July 2021
Lister and Assessor Handbook
A Guide for Vermont Listers and Assessors
Published by the Division of Property Valuation and Review
Vermont Department of Taxes
Phone: (802) 828-5860
Email: [email protected]
Rev. 07/2021 l Pub. GB-1143
July 2021
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Table of Contents
I. The Lister* ................................................................................ 1
Introduction ................................................................................................. 1
Job Description .............................................................................................. 1
The Lister as a Public Ofcial ................................................................................... 2
Career Development .......................................................................................... 3
II. Lister’s Calendars .......................................................................... 5
Grand List Important Dates .................................................................................... 5
Sample Extension Request Letter ............................................................................... 6
Annual Activities by Month ..................................................................................... 6
III. Appraisal at Fair Market Value ..............................................................12
Fair Market Value Dened ....................................................................................12
Highest and Best Use ........................................................................................12
Appraisal Principles .........................................................................................14
Approaches to Value .........................................................................................16
Cost Approach to Value ...................................................................................... 17
Market Data Approach (Sales Comparison Approach) to Value ..................................................... 17
Income Approach to Value (Income Capitalization) ...............................................................19
IV. NEMRC Grand List Software ................................................................ 21
V. NEMRC MicroSolve ........................................................................ 22
VI. Annual Reporting and Maintenance ......................................................... 23
Ongoing Analysis and Maintenance ............................................................................23
Reappraisal ................................................................................................ 24
Grand List Book ............................................................................................26
Real Property Highest and Best Use Codes ......................................................................27
Personal Property Category Codes .............................................................................30
Ownership Codes ...........................................................................................30
Sales Reports from Department of Taxes ........................................................................30
The “411” Form ............................................................................................. 31
Determining Acreage and Property Mapping .....................................................................33
Water and Sewer Assessments ................................................................................ 34
Determining the Owner .......................................................................................35
What is a Parcel? ...........................................................................................36
VII. Grievances and Appeals ................................................................... 37
VIII. The Board of Tax Abatement .............................................................. 39
IX. Errors and Liabilities ...................................................................... 40
X. Special Properties ........................................................................ 41
Trailer Coaches (Mobile Homes) ............................................................................... 41
Construction Equipment (“Yellow Metal”) ....................................................................... 41
Condominiums/Common Interest Ownership .................................................................... 42
Timesharing ................................................................................................ 42
Swimming Pools ............................................................................................42
Farms .....................................................................................................42
Timber and Forest Land ......................................................................................42
Railroad and Ferry Boat Companies ...........................................................................43
Public Land ................................................................................................ 45
*For the purpose of this publication, the term “lister” includes listers and assessors.
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Lakes and Ponds ............................................................................................ 47
Personal Property ...........................................................................................47
Listing Examples Based on Vermont Statutes and Case Law .......................................................48
Subsidized Housing .........................................................................................49
Covenant Restricted Housing .................................................................................50
XI. Exemptions .............................................................................. 51
Appeals from decisions of the Board of Listers regarding exemptions ................................................ 51
Public Property Exemptions .................................................................................. 51
NEMRC Coding for Non-taxable Exemptions .....................................................................53
XII. Local Agreements (Town-voted) ............................................................ 56
Volunteer Fire, Rescue and Ambulance Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Local Funding of Tax Agreements ..............................................................................56
NEMRC Coding for Voted Exemptions ..........................................................................56
Local Agreements (Voted exempt on Municipal GL only) ...........................................................57
Special Exemptions (Does not affect Municipal GL) ...............................................................58
XIII. Special Exemptions ...................................................................... 59
NEMRC Coding for Special Exemptions .........................................................................59
XIV. Homestead Declarations—Classication .................................................... 60
Income Sensitivity—Housesites ................................................................................61
Homestead Declarations .....................................................................................61
Multi-use Properties .........................................................................................62
Ownership Issues ...........................................................................................64
Domicile Issues ............................................................................................. 67
Penalties—Late Filers and Non-lers ...........................................................................67
XV. Current Use Program (Use Value Appraisal) .................................................. 71
Introduction ................................................................................................71
Allocating Value for Enrolled Parcels ........................................................................... 71
Current Use Agriculture Discontinuances ........................................................................ 71
Resources .................................................................................................71
Data Transfer ..............................................................................................72
Changes in Ownership or Use ...............................................................................72
Appeals ...................................................................................................73
XVI. How To Sign In to Tools Required by PVR .................................................... 74
Sign Up for Listserv ......................................................................................... 74
Sign Up for myVTax .......................................................................................... 74
Get Started with eCUSE ...................................................................................... 74
Subjects Section ............................................................................ 75
Call Us
Main Phone ............................................................. 802-828-5860
District Advisors Hotline .................................................... 802-828-6887
IT Helpdesk .............................................................. 802-828-0428
Homestead, Property Tax Adjustment, and Renter Rebate Issues .................. 802-828-2865
Property Transfer Tax Return and Real Estate Tax Issues ......................... 802-828-6851
Email Us
General Mailbox ......................................................[email protected]v
Real Estate Transfer Tax Issues ......................................... [email protected]v
Lister Education Questions .........................................tax.listered@vermont.gov
IT Helpdesk ................................................... [email protected]
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I. The Lister*
Introduction
Years ago, a lister’s job was seasonal and part-time. Listers spent a few days, weeks or months out of the year
collecting data on new and improved properties to produce and defend a grand list.
Since then, ongoing legislation and taxation complexities have brought about many changes in Vermont. The
lister’s job has grown markedly. Today’s role of lister includes daily tasks, extensive knowledge and training,
and many more hours than ever before.
One of the most important responsibilities of a lister is to become educated in listing practices and real estate
knowledge. This requires annual training and aendance at as many classes as possible. Becoming certied
as a Vermont Property Assessor through the Property Valuation and Review (PVR), Vermont Department of
Taxes, is highly recommended to establish professionalism and commitment to the position.
Job Description
The overarching responsibility of the lister (and frequently municipal assessors) is assessment equity on the
grand list. Assessment equity is, generally, the degree to which assessments bear a consistent relationship to
market value. In order to achieve this, listers must understand appraisal methods and property assessment
administration in Vermont.
With ination, development, and subdivision, the grand list may quickly become out of date. Between the
years in which complete townwide reappraisals are completed, listers need to make corrections, additions, and
adjustments to maintain equity among properties. This process requires analyzing and interpreting sales data.
To determine the value of property, listers must consider the governmental regulations aecting potential
uses and value. This includes town plan and zoning regulations, the method for determining a house site and
homestead value, the Use Value Appraisal Program, and Health Department subdivision regulations. Listers
may have to analyze Act 250, or determine how to assess property subject to federal housing subsidies, or
property subject to a conservation easement. The Secretary of State also has land use regulation information.
If a town or city chooses to tax business inventory and machinery and equipment, the listers will need to learn
how to assess such property. This involves understanding of the businesses in town as well as depreciation
impacts.
Many of the listers’ activities have requirements concerning timing, notication, and format, as well as
substance, which must be strictly adhered to. Towns have lost many appeals because procedural details
were overlooked. You must carefully read, understand, and follow the statutes. The Vermont statutes can be
accessed online or be read in the town clerk’s oce.
We hope that listers will recognize and accept the responsibilities of the job and continue the necessary
professional education. It is recommended that listers take advantage of training and resources available to
them, such as education and information oered by the following:
• Vermont Assessors and Listers Association (VALA)
• Vermont Department of Taxes
*For the purpose of this publication, the term “lister” includes listers and assessors.
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• International Association of Assessing Ocers (IAAO)
• Vermont League of Cities & Towns (VLCT)
• New England Municipal Resource Center (NEMRC)—oers tutorials & seminars
• UVM Extension Service—sponsors annual conferences and seminars
• PVR’s Annual Report—provides a wealth of information related to your job
The Lister as a Public Ofcial
As a lister, you have been elected to determine everyone’s fair basis for taxation. You are now a public
trustee and servant. Article VI of the Vermont Constitution states “all power being originally inherent in and
consequently derived from the people, therefore, all ocers of government, whether legislative or executive,
are their trustees and servants; and at all times, in a legal way, accountable to them.”
Although you have been elected by townspeople and you are a town ocer, it is important to remember that
“towns are mere creatures of the Legislature constituted for governmental purposes, possessing only such
powers as are expressly granted or implied . . . Like all corporations, both public and private, they necessarily
act through agents; but municipal ocers derive their authority, largely, if not wholly, from the law and not
the municipality . . . New Haven v. Weston, 87 Vt. 7, (1914). You cannot, for example, decide that your town
will exempt a property from taxation without clear legislative authority to do so.
The Legislature has declared “that public commissions, boards and councils and other public agencies in this
state exist to aid in the conduct of the people’s business and are accountable to them under Chapter I, Article
VI of the Vermont constitution.” 1 V.S.A. § 311. To be properly accountable to the people, you must make
it possible for those interested to inform themselves of your actions and to review and comment on your
decisions.
There are several laws that give specic requirements for notices and meetings to be held for listing, and these
will be discussed later. There are also general laws, the Open Meeting Law and the Access to Public Records
Law, which direct the activities of all public ocials.
The Open Meeting Law in 1 V.S.A, Chapter 5 states that the public must be warned of all lister meetings, that
meetings must be open to the public, and that listers must take minutes. This includes grievance hearings and
any meetings where the board of listers takes ocial action, such as the lodging of the abstract of the grand
list. The Guide to Open Meetings published by the Secretary of State is an excellent source on the topic. These
requirements do not apply to the daily work of a lister (viewing properties, running cost valuation, etc.), as
these activities are not considered “meetings.”
The law gives guidelines for allowing the public to review or copy all of your records, with the exception of
inventories and condential rental information. The records should be available between 9:00 and 12:00 p.m.
and between 1:00 and 4:00 p.m., or during customary oce hours if your oce is not normally open during
those hours. It is recommended that the listing records are kept at the municipal oce and that you have an
arrangement with the town or city clerk so citizens can review a record in your absence. If records are being
kept outside the municipal oce, you must still respond to requests and make reasonable arrangements for
viewing and copying. The Secretary of State has published “A Maer of Public Record: A guide to Vermont’s
Public Records Law.”
If a person requests a photocopy or electronic le of certain records, you must provide them with the
information, and you can charge for it. Your town or city clerk will have guidelines on how much you can
I. The Lister
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charge. The Secretary of State’s fee schedule for copying public records is available on its website.
While it is important to understand these statutes, it is even more important to understand the ideas they
embody. Government is of the people and must be accessible to the people. Many listers say that giving
taxpayers clear and thorough explanations of the listing process is probably the most eective way to
accomplish this objective.
Listers frequently ask about their relationship to each other and to the selectboard. The listers are elected by
the voters and operate independently of the selectboard, with a few exceptions.
The selectboard sets the listers’ pay, unless the town has set the compensation. 24 V.S.A. § 933.
The selectboard authorizes the expenditure of funds, including employing assistance. 32 V.S.A. § 4041.
The approval of the selectboard is required for the listers to ask the Director of Property Valuation and Review
(PVR) for an extension of time on their schedule. 32 V.S.A. § 4342.
The approval of the selectboard is required for the listers to correct an error in the grand list.
32 V.S.A. § 4261.
Although no formal approval of the selectboard is required for the other work of the listers, the listers and the
community benet from a good working relationship between the two boards.
Although many boards of listers divide the duties for eciency, each lister is equally responsible for the work
of the board. Cross-training is essential. The board chair typically acts as the primary contact person for the
board.
Some public ocials choose to be on more than one board, or spouses seek to be on the same board. Some
boards are incompatible, and it is recommended that you check with the Secretary of State’s Oce to see if
being on more than one board is advisable or allowed.
Career Development
As a lister, you are in a position to become well-educated in your eld and to add benecial experience with
each passing year. The lister position can lead to a career as a professional assessor. PVR and its aliates oer
a range of classes to enhance your training and education to this end.
PVR oers a Vermont Property Appraiser Certication Program. There is a Program Handbook that details the
process.
Listers may also check out the following resources:
• Division of Property Valuation and Review, Vermont Department of Taxes PVR
PVR holds classes each year at various venues around the state, specically for Vermont ocials based
on Vermont statutes and circumstances. Vermont Assessors and Listers Association (VALA)
VALA provides education and information for listers and assessors.
• International Association of Assessing Ocers (IAAO)
IAAO serves professionals working in property valuation, property tax policy and related elds. They
set the standards for mass appraisal and provide education and designations for assessors, appraisers
and others in the industry.
I. The Lister
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I. The Lister
• New England Municipal Resource Center (NEMRC)
NEMRC oers classes and information regarding grand list and Computer Assisted Mass Appraisal
(CAMA) procedures.
Course Funding
Courses presented by Property Valuation and Review are oered free of charge to municipal ocials.
Please be sure to sign up only once for any course oered and note that a few are oered in two regions.
Our classes are reserved on a rst-come, rst-served basis. If you nd that you are unable to aend, please
let us know as we often have a waiting list when the course is full. We reserve the right to charge your city
or town a fee if you sign up and fail to notify us of your inability to aend.
Property Valuation & Review (PVR) also partners with organizations such as the Vermont Assessors and
Listers Association (VALA), the Vermont League of Cities and Towns (VLCT), and the New England
Municipal Resource Center (NEMRC) to directly sponsor events to reduce, and in some cases eliminate,
training charges for listers and assessors. This includes VALA trainings, VLCT workshops, International
Association of Assessing Ocers (IAAO) courses, workshops, and NEMRC trainings.
Grants are available
Grants are available for municipal listers and assessors for assessor trainings not sponsored by PVR. In
addition, certain expenses related to a training may be reimbursed through the grant application process.
Applications for grants must be preapproved prior to aending the training. To get more information or to
apply for a grant, follow the Course Funding link. If you need assistance with this process, please contact
PVR at (802) 828-6887.
Listers and assessors may apply for grants for courses not listed on the State-Sponsored Education Course
List.
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II. Lister’s Calendar
Your District Advisor will send you a newsleer at the beginning of each month that will include tasks and
reminders. There will also be a calendar page for the current month, showing what you should be working
on and watching for. The full annual lister’s calendar will be on the Vermont Department of Taxes website for
regular access. We suggest that you print out the calendar and refer to it often.
Grand List Important Dates
Population of
less than 5 ,000
Population of
more than 5,000
Assessment date
April 1
Homestead Declarations timely led
April 15
Latest Abstract of Individual Lists
can be lodged
June 4 June 24
Latest Change of Appraisal
Notices can be sent
June 4 June 24
Grievances must be led by
(above date plus 14)
June 19 July 9
Grievance hearings end
July 2 July 22
Result of grievance mailed July 9 July 29
Results must be mailed within 7 days of close of hearings. Send certied mail,
registered mail, or certicate of mailing to avoid any controversy.
Latest Grand List can be lodged
July 25 August 14
Deadline for ling appeal to BCA 14 days from date of mailing of result of grievance
BCA hearings begin 14 days after last date allowed for ling appeal notice
These are the last dates possible to meet the statute. Filing may occur any time after April 1 and prior to
these dates. Read 32 V.S.A. § 4111 and § 4341 together. The May 5 date in § 4111 is extended 30 days for those
towns with a population of less than 5,000 and 50 days in towns with a population of 5,000 and more. May 5
plus 30 days is June 4. May 5 plus 50 days is June 24.
If a town lodges the abstract of individual lists and sends out Change of Appraisal notices on May 10, the last
day a person could grieve would be May 24 (the date of lodging plus 14 days). Note that when counting the 14
days, day one is the day after mailing. Extensions may be granted under 32 V.S.A. § 4342. If such extensions
are granted, the leer from the director of Property Valuation and Review (PVR) granting the extension must
be lodged in the grand list book.
See the next page for an example of wording for an extension request.
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II. The Lister’s Calendars
PROPERTY TAX ADMINISTRATION FOR 2015 TAX YEAR
Sample Extension Request Letter
TOWN LETTERHEAD
Date
Jill Remick, Director of Property Valuation & Review
Vermont Department of Taxes
133 State Street
Montpelier, VT 05633-1401
Dear Director Remick,
The Listers of the Town of __________________ request a 30-day extension under Title 32,
section 4342.
Sincerely,
(signature)
Name, Chair of Board of Trustees
Selectboard Chair____________________________________________
(signature with name typed underneath)
Annual Activities by Month
In most communities, listers maintain year-round oce hours. Property transfer information, zoning permits,
and other changes are reviewed throughout the year so that at the period between April 1 and the ling of the
abstract and grand list is less hectic.
After the grand list has been nalized (Board of Civil Authority appeals heard and tax bills issued), it is a
good time to begin work for the next year. Read deeds that have been recorded since April 1. Check any new
surveys of record. Start the inspection process. Begin to compile the grand list for the next tax year.
Some dates, marked with an asterisk (*), depend on the size of your town. Fill in the appropriate dates for
your town. See provisions of 32 V.S.A. § 4341 for automatic extensions of 30 and 50 days, depending upon
population.
Please keep in mind that when an act under this subtitle is required to be done on or before a date which falls
on Sunday, such act shall be valid if done on the following Monday. 32 V.S.A. § 3004.
JANUARY
PVR requests nal submission of your electronic 411 and grand list for the prior year. This nal submission is
used for the reconciliation (true-up) done by the Agency of Education. Prior to sending in your 411, make sure
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II. The Lister’s Calendars
your NEMRC program is current on updates.
FEBRUARY
If, on the rst Tuesday in February, there is no appeal or suit to recover taxes pending, you and the
selectboard must certify in the grand list book (Form PVR-4155). If an appeal or suit is pending, certify as soon
as it is seled. By taking this action, you ensure that the grand list cannot be challenged. 32 V.S.A. § 4155. The
form was printed with your signature pages when you lodged your grand list to become part of your (nal)
grand list document. The form is also on the Department of Taxes website.
Homestead declaration les begin to be available for download and review by the listers. These les should be
reviewed each week. See download directions.
MARCH
By March 15, PVR sends each town an electronic le of Current Use parcels that have received preliminary
approval for the upcoming tax year. PVR asks you to consider such questions as the following:
• Is the parcel listed to the owner of record?
• Is the total acreage listed correct?
• Is there any reason to believe this parcel is not eligible?
Corrections and comments are due no later than July 5. 32 V.S.A. § 3756(h). Please do your best to turn these
around and submit them to PVR within 30 days of receipt.
With April 1 fast approaching, listers must continue inspections and working on the completion of the
grand list.
Homestead declaration les are available for download and review each week by the listers.
After town meeting, newly elected listers must take the required oath. 32 V.S.A. § 3431.
The lister board meets and discusses how they will proceed. Many listers recommend also meeting with the
selectboard at this time to discuss any reappraisal activity or other concerns. Check your email for new lister
training announcements from PVR.
If your town or city taxes personal property, as soon as possible (by April 1), you must send inventory or
personal property forms to all owners of taxable personal property. 32 V.S.A. § 4003.
If you’re doing a townwide reappraisal, and your town or city has housing that must be appraised using
market rents, actual expenses, and mandated cap rate, be sure you have latest data. See 32 V.S.A. § 3481.
APRIL
Town Ocer Education Conferences, sponsored by the UVM Extension Service and by the Vermont
Department of Taxes, Division of Property Valuation and Review, are held in several locations within the State.
Listers are encouraged to aend. 32 V.S.A. § 3434.
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II. The Lister’s Calendars
April 1
This is the assessment date. 32 V.S.A. § 3651, § 3691, and § 4041. Listers must determine the value of all
property as of April 1 of each year. Pay special aention to those properties under construction. Properties in
transition should be inspected as close to April 1 as possible. Have most of your inspection work done prior
to April 1. Inspections should be an ongoing activity, and the time right around April 1 is used to inspect
new construction, to check on mobile homes, and to inspect those properties you know have been recently
improved, such as those with a new deck or addition. Any changes made after April 1 cannot be reected in
this year’s grand list, but should be noted so a follow-up can be conducted for next year.
If your town or city is undergoing a reappraisal that will be eective for this April 1, make sure you ll out a
form to request an updated Common Level of Appraisal (CLA) to be used in determining the education tax
rates in your municipality. 32 V.S.A. § 5406(c).
Homestead declaration les are available for download and review each week by the listers.
April 15
This is the deadline for taxpayers to timely le homestead declarations with the Vermont Department of Taxes.
On or about April 15, PVR provides data on all parcels enrolled in the Use Value Appraisal Program (Current
Use) available for download by the listers. 32 V.S.A. § 3756 (h). The appropriate listed values and any
necessary data changes must be reported back electronically. This information will be used in determining the
taxable value for enrolled parcels and those values must be made a part of your grand list book. The updated
information is due back to PVR by July 5.
Prepare to notify all owners of property where values have been changed, including any changes resulting
from enrollment in use value appraisal, and those which have a change in the homestead or housesite
values. 32 V.S.A. § 4111 and § 3756 (d).
Although you are not required to prepare change-of-appraisal notices when a parcel has changed owners but
not appraisal value, many listers feel this is a valuable tool to notify new owners of their responsibilities.
April is also the time most people le their income tax forms, including the homestead declaration and
property tax adjustment claim. This often brings questions on homesteads and housesites.
If applicable, after April 20, check to see that all personal property inventory forms have been completed and
returned. If any owners have not responded, or if you have changed the estimate of value on any owners,
notify them of your estimates of value, and of the grievance date using the “No or Unsatisfactory Inventory
Form.” 32 V.S.A. § 4084 and § 4085. This form is available in the NEMRC grand list program.
MAY
May 1
PVR furnishes copies of inventory forms led by public utilities. 32 V.S.A. § 4452. Listers use this information
to determine utility listed values. Homestead declaration les are available for download and review by listers
each week.
*June 4 is the latest this may be done in towns with a population of less than 5,000. June 24 is the nal date
in towns with a population of 5,000 or more. (If this is not possible, an extension is needed.) Extension
instructions are located on page 5.
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II. The Lister’s Calendars
On or about May 1
PVR provides assessed values of state buildings and lands, as dened in 32 VSA § 3701 to each municipality to
which a payment-in-lieu-of-taxes (PILOT) is due. Municipalities have 30 days in which to appeal values.
JUNE
June 1
Listers return homestead declaration information to the Department of Taxes, noting corrections and
comments. The Department makes corrections and returns the updated les June 15. This exchange of
information continues as new or corrected homestead information is received. After the October ling
deadline, property is to be classied as nonhomestead. The owner then must pay the higher of the two rates, a
penalty, and any additional property tax and interest due.
Homestead declaration les and Current Use electronic les are available for download and review by listers.
On or before June 4* or June 24*
Abstract of individual lists (preliminary grand list) must be led with the town clerk. On that same day, post
notices of grievance day and send out notices of change of appraisal. Remember that notices must also be
sent on homestead and housesite values that have changed and on all use value parcels that have value or
allocation changes. 32 V.S.A. § 4111 and § 3756(d).
About June 15
PVR sends a list of sales to review for the equalization study. This is the town’s opportunity to provide input
on whether the sale is an arms-length transaction, and to ensure the listed values, categories, etc. are accurate.
