Ways & Means hears testimony on land-value taxation as tool to spur infill, ease building taxes

The House Ways & Means Committee heard nearly two hours of testimony on Wednesday, Feb. 19, about using a land-value tax in Vermont as a way to shift property tax burden off buildings and onto land to encourage infill and redevelopment.

The discussion centered on whether municipalities could pilot higher tax rates on unimproved land while reducing rates on buildings, how assessments would be set and the implications for the state education property tax and designated downtown programs. No formal action or vote was taken; several legislators expressed interest in commissioning a study or pilot program.

Josh, a guest witness who identified himself as representing a 501(c)(3) educational research foundation based in Philadelphia, framed the idea as distinct from ordinary property tax reform: "Land is very different. It's immobile," he said, adding that taxing land rather than improvements avoids penalizing owners who invest in buildings. He said property taxes account for "about a third of Vermont's state revenue" and that, in many Vermont towns, only about 20–35% of property-tax revenue currently comes from land value rather than buildings.

The witness described…