed by this chapter:
(1) Transfers recorded prior to January 1, 1968.
(2) Transfers of property to the United States of America; the State of Vermont; or any
of their instrumentalities, agencies, or subdivisions.
(3) Transfers directly to the obligee to secure a debt or other obligation.
(4) Transfers that, without additional consideration, confirm or correct a transfer previously
recorded.
(5) Transfers between two spouses, or parent and child or child’s spouse, or grandparent
and grandchild or grandchild’s spouse, without actual consideration therefor; and
also transfers in trust or by decree of court to the extent of the benefit to the
donor or one or more of the related persons named in this subdivision; and transfers
from a trust named in this subdivision conveying or releasing the property free of
trust as between those related persons and without actual consideration therefor.
(6) Transfers to effectuate a mere change of identity or form of ownership or organization
where there is no change in beneficial ownership.
(7) Transfers directly to the obligor of release of property that is security for a debt
or other obligation when such debt or other obligation has been fully satisfied.
(8) Transfers of partition.
(9) Transfers made pursuant to mergers or consolidations of corporations pursuant to which
transfer no gain or loss is recognized under the Internal Revenue Code, and bona fide
transfers to shareholders of corporations in connection with the complete dissolution
thereof, except where the Commissioner finds that a major purpose of such dissolution
is to avoid the property transfer tax.
(10) Transfers made by a subsidiary corporation to its parent corporation for no consideration
other than cancellation or surrender of the subsidiary’s stock.
(11) Transfers made to a corporation at the time of its formation pursuant to which transfer
no gain or loss is recognized under 26 U.S.C. § 351, except where the Commissioner finds that a major purpose of such transaction is
to avoid the property transfer tax.
(12) Transfers made to, or made by, a local development corporation as defined under 10 V.S.A. § 212(10).
(13) Transfers made to, or made by, an authority established pursuant to 10 V.S.A. chapter
12.
(14)(A) Transfers to organizations qualifying under 26 U.S.C. § 501(c)(3), as amended, and that prior to the transfer have been determined to meet the “public
support” test of 26 U.S.C. § 509(a)(2), as amended, provided one of the stated purposes of the organization is to acquire
property or rights and less than fee interest in property in order to preserve farmland
or open-space land, and provided that the property transferred, or rights and interests
in the property, will be held by the organization for this purpose. As used in this
section, “farmland” means real estate that will be actively operated or leased as
part of a farm enterprise, including dwellings and agricultural structures, and “open-space
land” means land without structures thereon.
(B) Transfers to organizations qualifying under 26 U.S.C. § 501(c)(3), as amended, and that prior to the transfer have been determined to meet the “public
support” test of 26 U.S.C. § 509(a)(1), as amended, shall not be exempt from tax, but the tax shall be deferred, provided
one of the stated purposes of the organization is to acquire property or rights and
less than fee interest in property in order to preserve farmland or open-space land,
and provided that the property transferred, or rights and interests in the property,
will be held by the organization for this purpose. Any transferee organization for
which tax is deferred under this subdivision shall pay the deferred tax upon later
transfer by that organization of all or a part of the property or the development
rights for that property, up to a maximum of the consideration received for such later
transfers.
(C)(i) Transfers from one organization qualifying under 26 U.S.C. § 501(c)(3), as amended, to another organization qualifying under 26 U.S.C. § 501(c)(3), provided the organizations are related organizations and the Commissioner does not
determine that a major purpose of the transaction is to avoid the tax imposed under
this chapter. As used in this subdivision (C), “related organizations” means one organization
holds 50 percent or more of the membership interest of the other organization or one
organization appoints or elects, including the power to remove and replace, 50 percent
or more of the members of the other organization’s governing body.