Your District Advisor will be meeting with you (via phone or in person) to discuss this information. You may
contact your District Advisor at any time after your review to set up a meeting, or if you have any questions
about the process.
Grievance hearings begin 14 days after the mailing of the Change of Appraisal Notices. Objections to
individual appraisals must be submied in writing to the listers on or before that date. 32 V.S.A. § 4111.
Grievance hearings close no later than 13 days after they start. 32 V.S.A. § 4221.
Notify the grievant(s) of your decision within 7 days of the close of the hearings. These notices must be sent
by registered mail or certied mail. Include in your notice information about appealing to the Board of Civil
Authority (BCA). 32 V.S.A. § 4224.
June 30
Department of Taxes noties Towns of education property tax rates. 32 V.S.A. § 5402.
JULY
Homestead declaration les and Current Use electronic les are available for download and review by listers.
On or Before July 5
This is the deadline for listers to electronically report the nal Current Use numbers to PVR. This data includes
pertinent listed values, acreage corrections, any comments re: change of ownership, eligibility, etc. 32 V.S.A. §
3756(h).
The grand list book and nal version of the grand list and Form 411 must be lodged with the town clerk.
32 V.S.A. § 4151 and § 4181.
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We recommend doing this immediately after last grievance notices have been sent.
Municipal tax rates are set by the selectboard.
AUGUST
On or before August 15
An electronic copy of your grand list and form 411 (Grand List) must be sent to PVR (32 V.S.A. § 5404).
Although this is the clerk’s responsibility, he or she often cannot fulll this requirement without the
cooperation of the listers. A speedy ling will help your town by giving you and PVR more time to analyze the
data to be used in determining the education property value.
The Form 427, Report of Municipal Tax Rate, is also due at this time, and the listers may be asked to assist with
municipal grand list information for that form.
As soon as the grand list has been closed for the present year, the process can begin for the following year. In
those towns using computer assisted mass appraisal (CAMA) software, rollover must be done before changes
to the database can begin.
Homestead declaration les and Current Use electronic les continue to be available for download and review
by listers.
Errors and Omissions
Once the Grand List has been submied, value and homestead ling changes to the Grand List need to follow
the Error and Omission process as described in 32 V.S.A. § 4261. Only homestead classication changes do not
require selectboard approval - all other value changes do require selectboard approval.
Changes to correct omissions or errors must use Form 4261-E.
Changes in Homestead ling should must use Form 4261-H.
SEPTEMBER
September 1
New applications for the Use Appraisal Program (Current Use) are due at PVR. This may prompt questions
from your landowners on eligibility and obtaining maps. If you or the property owner needs assistance,
contact PVR at 802-828-5860 or [email protected].
Homestead declaration les and Current Use electronic les continue to be available for download and review
by listers.
OCTOBER/NOVEMBER
PVR is completing the sales ratio (equalization) study and geing ready to send the equalized education grand
lists, CLAs and CODs out.
Homestead declaration les and Current Use electronic les continue to be available for download and review
by listers.
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November 1
State payments to towns for loss in municipal revenue as a result of use value (Current Use) appraisal are
made. This is also known as the Hold Harmless payment. 32 V.S.A. § 3760.
State payments-in-lieu-of-taxes (PILOT) are sent to towns. 32 V.S.A. § 3706.
Both of these calculations use grand list data from the previous year. For example, the November 2019
payments will be based on April 1, 2018, grand lists.
Homestead declaration les and Current Use electronic les continue to be available for download and review
by listers.
DECEMBER
The Director of PVR will notify you of the municipality’s equalized education grand list, CLA and COD
(32 V.S.A. §5406). Petitions for redetermination (appeal) can be led under 32 V.S.A. § 5408. Such petitions
must be timely and be led by your legislative body (selectboard in most towns). A CLA of less than 85% or
higher that 115%, or a COD higher than 20% will mean your town will be required to conduct a reappraisal.
32 V.S.A. § 4041a.
December 30
Last day for Errors and Omissions changes to the grand list are due by this date. 32 V.S.A § 4261.
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III. Appraisal at Fair Market Value
Fair Market Value Dened
Generally speaking, property is to be appraised at its fair market value. Fair market value is dened in
32 V.S.A. § 3481 as the following:
The estimated fair market value of a property is the price that the property will bring in
the market when oered for sale and purchased by another, taking into consideration all
the elements of the availability of the property, its use both potential and prospective, any
functional deciencies, and all other elements such as age and condition which combine to
give property a market value. Those elements shall include the eect of any State or local
law or regulation aecting the use of land, including 10 V.S.A. chapter 151 or any land
capability plan established in furtherance or implementation thereof, rules adopted by the
State Board of Health and any local or regional zoning ordinances or development plans.
In determining estimated fair market value, the sale price of the property in question is one
element to consider, but is not solely determinative.
This is not a handbook for conducting appraisals, and it contains only an overview of the appraisal process.
There are many textbooks on appraisal and assessment. We recommend “Property Assessment Valuation” and
“Property Appraisal and Assessment Administration,” published by the International Association of Assessing
Ocers (IAAO). Other excellent texts are available from the Appraisal Institute.
IAAO Appraisal Institute
314 West Street 200 W. Madison, Suite 1500
Kansas City, MO 64105 Chicago IL 60606
Ph. 816-701-8100 Ph. 312-335-4100
www.iaao.org www.appraisalinstitute.org
Highest and Best Use
To estimate fair market value, you must rst determine the highest and best use of the property. “Highest and
best use” relates to the monetary return one can realize from a property. It is “that use that will generate the
highest net return to the property over a reasonable period of time”(“Property Assessment Valuation,” 2nd
Ed., IAAO, 1996). To determine the highest and best use, you must consider what is physically possible, what
type or types of use are legal, what is nancially feasible, and in today’s market and the near future, what use
will bring in the most monetary return.
Consider the following when determining the legal uses of a property in Vermont:
• Agency of Commerce and Community Development’s Municipal Planning Manual
• public health regulations adopted under 18 V.S.A. Chapter 23 concerning water pollution
• the laws governing public water supplies in 10 V.S.A. Chapter 56
• town plans; and local bylaws, including local zoning regulations
• permiing information: anr.vermont.gov/planning/permiing
• 10 V.S.A. Chapter 151 (Land Use and Development Plans, a.k.a. Act 250)
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• Vermont Planning Information Center
The Vermont Department of Environmental Conservation (DEC) has a Permit Handbook. DEC regional oces
and phone numbers are also available online.
To further the town plan, local zoning regulations are adopted. To achieve the goals of the plan, the
regulations may restrict uses or density in certain areas, and therefore limit the potential use. Depending on
demand, a 10-acre parcel subdivided into ve 2-acre lots may have a higher value than a 10-acre parcel in an
area zoned so that only one dwelling can be constructed on 10 acres. The eects of zoning in your town should
be one of the items considered when analyzing sales data.
The state subdivision regulations set standards for water supply and sewage disposal to prevent health
hazards. A permit certifying that a water system and a sewage disposal system may be safely developed
is required for any subdivision (unless the owner certies that the use of the parcel will not require water
or generate sewage). These regulations aect the development potential in the following three ways: 1) the
amount of time that is involved in securing the necessary permits; 2) the risk that the permit may not be
granted; and 3) the cost of the required systems necessary to meet standards. All such permits may aect the
value of property.
Act 250 does not apply to most single-family residences, subdivisions of fewer than ten lots, or housing
projects of fewer than 10 units. It is important, however, to review the criteria.
In most cases, you will not be valuing property as though the highest and best use would come under Act
250 review. However, if you do, it is important to realize that Act 250 represents another permit which aects
the price through the cost of the conditions or requirements for changes and improvements imposed by the
District Commission. A 100-acre lot without permits cannot be valued as an approved subdivision of 10 lots
with 10 acres per lot without making signicant deductions for risk, time, work, and improvements.
Act 250 has limited jurisdiction and limited eect on the fair market value of most property. It is a review
process to ensure that proposed developments will conform to the local and regional plans, and not adversely
aect the environment. It does not prohibit certain potential uses of the land outright. Although the majority of
Act 250 applications are approved, required permiing may delay development. The following development
projects would come under Act 250 review:
• any construction of improvements for any purpose above the elevation of 2,500 feet
• the construction of improvements for any commercial or industrial purpose (including not-for-prot
developments but excepting farming, logging or forestry) on more than 10 acres of land; or on more
than one acre of land if the municipality does not have both permanent zoning and subdivision bylaws;
• the construction of 10 or more housing units, or the construction or maintenance of mobile homes or
trailer parks with 10 or more units, within a radius of 5 miles (see regulations);
• the subdivision of land into 10 or more lots of any size within a 5-mile radius or within the jurisdictional
limits of a District Commission within a continuous period of 5 years;
• within a town that does not have both permanent zoning and subdivision regulations, subdivision of
land creating 6 or more lots of any size within a continuous period of ve years
• the construction of improvements for a governmental purpose if the project involves more than 10
acres or is part of a larger project that will involve more than 10 acres of land
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• any construction of improvements which will be a substantial change or addition to, or expansion of, a
grandfathered (existing pre-1970) development of that type that would require a permit if built today
• the construction of a support structure which is primarily for communication or broadcast purposes
and which extends 50 feet, or more, in height above ground level or 20 feet, or more, above the highest
point of an aached existing structure
• the exploration of ssionable source materials beyond the reconnaissance phase or the extraction or
processing of ssionable source material
• the drilling of an oil or gas well
• the sale, by public auction, of any interest in a tract or tracts of land, owned or controlled by a person,
which have been partitioned or divided for the purpose of resale into ve or more lots within a radius
of 5 miles and within any period of 10 years
• any withdrawal of more than 340,000 gallons of groundwater per day from any well or spring on a
single tract of land or at a place of business, independent of the acreage of the tract of land
Appraisal Principles
There are 12 economic principles that form the basis for the highest and best use analysis.
1. Anticipation
This relates to the future benets associated with property. It is closely related to the principle of change.
Buyers may, for example, foresee a change in the demand for housing due to the expansion of a local college.
This may aect the value of apartment buildings, restaurants and other properties often used by students.
2. Balance
The maximum return is realized when the four agents of production (land, labor, capital and management) are
balanced.
This principle comes into play when examining the dierent parts of a particular property. A two-bedroom
house would generally not have three bathrooms. The cost to build that third bathroom would probably not be
realized if the property were to sell. That is, a person looking for a two-bedroom house is probably not willing
to pay more for one with three bathrooms than for a similar house with two.
The principle of balance should also be applied to a neighborhood. Certain facilities are desirable in a
community—homes, gas stations, grocery stores, schools, churches and bakeries. The individual properties
and the neighborhood as a whole achieve maximum market value when these uses complement each
other and are in balance. The principle of increasing and decreasing returns often comes into play in this
circumstance also.
3. Change
Because of the principle of change, an appraisal is only applicable on the day it is made.
Demands change. Communities change. Interest rates change. Because things that aect value are subject to
change, all must be examined and re-examined to determine the value of a property on any given day. For
instance, two-bedroom houses with one bath were more desirable at one time than they are now. Consider also
the principle of increasing and decreasing returns.
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4. Competition
Buyers and sellers are aracted to the market by the desire for prot. Prots encourage competition for those
prots. An oversupply can reduce prots and therefore value. A shortage in the supply can bring about
higher prots and therefore increase value. Excess can mean a loss in value for all facilities of that type. A
neighborhood may be able to support one bowling alley, but more than one may create excess competition and
result in lowering the value of all bowling alleys in that neighborhood. Excess competition destroys balance.
5. Conformity
Property value can be aected by how the property relates to its surroundings. Maximum value is realized
when the subject property is reasonably similar to the properties surrounding it, and when the demographics
of the owners (age, income, education, etc.) are similar.
You might hear about a person having “overbuilt” for the neighborhood—having built a $500,000 house
among moderately priced homes. This would be taken into consideration when appraising that property.
Because it does not conform to the other properties in the neighborhood, it will probably not be as valuable as
the same house built in a neighborhood of similar homes.
6. Consistent Use
This principle requires that an entire parcel must be valued with a single highest and best use. That is, the land
cannot be valued on one basis and the buildings on another.
This principle is very important when appraising property in transition from one use to another. Consider the
farm property situated in an area in transition to residential development. It would not be proper to value the
land on the basis of what it would bring on the market if purchased for development of single-family homes,
and then to appraise the barns and miscellaneous outbuildings at their value for farming. In this instance, the
property may be more valuable if the barns and outbuildings are removed. The cost to remove would be a
negative value.
7. Contribution
The value of any component of a property depends upon that component’s contribution to the whole. In other
words, cost does not necessarily equal value. It may cost $10,000 to build a garage. That does not necessarily
equate to an increase of $10,000 to the parcel. Having a garage on that parcel may only add $8,000 to the value.
That means $8,000 is the contributory value of the garage.
Adjustments made to properties when doing a sales comparison approach to value are based on the principle
of contribution. The sale prices of similar properties are adjusted based upon how the comparables dier from
the subject. Perhaps you have three almost identical homes that sell as follows:
Home #1 Home #2 Home #3
$100,000 $105,000 $100,000
You note that the only substantive dierence in Home #2 from the others is that it has a two-bay garage, rather
than a single-bay. You can infer that having that extra garage space adds $5,000 to the price of a home. The
extra bay contributes $5,000. Of course, one example doesn’t necessarily equate to an exact market value—it is
beer to nd and compare as many examples as you can to substantiate your conclusion.
Contribution relates to principles of balance, increasing and decreasing returns, and surplus productivity.
8. Increasing and Decreasing Returns
Described as “. . . when successive increments of one agent of production are added to xed amounts of
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the other agents, future net benets (income or amenities) will increase up to a certain point (the point of
decreasing returns) after which successive increments will decrease future net benets” (“Property Assessment
Valuation,” 2nd edition, 1996).
The agents of production are land, labor, capital and management. Increasing one or more can increase the
value of a property, but only up to a certain point. For example, a residential property may increase in value
by $50,000 when two acres of protection land are added to its original house and one-half acre lot. You cannot
conclude, however, that every acre will increase the value by $25,000. Chances are the increase in value per
acre added will drop o. The agent of production added in successive increments in this example is land.
Let’s take an example where the agent of production added is management. The rent that can be charged
(and therefore the return on investment) may increase in an apartment building in an urban seing when the
service of a security guard is provided. Tenants may be willing to pay more for the security of knowing their
building is safe. Adding two guards will cost the building owner twice as much, but will probably not double
the return on investment.
Other related principles are balance, contribution, and surplus productivity.
9. Progression and Regression
This is related to the principle of conformity. A lower priced (cost to build) property located among higher
priced properties, will likely increase in value because of its association with the properties surrounding
it. Conversely, a higher priced property located in a neighborhood of lower priced homes will tend to see
a decrease in market value. A $250,000 home in a community of $80,000 homes is an example of such an
over-improvement.
10. Substitution
This is the underlying principle of the three approaches to value—cost, market and income. It states that value
is determined by the cost of acquiring, within an acceptable period of time, an alternative property that is
equally desirable.
11. Supply and Demand
The price a property will bring in the market varies in accord with the abundance of that property and the
number of purchasers.
Many factors can inuence supply and demand. A large employer leaving an area can mean an increase in the
supply of homes due to employees moving with the company. Lower interest rates can increase demand by
making borrowing more aractive to buyers.
12. Surplus Productivity
This is the net income realized after having satised the costs of labor, management, and capital. It is
essentially the prot earned by the land. It relates to the principles of balance, contribution, and increasing and
decreasing returns.
Consider the building contractor. The contractor purchases a tract of land and obtains the proper permits, etc.
for construction. The land is cleared, roads built, and utilities supplied. Homes are constructed and marketed.
The net realized from the sale of the properties after payment for all these costs is the surplus productivity.
Approaches to Value
There are three approaches to determining the fair market value of a property—cost approach, market data
approach, and income approach. In theory, if all three approaches are used to appraise any given parcel, the
resultant values will be the same. In practice, however, some properties and some situations lend themselves
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to the use of one approach over another. Listers should have a general understanding of the income approach,
and a more thorough knowledge of the cost and market data approaches.
Cost Approach to Value
This is sometimes called the summation approach, the theory being that the value of a property can be
estimated by summing the land value and the depreciated value of any improvements. It is the land value,
plus the cost to reconstruct any improvements, less the depreciation on those improvements. The value of
the improvements is sometimes abbreviated to RCNLD—Reproduction Cost New Less Depreciation, or
Replacement Cost New Less Deprecation. Reproduction refers to reproducing an exact replica. Replacement
cost refers to the cost of building a house or other improvement with the same utility, but using modern
design, workmanship and materials. The Marshall Swift version of Vermont’s CAMA system produces an
estimated replacement cost which is then adjusted to market value.
In most instances, when the cost approach is involved, the overall methodology used is a hybrid of the cost
and market data approaches. For instance, while the cost to construct a building can be determined by adding
the labor and materials costs together, land values and depreciation must be derived from an analysis of the
market data.
It is best not to rely exclusively on a cost approach estimate of value on appeals—especially those that go
beyond the Board of Civil Authority. It is important as well that you be able to explain how the estimate of
value was determined. Be prepared to explain the data and the calculations, especially the land schedules and
depreciation schedules used. To do this, you must be familiar with the market data approach.
Because of the necessity to classify property as homestead and nonhomestead property, the requirement to
value house sites, and the requirements for valuing farm buildings enrolled in Current Use, it is recommended
the market data approach not be solely relied upon. The cost approach is an excellent tool for those instances
where a contributory value must be ascertained and should also be available.
It is highly recommended that a le be maintained on properties that have recently been sold. This information
will assist in establishing time/location factors, land schedules, and depreciation schedules, and will be a
valuable resource when the listers are called upon to support assessments under appeal. Contact your District
Advisor for assistance in seing up and maintaining such a le.
Market Data Approach (Sales Comparison Approach) to Value
Simply put, sales of properties similar to the subject are analyzed and the sale prices adjusted to account for
dierences in the comparables to the subject to determine the fair market of the subject.
An example of a data display appears on the next page.
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Your data display might look something like this:
In order to make the proper adjustments to the above, a detailed analysis of all sales data would have to have
been conducted and some determination as to the impact of dierences in various aributes be obtained. This
is the most dicult part of the sales comparison approach. The sales comparison model must be calibrated
using one or more methods. The methods most often used are paired sales (sometimes called matched pairs),
multiple regression analysis, and cost.
It is highly recommended that a le be maintained containing data on properties that have recently been sold.
Contact your District Advisor for assistance in seing up and maintaining such a le. Very often the listers
do not do this initial study, but rather use the results of the study done by a professional appraisal rm to
maintain the grand list following a complete townwide reappraisal. This study will result in such products
as a land schedule, a depreciation schedule, neighborhood codes and a time/location factor. The listers will
be called upon to support the values established using these schedules and factors not only the year of the
reappraisal, but in subsequent years. It is therefore very important that the listers be involved in reappraisal
activities and that the town require complete documentation from the appraisal rm.
The next step is to adjust the sales based on this data. This can be done using lump sum adjustments,
cumulative percentage adjustments, multiplicative percentage adjustments or a hybrid methodology. This will
depend on the appraisal assignment and the preference of the lister/appraiser.
An example of multiplicative percentage adjustments appears on the next page.
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Multiplicative percentage adjustments might look like this:
You now have a range of value estimates from $89,200 to $91,800. The fair market value of your subject lies
within that range.
It is strongly suggested that sales be analyzed on an ongoing basis. A sales le can be developed and
maintained for many uses—including the development of depreciation schedules, and for supporting
values under appeal. Your District Advisor can assist you in seing up such a le either manually or on your
computer.
Listers are urged to train in the use of this and the other approaches to value whenever training is available.
Please check the Vermont Department of Taxes website for educational listings or inquire with your District
Advisor. There are also textbooks on the subject.
Income Approach to Value (Income Capitalization)
This method is most often used in the appraisal of income producing properties—commercial, industrial and
rental properties. The present worth of future benets is determined. To do this, the income stream is analyzed
in terms of quantity, quality and duration. It is then converted to market value by means of the application of
an appropriate capitalization rate.
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To conduct an income approach appraisal on an apartment building, for instance, you would need such data
as the following:
1. potential gross income from the market
2. vacancy rate and collection loss from the market
3. operating expenses
4. capitalization rate
Simply put, expenses are deducted from gross income. The resulting net operating income is capitalized to
determine value.
It is important to note that the income and expense gures should come from the market, not simply from
the subject. If, for instance, the subject property has a high vacancy rate, it does not necessarily translate into
a lower value. Other factors, such as how property is being managed, may be adversely aecting the income.
The income gure should be the potential income, which can be signicantly dierent than the actual income.
Listers wishing to learn more about this approach may wish to take a class on the subject, such as an IAAO
course oered through the Vermont Department of Taxes. There are also many texts and other classes on the
subject.
Gross Income Multiplier (GIM): This ratio (often called the gross rent multiplier) expresses the relationship
between gross annual income and property value. It is derived by dividing the property value (selling price)
by the annual gross income at the time of sale. For example, if an apartment building sells for $250,000 and its
annual gross income was $28,300, the GIM is 8.7.
The use of the GIM is limited. It requires the assumptions that the highest and best use of the property is
constant, that the income will be constant and there is no expectation of a change in the vacancy rate, that the
property being appraised and the comparables are similar and subject to the same market inuences. Unless
the dierences between the comparables and the subject are reected in the dierence in the rent, the GIM is
not a very eective tool.
Provided the assumptions are met, the mechanics of its use are simple. You estimate the value of the subject by
multiplying the annual economic rental of the subject by the GIM. The GIM is not very reliable unless there is
substantial reliable data to compute the ratio.
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IV. NEMRC Grand List Software
All Vermont towns use New England Municipal Resource Center (NEMRC) grand list software. The NEMRC
website has information and tutorials related to their software.
The ones you will most often refer to are Grand List; Computer Assisted Mass Appraisal (CAMA), if you are
using NEMRC’s CAMA; and the Tutorial items. NEMRC’s phone number is 1-800-387-1110.
You will have an opportunity to take NEMRC classes. For information on upcoming computer labs check the
Vermont Listers and Assessors Association (VALA) and NEMRC websites.
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V. NEMRC MicroSolve
The Division of Property Valuation and Review is required to develop improved methods for standardizing
property assessment procedures and to provide technical assistance and instruction to listers in a uniform
appraisal system (32 V.S.A. § 3411). One way PVR has fullled this requirement is with the development of
a Vermont computer assisted mass appraisal (CAMA) system. Vermont uses the MicroSolve CAMA system
developed by the New England Municipal Resource Center (NEMRC).
The CAMA system was introduced in 1996. The appraisal modules are tools to generate values using the cost
approach, to do comparable sales analysis, and to provide the capability to estimate values using the income
approach.
