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Tax department flags administrative concerns about counting donated crops toward Current Use eligibility
Summary
Deputy Commissioner Rebecca Samroff told the committee that expanding the use‑value appraisal income test to count donated crops would create administrative verification challenges and recommended tightening language to require donations to recognized nonprofits and adjusting the effective date.
Rebecca Samroff, deputy commissioner of the Vermont Department of Taxes, told the committee that Section 5 of the bill would allow the value of donated crops to be included when testing small farms' eligibility for the Use Value Appraisal (Current Use) program.
"This would expand that eligibility threshold to include the value of donated crops," Samroff said. Under current law, small farms under 25 acres must meet an income threshold of at least $2,000 in farm income (or half of household income from farming) to qualify.
The department said the proposal raises administrative concerns because the agency verifies eligibility by checking Schedule F federal filings and other formal receipts. "We would prefer, if the legislature was gonna move forward with expanding this eligibility, that they'd be more formal donations made to like a real, designated nonprofit organization," Samroff said, adding such a requirement would allow staff to request receipts during application review.
Samroff also asked the committee to consider adjusting the effective date to match the department's application cycle, noting that use‑value applications are due in September and proposing a January 2026 effective date may not align with administrative processes. She suggested September 2026 as a more practical earliest effective date.
Legislative staff and JFO told the committee they expect the fiscal impact to be de minimis because the $2,000 threshold is low and the number of additional parcels that would newly qualify under donated‑crop valuation is likely small. The Joint Fiscal Office did not provide a precise dollar estimate.
The committee did not take final action during the hearing and members asked staff and agencies to return with implementation details if the provision proceeds.