(ii)(I) Notwithstanding subdivision (i) of this subdivision (C), a transferee organization
that receives property in a transfer exempt under subdivision (i) of this subdivision
(C) shall pay the tax imposed under this chapter on the value of the property transferred
if:
(aa) not more than three years after the date of the first transfer, the transferee subsequently
transfers any portion of the property;
(bb) the second transfer is not exempt under subdivision (i) of this subdivision (C) as
a transfer between related organizations; and
(cc) the Commissioner determines that a major purpose of the transaction is to avoid the
tax imposed under this chapter.
(II) The tax imposed under this subdivision (C)(ii) on the value of the property transferred
at the time of the first transfer shall be due not later than 30 days after the second
transfer and shall apply in addition to any tax due under this chapter from the subsequent
transferee on the second transfer.
(15) Transfers made to a partnership at the time of its formation, pursuant to which transfer
no gain or loss is recognized under 26 U.S.C. § 721, except where the Commissioner finds that a major purpose of such transaction is
to avoid the property transfer tax.
(16) Transfers made by a partnership to a partner in connection with a complete dissolution
of the partnership, pursuant to which transfer no gain or loss is recognized under
the Internal Revenue Code, except where the Commissioner finds that a major purpose
of such dissolution is to avoid the property transfer tax.
(17) Transfers of utility line easements to a public utility or a municipality for a consideration
of $500.00 or less.
(18) Transfers between the obligor and the primary obligee arising out of a foreclosure
proceeding or conveyance in lieu of foreclosure.
(19) Transfers under a court judgment decreeing the disposition of real estate of the parties
to a civil marriage to the extent of the property interests conveyed to either of
the parties.
(20) Transfers made to organizations qualifying under 26 U.S.C. § 501(c)(3) or to a wholly owned subsidiary corporation of such an organization, provided one
of the stated purposes of the transferee is:
(A) to acquire property in order to preserve housing for families with low income;
(B) to operate a statewide public television station and provided that the property transferred
will be held by the transferee for this purpose; or
(C) to act as a food clearinghouse in order to reduce the incidence of hunger in Vermont
and provided that the property transferred will be held by the transferee for this
purpose.
(21) Transfers made to a corporation qualifying as a limited equity cooperative under the
Cooperative Housing Ownership Act, provided the property in the hands of the transferee
will be used to provide housing for persons or households of low or moderate income.
(22) Transfers to an organization qualifying under 26 U.S.C. § 501(c)(2), provided the organization is controlled exclusively by an organization or organizations
described in subdivision (14) of this section, and provided such transfer is for the
purposes described in that subdivision.
(23) Transfers of leasehold or fee interests made to individuals with low income by organizations
qualifying under 26 U.S.C. § 501(c)(3) and having as its primary purpose the provision of housing to individuals with low
income, or from a wholly owned subsidiary of the organization, when the transfer is
made concurrently with the transfer of an improvement located on the leasehold or
fee property, or is a renewal of the lease where the purpose of the lease is to provide
affordable housing or to ensure the continued affordability of the housing, or both.
(24) Transfers made to a limited liability company at the time of its formation pursuant
to which no gain or loss is recognized under the Internal Revenue Code, except where
the Commissioner finds that a major purpose of such transaction is to avoid the property
transfer tax.
(25) Transfers made by a limited liability company to a member in connection with a complete
dissolution of the limited liability company, pursuant to which transfer no gain or
loss is recognized under the Internal Revenue Code, except where the Commissioner
finds that a major purpose of such dissolution is to avoid the property transfer tax.
(26) Transfers of controlling interests in a person with a fee interest in property if
the transfer of the property would qualify for exemption if accomplished by deed of
the property between the parties to the transfer of the controlling interest.
(27)(A) Transfers of abandoned dwellings that the transferee certifies will be rehabilitated
for occupancy as principal residences and not as short-term rentals as defined under
18 V.S.A. § 4301(a)(14), provided the rehabilitation is completed and occupied not later than three years
after the date of the transfer. If three years after the date of transfer the rehabilitation
has not been completed and occupied, then the tax imposed by this chapter shall become
due.