NEMRC provides the grand list administration module used to generate the reports that become the grand
list book and change of appraisal notices. The NEMRC module is provided free of charge to all towns. Towns
wishing to use the appraisal modules must purchase a license from the vendor. NEMRC Microsolve is one
CAMA system out of many. Towns may choose which CAMA vendor they would like to use. NEMRC
MicroSolve is currently state-supported and upgrades are state-funded.
Questions on NEMRC MicroSolve? Contact your District Advisor or Tax IT Helpdesk.
Need information on the grand list module and help with the transfer of homestead and Current Use
information? Contact the Tax IT Helpdesk.
Tax IT Helpdesk Contact Information:
• Phone: 802-828-0428
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VI. Annual Reporting and Maintenance
Ongoing Analysis and Maintenance
In a perfect world, you would visit and appraise each property on April 1 and determine an amount exactly
equal to the fair market value that would be frozen for 365 days. Unfortunately, you will nd that your
appraisals, even if perfect on April 1, can soon become out of date as the market changes. In the real world, all
properties cannot be appraised every year. The challenge becomes maintaining a fair and equitable grand list,
taking into account changes in property and changes in the market and adding new properties as subdivisions
and new construction occur.
Municipalities are required to reappraise all property if their Common Level of Appraisal (CLA) falls below
85% or rises above 115%, or the Coecient of Dispersion (COD), a measure of uniformity of appraisal, is above
20%. 32 V.S.A. § 4041a. An ongoing analysis of the market, and keeping abreast of changes in properties, can
make reappraisals less frequent and costly.
You should review sales as an ongoing process to determine the ratio of the listed values to the sale prices in
order to determine if any general adjustments are warranted. Your District Advisor can assist in this analysis.
You may decide the land schedule needs to be updated, the depreciation schedules are no longer indicative
of the local market, that your time/location factor needs adjustment, or a combination of these. Do not simply
multiply all properties by a factor. That will increase the inequity. Analyze the information and determine
what changes are needed.
The assessment of subdivisions and new construction is an ongoing challenge. Even though the statutes direct
you to appraise all properties at fair market value, you must ensure the value of new or changed properties is
at the same percentage of fair market value as other properties. Kachadorian v. Town of Woodstock, 144 Vt.
348 (1984).
As an example, consider a town that reappraised four years ago. Although the property was listed at 100% of
fair market value then, an analysis of sales indicates that residential property is now listed at about 85 percent
of fair market value. This year a new house is built in town. Because it would not be fair to list a new house at
its current value, appraise the new house using the same schedules and practices as were used in determining
the values of other similar properties. This is often referred to as “back-dating” the appraisal. Do not appraise
the new house at fair market value and adjust that by 85%. Doing so violates the listers’ oath to appraise
uniformly and undermines the equity already existing in the grand list.
In the years after a reappraisal, the grand list begins to display inequities. If all property values changed at
a uniform rate, the grand list would remain a valid means of determining everyone’s just proportion, and
thereby fairness in assessing taxes. However, dierent types of property tend to appreciate/depreciate much
more rapidly than other types. For example, lakeshore property may be appreciating much more rapidly
than large tracts of forestland. Equity must be maintained not only within categories of property, but across
property types. The goal is town-wide equity. Back-dating appraisals on new construction is an eective
method for maintaining equity in the short term, but eventually a complete reappraisal of all properties is
required to restore equity within the grand list.
Selective Reassessment: The practice of adjusting an individual property’s appraised value to the value
reported in a recent sales transaction for that parcel (or the sale price adjusted by the CLA), is not an acceptable
assessment practice. It’s sometimes called “welcome stranger” or “sales chasing.” The practice greatly
undermines the overriding concern of equity by creating a dual system of valuation: one for newcomers to a
neighborhood and one for existing owners.
Similarly, listers cannot selectively reappraise discreet neighborhoods or discreet market sectors without
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compelling evidence that the neighborhood or market sector is appraised at a substantially dierent level
from the rest of the town. If challenged, the listers must be prepared to show how any change brings such
assessment into line with those of other properties whose assessments go unchanged.
The overriding goal is to ensure that a property’s listed value corresponds with the listed value of comparable
properties so that no taxpayer pays more than his or her fair share of the property tax burden. Allen v. Town of
West Windsor (2003).
Reappraisal
Because the recognition of an inequitable situation has not always proven to be enough to convince the voters
to reappraise, the Legislature provided additional incentive with the implementation of 32 V.S.A. § 4041a.
The CLA and COD are determined annually by the Vermont Department of Taxes. If the CLA falls below
85% or rises above 115%, or the COD is greater than 20%, the town will be notied that a reappraisal must be
conducted. The town is given an opportunity to develop a plan to comply with the reappraisal order. If the
town fails to submit an acceptable compliance plan or fails to carry it out, the State can withhold education,
transportation and other funds until such time as the Department certies that the town has carried out the
plan.
Each town receives an annual payment from the State to help with the cost of reappraisal and the maintenance
of the grand list. The amount is $8.50 per parcel per year.
32 V.S.A. § 4041a. Reappraisal
(a) A municipality shall be paid $8.50 per grand list parcel per year, from the equalization and
reappraisal account within the education fund to be used only for reappraisal and costs related to
reappraisal of its grand list properties and for maintenance of the grand list.
NEMRC Microsolve is a mass appraisal tool that uses Marshall and Swift national cost data as the basis for
generating values for the cost approach. It also provides the capability to estimate values using a comparables
sales analysis, or a value based on the income approach. Use of a computer assisted mass appraisal (CAMA)
system greatly enhances the ability of the assessing ocials to analyze their data and to make the necessary
changes to cost and depreciation schedules, land schedules, and other factors. This means that future
reappraisals can be done more often and more cost eectively.
There are other CAMA vendors besides NEMRC MicroSolve. If you’re in the market for a CAMA program, we
encourage you to shop around and gain familiarity with the pros and cons of the various options.
When a full reappraisal is necessary, most municipalities choose to contract with professional appraisers.
A list of appraisal rms that have been approved to contract for municipal reappraisals may be obtained
from Property Valuation and Review (PVR).
Even if the reappraisal is to be conducted by a contractor, the listers must, of course, be involved. Although
their participation varies from town to town, listers often provide measurements of buildings, acreage
calculations, maps, and previous appraisal cards. They may also make appointments for site visits, accompany
the contractor on site visits, compile sales information, and hold informational meetings with the contractor to
explain the appraisal methods to the public. Lister involvement can often result in substantial savings in the
cost of the reappraisal. More importantly, lister involvement in the reappraisal prepares them to uniformly
maintain the grand list in the years following the reappraisal. Involved listers will also obtain valuable
education by learning about the reappraisal process and beyond.
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Even if the town hires a contractor for the reappraisal, the listers will later have to defend and update the
values, and a thorough understanding of the appraisal methods is crucial. The Vermont Assessors and Listers
Association (VALA) oered the following several years ago. It remains good advice.
• Participate from the beginning, questioning, reviewing and commenting on values, so that you feel
comfortable with the values and the system.
• Be sure that the system is reasonable and consistently applied.
• Conduct a preliminary analysis of the sales data.
• Be accessible to the public. Be open and candid.
• After a reappraisal, but before grievance hearings, give taxpayers an opportunity to come in and
speak with a knowledgeable person about their values and how they were determined. This will point
out mistakes, help the taxpayers understand the appraisal, and reduce the number of appeals.
• Retain the contractor for appeals.
Talk with listers and selectboard members in towns where a contractor has previously worked before deciding
on a rm. Inquire as to whether the contractor completed the work in a timely manner. Ask whether the
contractor provided sucient training and documentation to allow the appraisal system to be used by the
listers. Were the nal results accurate and supportable? Was the contractor accessible to the public? Did sta
demonstrate good public relations skills and professionalism? Ask what they would have changed about the
process.
Life Cycle of a Reappraisal
1. Reappraisal
2. Aging of Grand list information / Property Data
3. Changing of the Real Estate Market – Nationally & Locally
4. Erosion of Common Level of Appraisal (CLA) – sale prices / fair market values are no longer in line
with assessed values
5. Erosion of Coecient of Dispersion (COD) – assessments are no longer uniform from one property or
type of property to another
6. New Reappraisal Needed
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Grand List Book
Complete, accurate, and consistent information is very important. The grand list book is the basis for the
collection of all property taxes in the State—over $1 Billion annually. The information contained therein is
also used for a myriad of other purposes, from determining the average value of a home in a given area, to
determining the amount of money each town will receive in reappraisal funds.
The grand list book must contain all items below.
The grand list book must contain a listing, in alphabetical order by owner, for every real estate parcel and for
all taxable personal estate. All exempt property is to be included in the grand list, (with a value and stated
method of valuation (insurance or assessment) and summarized on the form 411 (abstract of the grand list).
Towns and cities will receive the $8.50 and $1 per parcel payments on all real estate parcels that have been
assessed, both taxable and exempt. 32 V.S.A. § 4041a and § 5405.
Each listing must contain the following:
1. complete name and mailing address of owner
2. brief description of property
3. school property account number (SPAN)
4. parcel size
5. homestead declaration receipt information (whether led and if timely led)
6. homestead value (if applicable)
7. housesite value (if applicable)
8. nonhomestead value (if applicable)
9. resident status (see following pages on these codes)
10. real estate HBU (Highest & Best Use) codes—R1, R2, etc. (see following pages on these codes)
11. listed value of real estate
12. listed value of taxable personal property, if applicable
13. use value data, if applicable
14. if the property would be taxable otherwise, and it has been voted exempt, or the value or taxes
stabilized, the taxable listed value must be shown along with the details of the contract or exemption.
15. mobile home descriptions shall include, if available: manufacturer, model number, serial number and
dimensions.
16. if the property is exempt, the listed value assuming no exemption must be shown and details should be
provided as to the reason for the exemption. The method of valuation (insurance or assessment) should
be chosen and the appropriate statute utilized should be selected.
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A number of summaries, listed by owner, must also be included in the back of your book. They are the
following:
1. Properties exempt by statute (churches, town owned property, etc.)
2. Local Agreements (exemptions)—Properties exempt by vote (grange halls, properties owned by
fraternal organizations, farm buildings that have been voted exempt, etc.). The summary must contain
columns for the following: owner; brief description of property; property category (Farm, Commercial,
R1, etc.); statute utilized to vote exemption; full listed value of property (broken out by homestead and
nonhomestead); listed value exempted; eective and ending date; and whether this local agreement is
also approved for exemption from education taxes.
3. Local Agreements (contracts)—Properties subject to a stabilization agreement. There must be columns
for the following: owner; brief description of parcel; statute granting authority to stabilize; property
category; full listed value of property (broken out by homestead and nonhomestead); value subject to
taxation; eective and ending date; whether this local agreement is also approved for exemption from
education taxes; and, if available, taxes paid on the property.
4. Lease land—Provide the name of lessee (occupant), brief description of property; property category; size
of parcel in acres; rent paid; and name of lessor.
Please check your coding carefully. Some common errors include the following: improperly categorizing
property, not supplying complete information on exemptions and contracts, and not providing accurate
acreage gures. Improper coding can lead to errors in the sales ratio study. It also means inaccurate
information may be reported to the General Assembly and other users. Consult with NEMRC or your District
Advisor for help in running error reports.
A number of notices and certicates must be made part of the grand list book as each step in the process is
completed. A certicate signed by the listers is aached when the abstract of individual lists is completed and
lodged with the town clerk. The town clerk also signs a certicate receiving the abstract of individual lists.
A notice to taxpayers is signed by the listers giving ocial notice of the lodging of the abstract and of the date
of grievance meetings.
At close of grievance, the listers subscribe their oath to the book and it is turned over to the town clerk. It then
becomes the grand list of the town, and the town clerk certies receipt of it.
Questions on the listing process should be addressed to your District Advisor.
Real Property Highest and Best Use Codes
You must list property in the category of its “Highest and Best Use” (see page 11 for the full denition).
DWELLING CODES:
Residential (R1 and R2)—Include houses with four apartments or fewer and non-operating farms with a
highest and best use as year-round residences. If the parcel would more likely sell to be occupied on a seasonal
basis (such as an uninsulated camp, or a house without reasonable winter access or heating), it should be
dened as a seasonal property. Always keep in mind the highest and best use of the property when making
this determination. The present use of the property and the ownership of the property are not the deciding
factors.
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If your town or city has enough condominiums to warrant a separate category, it is recommended that you
use the “Other” category for that purpose—especially if the market shows condo values changing at a dierent
rate than other properties.
R1—residential property with less than six acres of land.
R2—residential property with six or more acres of land.
MHU—Mobile home unlanded. This is a mobile home set up on land not owned by the owner of the unit.
Also include trailer coaches (so-called travel trailers) which are taxable under 32 V.S.A. § 3692(b) unless you
have designated the “Other” category specically for this type of property.
MHL—Mobile home landed. A mobile home set up on land owned by the owner of the mobile home.
Seasonal (S1 and S2)—Include all properties with a highest and best use for seasonal occupancy. This may
include summer homes with inadequate year-round heating/insulation, ski chalets, hunting camps, camps
and coages on lakes and ponds (such as with restricted zoning, poor insulation, heating and/or access), etc.
The highest and best use of the property determines the category. The present use of the property and the
ownership of the property are not the deciding factors.
S1—Seasonal property with under six acres of land.
S2—Seasonal property with six or more acres of land.
COMMERCIAL CODES:
C—Commercial. Include properties whose highest and best use is in providing goods and services for sale.
These include retails stores, malls, motels, hotels, lling stations, restaurants, oce buildings, bowling alleys,
golf courses, etc. Do not include industrial manufacturing plants (businesses which use raw materials to
produce a product, rather than simply providing a product or service for sale). Includes these in the Industrial
categories.
Utility property is distinguishable from commercial property because of its specialized function, which limits
its highest and best use to that of a public utility. For instance, a natural gas pipeline or a water ltration plant
owned by a public utility would be coded UO. An oce building which is not ed especially for use by a
public utility (e.g. administrative headquarters), which is likely to sell as a commercial enterprise, would beer
be coded Commercial. The market is the controlling factor.
CA—Commercial Apartments. Apartment buildings with more than four apartments.
INDUSTRIAL CODES:
Industrial property is distinguished from commercial property in that raw materials are used to produce a
product, rather than a product or service simply being sold. There are three industrial categories—I, UE and
UO.
I—Manufacturing Plants. Include properties such as cheese-making facilities, microchip manufacturing
plants, sawmills, creameries, ice cream factories, etc.
UE—Electric Utilities. Property owned by a public utility and used in the production, transmission or
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distribution of electrical energy. This includes hydro plants, solar arrays, wind towers, substations, poles,
lines and xtures, etc. Property owned by a public utility that has a highest and best use other than for the
production, transmission or distribution of electrical energy would be coded otherwise. For instance, an oce
building would be coded Commercial. Vacant land would be coded Miscellaneous.
UO—Other Utilities. This includes real property owned by public utilities other than electric companies for
which the highest and best use is in carrying on the business of that utility. This might include real property
owned by a water companies, cell towers, and natural gas distribution pipelines.
Property owned by such a utility for which the highest and best use is for other than the business of the utility
would not be included in the UO category. For instance, vacant land owned by a telephone company would be
coded Miscellaneous. A house owned by a cable television company would be coded R1 or R2.
Cable TV: Note that cable television lines and xtures are to be coded as Personal Property-Cable. An oce
building with a wider market than just for cable TV services would likely best be coded as a commercial
property.
Do not include property used in carrying on a propane business in the utility category. This is not an industrial
type property, but rather a commercial operation. Propane tanks owned by such companies are coded
PP-M&E. Please see the “Subjects” section for more on propane tanks.
FARMING CODES:
F—Farm. Include operating farms with buildings involved. Do not include properties that were formerly
farmed and now have a highest and best use as a residential or seasonal property.
Do not include vacant land in this category, even if it is used in the farming operation. Only include operating
farms with buildings. A non-contiguous 15-acre parcel the farmer owns down the road, and upon which corn
or hay is grown, is not a farm. It is vacant land and is to be coded as Miscellaneous.
VACANT LAND CODES:
W—Woodland. Include undeveloped land that is mostly wooded. Such parcels may have buildings of lile
value, such as the 100-acre parcel of forestland with a small deer camp of lile value.
M—Miscellaneous. Include undeveloped land that is not mostly forest covered. Include shore lots, residential
building lots, unimproved commercial lots, unimproved agricultural land, etc. Such parcels may have
buildings of lile or no value.
OTHER CODES:
O—Other. Contact PVR for guidance on the use of this category. It is only to be used for a specic type of
taxable property.
The board of listers may choose to use it for all condominium properties, rather than dispersing these within
the R1 and S1 categories, if there is a distinguishable market for such properties. Listers may choose to use this
category to separate the trailer coaches (travel trailers) if you have a large number of such properties and the
market for these is dierent than for MHUs. If you choose to use the Other category, it must be designated for
only one type of property.
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Do not use this category for exempt properties. Do not use this category unless it has been specically
earmarked for one type of property, and be sure you specify what type of property you are including when
the 411 is led with PVR.
Personal Property Category Codes
PP-I—Inventory (stock-in-trade). Inventories of goods for sale, materials used in the manufacturing process,
timber rights, etc.
PP-M&E—Machinery and equipment. Oce furniture and equipment, equipment in a retail establishment not
classied as xtures, propane tanks, hotel and motel furniture and equipment, xtures which are severable or
removable without material injury to the real property, etc.
PP-Cable TV—Cable television lines and xtures.
Ownership Codes
Check this coding carefully. This data is being used more extensively in decision-making. Without accurate
data, the General Assembly and others will not have the information needed to make informed decisions.
Keep in mind that all types of property owned by a corporation, partnership or other entity must be coded
as such. For instance, Brown Brothers Farm, Inc. or Jones Sisters, LLC are corporate-owned. The property
does not have to be a large commercial or industrial property to warrant this type of ownership code. Many
seasonal and residential properties are owned by business entities. Please code all such properties as such.
State and federal government properties should be listed as owned by a corporation.
Please check all these codes yearly—especially on those properties that have transferred. Many times the
ownership code changes when the property changes hands. Make sure anyone entering data knows the
meanings of these codes so they can make the necessary changes as they come up. The listers and assessors are
responsible for the accuracy of this data, and for the training of those employees using the computer system.
T—Town Residents. People who live in the town where the property is located.
S—State Residents. People who live in Vermont, but not in the town where the property is located.
NS—People who live outside of the State of Vermont.
C—Corporations, partnerships and other entities (including governmental). Include all properties owned by
these business entities—regardless of the category of property. This ownership coding applies to all types of
property, not just to commercial, industrial and utility.
Sales Reports from Department of Taxes
As a lister, you will be tasked with maintaining equity within your town as economic forces operate dierently
on dierent portions of your grand list. Because the grand list forms the basis for the assessment of the
statewide education tax, it is important to ensure fairness and equity among towns. The Department of Taxes
conducts an annual study to determine the equalized education grand list of each school district, the Common
Level of Appraisal and Coecient of Dispersion. It is very important that the listers actively participate in this
study and analyze the results to ensure their town or city is receiving fair treatment.
The sales data is collected from the Property Transfer Tax Returns. The listers receive a list of their sales in their
municipality (via myVTax in late June). Listers should review the data for errors. They are also asked for input
on the validity of the sale, as the listers may have personal knowledge regarding the details of sales in their
towns. The following are some of the reasons a sale may not be used in the equalization study:
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• Either the sale may not be considered an arms-length transaction and therefore its sale price not
indicative of fair market value, or there is no listed value which corresponds with the property as it
existed at the time of sale, such as in the case of a subdivision.
• Sales between members of the immediate family.
• Sales between a corporation and a stockholder.
• Tax sales, sheri’s sales, bankruptcy, foreclosures, dissolution, liquidation.
• Sales by guardians, trustees, executors and administrators.
• Sales to or from any charitable, religious or benevolent organizations.
• Sales where unusual nancing signicantly aected the sale price.
• Sales where a signicant amount of personal property conveyed that was not reected separately in the
sales breakdown on the property transfer return.
• Sales where all assessed interests were not sold, e.g. a life interest retained.
• Sales of property assessed in more than one town.
• Sales of property with no corresponding listed value, such as subdivisions.
• Sales where a signicant improvement was made just prior to the sale.
PVR also audits this sales information and contacts many of the buyers and/or sellers of property to acquire
details on sales. Towns should consider using some form of verication leer to gain information on the sales
as the sales occur. Your District Advisor can help you with the sales verication process. For more information
on the role of listers in the Equalization Study, see the Equalization Study Instructions.
The “411” Form
The listers are required to provide an annual abstract of the grand list to the town clerk. This data is
electronically forwarded to PVR per 32 V.S.A. § 4181. This is an abstract (summary) of the information
contained in the grand list. It will show property category, the homestead education grand list, the
nonhomestead education grand list and the municipal grand list. It will contain information on exemptions
and local agreements, etc. Dierences will exist between the total education grand list and the total municipal
grand list if:
• The town or city assesses and taxes business personal property (such property is exempt from the
education grand list):
• The town or city has voted to exempt a property from the grand list, but it is not exempted from the
education grand list; or
• The town or city has voted to stabilize the value or taxes on a property, but the stabilization agreement
does not aect the education grand list.
Failure to le complete information in a timely manner may result in the withholding of state aid. 32 V.S.A. §
5404.
The above requirements are satised with the ling of the PVR form commonly called the “411.” The town
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must le an electronic version of both that form and the complete grand list book (via your NEMRC program:
Reports / Print 411 / Send Electronically? “Yes.”). The grand list and 411 are included in the electronic transfer.
This data is the basis for many of the reports required to be completed by PVR, as well as a key source for the
compilation of the equalized education grand list. There is more information about the 411 form on NEMRC’s
website.
To ensure your town or city receives fair treatment with regard to the education tax, and to assist Vermont’s
lawmakers in making informed decisions relative to the property tax, it is imperative the 411 and grand list
book be accurate and complete.
The 411 requires the listed value be reported on all taxable personal property, and on all real property
(including property exempt by statute).
In addition to reporting the listed values and property counts for the dierent categories of taxable property,
the form also requires detailed information on local agreements, veteran’s exemptions, and other property
exempt from taxation. If a property is exempt, you must be able to explain why and include the statutory
citation. Some examples follow:
A town cannot tax an American Legion hall. Such property is exempt under 32 V.S.A. § 3802(2). A building
owned by a fraternal organization (such as the Masons) is taxable, however, unless the town votes to exempt it
under 32 V.S.A. § 3840. The property owned by the fraternal organization must be detailed on the 411 as a local
agreement. The American Legion hall is included on the 411 form as a statutory exemption—one in which the
town has no choice but to exempt.
Another example of a town voted exemption is that provided by 32 V.S.A. § 3836, which allows a town to
exempt up to $75,000 on new homes. Only those properties which the town, through its voters, has chosen to
exempt and which would otherwise be taxable, are included under local agreements. If the property cannot be
taxed (public school building, church edice, Girl Scout camp, etc.), it is reported as a statutory exemption.
