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Realtors back change to credit at transfer timing; titles and municipalities will need operational guidance
Summary
The Vermont Association of Realtors supported a provision in H.454 that ends a seller—s property tax credit at the date of transfer, saying buyers should be able to claim credit for the portion of the year they own the property; witnesses asked for clearer closing and municipal billing guidance.
Peter Tucker, director of public policy and advocacy for the Vermont Association of Realtors, told the Finance Committee that a provision in H.454 would end a seller—s property tax credit on the date of transfer and allow the buyer to file for the credit for the year of purchase.
Tucker said the change is more equitable for buyers and noted that prevailing practice at closings often results in sellers being compensated informally by buyers for credits that in some cases the sellers no longer use after transfer. "This bill is gonna change that," Tucker said, urging the committee to consult title attorneys and municipal billing officials on implementation.
Tucker also drew the committee—s attention to language in the bill that states municipalities "shall not be required to issue an adjusted property tax bill" in narrow transfer circumstances and urged clarity on how credits are applied at closing and whether municipalities must adjust bills or leave adjustments to private closing settlements.
Committee members and witnesses agreed this operational detail should be resolved with clerks, attorneys and municipal staff so that property closings and tax billing align with the statute and taxpayers know how credits will be applied.