(B) As used in this subdivision (27):
(i) “Abandoned” means real estate owned by a municipality and acquired through condemnation
or a tax sale, provided the real estate has substandard structural or housing conditions,
including unsanitary and unsafe dwellings and deterioration sufficient to constitute
a threat to human health, safety, and public welfare.
(ii) “Completed” means rehabilitation of a dwelling to be fit for occupancy as a principal
residence.
(iii) “Principal residence” means a dwelling occupied by a resident individual as the individual’s
domicile during the taxable year and for a property owner, owned, or for a renter,
rented under a rental agreement other than a short-term rental as defined under 18 V.S.A. § 4301(a)(14).
(iv) “Rehabilitation” means extensive repair, reconstruction, or renovation of an existing
dwelling beyond normal and ordinary maintenance, painting, repairs, or replacements,
with or without demolition, new construction, or enlargement.
(28) Transfers of a new mobile home, as that term is defined in 10 V.S.A. § 6201(1), that:
(A) bears a label evidencing, at a minimum, greater energy efficiency under the ENERGY
STAR Program established in 42 U.S.C. § 6294a; or
(B) is certified as a Zero Energy Ready Home by the U.S. Department of Energy. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 144, § 7, eff. June 1, 1969; 1971, No. 68, § 2, eff. April 15, 1971; 1971, No. 73, § 38, eff. April 16, 1971; 1975, No. 225 (Adj. Sess.), §§ 3-9; 1981, No. 38, § 1, eff. April 21, 1981; 1981, No. 56, § 2; 1981, No. 247 (Adj. Sess.), § 15; 1987, No. 27, § 1, eff. April 30, 1987; 1987, No. 129 (Adj. Sess.), § 1, eff. March 23, 1988; 1987, No. 200 (Adj. Sess.), § 51; 1987, No. 254 (Adj. Sess.), § 5, eff. June 16, 1988; 1989, No. 222 (Adj. Sess.), §§ 20, 21, 40, eff. May 31, 1990; 1991, No. 67, §§ 9-17, 19, eff. June 19, 1991; 1991, No. 186 (Adj. Sess.), § 25, eff. May 7, 1992; 1995, No. 131 (Adj. Sess.), § 1; 1997, No. 50, §§ 29-31, eff. June 26, 1997; 2009, No. 3, § 12a, eff. Sept. 1, 2009; 2011, No. 143 (Adj. Sess.), § 24; 2019, No. 71, § 11; 2023, No. 72, § 13, eff. June 19, 2023; 2023, No. 181 (Adj. Sess.), § 83a, eff. August 1, 2024.)
§ 9604. Liability for tax
The tax imposed by this chapter upon any transfer of title to property is the liability
of the transferee of the title, unless fixed otherwise by agreement of the parties. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 144, § 8, eff. June 1, 1969.)
§ 9605. Payment of tax
(a) The tax imposed by this chapter shall be paid to the Commissioner within 30 days after
transfer of title to property subject to the tax or, in the case of a transfer or
acquisition of a controlling interest in a person with title to property for which
a deed is not given, within 30 days after transfer or acquisition.
(b) If an agreement, instrument, memorandum, or other writing evidencing a transfer of
title to property is taxed as a deed at the time of its recording, the later recording
of the deed to the property shall not be subject to the transfer tax. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1989, No. 222 (Adj. Sess.), § 22; 2009, No. 160 (Adj. Sess.), § 16; 2019, No. 175 (Adj. Sess.), § 7, eff. Oct. 8, 2020.)
§ 9606. Property transfer return
(a)(1) In the case of property transfer by deed, a property transfer return complying with
this section shall be delivered to a town clerk at the time a deed evidencing a transfer
of title to property is delivered to the clerk for recording.
(2) In the case of transfer or acquisition of a controlling interest in a person with
title to property for which a deed is not given, a property transfer return complying
with this section shall be delivered to the Commissioner within 30 days after the
transfer or acquisition.