Also, please be sure any exempted value is not included in the taxable listed values reported. For example, if
the total value of a property is $200,000 and it is subject to a $20,000 veteran’s exemption, only $180,000 would
be included in the taxable value section under R1, R2 or whatever. Failure to complete this section of the 411
properly can result in your town’s equalized education property value being skewed. Any questions on these
exemptions should be addressed to PVR or to your District Advisor.
The 411 also asks for the number of veteran’s exemptions granted and the total amount exempted. If your
town has voted to grant an additional exemption (up to total of $40,000 as provided in 32 V.S.A. § 3802(11))
that information must also be reported.
The 411 asks for details on any stabilization agreements entered into by the selectboard. For example, the town
may vote to give the selectboard the power to contract with owners of industrial property. Under such an
agreement, the property owner is not required to pay the full tax, but rather a lesser agreed upon amount.
It may be in the form of one of the following:
• xing and maintaining the tax rate
• xing and maintaining the listed value
1
A municipality shall assess a tax on its municipal grand list at a rate sucient to raise an amount equal to the dierence
between the municipality’s total education property tax liability to the state under this chapter and the amount collected
from education property taxes in the municipality after reductions for all tax agreements in eect in the municipality as
dened in subsection (c) of this section. Any such tax assessed under this section shall be identied on the tax bill of the
municipality as a separate tax for municipally voted tax agreements. 32 V.S.A. § 5404a(d).
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• xing the tax paid
The 411 must contain complete information on these properties. You should have a copy of the stabilization
agreement and know the following:
• the full listed value of the property if it were not stabilized
• the value taxed (homestead and nonhomestead)
• the value not taxed (homestead and nonhomestead)
• the amount of tax assessed on the property
• the date the agreement was voted
• rst year stabilized (April 1, _____)
• last year stabilized (April 1, _____)
• whether the agreement aects the education grand list
Your selectboard will need the above information to determine whether a local agreement rate must be set and
if so, the amount of that rate
1
. Please read the instructions on the form carefully. Contact PVR or your District
Advisor if you have questions.
An electronic version of the 411 and an electronic copy of the grand list book must be led with Property
Valuation and Review. (As of 2016, it is no longer necessary to send a signed copy of the 411 to Property
Valuation and Review.) 32 V.S.A. § 5404.
Determining Acreage and Property Mapping
In many towns, the acreage in the grand list has been determined over the years through a combination of
deed records and casual agreements, supplemented by occasional survey gures. While some deeds may be
very accurate, often the comparison of survey to deeded acreage will result in a variation of up to 25%. We
recommend that you list acreage in the grand list according to the best information available to you. This
section discusses some of the sources of information you may encounter and how to weigh them.
The Vermont orthophotos (digital and paper) are aerial photos which have been corrected so they are accurate
for determining distance and acreage and they are available for every town in Vermont. Orthophotos can be
viewed online using the Vermont Interactive Map Viewer or the Vermont Agency of Natural Resources Atlas
and can be printed for municipalities for lile or no charge by the Regional Planning Commissions (RPC).
Property lines can be ploed directly over the clearly recognizable hedgerows and stone walls, and then
acreage can be measured accurately. This makes mapping easier, and it also allows landowners the ability to
verify the mapping and listing of their property. The orthophoto is also the basemap that landowners must use
when enrolling in the use value appraisal programs.
When a parcel is sub-divided or sold, it is often surveyed. If the deed refers to a recent survey, the survey must
be provided or referenced. 27 V.S.A. § 341(b). It is important to be aware of the distinction between surveys
prepared by licensed land surveyors and other maps that may show parcel boundaries, but are not prepared
by licensed land surveyors and therefore should not be used to convey land or determine acreage.
Tax maps, although they do not carry as much weight as a registered survey, can be an excellent tool for
determining acreage if they are high quality. These maps, prepared from land records and visual information
from orthophotos, are entitled to substantial weight. As a general rule, a survey done by a Vermont registered
land surveyor is entitled to the greatest evidentiary weight, followed by a tax map and, nally, by a recorded
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deed. Surveys, maps, deeds and any other evidence of acreage of a particular parcel should all be
considered by a lister in determining value of properties.
Modern tax maps are made using computers and mapping software. Tax maps and the digital parcel boundary
data used to make them (GIS data) are among the most important local government information assets a
municipality creates and manages, as they are a fundamental base for many municipal activities. Municipal
property mapping eorts should support the needs of all municipal agencies in an eort to combine cost
sharing benets. GIS parcel data is NOT the equivalent of legal property records or land surveys, but the data
does assist municipal ocials with functions such as accurate property tax assessment, conservation, planning
and zoning.
Towns access their tax maps in a variety of ways:
Paper map—should be updated annually to reect changes
Online mapping application—municipalities can link their maps to their grand lists and display ownership,
valuation, and parcel type information. Ocials can show taxpayers how proposed development or changes in
municipal services and regulations will aect them and their neighbors.
Desktop computer interface—free mapping software oers the tech-savvy municipal ocial many options.
In many municipalities, parcel data also helps to provide public notices, plan bus routes, and carry out other
municipal services.
Contact your regional planning commission (RPC) or the Vermont Center for Geographic Information (VCGI)
for information on how to start using your digital parcel data.
We recommend that you undertake tax mapping a year or two in advance of a reappraisal. After the tax
mapping has been prepared, notify landowners of any changes in the acreage you will be listing for their
parcels. Landowners can then come to the oce to look at the map and decide whether or not to appeal. If a
change in acreage results in a change in listed value, you must send out Change of Appraisal Notices to those
aected, and follow grievance procedures. (See the grievance section.) 32 V.S.A. § 4111(g). Once the appeals on
acreage changes have been resolved, you will have a solid basis for organizing and undertaking a reappraisal.
We recommend that you update your tax maps and the underlying digital parcel data annually (and get a copy
of the digital data, whether you plan to use it or not—you can pass it along to the RPC, as they can use it on
your town plan maps).
VCGI has worked with municipal and regional partners as well as surveyors to develop the Vermont GIS
Parcel Mapping Guideline, which provides information about the process and the products involved in tax
mapping. The most recent version of the Guideline is posted at the VCGI website in the “Standards and
Guidelines” section. The Guideline provides template documents such as request for proposals (RFP) and
contracts, as well as recommended best practices. VCGI can provide a list of companies who provide tax
mapping services. VCGI also manages the Statewide Parcel Program, which supports towns with information
about parcel mapping.
Water and Sewer Assessments
In some areas, charges for use of public water or sewer facilities are added to the taxpayer’s property tax bill.
Although the charges are often determined by some estimate of actual use, they also may be calculated as a
percentage of the listed value. If your town uses the listed value to calculate the sewer or water charge, you
must assess property that benets from the public facilities but which is exempt from property taxes. For
example, if there is a state building in your town which is exempt from property taxes but which is connected
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to the public water or sewer system, it must be assessed so the state can be billed for the water and/or sewer
services. 24 V.S.A. Chapter 89.
Property that is owned by a consolidated sewer district is exempt from all property tax (24 V.S.A. § 3683).
Property of a consolidated water district is exempt from property tax in any town of the district.
24 V.S.A. § 3352.
Determining the Owner
Taxable real estate is to be listed to the last owner or possessor on April 1 (32 V.S.A. § 3651). There is some
discrepancy in opinion as to whether this should be the closing date or the date of recording. The choice is
yours but you need to be consistent in your practices. PVR uses the closing date relating to Equalization Study
sales. Current Use uses the recording date.
Generally, personal property is listed to the last owner on April 1. However, taxable tangible personal estate
owned by persons residing outside the state and taxable tangible personal estate owned by persons unknown
to the listers shall be listed to the persons having the same in charge. 32 V.S.A. § 3691.
When real estate is mortgaged, the mortgagor (borrower) is the owner. But, if the mortgagee takes possession,
then the mortgagee (usually a bank or mortgage company) becomes the owner. 32 V.S.A. § 3652.
An undivided estate must be listed to the estate in care of the executor or administrator. 32 V.S.A. § 3654.
Real estate held in trust must be listed to the trustee(s).
When property is conveyed by a deed which reserves the use and possession for the grantor for his or her
life, the property is generally listed to the life tenant and not to the remainderman, according to common law.
Wilmot v. Lathrop, 67 Vt. 671 (1895). However, listers may choose to list it to either the owner or possessor. It
may be advisable to list the property to the life tenant in order to accommodate those instances where the life
tenant will be ling a homestead declaration.
One town felt that the remainderman was also an “owner” of the property and therefore could be held liable
for the tax at the election of the listers. The court agreed, stating, “if the legislature had intended that in a case
of divided ownership the life tenant, if any, should be the only one to be considered as the “owner” of the
property it could easily have so provided in express terms.” Braleboro v. Smith, 117 Vt. 425 (1952).
When real estate is subject to a perpetual or 99-year lease, it must be listed twice. Unless specically exempted
by the original grantor or by a statute, the lease is listed to the lessor at an amount of which the rent is 6%. For
example, if the rent is $6, the lease would be listed to the lessor at $100. The property is listed to the lessee at its
fair market value, except that the annual rent paid must be credited against the property tax payable. 32 V.S.A.
§3609 and § 3610. When real estate is subject to a lease that is for a term less than 99 years, the listers may list it
to either the owner or the possessor, but we would recommend listing it to the owner of record.
We are often asked if it’s okay to change the name when one owner dies and a certied copy of the death
certicate is of record. In cases when the property was held in joint tenancy, including by the entireties,
ownership is necessarily changed by the death of the joint owner. In such cases, ownership is not vested in the
estate of the deceased; rather, the transfer is automatic and without necessity of probate. If you are not sure,
consult your town aorney.
Do not make changes without wrien documentation in your land records to back you up. Sometimes a
lister will be asked to list a building to other than the owner of the underlying land. For instance, a son or
daughter might build a house on the parents’ land and then ask that the house be listed separately to the child.
Absent some wrien instrument being recorded in the town oce conveying the house to the child, the listers
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should treat the house as a part of the parcel on which it is situated. Another situation that often occurs is that
you may receive information telling you an owner has died or informing you of a name change. This is not
sucient to make a change on your grand list. You must have something recorded in your town records, such
as a death certicate or a name change notice as provided in 27 V.S.A. § 350.
What is a Parcel?
The grand list must contain “a brief description and the listed valuation of each separate piece or parcel
of taxable real estate. “Parcel” is dened as “all contiguous land in the same ownership, together with all
improvements thereon.” 32 V.S.A. § 4152(a)(3).
Current Use program rules state:
Parcel means all contiguous land in the same ownership regardless of the number of deeds.
The parcel may be bisected by a highway, right-of-way, town line, river or power/pipeline.
It may contain a building, dwelling, or building lot that is excluded from UVA, but it is
held by the same owner(s) who have the rights to make decisions about and manage the
vegetation on that property.
Furthermore, the denition of “homestead” contained in 32 V.S.A. § 5401(7) provides the parcel of land
surrounding the dwelling shall be determined without regard to any road that intersects the land.
These denitions are for administrative purposes. They govern how to list properties in your grand list book.
They do not govern the listers’ determination of the highest and best use of a property and thus its fair
market value.
The Court had oered guidance in the form of what factors must be considered when making a valuation
determination. Those factors included whether property was conveyed in one deed; the land’s character and
use; whether separately deeded tracts are contiguous; and whether the property functions as one tract for the
owner. Neun v. Roxbury 150 Vt. 242, 552 A.2d 408 (1988).
The above should still be considered when making a determination of value. The denitions in 32 V.S.A. § 4152
and § 5401(7) do not preclude your determining that the highest and best use of a tract is as more than one
parcel. For instance, you may have a four-acre parcel that was acquired by two deeds. For example, suppose
Ms. Smith owned a house and two acres. An adjoining two-acre piece is acquired as protection land. The grand
list will contain a four-acre parcel coded as an R1. In determining the value of that property, however, you
must determine the “highest and best use” of that parcel. If it is as two pieces—a house and two-acres, and a
buildable two-acre lot—then the listed value should reect that determination.
You cannot group tracts together that are under dierent ownerships. The Court held in Petition of Mallary,
127 Vt. 412, that properties owned by the petitioner could not be listed with properties owned by the petitioner
and her husband jointly.
Noncontiguous land must not be grouped together into one parcel. Each separate tract is listed as a separate
parcel. Bullis v. Town of Grand Isle, 151 Vt. 503, 561 A.2d 1359 (1989).
Contact PVR with questions on specic properties.
See the “Subjects” section for more parcel information.
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VII. Grievances and Appeals
The decisions you make as a lister will be questioned. Taxpayers may appeal the assessed values on their
properties. Individuals and organizations may appeal your denial of a request for an exemption. The gure
you allocate for the homestead portion of a property may be grieved. Grievances and appeals are expected.
They are part of the duties of a lister and should be handled in a professional and timely manner, and as
dispassionately as possible. Try to keep principles above personalities.
The Secretary of State’s oce has an Appeals Handbook. It is recommended reading.
Prior to Grievance—Be open and forthcoming about the assessment process. Be available to answer questions
and listen to concerns. This is especially important during a town-wide reappraisal. Informal public meetings
to explain the methods used in establishing values, and to answer questions from the property owners has
proved helpful in many jurisdictions. This can minimize the number of formal grievance hearings necessary.
Change of Appraisal Notices—Change of Appraisal Notices must be sent the same day that the abstract of
individual lists is lodged with the town clerk. Notices must be sent to each property owner whose value has
changed since the previous assessment. This includes changes in homestead and housesite values, or a change
in the allocation of value on properties enrolled in the Use Appraisal (Current Use) Program. 32 V.S.A. §
4111 and § 3756. The notice must include information on how to grieve and the deadline for ling a wrien
grievance.
Notices are to be sent by certicate of mailing, certied mail, or registered mail. If a question arises later and
the listers cannot produce proof of mailing by one of these methods, it will be presumed the notices were not
sent and there is a risk that the value of the property will be rolled back to that set the previous year.
Grievance Hearings—Be prepared to briey state how the value was determined. Listen carefully and
politely to the taxpayer’s statements. Allow sucient time for the taxpayer to make her or his case. Answer all
questions you can. If you determine that a site inspection is necessary, make an appointment to visit the site.
Do not make your decision during the hearing. Thank the property owner for his or her time and aention and
state when the decision can be expected. 32 V.S.A. § 4221.
Result of Grievance Notice to Taxpayers—The notice must be mailed to the taxpayer within seven days of
the close of grievance hearings. It should include the decision of the listers with respect to the grievance, and
instructions on appeals to the Board of Civil Authority from this decision. 32 V.S.A. § 4224.
Appeals to the Board of Civil Authority—Property owners have 14 days from the date of mailing of the result
of grievance notice in which to appeal to the Board of Civil Authority. The town/city clerk will notify the listers
if any such appeals are received, and of the date and time of the hearing. 32 V.S.A. § 4404.
Be prepared to support the assessment value and to answer any questions from the Board of Civil Authority
members, and to respond to evidence presented by the property owner. Be familiar with the subject property,
and with any comparable properties. Be prepared to explain the cost data, how the time/location factor was
determined, the land schedule and the depreciation schedules. Include relevant sales data to support your
value.
Appeals Beyond the Board of Civil Authority—The listers may be called upon to support, or to assist in
supporting, the Town’s case in appeals from the decision of the Board of Civil Authority either to the Superior
Court or to the State Hearing Ocer (decision by the selectboard—court cases will involve an aorney).
32 V.S.A. § 4461.
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As with appeals to the Board of Civil Authority, be prepared to testify as to the assessment value and to
answer any questions from the State Hearing Ocer or Court. Be ready to respond to evidence presented by
the property owner. Be familiar with the subject property, and with any comparable properties. Be prepared to
explain the cost data, time/location factor determination, land schedule and depreciation schedules.
More market analysis is expected at this level of appeal. The Court or the State Hearing Ocer will expect
evidence of the fair market value of the subject property. Cost approach appraisals should be supplemented
with market data appraisals and, when applicable, income capitalization appraisals.
Selective Reappraisal: Bear in mind that listers cannot selectively reappraise discreet neighborhoods or
discreet market sectors without compelling evidence that the neighborhood or market sector is appraised at
a substantially dierent level from the rest of the town. If such action has been taken and it is challenged, the
listers must be prepared to show how any such change brought the changed properties into line with those of
other properties whose assessments were not changed.
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VIII. The Board of Tax Abatement
Listers are members of the Board of Tax Abatement (BTA). The BTA comprises listers, the selectboard, justices
of the peace, the town clerk, and the town treasurer (24 V.S.A. § 1533 and § 801). The BTA may, in accord
with 24 V.S.A. § 1535, abate in whole or in part, municipal taxes, interest, and collection fees under specic
circumstances, including taxes:
1. of persons who have died insolvent;
2. of persons who have been removed from the state;
3. of persons who are unable to pay their taxes, interest and collections fees;
4. in which there is manifest error or mistake of the listers;
5. upon real or personal property lost or destroyed during the tax year;
6. the exemption amount available under 32 V.S.A. § 3802(11) to persons otherwise eligible for exemption
who le a claim on or after May 1 but before October 1 due to the claimant’s sickness or disability
or other good cause as determined by the board of abatement; but that exemption amount shall be
reduced by 20 percent of the total exemption for each month or portion of a month the claim is late
led;
7. taxes upon a mobile home moved from the town during the tax year as a result of a change in use of the
mobile home park land or parts thereof, or closure of the mobile home park in which the mobile home
was sited, under 10 V.S.A. § 6237.
The abatement of a tax automatically abates any uncollected interest and fees relating to the amount abated.
Abatement does not require a change in the grand list; it is for taxes only.
There is no specic meeting time required by statute. Customarily, boards meet at least once a year. After a
decision is made by this board, the reasons for that decision must be stated in writing. The aected property
owner should receive a copy of the decision.
A record of the taxes, interest and fees abated is recorded in the town clerk’s oce and a copy is forwarded to
the collector of taxes and the town treasurer.
Abatement may be in the form of a refund or a credit, depending on the order of the board. Interest is payable
in some instances. See 24 VSA § 1535-1537.
The legislative body of a municipality has the authority in cases of hardship
2
to abate all or any portion of
a homestead penalty appealable to the listers and any tax, penalty, and interest arising out of a corrected
property classication. The legislative body may delegate the authority to abate in such instances to the Board
of Tax Abatement or the Board of Civil Authority (32 V.S.A. § 5410(j)). The Secretary of State’s Oce has a
booklet called “About Abatement” that is worthwhile reading.
2
Hardship means an owner’s inability to pay as certied by the commissioner of taxes in his or her discretion; or means
an owner’s ling an incorrect, or failing to le a correct, homestead declaration due to full-time active military duty of the
declarant outside the state, serious illness or disability of the declarant, serious illness, disability, or death of an immediate
family member of the declarant, or re, ood, or other disaster.
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IX. Errors and Liabilities
It is inevitable that errors will be made. The most common type of mistake is commied honestly, without
malice or prejudice. There are remedies available to correct most of these.
If you nd listing errors, these can be corrected, but the procedures vary according to the type of error and the
timing. From the time that the listers rst compile and lodge the list with the town clerk for public inspection
until the date it is lodged with the town clerk a second and nal time, it is called the “abstract of individual
lists,” or just the “abstract.” You may also hear it called the “preliminary grand list.” After grievances are
closed, the book is turned over to the town clerk and it becomes the “grand list.”
The statutes direct dierent procedures for correcting dierent types of errors. Errors in your appraisal or
your listing are very often discovered during grievance hearings. These may be corrected according to the
provisions for amending an abstract, and notices must be sent to the taxpayers. 32 V.S.A. § 4224.
If you discover an error or omission in the listing of property before it becomes the grand list (while it is still
the abstract of individual lists), you can correct it without asking for approval from the selectboard (32 V.S.A.
§ 4111(f)). You must send wrien notice to any aected taxpayers allowing them to grieve.
If you discover a procedural error aecting the validity of the abstract of individual lists (such as missing a
deadline, or a defective notice), you can correct this on or before February 1 of the following year according to
the procedures in 32 V.S.A. § 4112 et seq.
If you discover an error or omission in the listing of property after it became the grand list, (the book has
been turned over to the town clerk), the approval of the selectboard is needed to make a correction. Such errors
or omissions of individual property listings may be corrected on or before December 31. 32 V.S.A. § 4261.
If you discover that you have made a procedural error aecting the validity of the entire grand list, you can
correct this error on or before February 15. 32 V.S.A. § 4262 et seq.
If taxpayers feel that you have made some other type of error and decide to sue, they can sue the town.
Provided there was no malice involved, the town will cover the costs of the trial and of any damages.
24 V.S.A. § 901.
Vermont law does provide for penalties in some instances. If you fail to or neglect to perform a duty imposed
on you by law, you can be ned. 24 V.S.A. § 902. Mistakes made with bad faith or malice that deprive a person
of any of their civil rights are punishable under the federal Civil Rights Act
3
.
For mistakes involving misuse of oce, such as accepting bribes or commissions, you can be punished under
Vermont law. 13 V.S.A. Chapter 21. Listers who knowingly make or return an incorrect 411 (abstract of the
grand list) can be ned up to $500. 32 V.S.A. § 4182.
3
Every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State . . .subjects, or causes
to be subjected, any citizen . . .of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable
to the party injured in an action at law, suit in equity, or other proper proceeding for redress, except that in any action
brought against a judicial ocer for an act or omission taken in such ocer’s judicial capacity, injunctive relief shall not
be granted unless a declaratory decree was violated or declaratory relief was unavailable. US Code: Title 42, § 1983.
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X. Special Properties
Property Valuation and Review (PVR) receives so many inquiries about the following types of property, we
oer this compilation for reference.
Trailer Coaches (Mobile Homes)
A trailer coach is “any trailer or semi-trailer designed to be towed by a motor vehicle and designed, equipped
or used for sleeping, eating or living quarters.” 23 V.S.A. § 4. The term “trailer coach” as dened in
23 V.S.A. § 4(41) includes mobile homes not axed to land. PVR Rule 82-1 § (32)3802(4).
In general, trailer coaches are taxable unless they are registered yearly and designed and used for recreational
purposes. The listers must determine whether the property in question is real property and taxable as such,
personal property and taxable as such, or personal property and exempt as such.
A trailer coach is listed as real property and is taxable if:
1. it is axed to the land (water and sewer hook-up; electricity, etc.), or
2. it is situated in the town on the same trailer or campsite for more than 180 days during the 365 days
prior to April 1. 32 V.S.A. § 3692.
A trailer coach is personal property and taxable in the municipal grand list if:
1. it is inventory and inventory is taxed in your town. This would include inventory of a dealer and any
trailer coach owned by an individual that is for sale, as distinguished from the one simply stored on
the property upon which the owner resides in another dwelling. This property is exempt from the
education grand list, whether for sale or being stored.
