Vineyard owner urges change to current-use law after land-use change tax assessed on leased acreage purchase

John McCann, co-owner of North Branch Vineyards, told the House Committee on Agriculture, Food Resiliency & Forestry on Aug. 12 that he was assessed a land-use-change tax (LUCT) after purchasing 13.7 acres he had long leased for grape production, and he urged statutory change to avoid similar outcomes for small farms.

McCann said his timeline began in February 2015, when North Branch leased 13.7 acres of a 48-acre parcel to plant a vineyard. He said the parcel remained in the current-use program while leased and that he farmed the property continuously. When the landowner subdivided and recorded plans and permits to sell the 13.7-acre parcel, the Vermont Department of Taxes notified the owner that subdivision triggered development under the LUCT statute and later informed McCann that the 13.7 acres had been withdrawn from current use on the date of transfer and that he owed a LUCT equal to 10% of fair market value,…