(b) The property transfer return required by this section shall be in such form and with
such signatures as the Commissioner shall prescribe. If the return is filed with respect
to a transfer that is claimed to be exempt from the tax imposed by this chapter, the
return shall set forth the basis for such exemption. If the return is filed with respect
to a transfer subject to such tax, the return shall truly disclose the value of the
property transferred, together with such other information as the Commissioner may
reasonably require for the proper administration of this chapter. The return shall
include notice that the property may be subject to regulations governing potable water
supplies and wastewater systems under 10 V.S.A. chapter 64, and to building, zoning, and subdivision regulations, and that the parties have
an obligation under law to investigate and disclose his or her knowledge regarding
flood regulation, if any, affecting the property.
(c) For receiving and acknowledging a property transfer return under this chapter, there
shall be paid to the town clerk at the time of filing a fee as provided for in subdivision 1671(a)(6) of this title.
(d) The property transfer tax return shall not be required of properties qualified for
the exemption stated in subdivision 9603(17) of this title, or qualified for the exemption stated in subdivision 9603(2) of this title if the transfer is of an interest in property for highway purposes and the consideration
for the transfer is $10,000.00 or less. An entity acquiring such properties shall
notify the listers of a municipality of the grantors, grantees, consideration, date
of execution, and location of the property when it files for recording a deed that
does not require a transfer tax return under this subsection.
(e)(1) In the case of property transferred by deed, the Commissioner of Taxes is authorized
to disclose to any person any information appearing on a property transfer tax return,
including statistical information derived therefrom, and such information derived
from research into information appearing on property transfer tax returns as is necessary
to determine if the property being transferred is subject to 10 V.S.A. chapter 151, except the Commissioner shall not disclose the Social Security number, federal identification
number, e-mail address, or telephone number of any person pursuant to this subsection.
(2) In the case of transfer or acquisition of a controlling interest in a person with
title to property for which a deed is not given, the return submitted to the Commissioner
shall be treated as a tax return and tax return information under section 3102 of this title. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 291 (Adj. Sess.), § 14, eff. 60 days after April 9, 1970; 1971, No. 84, § 17; 1973, No. 263 (Adj. Sess.), § 4, eff. 30 days from April 16, 1974; 1979, No. 159 (Adj. Sess.), § 19; 1981, No. 38, § 2, eff. April 21, 1981; 1987, No. 64, §§ 5, 9; 1987, No. 76, § 18; 1993, No. 170 (Adj. Sess.), § 16; 1997, No. 60, § 52c, eff. Jan. 1, 1998; 1999, No. 155 (Adj. Sess.), § 12a; 2001, No. 133 (Adj. Sess.), § 12, eff. June 13, 2002; 2003, No. 70 (Adj. Sess.), § 55, eff. March 1, 2004; 2009, No. 47, § 14; 2009, No. 160 (Adj. Sess.), § 17; 2013, No. 73, § 44, eff. June 5, 2013; 2015, No. 40, § 32; 2017, No. 73, § 6, eff. June 13, 2017; 2019, No. 71, § 12.)
§ 9607. Acknowledgment of return and tax payment
Upon the receipt by a town clerk of a property transfer return and certificate and
the fee required under subdivision 1671(a)(6) of this title, the clerk shall forthwith mail or otherwise deliver to the transferee of title to
property with respect to which such return was filed a signed and written acknowledgment
of the receipt of that return and certificate. A copy of that acknowledgment, or any
other form of acknowledgment approved by the Commissioner, shall be affixed to the
deed evidencing the transfer of property or the document evidencing the transfer or
acquisition of a direct or indirect controlling interest in any person with title
to property with respect to which the return and certificate was filed. The acknowledgment
so affixed to a deed or document, however, shall not disclose the amount of tax paid
with respect to any return or transfer. (Added 1967, No. 146, § 1, eff. Jan. 1, 1986; amended 1969, No. 291 (Adj. Sess.), § 15, eff. 60 days after April 9, 1970; 1971, No. 84, § 18; 2009, No. 160 (Adj. Sess.), § 18; 2019, No. 71, § 13.)