2. it is not axed to the land and is used for income-producing purposes. This would include trailer
coaches that are rented, used for storage of materials, or used at construction sites. These would be
listed in the municipal grand list as machinery and equipment if your town taxes such property. This
property is exempt from the education grand list.
Because mobile homes tend to be mobile, there are a few special provisions for dealing with the collection
of property taxes. An owner of a mobile home (except those held for sale by a manufacturer, distributor or
dealer that are stored or displayed on a sales lot and are not connected to utilities) may not sell, trade, transfer,
or move the home without a Mobile Home Uniform Bill of Sale endorsed by the clerk of the municipality
in which it is located. In the case of removal of a mobile home from the municipality, or of a sale, trade, or
transfer that will result in the removal of the mobile home from the municipality, the clerk shall not endorse
the Mobile Home Uniform Bill of Sale unless all property taxes assessed regarding the mobile home, but not
the mobile home site, have been paid. 32 V.S.A. § 5079.
If a mobile home is sold, traded or moved between April 1 and the time that the grand list has been completed,
listers may be asked to help estimate the amount of tax to be paid by the owner for that year.
Construction Equipment (“Yellow Metal”)
Very lile “yellow metal” is taxable.
Property tax law specically exempts motor vehicles. The term “motor vehicle” is not dened in tax law,
but per motor vehicle law the term includes “all vehicles propelled or drawn by power other than muscular
power, except . . . motorized highway building equipment, road making appliances . . .” 23 V.S.A. § 4(21).
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The Supreme Court held that construction equipment including dump trucks, rollers, power shovels and
backhoes are motor vehicles and not taxable unless they are used exclusively for the building, repair or
maintenance of highways. Pizzagalli Construction Co. v. Town of Whitingham, 146 Vt. 490 (1986). Even
vehicles that have not actually been registered but should have been registered would be exempt.
We have concluded from the above information that only construction equipment used exclusively for the
repair or maintenance of highways (in other words, essentially none) is taxable in Vermont.
Condominiums/Common Interest Ownership
By denition, there is common property involved in condominium ownership, and in property subject to the
Uniform Common Interest Ownership Act (UCIOA) contained in Title 27A of the Vermont Statutes Annotated.
The assessment of each unit must include the value of that unit’s percentage of undivided interest in the
common areas and common facilities. 27 V.S.A. § 1322 and 27A V.S.A. § 1-105.
As an example, in a 100-unit condominium where each was purchased with an undivided interest in the
common land, the grand list would have 100 parcels, each including 1% interest in the common property. The
building, the land and any of the common areas and facilities are not to be separately listed.
Condominiums that involve time-sharing have dierent listing rules. See below.
Timesharing
For property tax purposes, a property involving time share estates is considered to be a single property owned
by the owner’s association or whatever entity is authorized to manage the common property. Although the
individual owners are ultimately responsible for paying their shares of the taxes, it is the responsibility of the
association to allocate the shares and to obtain payment from the individuals. 32 V.S.A. § 3619.
Swimming Pools
A swimming pool is taxable only if it is considered to be a xture that is aached to the land and therefore real
property. If excavation other than simple landscaping is involved in installing the pool, it is real property, even
if most of the pool is above ground.
Farms
Farm land and buildings, including silos and sugarhouses, are taxable. Farm buildings may be fully or
partially exempted by vote under 32 V.S.A. § 3607a, or if they are qualied farm buildings under the Current
Use program.
Be careful not to violate the principle of consistent use when appraising a farm. Do not appraise the land based
on its potential value for development, and then appraise the buildings based on their value for farming. If
the farm has development potential and is valued accordingly, the farm buildings, when viewed in the same
manner, will have lile if any contributory value.
Farm machinery that is predominantly used in farming activities is not taxable. Farm machinery includes
tractor-drawn equipment, milking equipment including bulk tanks, guer cleaners, silo unloaders, and maple
syrup and sugaring equipment. 32 V.S.A. § 3802(8) and Rule 82-1 § (32)3802(8) 2.
Timber and Forest Land
The value of timber can be an important component of the purchase price of large tracts of forestland. When
valuing a large tract of forestland, be sure the comparables used have similar forest potential.
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Vermont law instructs listers to not take into consideration the eect of standing timber having been conveyed
on a parcel. 32 V.S.A. § 3606. When the standing timber on a parcel has been sold and conveyed, but the trees
remain standing, you must list the property as if the conveyance of standing timber has not taken place.
Be aware that “standing timber” and “timber rights” have dierent meanings. A purchase of the standing
timber is generally the right to a one-time cut of the timber on the property during a limited period of time.
“Timber rights” are most often the long-term rights to cut timber, often granted in the form of a lease.
Utilities
PVR provides copies of inventories led by utilities. Copies of these reports are sent to the listers on or about
May 1. 32 VSA § 4452. This information may be helpful in determining listed values, and in determining if
there have been any changes in the property since the previous year. If you have questions on how best to use
this material, contact your PVR District Advisor.
Much of the property owned by utility companies is taxable. Easements and rights of way for poles and lines
are not taxable. Electric utility poles, lines and xtures are real estate and are taxed at fair market value, even
when owned by a municipal corporation. 32 V.S.A, §§ 3620 and §3659.
Only land and buildings of a telephone company are taxable locally. 32 VSA, § 3803. Telephone companies
also pay a corporation tax. 32 V.S.A. § 8521.
The property of cable television companies must be analyzed to determine what is real and what is personal
property. All real property owned by a cable television company (land/buildings) is to be included in the
education grand list. It will appear in the real property category as Commercial, or the appropriate category
based on the highest and best use of the property. Cable television lines (including wires, poles, insulators,
anchors and guy wires), the head ends, and house drops are also included in the education grand list in
the PP-Cable TV category. Real property will be appraised at fair market value. Personal property will be
appraised at either fair market value or, in those municipalities that have so chosen, at a value established
in accord with 32 V.S.A. § 3618. Cable companies have agreed to value all lines each year and depreciate to
a maximum of 40% good (60% depreciation). Towns should review this information each year and accept or
deny the value if they have information to the contrary.
Cell towers: PVR has developed a decision tree that will be useful in determining whether or not a cell tower is
taxable. Please contact your District Advisor for information on valuing cell towers.
Special rules apply to utility property owned by municipal corporations. See Municipal Land, page 45. If the
utility company is not a municipal corporation, all real property must be listed at fair market value.
The information that utilities prepare for rate seing purposes may be helpful in determining the listed value,
but it should not be the only consideration. Valuation for rate seing and valuation for taxation may be very
dierent. N. E. Power Co. v. Town of Barnet, 134 Vt. 498, (1976). When no comparables exist, the town must
adjust the listed valuation to the level of other properties in the town. Village of Morrisville Water and Light
Dept. v. Town of Hyde Park, 134 Vt. 325 (1976).
Railroad and Ferry Boat Companies
Property of companies involved in operating railroad freight line and equipment is exempt from local property
tax. This includes rights of way, freight yards, tracks, and any buildings that are still being used in the railroad
operation. Railroad buildings that are used for other purposes can be taxed locally. 32 V.S.A. § 3803. Railroad
property pays a corporate tax pursuant to 32 V.S.A. §8431 and the following.
Real estate and land bound personal property owned by a ferry boat company are listed at the local level. The
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boats themselves are not taxable.
Partial Rights and Private Restrictions In general, when you appraise a parcel, you assign all rights of
ownership to the fee owner, except for those rights precluded by governmental restrictions or those specically
mentioned in the statutes. When you have partial interests, there are two listing issues: whether you divide
the tax responsibility among various owners of partial interests; and whether the existence of various lesser
interests aects the fair market value of the property.
The law provides that “taxable estate shall be set in the list to the last owner or possessor thereof on April
1.” 32 V.S.A. § 3651. The legislature did not intend for the listers to research, identify and tax all the holders
of various interests, and to adjust and assign appraisal values accordingly. Village of Lyndonville v. Town of
Burke, 146 Vt. 435 (1985). The whole parcel is listed to the fee owner, with only the few exceptions that are
specically listed in the statutes:
Water rights, owned separately from real estate interests, are appraised and set in the grand list as
real estate in the name of the owner of the rights. 32 V.S.A. § 3605.
An interest in a mine or quarry (without the land) is listed to the owner of the interest, as long as it
is not a perpetual or redeemable lease. 32 V.S.A. § 3604.
An owner of land on which the development rights are owned by the town, a state agency, or a
qualied organization (such rights held by a qualied organization are subject to certication by
the commissioner of taxes), under the provisions of 10 V.S.A. Chapter 155, is taxed “only on the
value of those remaining rights or interests to which he retains title.” 10 V.S.A. § 6306(b).
Lands over which the state acquires an easement for ood control are appraised with
consideration of the restriction. If the restriction has reduced the appraisal value from that of the
year preceding the acquisition, the amount of the reduction is listed to the State. 32 V.S.A. § 3611
and § 3612.
The second issue is whether the existence of lesser interests is considered in determining the fair market value.
The court has dened fair market value as “the price which a property will bring in the market taking into
consideration its availability, use and limitations.” Villeneuve v. Town of Waterville, 141 Vt. 154 (1982).
Restrictions on the property that are due to governmental laws, rules or programs must be considered in
determining fair market value:
The appraisal shall include a “consideration of the eect of any state or local law or regulation aecting
the use of land, including but not limited to 10 V.S.A. Chapter 151 or any land capability plan established
in furtherance or implementation thereof, rules adopted by the state board of health and any local or
regional zoning ordinances or development plans.” 32 V.S.A. § 3481.
There are many parcels in Vermont from which certain rights have been conveyed to a qualifying
organization and which have been certied under the provisions of 10 V.S.A. Chapter 155 of of the Vermont
Statutes Annotated. Such rights are exempt under 10 V.S.A. § 6306, and the remaining rights are taxable at fair
market value. The question becomes, what is the fair market value of the remaining rights?
Each parcel must be looked at individually. There is no magic formula for an appraisal of this type. All factors
that combine to give a property value must be examined. The eect will be great in some instances, in others
very small. Consider a ve-acre parcel on the Shelburne Road in South Burlington. If all but the right to use the
property for agricultural purposes is removed, the fair market value will likely be very low in comparison to
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other similar parcels with all rights intact.
On the other hand, if all development rights are removed from a 200-acre forest tract in the Northeast
Kingdom, most often lile or no change in value will occur. The highest and best use of that property will
probably remain woodland. The highest and best use of the South Burlington parcel will have changed
dramatically, however. What was probably a prime commercial parcel is now limited to agricultural use and
must be valued accordingly.
If the highest and best use of the property is for farming, and that use can continue, lile or no change in value
may have occurred. You may want to make a minor downward adjustment in value to account for the fact that
most people are willing to pay more for a property without restrictions.
If the property is in transition, however, a larger adjustment may be necessary. That is, if there is development
pressure in the market area of the parcel being appraised, an adjustment must be made to account for the
loss of that use. It’s similar to making adjustments because of zoning or similar restrictions. If a property’s
highest and best use is for commercial development, but zoning restricts the use of the property to residential/
agricultural, the property is less valuable than a similar piece zoned for commercial use.
You will want to look at exactly what was conveyed in each instance. In many cases, not all development rights
are conveyed. Often some development, such as another residence, is allowed. Read the deed.
You may also want to examine the eect these conveyances have on other properties in the area. Has the
neighboring property value risen because it borders a property that cannot be developed? This may occur in
some instances, such as in our South Burlington example above.
Listers and assessors may contact Property Valuation and Review on specic properties. The Department of
Taxes also has a fact sheet on valuing Conservation Easements.
It takes some research to determine whether privately arranged restrictions aect the valuation. An owner
of a gas station that was subject to a renewable lease and pre-emptive purchase option in favor of Gey Oil
Company appealed the town’s appraisal, arguing that the lease/option must be taken into account. The court
agreed, nding:
Although we are concerned here with a privately imposed restraint on land, it is clear that the
Legislature intended that bona de restraints aecting property, at least those governmental
in origin, should be a factor in determining fair market value. The extension of this practice to
situations such as that posed here is not contrary to the logic of the statute and is consistent with
prior Vermont case law. Winthrop Townsend and Marie Boisvert v. Town of Middlebury, 134 Vt.
438, (1976).
When land is subject to a perpetual lease, the statutes specify that its appraisal value must be determined
taking into consideration all limitations upon the use of the land by the lessee. 32 V.S.A. § 3610. However, there
are few guidelines for determining when other types of privately imposed restraints on land are suciently
bona de to decrease the value of the property. PVR holds that the existence of short-term leases and
restriction agreements that may be freely renegotiated do not reduce the appraisal value of the property.
Therefore, privately imposed restraints that you might consider in determining a value would include those
that are perpetual and not renegotiable.
Public Land
The general long standing policy of the State of Vermont is that public land is not taxable. “An Act Prohibiting
the Taxing of Public land” was passed by the Vermont General Assembly on June 17, 1785. Currently,
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32 V.S.A. § 3802(4), exempts real and personal estate granted, sequestered or used for public purposes from
property tax.
Municipal Land—Notwithstanding the general principle, real estate owned by a municipal corporation and
located outside its territorial limits is taxable by the municipality unless specically exempted. 32 V.S.A. § 3659.
Property owned by a municipality which is located within that municipality and which is used for municipal
purposes including the provision of utility services is exempt from the education tax. 32 V.S.A. §5401(10)(F).
A municipality includes “a city, town, town school district, incorporated school or re district or incorporated
village and all other governmental incorporated units.” 1 V.S.A. § 126.
A municipal corporation includes a city, a town, a village, a school district, a re district, a union municipal
district, a regional mass transportation authority, a local housing authority, or a consolidated water or sewer
district. 24 V.S.A. § 1751.
A specic method of taxation of a municipal corporation’s land located outside the municipality is prescribed
as a sort of compromise. The property is listed at the value xed preceding the acquisition by the municipal
corporation. In subsequent years, the land is listed as other comparable property is listed. The town or city
cannot tax personal property, or any improvements made after the acquisition. In compensation for this loss
of taxes, the town or city can impose an additional tax that may not exceed 75% of the appraisal of the land.
If there are no improvements or personal property, the additional tax cannot be imposed because the town or
city has not lost any taxes. City of Montpelier v. Town of Berlin, 143 Vt. 291, (1983).
In general, municipal land will fall into this category. However, there are specic exceptions:
• A municipal corporation’s utility poles, lines and xtures located in another town are taxable at fair
market value. 32 V.S.A. § 3659.
• Property owned by a consolidated sewer district is exempt from all taxation by any town. 24 V.S.A. §
3683.
• Property owned by consolidated water district is exempt from taxation by a town within the district.
24 V.S.A. § 3352.
• Property owned by a municipal housing authority is exempt from all real and personal property taxes
imposed by any political entity within the state. 24 V.S.A. § 4020.
• Property owned by a municipality for purposes of urban renewal is exempt. 24 V.S.A. § 3216.
State Land and Buildings—Property owned by the State of Vermont is exempt. 32 V.S.A. § 3802(1). There is a
provision for a payment in lieu of taxes (PILOT) on certain state-owned property, however. 32 V.S.A. §§ 3701-
3708. Please be sure to read the statutes to gain a current understanding of the process. More information is
available at the Vermont Department of Taxes website: PILOT.
When state-owned land, buildings or permanent xtures are leased to another entity, they are still treated, for
tax purposes, as state land. As an example, the Sherburne Corporation leased land from the state, and ski lifts
and structures were aached to that land. The Court held that the land was still “owned” by the state and that
improvements on the leased premises were not personal property, but real property that would revert to the
state, and thus the property of the state. The land is therefore taxable to the state, according to the provisions of
section 32 V.S.A. § 3708 (lands held by Agency of Natural Resources) and the improvements and buildings are
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not taxable. Sherburne Corporation and State of Vermont v. Town of Sherburne, 145 Vt. 581 (1986). However, if
the lease agreement stipulates that the xtures or buildings are owned by the lessee of the land, they are listed
to the lessee/ owner and not to the state. 32 V.S.A. § 3608.
Federal Property—Federal property is not taxable. 32 V.S.A. § 3802(1). Towns that have land in the Green
Mountain National Forest (GMNF) receive a payment in lieu of taxes (PILOT) from the federal government.
See 1 V.S.A. § 557.
Quasi-Public Property—There are many authorities and commissions established by the legislature that are
specically declared to own and use their land for public purposes, thereby making them exempt from the
local property tax. In addition, the listers may determine that other properties are used for public purposes
and therefore exempt. 32 V.S.A. § 3802(4). (See the Exemptions Chapter for more information.)
Lakes and Ponds
The general rule is that the 280 natural lakes and ponds in the state which are larger than 20 acres are public
waters, and not taxable
1
.
“Public waters” means navigable waters excepting those waters in private ponds and private preserves as set
forth in Chapter 119 of Title 10.” 29 V.S.A. § 402(7) and 10 V.S.A. § 1422(6).
“Navigable waters” are all streams, ponds, owages and other waters within the state which can be navigated
by boat. 10 V.S.A. § 1422(4).
Private ponds are generally considered to be natural ponds less than 20 acres, or articial ponds entirely on the
owners’ premises. 10 V.S.A. § 5210. Private preserves are bodies of water over which the owner has exclusive
control and which have been stocked and posted according to the provisions of 10 V.S.A. Chapter 119. The
public use exemption does not apply to these ponds.
Exceptions include some articial lakes that may be larger than 20 acres but are still taxable because they are
privately owned, and some smaller ponds that are public, such as Eln Lake in Wallingford.
Personal Property
Personal estate is dened as including “all property other than real estate.” 1 V.S.A. § 129. Personal property
means items that are movable (sometimes called chael), not permanently axed to the real estate. The
International Association of Assessing Ocers’ (IAAO) text, “Property Assessment Valuation,” 2nd edition,
1996, states on page 338:
The courts tend to agree that a chael loses its nature as personal property and becomes real
property if it is axed in such a way that it loses its original physical character and cannot
practically be restored to its original condition. Two common tests are: the intention of the person
who put the item in place, and whether the item can be removed from the real estate without
loss of value to either. For example, if a tenant places a screen in front of a replace, there is no
intention of permanent installation, and the screen can easily be removed when the tenant moves.
The screen is clearly personal property. If, however, the property owner installs a light switch in
the wall, the wall would be damaged by removal and therefore the switch is part of the real estate.
In another example, machinery or equipment bolted to a oor or concrete base simply for ease of
operation should not be considered to be axed. Unclear cases must be resolved by reference to
1
Lakes and ponds which are public waters of Vermont and the lands lying thereunder are a public trust. It is the policy
of the state that these waters and lands shall be managed to serve the public good. 29 V.S.A. § 401. As such, they are not
taxable. 32 V.S.A. § 3802(1) and § 3802(4). See also 10 V.S.A. Chapter 49, and Hazen v. Perkins, 92 Vt., 414,419 (1918).
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state statutes and court decisions.
Vermont law specically provides the manner in which certain types of property are to be listed. For example,
manufacturing equipment such as engines and boilers, electric motors, air compressors, traveling cranes
and machinery, so ed and aached as to be a part of a manufacturing or other plant and kept and used
as such, shall be set in the grand list as real estate. 32 V.S.A. § 3602. Similarly, section § 3602a provides that
all structures, machinery, poles, wires and xtures of all kinds and descriptions used in the generation,
transmission or distribution of electric power that are so ed and aached as to be part of the works or
facilities used to generate, transmit or distribute electric power shall be set in the grand list as real estate.
32 V.S.A. § 5401(10) makes clear the education grand list is to include the following property:
• utility cables, lines, poles and xtures (unless owned by telephone companies);
• gas distribution lines (but not aboveground meters, regulators and gauges).
Very lile personal property is included in the education grand list. Property that is to be taxed for
education purposes shall be listed in the appropriate category so it can be included in the education grand
list. Cable television lines, for example, are to be coded as PP-Cable TV, while cable television real property
(e.g. buildings) should be listed as Commercial, or the approrpriate category based on the highest and best
use. Ski lifts and axed snowmaking equipment will be included as part of the Commercial listing only
on the municipal grand list (MGL). Electric utility poles, lines and xtures go into UE (Utility-Electric). Gas
distribution lines (e.g. Vermont Gas Systems and Portland Pipeline) are to be coded UO (Utility-Other). Do not
classify gas distribution lines as personal property. Incorrect classication will mean a loss in tax dollars. See
the following examples.
Listing Examples Based on Vermont Statutes and Case Law
Description Category In Education GL In Municipal GL
Electric utility lines/poles/xtures Real-UE Yes Yes
Cable TV lines and xtures PP-PP-CABLE Yes Yes unless M&E voted exempt
Ski lifts Real-Comm No Yes
Movable shelving in a store PP-M&E No Yes unless M&E voted exempt
Gas distribution lines Real-UO Yes Yes
Snowmaking equipment
Water lines and pumps Real-Comm No Yes
Movable snow guns PP-M&E No Yes unless M&E voted exempt
Real property will be appraised at fair market value. Personal property will be appraised at either fair market
value or, in those municipalities which have so chosen, at a value as provided in 32 V.S.A. § 3618.
Those towns and cities that have not chosen to exempt business inventory and/or machinery and equipment
will continue to include such property in the municipal grand list. All business personal property, including
cable television lines and xtures that are personal property, will be assessed and taxed locally unless voted
exempt by the town or city.
The following personal property is exempt under Vermont law without the need for a local vote: personal
property owned and used by churches, schools, government agencies, charitable organizations; tractors
and machinery of farmers; personal farm property used for storage of manure and designed to avoid water
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pollution; tools and implements of mechanics or farmers; motor vehicles; and personal property used in
operating a railroad, telephone, or rail transportation agency. 32 V.S.A § 3802 and § 3803.
Voted Exemptions on Personal Property—A town may tax both machinery and inventory or, by majority
vote at an annual or special meeting, a town may opt to exempt business inventory, and/or all or a portion
of the business personal property from local taxation. 32 V.S.A. § 3618, § 3848 and § 3849. If machinery and
equipment are to be taxed, the town can appraise them under two depreciation methods.
If a town elects to tax business personal property according to the procedures specied in 32 V.S.A. § 3618, the
taxpayer can choose to have an item appraised by either of the following methods which are both based on the
depreciation value used for the federal income tax:
1. At 50% of its cost during the IRS depreciation period, and at 10% thereafter, or
2. At net book value until the item has been depreciated to 10% of its cost or less, and 10% thereafter.
If a town has not made this election, the provisions of 32 V.S.A. § 3618 do not apply and business personal
property must be listed at its fair market value in the municipal grand list.
It is essential that all property to be taxed be listed in its appropriate category. Questions on specic items can
be addressed to the Property Valuation & Review District Advisors.
Subsidized Housing
For residential rental property that is subject to a housing subsidy covenant or other legal restriction, imposed
by a governmental, quasi-governmental, or public purpose entity, on rents that may be charged, fair market
value must be determined by the income approach. 32 V.S.A. § 3481 (1)(A) – B(iv).
