JFO: H.273 would cut state revenue by $4.9M–$10.6M by expanding current-use and lowering withdrawal tax

Summary

Ezra Holden of the Joint Fiscal Office told lawmakers a proposal to expand current-use eligibility, include equine operations and reduce the land-use-change tax rate would lower education and general fund revenue by an estimated $4.85 million to $10.63 million, with large caveats due to limited data.

Ezra Holden, analyst with the Joint Fiscal Office, told lawmakers at a legislative briefing that House Bill H.273 would change three aspects of Vermont’s use-value appraisal (current‑use) program and that the Joint Fiscal Office (JFO) estimates a statewide revenue reduction between $4,850,000 and $10,630,000 if the bill’s provisions take effect.

Holden said H.273 contains three principal changes: lowering the income threshold for someone to qualify as a “farmer” for current‑use from 50% of gross annual income to 25%; reducing the land-use-change tax (LUCT) rate from 10% to 6% of full fair-market value at withdrawal; and expanding the statutory definition of farmer to include persons who “raise, feed or manage equine.”

Those changes would expand eligibility for the use-value program and reduce the penalty collected when enrolled land is withdrawn for development. Holden presented a low-end and high-end fiscal range for each change based on available data: farmer‑by‑income expansion $1.5M–$4.0M; LUCT rate…

JFO: H.273 would cut state revenue by $4.9M–$10.6M by expanding current-use and lowering withdrawal tax

Summary

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