§ 9608. Prohibition against certain recordings
(a) Except as to transfers that are exempt pursuant to subdivision 9603(17) of this title, no town clerk shall record, or receive for recording, any deed or document evidencing
the transfer or acquisition of a direct or indirect controlling interest in any person
with title to property to which is not attached a properly executed transfer tax return,
complete and regular on its face, and a certificate in the form prescribed by the
Land Use Review Board and the Commissioner of Taxes that the conveyance of the real
property and any development thereon by the seller is in compliance with or exempt
from the provisions of 10 V.S.A. chapter 151. The certificate shall indicate whether or not the conveyance creates the partition
or division of land. If the conveyance creates a partition or division of land, there
shall be appended the current “Act 250 Disclosure Statement” required by 10 V.S.A. § 6007. A town clerk who violates this section shall be fined $50.00 for the first such
offense and $100.00 for each subsequent offense. A person who purposely or knowingly
falsifies any statement contained in the certificate required is punishable by fine
of not more than $500.00 or imprisonment for not more than one year, or both.
(b) A person who makes a false certification under this section shall be liable for damages
caused by that false certification, in addition to any existing liability created
under the common law. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 250 (Adj. Sess.), § 30, eff. April 4, 1970; 1969, No. 291 (Adj. Sess.), § 16, eff. 60 days after April 9, 1970; 1971, No. 172 (Adj. Sess.), § 1; 1981, No. 38, § 3, eff. April 21, 1981; 1981, No. 223 (Adj. Sess.), § 23, 1987, No. 64, § 4; 1991, No. 111, § 9; 2003, No. 115 (Adj. Sess.), § 118, eff. Jan. 31, 2005; 2009, No. 160 (Adj. Sess.), § 19; 2013, No. 11, § 25; 2013, No. 174 (Adj. Sess.), § 21, eff. June 4, 2014; 2019, No. 71, § 14.)
§ 9609. Penalty for false statement
Any person who willfully falsifies any statement contained in a property transfer
return required under section 9606 of this title shall be subject to a fine of not more than $1,000.00. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968.)
§ 9610. Remittance of return and tax; inspection of returns
(a) Not later than 30 days after the receipt of any property transfer return, a town clerk
shall file the return in the office of the town clerk and electronically forward a
copy of the acknowledged return to the Commissioner; provided, however, that with
respect to a return filed in paper format with the town, the Commissioner shall have
the discretion to allow the town to forward a paper copy of that return to the Department.
(b) The copies of property transfer returns in the custody of the town clerk may be inspected
by any member of the public.
(c) Prior to distributions of property transfer tax revenues under 10 V.S.A. § 312, 24 V.S.A. § 4306(a), and subdivision 435(b)(10) of this title, 1.5 percent of the revenues received from the property transfer tax shall be deposited
in a special fund in the Department of Taxes for Property Valuation and Review administration
costs.
(d)(1) Prior to any distribution of property transfer tax revenue under 10 V.S.A. § 312, 24 V.S.A. § 4306(a), subdivision 435(b)(10) of this title, and subsection (c) of this section, $2,500,000.00 of the revenue received from the
property transfer tax shall be transferred to the Vermont Housing Finance Agency to
pay the principal of and interest due on the bonds, notes, and other obligations authorized
to be issued by the Agency pursuant to 10 V.S.A. § 621(22), the proceeds of which the Vermont Housing and Conservation Board shall use to create
affordable housing pursuant to 10 V.S.A. § 314.