The following elements must be used in that approach:
(A) market rents with utility allowance adjustments for the geographic area in which the property is
located, as determined by the federal oce of Housing and Urban Development;
(B) actual expenses incurred with respect to the property as provided by the property owner and certied
by an independent third party;
(C) a vacancy rate that is 50 percent of the market vacancy rate as determined by the United States Census
Bureau with local review by the Vermont Housing Finance Agency (VHFA);
(D) a capitalization rate that is typical for the geographic area - determined and published annually prior
to April 1 by the division of Property Valuation & Review after consultation with the Vermont Housing
Finance Agency;
(E) Qualied rental unit parcels are entitled to an exemption of up to 10%, based upon the number of
qualifying units. This must be certied by VHFA in the form of a certicate that states the percentage
they are entitled to. Refer to the statute 32 V.S.A. § 5404a (6).
There is a spreadsheet/calculator available on the Department of Taxes’ website that can be used to facilitate
appraisals of subsidized housing.
See our Guide to Valuation of Subsidized Housing Worksheet for instructions.
You may contact VHFA with questions about a property’s qualication status.
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The 10% exemption for qualied housing is entered in NEMRC as a Special Exemption. (Value/Exempt Tab/
Special Exemption Code 6-Qualied Housing.) The (up to) 10% special exemption amount (box below special
exemption code) should be lled in. Refer to the statute 32 V.S.A. § 5404a (6) for calculation details. This
exemption applies only to the education grand list, not the municipal. If you have questions or need assistance,
contact your PVR District Advisor.
Please see the “Subjects” section for more on subsidized housing.
Covenant Restricted Housing
For owner-occupied housing that is subject to a housing subsidy covenant, as dened in 27 V.S.A. § 610,
imposed by a governmental, quasi-governmental, or public purpose entity, that limits the price for which the
property may be sold, the housing subsidy covenant shall be deemed to cause a material decrease in the value
of the owner-occupied housing (refer to 32 V.S.A. § 3481(1)(C) for more information). This property type is to
be entered in the grand list at a value that represents 60%-70% of the fair market value of the property that is
subject to the restriction. This should be entered as a reduction on the cost sheet or property record card, and
the percentage that was applied should be recorded for data purposes on the “parcel maintenance screen” in
NEMRC.
NEMRC has a document, Covenant Housing Statute Requirement, for more information.
You may contact VHFA with questions about a property’s qualication status.
The Department of Taxes has a fact sheet for property owners regarding Covenant Restricted Housing.
Contact your District Advisor if you need further information about Covenant Restricted Housing.
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XI. Exemptions
Several properties are exempt by state or federal law from property tax. In addition, locally voted exemptions
or stabilization agreements (local agreements) can also exempt a property. The fair market value of property
that is automatically exempted by federal or state statute (A - F) is not included in the education or municipal
grand list.
All properties, including those exempt from taxation, must be included in the grand list. The listing must
include the statutory authority for the exemption, 32 V.S.A. § 4152(a)(4), (6), and the method of appraisal used
(insurance or assessment). It must also be coded so as to provide a report of the exemptions that becomes part
of the abstract of the grand list (411) that is reported to the Division of Property Valuation and Review (PVR).
For a “Guide to Exemptions,” visit PVR’s webpage at tax.vermont.gov.
Appeals from decisions of the Board of Listers regarding exemptions
The Vermont Supreme Court recently held that (1) the Board of Civil Authority (BCA) has authority to rule on
questions of tax exempt status, and (2) the taxpayer must exhaust its administrative remedies by grieving to
the listers and BCA prior to bringing a motion for declaratory judgment in superior court. Vermont College of
Fine Arts v. City of Montpelier.
Public Property Exemptions
Charitable, Religious, or Public Organizations
The listers make the initial determination of which parcels are eligible for this exemption, and their decisions
may ultimately be appealed to the Supreme Court. The Secretary of State’s Oce reports that most listers take
a hard line on marginal properties, which they feel is appropriate. The court has held, “Any exemption from
property taxation provided by statute is to be strictly construed in favor of the taxing authority as against
those who seek its benets. Any doubts that may arise as to the application of a particular tax statute should be
interpreted against the exemption.” Stowe Preparatory School, Inc. v. Town of Stowe, 124 Vt. 393 (1964).
Property Used for Education
In Vermont, noncommercial school property sequestered prior to 1941 is exempt from taxation.
Noncommercial school property sequestered after 1941 is taxed, but the assessed value is frozen at the value
when acquired and adjusted when there is a town-wide reappraisal. Towns may vote to fully exempt school
property sequestered after 1941.
The exemption has three specic requirements: 1) the property must be owned by the school; 2) the property
must be used for an educational purpose; and 3) there can be no commercial use of the property. Burr &
Burton Seminary v. Manchester, 172 Vt. 433, 439 (2001); Mountainview Community School v. City of Rutland,
2011 VT 65 ¶ 17.
The school must be the fee simple owner of the property to qualify for an exemption. The Vermont Supreme
Court has claried that ownership is a requirement of the public schools exemption even though the statute
uses the term “leased by.” Broughton v. Town of Charloe, 134 Vt. 270, 274 (1976) (overruled in part by
American Fly Fishing Museum v. Town of Manchester, 151 Vt. 103 (1989).
Personal Property and Equipment
Personal property not used for prot is exempt. That includes:
1. Household furniture, provisions, and equipment not regularly used for income producing purposes.
This exemption applies to lawn mowers and garden tractors, privately owned satellite dishes,
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XI. Exemptions
and swimming pools that are not aached to the land. 32 V.S.A. § 3802 (8); Rule 82-1 (32)3802(8) 1.
Household xtures used by bed and breakfast establishments are taxable because they are regularly
used for income producing purposes.
2. Personal wearing apparel and adornment. 32 V.S.A. § 3802(8).
3. Private and professional libraries. 32 V.S.A. § 3802(8).
4. Shrubs and plants in a commercial greenhouse. 32 V.S.A. § 3802(8).
5. Fowl and baby chickens, sheep, cale, horses, goats, swine and bees. 32 V.S.A. § 3802(8).
6. Hay and produce sucient to winter out the stock. 32 V.S.A. § 3802(8).
7. Farm property constructed and used for manure storage and designed to avoid water pollution.
32 V.S.A. § 3802(8).
8. Tractors and other machinery of a farmer, including tractor drawn equipment, milking equipment, bulk
tanks, guer cleaners, silo unloaders, and maple syrup and sugaring equipment, not used for hire or
contract purposes. 32 V.S.A. § 3802 (8); Rule 82-1 (32)3802(8)3.
9. Hand tools and implements of a farmer, mechanic, carpenter, electrician, plumber, or other
craftsperson. 32 V.S.A. § 3802 (8); Rule 82-1 (32)3802(8) 3.
10. Aircraft, automobiles, and other motor vehicles. See the sections on mobile homes and construction
equipment for more information on these two categories. 32 V.S.A. § 3802(8).
11. Money, stocks, bonds, mortgages, etc. 32 V.S.A. § 3803.
12. Personal property owned by an inhabitant of this state but situated and taxed in another state. 32 V.S.A.
§ 3802(3).
13. Personal property owned by the federal, state or municipal government. 32 V.S.A. § 3802.
14. Snowmobiles, boats and outboard motors except those held as inventory or stock in trade or used for
income purposes, and travel trailers which are not on the same campsite for at least 180 days of the 365
days preceding April 1. 32 V.S.A. § 3692. See the section on mobile homes for more details on travel
trailers.
15. Personal property in interstate transit is exempt from local taxation by federal law. If the property is
changed (processed) during the course of its stay in one place, it can be considered to have come to rest
and be taxed.
Veterans and Immediate Families of Veterans
The Department of Taxes has a fact sheet titled “Veterans and Property Taxes: What You Should Know.”
1. The rst $10,000 (may be increased to up to $40,000 by a vote of the town) of appraisal value of the
established residence of a qualifying veteran, his or her surviving spouse or child is exempt if:
a. the residence is owned in fee simple by one or jointly by a combination of them, and,
b. a wrien application for the exemption is led before May 1 of each year, and
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XI. Exemptions
c. a wrien statement has been sent by the Veteran’s Administration showing that the required compensation
or pension is being paid. 32 V.S.A. § 3802 (11).
Essentially, the exemption applies if a payment is received for:
• death compensation, or
• dependence and indemnity compensation, or
• a disability pension is paid through the Veteran’s Administration or any military department, or
• disability compensation (at least 50% disability).
Also, the widow or widower of a veteran who was qualied for the exemption at the time of his or her death
still qualies for the exemption.
The Veteran’s Administration will issue a leer to verify that a person’s disabilities would qualify the family
for the exemption, and the leer will generally mention either the property tax exemption, or include the
words “this is for the use of your listers.” If you have questions on a person’s eligibility, call Ed Burkart at the
Vermont Oce of Veterans Aairs.
If the above leer is received, listers should forward it or have the taxpayer forward it to VOVA (Vermont
Oce of Veterans Aairs). Listers will receive a list of eligible veterans from VOVA each year. VOVA contact
information:
Edward Burkart
Veteran Services Coordinator
Vermont Oce of Veterans Aairs
118 State Street
Montpelier, VT 05620-4401
Ph: 802 828-1211 / 802 828-3379
Fax: 802 828-5932
Fallout Shelters, Railroads, Telephone Business
1. Fallout shelters, built at any time in compliance with then existing standards of the Department of
Defense, Oce of Civil Defense, if they are used only as fallout shelters. 32 V.S.A. § 3802(13).
2. Property used in operating a railroad. 32 V.S.A. § 3803. Such property is taxed by the state.
3. Real and personal estate, except land and buildings, used in carrying on a telephone business or in
operating a transportation company in the state. 32 V.S.A. § 3803.
NEMRC Coding for Non-taxable Exemptions
(NEMRC Parcel Tab/Tax Status (Non-tax or State)/Nontax Statute)
1. 32 V.S.A. § 3802(1) Federal/State/County – USE FOR FEDERAL ONLY
2. 32 V.S.A. § 3802(1) Property owned by State/County Government – USE FOR STATE/COUNTY ONLY
3. 32 V.S.A. § 3802(2) Veterans org. chartered of US Congress not leased or rent VFW/American Legion
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XI. Exemptions
4. 32 V.S.A. § 3802(2) Nonprot org. chartered by US Congress. Lile League, Boy/Girl Scouts, Red Cross,
DAR
5. 32 V.S.A. § 3802(4) Hospitals (Charitable Uses)
6. 32 V.S.A. § 3802(4) Historical Societies
7. 32 V.S.A. § 3802(4): 3832(2) Public/Pious/Charitable Uses
8. 32 V.S.A. § 3802(4): 5401(10) (F) Municipally owned property in town used for public use. Includes
schools.
9. 32 V.S.A. § 3802(4): 3832(2) Churches/Parsonages
10. 32 V.S.A. § 3802(1) Libraries/public-private circulating. Can include schools.
11. 32 V.S.A. § 3802(5) Sorority/Fraternity – Masons if legislative action
12. 32 V.S.A. § 3802(5) Property acquired prior to April 1, 1941 and used by any College or University.
13. 32 V.S.A. § 3802(6) YMCA/YWCA
14. 32 V.S.A. § 3802(7) 18 VSA §5317 Cemetery Private or Town owned cemeteries
15. 32 V.S.A. § 3802(9) Agricultural Societies annual fairs
16. 32 V.S.A. § 3802(12) Pollution abatement ONLY
17. 32 V.S.A. § 3802(15) Humane Societies
18. 32 V.S.A. § 3802(16) Federally Qualied Health Center FQHC
19. 32 V.S.A. § 3802(18) Public Access to Public Waters (Greensboro & West Fairlee) ONLY
20. 32 V.S.A. § 5401(10)(G) Whey Processing
21. EMPTY
22. 32 V.S.A. § 3803(1) Lands/Buildings of Railroad/Telephone Co/Transportation Co
23. 32 V.S.A .§ 3832(7)(A) Health, Recreation & Fitness Org (Beginning 2016 GL)
24. 32 V.S.A. § 3832(7)(B); Act 73 session law Qualied Skating Rinks
25. 10 V.S.A. § 641 Vermont Housing Finance Authority VHFA
26. 16 V.S.A. § 2825 Vermont Student Assistant Corp VSAC
27. 8 V.S.A. § 4518; 8 VSA § 4590 Nonprot medical service corp or hospital service corp (BC/BS ONLY)
28. 10 V.S.A. § 570 Approved Air Pollution Treatment Facilities
29. 24 V.S.A. § 3216 Municipally owned property held for Urban renewal
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30. 24 V.S.A. § 3352 Consolidated water district in town with the district—Water District
31. 24 V.S.A. § 3683 Consolidated Sewer district in town with the district—Sewer District
32. 27 V.S.A. § 1-105;(a)2; § 1322 Common Lands
33. 16 V.S.A. § 3859 Vermont Educational and Health Bldgs Finance Agency
34. Other Session Law/Court Order (ONLY)
35. 10 V.S.A. § 236 Local Development Corporation (PILOT)
36. 32 V.S.A. § 3659 Improvements on prior acquisition of the land—Municipal Land
37. 16 App. V.S.A. ch. 1 § 15 Real and Personal Property now held or owned or hereafter acquired by the
University of Vermont and State Agricultural Colleges
XI. Exemptions
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XII. Local Agreements (Town-voted)
Vermont law provides numerous opportunities for voters to reduce or eliminate property taxes on certain
properties. The other taxpayers in the town bear the cost of tax agreements that are entered into or proposed
and voted locally. A local agreement rate is levied to collect the foregone education tax revenue. The lister’s job
is to determine the value of such property, assuming no agreement or exemption, and to list the property in
the grand list appropriately so the correct tax bills can be issued and data collected. 32 V.S.A. § 5404a.
Volunteer Fire, Rescue and Ambulance Organizations
Towns and cities may vote to exempt property owned by and used for the purposes of nonprot volunteer
re, rescue and ambulance services. If so voted, such property is also exempt from the education grand list and
the equalized education grand list. This results in the cost of funding these exemptions from the education tax
is being borne by all Vermont taxpayers.
Local Funding of Tax Agreements
The cost of some stabilization agreements and voted exemptions are borne entirely by the taxpayers in the
town or city wherein the property is located. Except for economic development agreements authorized by
the Vermont Economic Progress Council (VEPC) or the Agency of Commerce and Community Development
(ACCD), town-voted agreements reduce the education property tax bill of the taxpayer subject to the
agreement but do not reduce the education property tax liability of the town.
Example: An example of a locally funded agreement is the grange hall or Elks Club in town. The voters decide
to exempt it under 32 V.S.A § 3840. The exempted value is included in the equalized education grand list
established by Division of Property Valuation and Review ({PVR) and in the education grand list reported to
the Agency of Education, and the rest of the property owners in town fund the loss in revenue.
The following section “Local Agreements” lists the dierent types of tax agreements available and whether
they must be locally funded. It also indicates those instances where towns may request the approval from
the VEPC. There are also special provisions for properties relating to low-income housing. Approval may be
requested from the ACCD in those instances.
Check any local tax agreements in place against the chart to assist in listing such properties. Be sure your
grand list book contains all pertinent data on these properties. You must include the beginning and ending
dates, title and section of the statute enabling the agreement, and whether approval has been granted.
If you have questions on how to list exempt properties, please contact your District Advisor.
NEMRC Coding for Voted Exemptions
1. 32 V.S.A. § 3831 College/University/Fraternities acquired after 4/1/1941
2. 32 V.S.A. § 3832(1) Municipal Trust
3. 32 V.S.A. § 3840 Charitable / Fraternal Organizations
4. 24 V.S.A. § 2741 Stabilization agreements
5. 32 V.S.A. § 5401(D)(i), (ii) Utility Cables, Poles, Fixtures, Gas Dist. Lines
6. 32 V.S.A. § 3832(7)(B) Approved Skating Rinks
VERMONT DEPARTMENT OF TAXES
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7. 32 V.S.A. § 3848; 3849 Inventory / Business Personal Property
8. 32 V.S.A. § 3839 Greensboro / Fairlee / West Fairlee Lake Access
9. 32 V.S.A. § 3840; 5404(a)(4) Volunteer Fire / Rescue / Ambulance
10. (Exempt from Muni & Ed GL – special coding involved)
11. 32 V.S.A. § 5404a(5) Municipal Owned Land in Another Town Voted Prior 1/1/1998
12. 32 V.S.A. § 3832(6) Orphanage – Home or Hospital Treatment Center
13. 32 V.S.A. § 3832(7)(A) Health, Recreation & Fitness Org
Local Agreements (Voted exempt on Municipal GL only)
Owner Property Use
Statute
Title/
Section
Responsible for
Foregone Taxes
Approved by
State
College/University
Fraternal Organization
Any real property acquired after
4/1/1941
32 V.S.A. §
3831
Local Agreement
Rate
No
Municipal Corp
Property held in trust for municipal
corp.
32 V.S.A. §
3832(1)
Local Agreement
Rate
No
Charitable/Fraternal
Organization
Meeting place
32 V.S.A. §
3840
Local Agreement
Rate
No
Person/Lessees/
Bailees/Operators
Commercial/industrial—
Stabilization Agreements
24 V.S.A. §
2741
Local Agreement
Rate (or VEPC
approved)
No—Yes
if VEPC
approved
Person/Lessees/
Bailees/Operators
Alternate energy source—
Stabilization Agreements (wind/
hydroelectric/solar/geothermal)
24 V.S.A. §
2741
Local Agreement
Rate
No
Person/Lessees/
Bailees/Operators
Farm/Agricultural/Forest/Open
land—Stabilization Agreements
24 V.S.A. §
2741(a)
Local Agreement
Rate
No
Person
Renewable energy source personal
use (1st 50 kW exempt)
32 V.S.A. §
3845
Local Agreement
Rate above 1st 50 kW
No
Organization
Health/Recreational (approved
skating rinks)
32 V.S.A. §
3832(7)(B)
Local Agreement
Rate
No
Organization
Health/Recreational & Fitness
(501(c)(3))
32 V.S.A. §
3832(7)(A)
Local Agreement
Rate
No
Muni owning land in
another municipality
Lakeshore—1) Thetford in Fairlee
and West Fairlee and 2) Hardwick in
Greensboro
32 V.S.A. §
3839
Local Agreement
Rate
No
Muni owning land in
another municipality
Municipal forest, water supply, or for
other noncommercial muni purposes
32 V.S.A. §
5404a(a)(5)
Local Agreement
Rate
No
Home/Hospital/
Orphanage
Property leased to another for prot
32 V.S.A. §
3832(6)
Local Agreement
Rate
No
In NEMRC, if “Bill Education Tax to Contract Holder” is not dened in voted article, then enter “No”
XII. Local Agreements (Town-voted)
VERMONT DEPARTMENT OF TAXES
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Owner Property Use
Statute
Title/
Section
Responsible for
Foregone Taxes
Approved by
State
Volunteer Fire/
Ambulance/Rescue
Station house
32 V.S.A. §
3840
State provided town
voted exempt
In NEMRC, if “Bill Education Tax to Contract Holder” is not dened in voted article, then enter “No”
Person Farm (Barns/Silos/Farm Structures)
32 V.S.A §
3607a
Local Agreement
Rate
No
In NEMRC, if “Bill Education Tax to Contract Holder” is not dened in voted article, then enter “No”
Qualifed Veteran Home
32 V.S.A §
3802(11)
State –1st $10,000
(Automatic)
Local Agreement
Rate up to $30,000
provided town voted
exempt
N/A
In NEMRC, on the [Value Exempt] tab enter full amount of exemption
Business Personal property
32 V.S.A
§ 3848 &
§ 3849
Removed from
municipal grand list
N/A
In NEMRC, on the parcel tab set to Personal/[Value Exempt] tab enter full amount of exemption
Special Exemptions (Does not affect Municipal GL)
Owner Property Use
Statute
Title/
Section
Responsible for
Foregone Taxes
Special
Exemption
Person
Ski Lifts/Snow Making
32 V.S.A. §
5401(10)(D)
Town collects
municipal taxes
3
Person
Whey Tanks
32 V.S.A. §
5400(a)
Town collects
municipal taxes
4
Vermont Yankee
Vermont Yankee
10 V.S.A. §
6505
Town collects
municipal taxes
5
Qualied Housing
Qualied Housing (subsidized)
VHFA approved
32 V.S.A. §
3841
Town collects
municipal taxes
6
Person
Renewable energy–Solar
32 V.S.A. §
3845 &
§ 8701
Town collects
municipal taxes
7
Person
Renewable energy–Wind
32 V.S.A. §
3845
Town collects
municipal taxes
8
Person
Special Circumstances
Court
Ordered
Town collects
municipal taxes
9
In NEMRC, enter information in Education column under Special Exemptions
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XIII. Special Exemptions
Special exemptions are specic to the following items. This type of exemption is not added back to the
Education Grand List. Check value and expiration date each year to make sure they are correct.
Ski Lifts/Snow Making Equipment: Fully taxed on the Municipal Grand List.
Whey Tanks: Fully Taxed on the Municipal Grand List. 32 V.S.A. § 5400(a).
Vermont Yankee: Fully Taxed on the Municipal Grand List. 32 V.S.A. § 5400(b)
Qualied Housing: Fully Taxed on the Municipal Grand List. Must be approved by VHFA by April 1. Please
also see Subsidized Housing section in this manual. 32 V.S.A. § 5400(c).
Solar: Solar photovoltaic plants in Vermont are potentially subject to a tax on plant capacity and municipal
property tax. Depending on several factors, a plant can be subject to both taxes, one of the taxes, or be exempt
from both taxes.
Vermont imposes a Solar Energy Capacity Tax on operating solar plants with a plant capacity of 50 kW or
more. The tax is imposed at a rate of $4.00 per kW of plant capacity. Plant capacity is determined by the rated
nameplate capacity stated on the plant’s Certicate of Public Good (CPG) unless a taxpayer can demonstrate
that another method is more accurate.
Solar plants subject to the Solar Energy Capacity Tax are exempt from the education property tax. Solar plants
with a plant capacity of less than 50 kW and are (1) on a net-metered system, or (2) o grid and only provide
power to one property, are exempt from both municipal and education property taxes. Municipalities may also
vote to exempt some solar plants from municipal property tax.
Solar plants that are not exempt from municipal property tax must be valued.
Please refer to the Vermont Department of Taxes website at tax.vermont.gov for information on solar valuation
and specic instructions for solar valuation.
Use Property Valuations and Review’s (PVR’s) online inventory form to send to plant owners for information
on their solar projects prior to performing a valuation. NOTE: Inventory sheets for Group Net Metered projects
must be accompanied by a contract. 32 V.S.A. § 5400(h).
Wind: Wind projects are taxed directly by the Tax Department and are therefore not taxed via the Education
Grand List. 32 V.S.A. § 5400(g).
Court Ordered: This category of special exemption is on a special case basis. Please ask your District Advisor if
you have any questions about court ordered special exemptions.
