Vermont (Summary)
Last Updated: March 2020
Tax Type: Current Use
Description: Enrolled land is appraised for property taxes based on its value for forestry rather than its fair market (development) value.
Objective: To encourage and assist the maintenance of Vermont's productive agricultural and forest land, to prevent the accelerated conversion of these lands to more intensive use by the pressure of property taxation at values incompatible with the productive capacity of the land, and to achieve more equitable taxation of undeveloped land.
Principal Forest Property Tax Incentive Program:
Program legal-common name: Agricultural & Managed Forest Use Value Program
Law: 32 V.S.A. Chap. 124, subchap. 1
Program Requirements
Min/Max Acreage: at least 25 acres
Min. Stocking Growth: N/A
Forest Management Plan: An approved signed, 10-year forest management plan or conservation management plan is required. The plan expires after 10 years. Landowners need to submit an updated plan with current data.
Duration of Enrollment: Indefinite
Evidence of Use: At intervals of not to exceed 10 years, the county foresters shall inspect each parcel of managed forestland qualified for use value appraisal to verify that the terms of the management plan have been followed.
Penalties for Use Change: A Land Use Change tax at 10% of the full fair market value of the changed land
Program Administration
State: Current Use Advisory Board establishes a schedule of criteria and values to be recommended for the tax year. Vermont Division of distributes the valuations to assessing officials. Vermont Department of Forests, Parks and Recreation approves forest or conservation management plan.
County Tax Assessor and Commissioner: Shall appraise qualifying agricultural and managed forestland at the use values and determine FMVs for the calculation of the Land Use Change Tax.
University: Serves on Current Use Advisory Board
Landowners: File forest management plan and the Annal Forest Management Activity Report with the Vermont Department of Taxes
For a more in depth discussion of Vermont property taxes click here!