(2) As long as the bonds, notes, and other obligations incurred pursuant to subdivision
(1) of this subsection remain outstanding, the rate of tax imposed pursuant to section 9602 of this title shall not be reduced below a rate estimated, at the time of any reduction, to generate
annual revenues of at least $12,000,000.00. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 291 (Adj. Sess.), § 17, eff. 60 days after April 9, 1970; 1971, No. 73, § 39, eff. April 16, 1971; 1987, No. 200 (Adj. Sess.), § 3; 1989, No. 119, § 27, eff. June 22, 1989; 1993, No. 210 (Adj. Sess.), § 275a, eff. June 30, 1995; 1993, No. 210 (Adj. Sess.), § 275b, eff. Oct. 1, 1994; 1995, No. 5, § 56, eff. March 3, 1995; 1995, No. 63, § 281(d), eff. June 30, 1996; 1999, No. 152 (Adj. Sess.), § 271e; 2009, No. 160 (Adj. Sess.), § 20; 2011, No. 45, § 34, eff. May 24, 2011; 2011, No. 45, § 35, eff. July 1, 2016; 2017, No. 85, § I.4; 2017, No. 85, § I.11(a)(4), eff. July 1, 2039; 2023, No. 181 (Adj. Sess.), § 75a, eff. June 17, 2024.)
§ 9611. Rules of Commissioner
The Commissioner may adopt, amend, and withdraw rules interpreting and implementing
this chapter. (Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 2021, No. 105 (Adj. Sess.), § 589, eff. July 1, 2022.)
§§ 9612, 9613. Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.
§ 9614. Taxes as personal debt to State
(a) All taxes required to be paid under this chapter and all increases, interest, and
penalty thereon that become due and payable to the Commissioner shall constitute a
personal debt from the person liable to pay the same to the State of Vermont to be
recovered in a civil action under this section.
(b) Action may be brought by the Attorney General at the instance of the Commissioner
in the name of the State to recover the amount of taxes, penalties, and interest due
from such person, provided the action is brought within six years after the same are
due. The action shall be returnable in the county where the person resides, if a resident
of the State, and if a nonresident, the action shall be returnable to the County of
Washington. The limitation of six years in this section shall not apply to a suit
to collect taxes, penalties, interest, and costs when the person filed a fraudulent
return or failed to file a return when the same was due. (Added 1971, No. 73, § 47, eff. April 16, 1971; amended 1991, No. 186 (Adj. Sess.), § 26, eff. May 7, 1992.)
§ 9615. Levy for nonpayment
When all or any portion of a tax imposed by this chapter, or any penalty or interest
due in connection with such a tax, is not paid, the Commissioner may issue a warrant
under the Commissioner’s hand and official seal directed to the sheriff of any county
of this State. The warrant shall command the sheriff to levy upon and sell the real
and personal property of the taxpayer for the payment of the unpaid tax liability
imposed by this chapter, together with allowable fees and costs. The levy and sale
shall be effected in the manner, and shall be subject to the limitations, prescribed
for the levy, distraint, and sale of property for the nonpayment of town taxes under
sections 5191–5193 and 5253–5263 of this title. The sheriff shall return the warrant
to the Commissioner and pay to the Commissioner the money collected within the time
specified in the warrant. (Added 1971, No. 73, § 48, eff. April 16, 1971; amended 2021, No. 105 (Adj. Sess.), § 590, eff. July 1, 2022.)
§ 9616. Taxes as property lien
If any person required to pay a tax under this chapter neglects or refuses to pay
the same after demand, the amount, together with all penalties and interest provided
for in this chapter and together with any costs that may accrue in addition thereto,
shall be a lien in favor of the State of Vermont upon all property and rights to property,
whether real or personal, belonging to such person. Such lien shall arise at the
time demand is made by the Commissioner of Taxes and shall continue until the liability
for such sum with interest and costs is satisfied or becomes unenforceable. Such
lien shall have the same force and effect as the lien for taxes withheld under the
withholding provisions of the Vermont income tax law, as provided under section 5895 of this title, and notice of such lien shall be recorded as is provided in said section. Certificates
of release of such lien shall also be given by the Commissioner as in the case of
the withholding tax liens. (Added 1971, No. 73, § 49, eff. April 16, 1971.)
§ 9617. Notices; appeals
Unless otherwise provided by this title:
(1) If the Commissioner finds that any taxpayer has failed to discharge in full the amount
of any tax liability incurred under this title, or that a penalty or interest should
be assessed under it, the Commissioner shall notify the taxpayer of the deficiency
or assess the penalty or interest, as the case may be, by mail.
