Margaret owns a 150-acre farm in Addison County, Vermont, that is enrolled in the Vermont Current Use Program. She decides to sell the property to a developer who plans to convert the land into a residential subdivision and withdraw it from the program. Which of the following consequences will most directly result from the withdrawal of the land from the Current Use Program?
Correct Answer
B) A land use change tax will be triggered and assessed against the property upon withdrawal
Under 32 V.S.A. Chapter 124, when land enrolled in Vermont's Current Use Program is withdrawn from the program — whether due to sale, development, or a change in use — a land use change tax is triggered. This tax is calculated based on the fair market value of the land at the time of withdrawal and is designed to recapture some of the tax savings the landowner received while enrolled. The tax runs with the land, meaning the buyer may bear the liability if withdrawal occurs after transfer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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