NEMRC Coding for Special Exemptions
1. N/A
2. N/A
3. Lifts and Snow Making
4. Whey Tanks
5. Vermont Yankee
6. Qualied Housing
7. Solar
8. Wind
9. Court Ordered
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XIV. Homestead Declarations—Classication
The education tax rate levied on a property will depend on whether it is classied as homestead or as
nonhomestead property. Property is classied as a homestead when a Vermont resident les a Homestead
Declaration Claim (Form HS-122) with the Department of Taxes. All property not identied by homestead
declaration is automatically classied as “nonhomestead.” Each town and city will levy separate homestead
and nonhomestead school tax rates, applying them to all properties based on this classication system.
Property owners whose dwellings meet the denition of a Vermont homestead must le a Homestead
Declaration annually.
Homestead: A homestead is the principle dwelling owned/occupied by a Vermont resident as the individual’s
domicile. It includes the entire parcel of land surrounding the dwelling, determined without regard to any
road, river, or stream that intersects the land. It does not include buildings or improvements detached from the
home and used for business purposes. It does not include that portion of a principal dwelling used for business
purposes if the portion used for business purposes includes more than 25% of the oor space of the building.
The value of outbuildings and other improvements not used for business purposes includes more than 25%
of the oor space of the building. The value of outbuildings and other improvements not used for business
purposes are included in the value of the homestead, e.g. swimming pools, tennis courts, landscaping. See 32
V.S.A. § 5401(7) and Reg. § 1.5401(7) for details and examples.
There are no extensions available to le a Homestead Declaration and Property Tax Adjustment Claim.
In order for a property to be classied as homestead property for any tax year, the Department of Taxes must
receive a Homestead Declaration on or before the April due date for ling income tax returns (usually April
15). On this form, a resident is required to declare his or her homestead as of April 1. 32 V.S.A. § 5410. In the
absence of a declaration, the listers will classify the property as nonhomestead. If a Homestead Declaration is
led late, but by October 15, the grand list book will indicate that fact and the property tax bill will be adjusted
to reect the homestead rate, but the ler may be subject to a penalty by the town. Declaring a nonhomestead
property as a homestead will also subject the ler to a penalty.
Housesite and Housesite Value: Housesite value is not used in the tax classication system. It is used in the
state’s income sensitivity programs. A housesite is that portion of a homestead that includes the principal
dwelling and as much of the land surrounding the dwelling as is reasonably necessary for use of the dwelling
as a home. However, a housesite cannot be more than two acres per dwelling unit. In the case of multiple
dwelling units, no more than two acres is allowed per dwelling unit up to a maximum of 10 acres per parcel.
See 32 VSA § 5401(11).
It includes all improvements not used for business or rental purposes, e.g. sheds, garages, site improvements,
tennis courts, swimming pools, etc. that are located on the rst two acres.
Housesite Equalization Value (HEV): The HEV calculation is the value of the housesite on the grand list
for April 1 of the taxable year, divided by the municipality’s common level of appraisal determined by
equalization of the grand list for April 1 of the year preceding the taxable year.
Include in Housesite, if in the homestead and two-acre house area:
• Water and sewer/septic
• Tennis courts
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XIV. Homestead Declarations--Classication
• Landscaping
• Swimming pools
• Aached and detached garages/sheds not used for commercial purposes (business or rental)
Do not include in Housesite and Homestead:
• Detached buildings – if any portion is used for business/commercial purposes. (Farm=business use.)
• Principal dwelling – that portion used for business/commercial purposes (any business use over 25% is
excluded from Homestead/Housesite). All Rental portion is excluded from Homestead/Housesite.
• If a housesite is a portion of a parcel larger than two acres, value only the two-acre housesite. It should
be valued as a separate parcel. Housesite includes two acres; Homestead includes the entire parcel.
• Second (or more) dwellings and individual site improvements (sewer and water) for additional
dwellings are included in Homestead if NOT rented and are not included in the housesite value.
Income Sensitivity—Housesites
Vermont has a program to lower the tax bill for low- to moderate-income residents. Residents le for this
property tax adjustment claim annually. The amount of the benet will be related to the property owner’s
income and the value of their “housesite.” If an adjustment is given, the taxpayer’s property tax bill will reect
a credit for the adjustment, and a state payment will be made to the town for that amount.
Property owners need to le the following two forms to apply for a property tax adjustment claim. They
submit the claim electronically when they le their Vermont Income Tax return.
1. Form HS-122, Homestead Declaration and Property Tax Adjustment Claim
Section A: Homestead Declaration
Section B: Property Tax Adjustment Claim
2. Schedule HI-144, Household Income (aached to Form HS-122)
The Homestead Declaration Claim and Property Tax Adjustment Claim can be led at separate times but must
be received by the personal income tax April ling due date (not extended), to be considered timely led.
Homestead Declarations
What’s the Homestead Declaration?
The Homestead Declaration (Form HS-122) is the document a property owner uses to declare his or her
homestead to the Department of Taxes. It asks the taxpayer to provide some information from his or her
property tax bill, including the property location and the school property account number (SPAN). The
taxpayer will also be asked to provide the following:
• Percentage of business use of dwelling (if more than 25% of oor space)
• Percentage of rental use of dwelling (the actual percentage should be declared without regard to 25%
de minimis)
• Whether any detached buildings or improvements on the parcel are used for business or rental
VERMONT DEPARTMENT OF TAXES
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July 2021
purposes
• Whether the following special circumstances apply:
• Taxpayer is grantor and sole beneciary of a revocable trust that owns the property.
• Taxpayer is owner of life estate.
• Declarant resides in a dwelling owned by a related farmer.
• Taxpayer is owner of homestead property that crosses town boundaries.
When does the board of listers receive information on the homestead declarations?
Annually, beginning in February, the Tax Department will provide an electronic le of homestead declaration
information. The listers will use this information to classify properties in their grand list.
Homestead Download Directions:
Department of Taxes
New England Municipal Resource Center (NEMRC)
What is required of the board of listers with regard to this homestead declaration le?
Beginning in February (and no later than June 1), the listers will notify the Department of any parcels on the
list that they have reason to believe do not qualify as homesteads. The Department will be asking the listers to
report the following:
NR – not a town resident
NS – SPAN has no match – can’t match this to property in town
SP – Incorrect SPAN reported – property is in this town, should be SPAN ______________
NF – Non-ler – this is a primary residence, but no HS-122 led to date
The Commissioner of Taxes makes the nal determination on whether or not the property qualies as a
homestead. The listers should notify the Department if they have good reason to believe a property does not
qualify as a homestead. The Department will conduct post-ling examinations.
If a property owner les a Homestead Declaration, listers should assume the property is a homestead and
should code their grand list accordingly.
Multi-use Properties
There will be parcels that contain both homestead and nonhomestead property. Some examples are a
“Mom and Pop” store where the owners live upstairs; a dairy farm; and a parcel where one or more of the
outbuildings are used for commercial purposes.
If the taxpayer declares a percentage of the dwelling is rented or used for commercial purposes, allocate the
value of that dwelling based on the percentage declared unless you have evidence of a more appropriate
methodology. If there are improvements that are used for commercial purposes, those improvements are
classied as nonhomestead. All the land on the parcel is classied as homestead.
Here are some example scenarios to inform listing of multi-use properties:
XIV. Homestead Declarations--Classication
VERMONT DEPARTMENT OF TAXES
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July 2021
What portion of a house is declared business use when there is a child care business?
If more than 25% of the oor space is used for this business, that percentage must be declared. Taxpayers are
to report the same percentage on the homestead declaration as is appropriate on the federal schedule used
to report business use of home (unless it’s 25% or less). The IRS Publication 587 on business use of homes is
helpful.
How is a parcel that used to be a dairy farm classied? There’s a house and land and several outbuildings.
They grow and sell baled hay to the horse owners in the area. They use a tiny corner of one room for an
oce—only about 5% of the total area of the house. The tractor and related equipment, as well as the hay
that’s for sale, is kept in one of the barns. They also grow vegetables that are sold at a farm stand, along
with pies and assorted baked goods. What portion of the property should be classied as nonhomestead?
The owner should have declared that other buildings are being used for business purposes in #7 on the HS-122.
Since they use less than 25% of the house for business purposes, they don’t declare anything under #5 on the
Declaration. The listers should classify the barn used to store the hay and equipment as nonhomestead. The
rest of the property is homestead.
I have a house and about 35 acres. Along with the residence, there’s a small hunting camp and a sugarhouse
on the property. Do we classify any of my property as being used for business purposes?
If the deer camp and sugarhouse are for the owners’ use only, no. If they rent the deer camp and/or if they sell
the maple syrup (or other maple products) they produce, yes.
What about a hobby farm? For example, we have some old dairy farms in our town that have been
purchased by people who use the property for a residence but also have some horses or maybe a llama or
some sheep. I understand that a dairy farmer that makes his or her living from milk production is running
a business and therefore the farm buildings can’t be included in the homestead value (but can be enrolled
in the Use Value Appraisal Program). Can the horse barns and related outbuildings of a hobby farmer be
classied as homestead?
Yes. If the barns and other improvements are not being used for the business of farming, they can be classied
as homestead property. Cultivating crops or operating a farm for recreation or pleasure rather than a prot
is not the business of farming. Reg. § 1.5401(7)(e)(5). (These buildings cannot be enrolled in the Use Value
Appraisal Program.)
What about improvements like ponds and fencing on a farm? Are these nonhomestead?
If these improvements are used for business purposes, they cannot be included in the homestead value. A
picket fence around the main dwelling or a decorative pond close to the dwelling is homestead property.
The homestead declaration indicates whether some buildings are being used for business purposes on
a property. What if there are a lot of buildings on the property—how do I know which ones they are?
What if I suspect there are buildings being used for business purposes and the taxpayer has made no such
declaration?
That’s a judgment call the board of listers must make. In most cases, the taxpayer will be honest and
forthcoming. And in most instances, it will be obvious what buildings are being used for business purposes.
For instances where it is not obvious, or where you have good reason to believe business use should have been
declared but was not, you can request information from the property owner.
How do the listers classify the land on a property that is a homestead but also has nonhomestead use?
If there is a homestead, all the land on the parcel is to be classied as homestead. Some of the buildings and
other improvements may be nonhomestead. Consider the duplex on ve acres. The property appears on the list
of declared homesteads. The report indicates the owner has declared that 50% of the dwelling is rented. Half
the value of the dwelling would be classied as homestead. All the land would be included in the homestead
XIV. Homestead Declarations--Classication
VERMONT DEPARTMENT OF TAXES
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July 2021
value.
What about a parcel with two houses?
A. Let’s say John and Bill own the property jointly. John lives in one house and Bill lives in the other. Either
John or Bill led a homestead declaration. Assuming none of the property is being used for business purposes,
the entire property is classied as homestead. Since only one house is included in the housesite value, John or
Bill may request a Housesite Certicate for the second housesite.
B. Again, John and Bill own the property jointly. John lives in one house, Bill lives in Massachuses and the
other house is rented to a third party. John must le a homestead declaration. John’s house and the land would
be classied as homestead. The second house would be classied as nonhomestead. It is a detached building
used for business purposes. Site improvements such as water and sewer related to the rented house would also
be assessed as nonhomestead property.
C. John and Bill own the property jointly. John lives in one house. Bill lives in Massachuses and uses the
second house as a weekend getaway. John must le a homestead declaration. The entire parcel is classied
as homestead. (This diers from example B above in that the second house on the property is treated as a
detached building not used for business purposes.) The house that John lives in would be included in the
housesite. The second house would not be included.
D. Joe and Alice own a farm with two houses. They live in one house and their parents live in another. Joe and
Alice are farmers and have checked the pertinent special situation box (Residing in a dwelling owned by a
related farmer) of the HS-122. Both houses are classied as homestead property. The denition of homestead
provides that if the property is owned by a farmer and occupied by the owner’s parent, sibling, child or
grandchild, it is a homestead. Since only one house is included in the housesite, Joe and Alice’s house and 2
acres should be included in the housesite.
A family owns a house and some other buildings on 50 acres. They rent 30 acres and a barn to a nearby
farmer. Is the entire property valued as homestead?
No. The dwelling and all contiguous land is homestead. The rented barn is nonhomestead property, however.
The value of improvements relating to that barn (such as water and sewer) would also be classied as
nonhomestead property.
Ownership Issues
Can a property that’s held in trust be a homestead?
A dwelling held in trust and occupied by the beneciary of the trust as her/his principal dwelling should be
declared as a homestead only if:
• the declarant or the declarant’s spouse or civil union partner was the grantor of the trust
• the trust is revocable or became irrevocable solely by reason of the grantor’s death
• the declarant is the sole beneciary of the trust. If husband and wife or civil union partners together are
the only beneciaries, the sole beneciary requirement is met.
The declarant that qualies thus should have marked the A7-A10 Special Situations code on the HS-122 form.
Contact Taxpayer Services at (802) 828-2865 if there are questions on a specic property.
There’s a property in town that is in an estate. The owner passed away a number of years ago, and the estate
has not been seled. There’s a dwelling on the property that is occupied by the daughter of the deceased.
XIV. Homestead Declarations--Classication
VERMONT DEPARTMENT OF TAXES
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July 2021
Should she le a homestead declaration?
No. To be a homestead, the property must be owned by the occupant. The daughter is not the owner of the
property.
My uncle died in February. The estate hasn’t been seled and the house was empty on April 1. Should this
property be subject to a homestead declaration?
Yes. The administrator of the estate should le the homestead declaration. There is an exception in the case
of an individual that passed away recently leaving his or her property in an estate. For the purposes of
homestead declaration and classication, “homestead” also means a residence which was the homestead of the
decedent at the date of death, and from that date of death through the next April 1 is held by the estate and not
rented.
What about a life estate? We have cases where a parent has conveyed the property to a child but retained a
life estate interest. If the parent lives there, is it a homestead?
Yes. The owner of the life estate interest should le a homestead declaration.
What if a parent owns the property but the child lives there? Is this a homestead?
In most instances, no, because the property is not owned by the child.
There are exceptions on farm properties. If the property is owned by a farmer (a farmer is someone who makes
at last 50% of his/her gross income from the business of farming) and occupied by the owner’s parent, sibling,
child or grandchild, it is a homestead. The declarant should mark the appropriate special situation code
(Residing in a dwelling owned by a related farmer) on the homestead declaration.
There are some houses in our city on land leased from the community land trust. The land is listed
separately in the grand list under the community land trust name. Can the land be classied as homestead?
Yes, if the land is owned by a community land trust with 501(c)(3) status, the homestead value is a pro rata
share of the land upon which the dwelling sits. The community land trust determines the pro rata portion
allocable to each homeowner. If the bill is in the land trust’s name, the land trust will le a list of its properties
with the Tax Department. The Tax Department will notify the towns of parcels that qualify as homesteads.
Can a condominium and its related common land be a homestead?
Yes. If the owner occupies the unit as his or her principal dwelling, it is a homestead. The owner’s interest
in the common elements, such as contiguous land, utility buildings, swimming pool, etc., is also homestead
property.
We have a development that was organized under the Uniform Common Interest Ownership Act (UCIOA)
at 27A V.S.A. The land, tennis courts, and some other improvements are listed separately in the grand list
under the association. Is this homestead property?
No. Any unit and the common elements associated with that unit that are listed to the association, and any
portion of the common property for which the association has reserved any development right is a separate
parcel taxed to the association. Property listed to the association is to be assessed at the nonhomestead tax rate.
We have a condo unit in the city that is owned jointly by a woman and her parents. The daughter is a full-
XIV. Homestead Declarations--Classication
In any of the above situations, if you are not sure of the circumstances or believe a
declaration is incorrect, you should code the property back to the Department with the
question and let the Department investigate the issue.
VERMONT DEPARTMENT OF TAXES
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July 2021
time student at the University of Vermont and lives in the condo. Is this a homestead?
It depends. It is a homestead only if the daughter is a Vermont resident and the condo is her domicile—that is,
she moved to the state intending to make it her home indenitely, not merely her residence while she aends
school in the state.
Rule §1. 5811(11)(A)(i) sets out criteria for determining domicile. The most important determinants are
where the person’s home is, where her family is, where items important to her are kept, where her business
involvements are, where she spends time. There are a number of other factors that may be signicant in
the case of a student (location of domicile in previous years, voter registration, income tax return address
and ling, etc.). In most cases, it is a move only for the duration of the student’s time in school and does not
constitute a change in domicile.
What do the listers do if there are properties that they know are homesteads that are not on the list received
from the Department of Taxes?
The Department makes every eort to ensure Vermont residents know about the need to le the declaration.
As with any program, it’s expected that some folks will not understand the requirements. The Department
asks that the listers provide a listing of those parcels they believe are homesteads for which no HS-122 has
been led. (That’s the NF code on the electronic le return.) The Department will follow up.
A fellow built a house on a lot that was subdivided from a larger parcel. It doesn’t have a SPAN number
yet. He wants to le a homestead declaration. Can the listers give him one?
Yes. On request, the listers should provide the SPAN number for the parcel upon receiving the Housesite
Certicate request.
Dene Parcel—Contiguous
A homestead includes the entire parcel of land surrounding the dwelling, determined without regard to any
road, river or stream that intersects the land. 32 V.S.A. §5401(7). Parcel means “all contiguous land in the same
ownership together with all improvements thereon.” 32 V.S.A. §4152(3).
There’s a town resident who owns an antique shop and a house. The antique shop is on 1.5 acres on one
side of the road. The house is on 5 acres directly across the road. Although technically this is one parcel,
we’ve been treating it like two parcels in our grand list. Can we leave it as two parcels?
No. It must be assigned one SPAN. The denition of parcel must be strictly adhered to. This is one parcel in
your grand list. The house and all the land are classied as homestead and the value of the antique shop is
classied as nonhomestead.
The listers may determine that the highest and best use in the above example is as two separate properties.
That is, the highest monetary return would most likely be realized by selling these properties separately as a
residential property with 5 acres and as a commercial property with 1.5 acres. If that is the case, appraise this
as two separate parcels and then combine the value in the grand list book.
The parcel denition is for tax purposes only. It is only determinative of how the property is to be listed for
property tax purposes—not for how it is to be appraised.
We have some houses that are right on the town line. They own contiguous land in the next town. How
does the land in the next town get classied as homestead?
A town line does not change the classication of contiguous property. The entire holding is homestead
property. The property owner must le two homestead declarations, however—one for each town, since
the towns will have assigned separate SPANs. There’s a special situations box (homestead property crosses
XIV. Homestead Declarations--Classication
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town boundaries) on the HS-122 Homestead Declaration Claim that the declarant should mark to indicate the
property crosses town lines. That’s to help the listers in the town with no house on their listing to understand
why a declaration is being made.
What if there are two deeds and the owners are the same people, but the names are wrien a lile
dierently? I know of a couple of contiguous lots owned by the same man. One of the deeds says John L.
Lile. The deed for the other lot says John Lile. I know it’s the same person. Should this be treated as one
parcel?
Yes. If it’s the same person, it’s one parcel.
What if the property is separated by an interstate highway or other road? Is it still considered one parcel?
Yes. The homestead denition specically says “without regard to any road that intersects the land.”
While it is one parcel for grand list and tax classication purposes, the listers should be careful when
appraising these parcels, however. Even though this meets the administrative denition of “parcel” you will
need to consider the highest and best use of property and its access. You might have a farm parcel with 200
acres on one side of I-91 and 35 acres on the other side. If the farmer can’t easily access that 35 acres, you
would probably want to grade it very dierently than the 200 acres. The grade might be lower because it can’t
be practically farmed. On the other hand, the grade may be higher if its highest and best use is for residential
development rather than farming.
Domicile Issues
It is expected that some people will le a homestead declaration even though they don’t live in town, or fail
to le a homestead declaration when they are residents, to get a lower tax rate. The town or city will receive a
listing of all properties for which a homestead declaration has been led (annually beginning in February from
the Department).
Homestead Download directions:
From Department of Taxes Website
From NEMRC
If the listers have good reason to believe the property is not correctly classied, they should notify the
Department of Taxes as part of the annual June 1 electronic report to the Department. The Department will
initially allow the declaration as led. Based on information from towns, the Department follows-up on
domicile issues by contacting the person who declared the homestead (or failed to do so) and requesting
information pertinent to the person’s domicile status. The listers’ input is key to ensuring equitable taxation
statewide.
The listers aren’t expected to make decisions regarding domicile issues. The listers’ input is only one tool the
Department has to determine whether a person is domiciled in Vermont. If listers have good reason to believe
it’s not correctly classied, report back to the Department list accordingly. Use your best judgment and leave it
to the Department to follow up.
Penalties—Late Filers and Non-lers
There are penalties imposed when homestead declarations are led late, and when a person fails to make the
proper declaration. If the declaration is untimely-led with the Department (by April 15 and October 15—
check dates each year for variance), the declaration will be accepted and the town notied. The grand list book
must contain a eld indicating the homestead declaration has been received and a notation if it was untimely-
led. The education tax bill generated from this grand list entry will be adjusted by the Town to reect the
XIV. Homestead Declarations--Classication
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classication as homestead. That bill will also include a penalty equal to 1% of the education tax if it was
untimely-led.
Municipalities have discretion as to whether they will impose a penalty. 32 V.S.A. § 5410(g) provides them
when a municipality receives a late-led notice of declaration “the municipality shall issue a corrected tax bill
that may include a penalty.” Whether to impose a penalty and the amount of the penalty are determined by
the municipal legislative body. The Department has a guide* that explains education property tax guidelines
(for treasurers and collectors).
Don’t the listers have to go through the errors and omissions process to make a change to the grand list
book after it is led?
Yes. But homestead declaration changes are a simpler process than most changes. The approval of the
selectboard is not required.
When real or personal estate is omied from the grand list by mistake, or an obvious error is
found, the listers, with the approval of the selectboard, before December 31, may supply such
omissions or correct such errors and make a certicate thereon of the fact; provided, however, the
listers may make a correction resulting from the ling or rescission of a homestead declaration
without approval of the selectboard. 32 V.S.A. § 4261.
The certicate to be aached to the grand list book need only be signed by the listers. A sample certicate
appears on the following page.
* Due to an update, the guide is not online at the time of printing. Contact PVR at (802) 828-5860 for help.
XIV. Homestead Declarations--Classication
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E&O Certicate – Classication Change Only – Selectboard approval not necessary
The board of listers of the Town of _____________________________ is hereby supplying the following
changes that are the result of the ling or rescission of a homestead declaration. Specically:
Owner SPAN Change
_______________________________________________________________________________________________
_________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________
Date: __________________ _____________________________, Lister
_____________________________, Lister
______________________________, Lister
I, _________________________, town clerk of ________________________ certify receipt of these changes.
This certicate will be aached to or recorded in the grand list of ________________________
for tax year ____________.
Date: ___________________________________, Town Clerk
XIV. Homestead Declarations--Classication
SAMPLE
VERMONT DEPARTMENT OF TAXES
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If the declaration is led with the Department after the October deadline, the declaration will be accepted
and the town notied. The town cannot amend the grand list book, however. The grand list book will
change only if the homestead declaration was received at the Department on or before the October
deadline.
