The Vermont Statutes Online

Title 32 : Taxation and Finance

Chapter 231 : Property Transfer Tax

• § 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  (2) [Repealed.]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.)