Tax department outlines problems and options for Vermont ’current use’ land‑use change tax; committee weighs affordable‑housing and farm transition fixes

The Department of Taxes told the House Committee on Agriculture, Food Resiliency, & Forestry that Vermont’s current method for valuing and taxing a withdrawal of part of an enrolled “current use” parcel produces unpredictable penalties, long delays and inconsistent outcomes — and that the committee has several legislative options to consider.

Jill Remick, director of the Property Evaluation Division at the Department of Taxes, described the land use change tax as currently calculated when a portion of an enrolled parcel is removed and said the existing approach can produce ‘‘effective tax rates’’ that vary wildly across parcels and municipalities. “The land use change tax is 10% of that value,” Remick said, describing the current statutory penalty and the complex valuation process that follows a withdrawal.

Why it matters: the land use change tax affects landowners, buyers and municipalities. Committee members repeatedly framed the issue as relevant to affordable and workforce housing, intra‑family farm transfers and municipal planning. Lawmakers and staff discussed proposals that would change the way the penalty is calculated, create an exemption or abatement for affordable housing built on withdrawn parcels, and alter…