The Vermont Statutes Online

Title 32: Taxation and Finance

Chapter 231: Property Transfer Tax

• § 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 one and one-quarter 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 five-tenths of one percent of the first $100,000.00 in value of the property transferred and at the rate of one and one-quarter percent of the value of the property transferred in excess of $100,000.00; except that no tax shall be imposed on the first $110,000.00 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 one and one-quarter percent shall be imposed on the value of that property in excess of $110,000.00.

  (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 five-tenths of one percent of the first $100,000.00 in value of the residence transferred and at the rate of one and one-quarter percent of the value of the residence transferred in excess of $100,000.00; 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. (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.)

• [Section 9602a effective until July 1, 2027; see also section 9602a effective July 1, 2027 and repealed effective July 1, 2039 set out below.]

  § 9602a. Clean water surcharge

  There shall be a surcharge of 0.2 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 $100,000.00 in value of property to be used for the principal residence of the transferee or the first $200,000.00 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; 2017, No. 85, § I.10, eff. July 1, 2027; repealed on July 1, 2039 by 2017, No. 85, § I.11(a)(5).)

• [Section 9602a effective July 1, 2027 and repealed effective July 1, 2039; see also section 9602a effective until July 1, 2027 set out above.]

  § 9602a. Clean water surcharge

  There shall be a surcharge of 0.04 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 $100,000.00 in value of property to be used for the principal residence of the transferee or the first $200,000.00 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 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; 2017, No. 85, § I.10, eff. July 1, 2027; repealed on July 1, 2039 by 2017, No. 85, § I.11(a)(5).)

• § 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. (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; 2021, No. 105 (Adj. Sess.), § 588, eff. July 1, 2022; 2023, No. 72, § 13, eff. June 19, 2023.)

• § 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 Natural Resources 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, two 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.

  [Subsection (d) repealed effective July 1, 2039.]

  (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.)

• § 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 subsection.

  (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, provided that the petition is made within eight years after the date of payment of the tax and within one year after the date of revocation or revision. No petition for a refund shall be granted for the revocation or revision of an interest that occurred eight years or more after the date of payment of the tax. 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.)

• § 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.)