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.)