(2) Upon receipt of a notice of deficiency or assessment of penalty or interest under
subdivision (1) of this section, the taxpayer may, within 60 days after the date of
the mailing of the notice of assessment, petition the Commissioner in writing for
a determination of that deficiency or assessment. The Commissioner shall thereafter
grant a hearing upon the matter and notify the taxpayer in writing of the Commissioner’s
determination concerning the deficiency, penalty, or interest.
(3) Any hearing granted by the Commissioner under this title shall be subject to and governed
by 3 V.S.A. chapter 25.
(4) Any notice under this chapter may be given by mailing it to the person for whom it
is intended in a postpaid envelope addressed to that person at the address given in
the last return filed by that person under this title, or in any application made
by that person or, if no return has been filed or application made, then to any address
obtainable. The mailing of the notice shall be presumptive evidence of its receipt
by the person to whom it is addressed. Any period of time that is determined under
this chapter by the giving of notice shall commence to run from the date of mailing
of the notice.
(5) A taxpayer may, within 30 days, appeal a determination by the Commissioner concerning
a notice of deficiency or an assessment of penalty or interest to the Washington Superior
Court or the Superior Court of the county in which the taxpayer resides or has a place
of business.
(6) The exclusive remedy of a taxpayer with respect to a notification of deficiency or
assessment of penalty or interest under subdivision (1) of this section shall be the
petition for determination of the deficiency or assessment provided by subdivision
(2) of this section, and the appeal from an adverse determination of deficiency or
assessment provided under subdivision (5) of this section.
(7) Upon the failure of a taxpayer to petition in accordance with subdivision (2) of this
section from a notice of deficiency or assessment issued under subdivision (1) of
this section, or to appeal in accordance with subdivision (5) of this section from
a determination of a deficiency or assessment of tax liability under subdivision (2)
of this section, the taxpayer shall be bound by the terms of the notification, assessment,
or determination, as the case may be. The taxpayer shall not thereafter contest, either
directly or indirectly, the tax liability as set forth, in any proceeding, including
proceeding for the enforcement or collection of all or any part of the tax liability.
(8)
(A) At any time within three years after the date a property is transferred, a taxpayer
may petition the Commissioner in writing for the refund of all or any part of the
amount of tax paid. The Commissioner shall thereafter grant a hearing subject to the
provisions of 3 V.S.A chapter 25 upon the matter and notify the taxpayer in writing
of the Commissioner’s determination concerning the refund request. The Commissioner’s
determination may be appealed as provided in subdivision (5) of this section. This
shall be a taxpayer’s exclusive remedy with respect to the refund of taxes under this
chapter, except as provided under subdivision (B) of this subdivision (8).
(B) If the transfer taxed by this chapter was an enhanced life estate interest and that
interest is revoked or revised pursuant to 27 V.S.A. chapter 6, the person who paid
the tax may petition for a refund at any time after the date of revocation or revision.
In the case of a revision, the revised enhanced life estate interest transfer shall
be subject to tax under this chapter. (Added 1979, No. 105 (Adj. Sess.), § 38; amended 1989, No. 222 (Adj. Sess.), § 37; 1997, No. 156 (Adj. Sess.), § 20, eff. April 29, 1998; 2021, No. 105 (Adj. Sess.), § 591, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 3, eff. January 1, 2022; 2023, No. 161 (Adj. Sess.), § 43, eff. June 6, 2024.)
§ 9618. Duty to report stock acquisitions
Each person who acquires a controlling interest in a corporation, whether by one or
more than one transfer of stock, shall, if the fair market value of all real property
held in this State by the corporation exceeds $500,000.00, report to the Commissioner
of Taxes, within 30 days after the acquisition, the fair market value of all real
property held in this State by the corporation at the time of the acquisition of the
controlling interest. (Added 1993, No. 85, § 3(b), eff. Jan. 1, 1994; amended 2019, No. 71, § 15.)