The Department will provide listers with updated information on declarations received on a regular basis.
Corrected tax bills can then be issued on those properties. No reduction in taxes can be made because of a
homestead declaration led after the October deadline. If, however, the homestead tax rate in your town
is higher than the nonhomestead tax rate, the owner will be billed for the additional amount plus interest
at the rate the town charges for delinquent taxes. Such bill will also include a penalty (1% of the education
tax) for late ling (penalty is 100% if the Department has determined the late ling was result of fraud).
Taxpayer Appeals per 32 VSA § 5410(j):
A taxpayer may appeal a determination of domicile for purposes of a homestead declaration
or an assessment of fraud penalty under this section to the Commissioner, in the same
manner as an appeal under chapter 151 of this title. A taxpayer may appeal an assessment
of any other penalty under this section to the listers within 14 days after the date of mailing
of notice of the penalty, and from the listers to the Board of Civil Authority and thereafter
to the courts, in the same manner as an appraisal appeal under chapter 131 of this title. The
legislative body of a municipality shall have authority in cases of hardship to abate all or
any portion of a penalty appealable to the listers under this section and any tax, penalty, and
interest arising out of a corrected property classication under this section; and shall state in
detail in writing the reasons for its grant or denial of the requested abatement. The legislative
body may delegate this abatement authority to the Board of Civil Authority or the board
of abatement for the municipality. Requests for abatement shall be made to the municipal
treasurer or other person designated to collect current taxes, and that person shall forward
all requests, with his or her recommendation, to the body authorized to grant or deny
abatement.
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XV. Current Use Program (Use Value Appraisal)
Introduction
Vermont’s Current Use Program, which is also known as the Use Value Appraisal Program, is designed to
“encourage and assist the maintenance of Vermont’s productive agricultural and forest land; to encourage
and assist in the conservation and preservation for future productive use and for the protection of natural
ecological systems; 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; to achieve more equitable
taxation for undeveloped lands; to encourage and assist in the preservation and enhancement of Vermont’s
scenic natural resources; and to enable the citizens of Vermont to plan its orderly growth in the face of
increasing development pressures in the interests of the public health, safety and welfare.” 32 VSA, §3751.
Simply put, owners of eligible property may enroll it in the program. In return for keeping the property in
agricultural, forest and conservation use, the owner is taxed on the value of that property for those uses, rather
than the value of the property at its fair market value (highest and best use). If enrolled property ceases to be
eligible, it reverts to fair market value assessment.
Allocating Value for Enrolled Parcels
The Department’s website provides information on Current Use.
The Department has a fact sheet on Current Use and Property Valuation.
Current Use Agriculture Discontinuances
Current Use continues with the process of removing many parcels enrolled in the agricultural program as a
result of the landowner not ling their annual Agricultural Certication as required by the legislature. They
are processed through myVTax. You will be alerted via email when you have LUCT (Land Use Change Tax/
Penalty) value requests. Please log into your myVTax account as soon as possible, where you will be asked to
determine a value for the land being removed from the program. Please be mindful that by statute,
listers/assessors have thirty (30) days to submit the completed form to the Director 32 VSA 3757(b).
If you need more information about how to get into myVTax, how to value the land, or how to notify the
taxpayer you should call your district advisor directly or (802) 828-6887 or (802) 828-5860 x3 for the District
Advisor helpline. If you need help with access to myVTax or password, you should call IT at (802) 828-6844.
Resources
myVTax: Guides
Guide: Land Developed or Withdrawn from the Current Use Program: Determining Fair Market Value
Template: Leer Explaining Fair Market Value
Flowchart: How to Value Land Excluded or Withdrawn from Current Use
Remember to send a copy of form LV-314 to the taxpayer along with the Leer of Explanation that prints along
with the LV-314. If the value is then appealed, let Current Use sta know so a hold is put on billing.
The appeals process for land use change tax/penalty is the same as all other grand list value appeals.
Please also be aware that these discontinuances may trigger the need to issue a revised tax bill.
XV. Current Use Program (Use Value Appraisal)
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Data Transfer
An electronic le containing data on current use parcels is made available to the listers by April 15 annually.
The listers must provide the contributory values and make any necessary corrections to the data and return
the electronic le to the Division of Property Valuation and Review (PVR). Once the le has been received and
certied, the data can be uploaded to your grand list data base. The transfer of data back and forth between
listers and the Current Use Program will be ongoing. Please check for downloads regularly, process the
information and send it back as soon as possible. The process can be very time consuming for the Current Use
Program, so the sooner you provide information, the sooner the les can be completed and certied.
Changes in Ownership or Use
The owner of enrolled property is required by 32 V.S.A. § 3757 to notify both the director of PVR and the local
assessing ocials of the following:
• the development of the land, as dened in 32 V.S.A. § 3752;
• any change or discontinuance of use of the classied land so that it is no longer eligible for use value
appraisal or is eligible for a dierent use value appraisal under this subchapter; and
• any transfer of ownership.
Dierent scenarios require dierent actions. The responsibility in most instances is that of the property owner.
The listers and assessors can help in directing the property owners on what action to take and can also help by
informing PVR of any unreported conveyances, development, or changes in use.
Conveyance of Entire Parcel—If the parcel is to continue in current use, the new owner must submit an
application and, if requested, new maps and documentation relative to eligibility. New maps are needed in
those cases where the previously led maps do not meet the present mapping standards. The owner must
contact the county forester in those cases where forestland subject to a forest management plan is involved. An
updated management plan may be required. The new application is to ensure the parcel still meets eligibility
requirements and to provide a clear and visible lien.
Failure by the new owner to le a new application and related documentation will result in the parcel being
discontinued. The lien remains on the property until such time as the land use change tax is paid. No Land Use
Change Tax is due, however, unless the property is “developed.”
Conveyance of Part of a Parcel—If the buyer wishes to continue enrollment in current use, he or she must
submit an application, updated maps, and if requested, documentation relative to eligibility. The owner must
contact the county forester in those cases where forestland subject to a forest management plan is involved. An
updated management plan may be required. The seller must do the same if he or she wishes to continue the
property retained in current use.
Development—If enrolled property is “developed,” it will be discontinued from current use, and Land Use
Change Tax will be due the state of Vermont. “Development” is dened in 32 V.S.A. § 3752(5). It most often
occurs when 1) dwellings are built or, in the case of mobile homes, placed on enrolled land, or 2) when a part
of an enrolled parcel is conveyed and one or more of the resulting parcels contains fewer than 25 acres of land.
Cuing timber contrary to the approved forest management plan also constitutes development.
When the owner develops current use land, the owner must notify both the director of PVR and the local
assessing ocials when development takes place. After the land is removed from current use, it is appraised
and listed at its full fair market value.
XV. Current Use Program (Use Value Appraisal)
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Appeals
Appeals relating to the Current Use Program are governed by 32 V.S.A. § 3758. If an owner is aggrieved by the
director’s determination that his or her property is to be discontinued or by the director’s determination that
development has occurred, the owner must rst appeal to the director. The appeal must be in writing and be
received in the oce of the director within 30 days of the date the determination being appealed was issued.
The fair market value of parcels enrolled in the Current Use Program may be grieved to the listers the same as
other parcels in town.
Owners whose land has been removed from current use due to cuing contrary to a management plan must
appeal to the Commissioner of Forests, Parks and Recreation.
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XVI. How To Sign In to Tools Required by PVR
Sign Up for Listserv
The Listserv is an email distribution list provided by the Division of Property Valuation and Review (PVR).
There is no cost to sign up, nor are there any “fees” or costs of any kind to the town. All that is required is
access to the internet and the creation of an account, unique to each community, based upon the email address
on le at PVR for each town.
Although it is “managed” by the PVR IT team, it is not monitored, censored or controlled by PVR in any way.
The Listserv is increasingly used by PVR as a communication channel to distribute important information.
We encourage you to check it regularly for announcements on upcoming educational conferences and classes,
changes to processes, procedures or statutes, improvements to the Department’s website, and myriad other
pieces of information that are important for the assessment community to know.
How to be added to the Listserv
To be added to the Comp 60 Listserv, submit a request to the Department’s IT Helpdesk by phone at
(802) 828-0428 or email T[email protected].
Sign Up for myVTax
What is myVTax? MyVTax is the Department’s online tax software program used by municipal ocials,
buyers, sellers, and their aorneys. Listers with their own myVTax account have timely access to Property
Transfer Tax Return information and the lister verication process for the Equalization Study. MyVTax is
useful for reviewing sales and gathering information. Listers are required to use myVTax to enter Land
Use Change Tax valuation. Find reference guides, video links, and a complete set of instructions on the
Department’s website.
Get Started with eCUSE
What is eCuse? Online Current Use, also known as eCuse, is designed to employ the eciencies and speed of
electronic processing for Current Use applications. This new system allows property owners to submit online
applications to the Current Use Program.
As listers, you will need to look up the status of Current Use applications in your town. This important
feature will help you to understand where specic applications are in the overall process and will assist you
with property owner inquiries. You will be able to see application details necessary to your work and print
applications. Town clerks use the system to process applications and insert recording information.
Set up your eCuse account.
Learn how navigate and use eCuse by reading the Municipal Service User Guide.
TIP: We strongly recommend using your municipal email address when carrying out ocial business.
Avoid using your personal email address whenever possible. This provides beer security and public record
compliance. It also reduces your personal liability in accessing condential information.
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Subjects Section
This section goes into more depth about certain topics than the main section of the Lister Manual and/or
contains Questions & Answers. Topics are in alphabetical order by title and topic.
A
Abatement
Acreage/Parcel Size
Appeals
B
Backing Up Files
Bank Appraisals
Barns and Other Farm Structures
Board of Civil Authority (BCA)
Building Permits (Lack of)
C
Cable
CAMA
Campers/Campgrounds
Cell Towers
Certicate of Housesite Value
Comparable Sales
Conservation Easements
Contact Information/Lister
Resources
Contiguous Property
Current Use
D
District Advisors
E
eCuse
Education—Listers/Assessors
Exemptions
Exemptions—Veterans (see Veterans
Exemptions)
F
Federal Property
Fiber Optics
Foreclosures
Fuel Storage Tanks
Furnaces, Outdoor (See Outdoor)
G
Gravel Pits
Greenhouses
Grievance
H
HS-122 / Homesteads
HUD Properties
I
Improvements to Property
Incompatible Oces
Inspecting Property
Interest
Inventory Forms
L
Land Schedules
Laws & Legislation
Life Estates
Lister Resources (see Contact
Information)
Listers (Lack of)
M
Marshall & Swift Cost System
Methane Digesters
Mobile Homes
Mortgage Companies
N
Name/Ownership Changes
O
Open Meeting Law
Orchard Lands
Outdoor furnaces
P
PILOT (State) Building Values
Property Transfers
Public Posting
Public Records
Q
Qualied Housing
R
Railroad Property
Reappraisals
S
Sale Date
Sheds
Solar Power
State Hearing Ocers
State-Owned Property
Subdivided Land
Subsidized Rental Housing (see
Qualied Housing)
Sugarhouses
T
Tax Credit
Taxing the Wrong Person
Town-Owned Property
Treehouses
Trusts/Trustees
Two Towns
U
Unlanded Building
Use Value Change
Utilities
V
Veterans’ Exemptions
Vermont Housing Finance Agency
(VHFA)
Y
Yurts
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Subjects Section
ABATEMENT
The Oce of the Vermont Secretary of State oers a booklet called “About Abatement” that contains useful
information. Abatement means essentially forgiving a tax liability with no penalty.
“About Abatement” describes what abatement is and how the process works. Included are case studies and
abatement law. Please read and share this booklet with those who have questions about the abatement process.
If there are further questions after reading this booklet, contact your District Advisor or town aorney.
Abatement of past (or current) year taxes is a voluntary process and is largely governed by state statutes:
The Board of Civil Authority is required to consider requests, but is not mandated to act upon a request. Each
town looks at a request for abatement dierently with respect to the shared responsibility of the taxpayer in
the process. The town has a responsibility to list property for taxation, in accordance with statute, and at the
same time the taxpayer is expected to be aware of what they have for property as well as the characteristics of
the property. The taxpayer has an opportunity annually to “correct” the record at the town level and/or make
town ocials aware of any discrepancies. It is up to the board to weigh the shared responsibilities and make
their determination. Some other states use the term “abatement” to mean “grievance,” so you may have some
out-of-state owners who are understandably confused by the dierence in terminology.
It is important to know that abatement deals with taxes only and does not change the grand list.
ACREAGE/PARCEL SIZE
Q: What is the most accurate choice for determining parcel size?
A: When you have discrepancies in various documents relating to parcel size, it is best to rely on the following
documents:
• A recorded survey by a qualied surveyor is almost always the most accurate and reliable evidence
• Up-to-date property tax maps
• Deed
Use the best information available.
APPEALS
The Vermont Secretary of State’s Oce has a handbook for property owners called “Are You Appealing?”
* It is a good resource that explains the process, and one that you should read and refer property owners to
when they request information about appealing. * not available at time of this printing. See sos.vermont.gov/
municipal-division/laws-resources.
A handbook on Property Tax Assessment Appeals is also available on the Secretary of State’s web site.
Q: Can a new owner appeal the value of a property purchased after April 1?
A: Because values are established as of April 1 and the tax bills are issued to the owner of record as of April
1, only the seller can appeal. However, the seller can designate the new owner as agent to the seller. As agent,
the buyer can participate in the grievance by acting on behalf of the owner of record. The seller can submit a
signed leer to the Board of Listers stating that he or she wishes to designate the buyer as his or her agent in
the grievance process.
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Subjects Section
Q: How do we process a value change from a tax appeal loss?
A: A copy of the decision goes into the listers’ le. Aach a copy to the back of the appeal year’s grand list.
Change your GL value for the current year and going forward. The decision will stand for the appeal year and
the next two years UNLESS you do a reappraisal. If they make improvements, you can add the improvements
but it would be wise to leave the other aspects of the valuation in line with the court or hearing ocer’s
decision. Accounting tip: calculate the amount of overpayment (plus interest if applicable) and then issue that
as a credit against the next tax bill. 32 V.S.A. § 4469
Q: Is the entire property considered upon appeal?
A: Yes: 32 V.S.A. § 4467 Valuation of the Entire Property
The Board of Appraisers (State Appraiser eective Jan. 1, 1996) shall review the listed valuation of an entire
contiguous parcel of land together with all buildings and xtures thereon. The erroneous valuation of a
portion of the property by the board of civil authority or listers shall not be disturbed where the listed value of
the property as a whole is correct.
BACKING UP FILES
It is essential that you back up your data on a regular basis! Computer failure is not uncommon and can create
major headaches and extra work if your data has not been protected. Make sure to back up all databases to
more than one location (on-site and o-site). It is a good idea to keep a back-up log stating what was backed
up and when. Below is a link to instructions from NEMRC:
hp://www.nemrc.com/support/general/Backing_up_NEMRC_Data/
BANK APPRAISALS
Q: What is the best way to handle bank appraisals when they are presented as evidence of value ?
A: It is a good idea to look at the appraisal to gauge its validity for use in the grievance process. Here are some
suggestions for determining whether the appraisal contains helpful information:
• Read the entire appraisal report and make note of items of interest.
• Run through the math to see if the adjustments are legitimate and correctly applied.
• Review the comparable sales used. Are they the best ones or are there beer ones? Look for items about the
property that you may not have been aware of.
• Remember: a bank appraisal (also called fee appraisal) was not wrien or intended for tax valuation
purposes. There may be wording in the appraisal that would invalidate its appropriateness for grievance
purposes (such as extenuating circumstances, conditions, assumptions, and past or future valuation dates).
The property owner may not have obtained permission from the appraiser to use the appraisal in a grievance
situation. Fee appraisals can be good tools as a piece of the valuation puzzle, but you will need to conrm
that the data and methods are correct. They should neither be automatically discounted nor automatically
accepted.
BARNS AND OTHER FARM STRUCTURES
32 V.S.A. § 3607a. Barns, silos, and other farm structures: Barns, silos, sugarhouses, and bunkers used for silage
storage shall be entered in the grand list at fair market value as dened in subdivision 32 V.S.A. § 3481(1) of
this title, except that by a majority vote of those present and voting at an annual or special meeting warned
for the purpose, a municipality may elect to exempt, or to appraise at less than fair market value, barns,
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Subjects Section
silos, sugarhouses, and bunkers used for silage storage located within the municipality which are owned or
leased by a farmer as dened in subdivision 32 V.S.A. § 3752(7) of this title and used by the farmer as part of a
farming operation. An election to exempt or to reduce appraisals made under this section shall remain in eect
for future tax years until amended or repealed by a similar vote of the municipality.
Q: Are barns Homestead property?
A homestead does not include buildings or improvements detached from the home and used for business
purposes. Conversely, a detached building or improvement, such as a shed, garage, or swimming pool, that is
located on the parcel and not leased or used commercially is homestead property. Whether an improvement
qualies as part of a homestead depends upon how the improvement is used as opposed to what the
improvement is. A barn that is used to park the dwelling owner’s car may be homestead property, whereas a
barn that is used as a gift shop is not.
Example: Johnson operates a dairy farm on 100 acres. There are 4 structures on the land – a barn, a shed for
storing farm equipment, Johnson’s dwelling and a dwelling Johnson provides to his farmhand. Johnson’s
dwelling and the 100 acres are homestead property. The barn, shed and farmhand dwelling are nonhomestead
property since they are used for the business purpose of operating a farm.
BOARD OF CIVIL AUTHORITY (BCA)
Q: How can listers help to educate the BCA?
A: It is not the listers’ job to teach the Board of Civil Authority to get up-to-speed on the valuation process
but it is sometimes advisable and/or necessary for towns to provide resources for the BCA. The Vermont
League of Cities and Towns (VLCT) is a good place to start. Some towns have utilized the League’s aorneys
in presenting BCA members with a seminar to explain the valuation and grievance process in order to help
ensure fairness and equity.
Q: Can property owners submit new evidence at BCA hearings?
A: Yes, they don’t have to use any of the evidence submied during lister level grievance if they don’t want to.
Each level of appeal is considered to be de novo (new).
Q: Is the BCA required to drive by and inspect comparable properties?
A: The BCA is required to visit the subject property only. A drive by or inspection of the comparable properties
is recommended but not required.
Q: A taxpayer has demanded that we hold a hearing on a Saturday. Do we have to adhere to this request?
A: As a quasi-judicial hearing board, you control your schedule and are under no obligation to hold a hearing
on a Saturday. However, it would be good to accommodate the appellant’s request if the board members can
do so without it creating a burden.
BUILDING PERMITS
Q: Without building permits, how do I nd out about who is working on their home?
A: Knowing when to inspect a property for improvements can be a challenge when the town doesn’t require
building permits. Interior changes are the most challenging, as most towns don’t require permits for interior
improvements that don’t aect the square footage or footprint of the building. Here are a few suggestions on
nding out about work being done:
• Be observant as you drive around town. Look for clues such as construction dumpsters and construction
vehicles.
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Subjects Section
• Listen for discussions about construction projects around town.
• Real estate ads will often list recent improvements.
• At least annually, drive all of your roads to observe new projects: decks, outbuildings, additions, pools, etc.
CABLE
Q: What is the lowest amount cable can be depreciated?
A: Cable companies are only allowed to depreciate their inventory down to 40%.
Q: Why do we update cable company property every year?
A: Cable property tends to have changes every year – extending lines, improvements, etc. Bring their values up
to depreciated cost each year. You will receive inventory documents from the state annually in May. Contact
your District Advisor if you need help.
CAMA
Q: How does Computer Assisted Mass Appraisal work in valuing a property?
A: The state supported CAMA software was developed by Microsolve, a company that was chosen through
a competitive bid process in 1998 to be the standard appraisal software in the state. The software was made
available to towns to use at their discretion based on a contractual agreement between the State and NEMRC.
NEMRC later purchased the CAMA software from Microsolve and incorporated the program into their grand
list platform. The basis for the CAMA program is cost data purchased from a company called Marshall &
Swift, a nationally recognized leader in cost models for mass appraisal programs throughout the country
and is used widely for virtually all mass appraisal purposes. The data is periodically updated by M&S and
represents cost data that is adjusted locally for time & location for a town’s most recent reappraisal.
When applying a mass appraisal model to a universe of properties in a reappraisal seing it is important to use
consistent data, not only in the year the reappraisal is completed but also going forward so that all properties
are reviewed through the same lens; the idea is that by using consistent data from one timeframe, future
valuations will remain in line with the standards established at the time of the reappraisal. For example, a
house built new in 2011 and assessed as a part of a 2013 reappraisal would have the same cost factors as those
that would be applied to a hypothetical new house constructed in 2015. The assessment should be similar,
assuming similar homes. The overarching goal in any mass appraisal model is consistency and equity; relying
on a mass appraisal model from the same time period should accomplish this goal.
All markets are local and each town examines their market and adjusts their tables accordingly to account for
the cost to build and the Fair Market Value in their town. The state facilitates the use of the grand list & CAMA
software through a partnership with NEMRC but does not inuence local decisions about value. The cost
model and adjustments that lead to fair market value are local decisions and are based on the dynamics of the
local market.
The town should have in their possession the Marshall & Swift manuals from the time period in question and
should be able to show where the data comes from. The manuals closely follow the computer models, though
some adjustments to the base numbers for local costs can be expected and are represented on your cost sheet
or property record card by what is known as time & location factors (which are developed based on property
sales) to adjust the national tables for local conditions.
CAMPERS/CAMPGROUNDS
Q: The owner of a campground refuses to give us a list of the camper owners. Can we tax the campground
owner instead, since she owns the land?
A: There is no statute stating you can list the campers to the campground owner. However, there is a statute
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that states you will list all improvements thereon;
Title 32 : Taxation And Finance
Chapter 129 : Grand Tax Lists
Subchapter 4 : Grand List Of Town
§ 4152. Contents
(a) When completed, the grand list of a town shall be in such form as the Director prescribes and shall contain
such information as the Director prescribes, including:
(1) In alphabetical order, the name of each real property owner and each owner of taxable personal property;
(2) The last known mailing address of all such owners;
(3) A brief description of each parcel of taxable real estate in the town. "Parcel" means all contiguous land in
the same ownership, together with all improvements thereon.
CELL TOWERS
Q: Do we appraise cell towers?
A: Here is some cell tower information that will help answer this question:
Valuation of Solar Arrays and Cell Towers
hps://tax.vermont.gov/sites/tax/les/documents/PS-1303.pdf
Cell Tower Decision Tree
hps://tax.vermont.gov/sites/tax/les/documents/IG-1302.pdf
CERTIFICATE OF HOUSESITE VALUE
hps://tax.vermont.gov/sites/tax/les/documents/PVR-315.pdf
hps://tax.vermont.gov/sites/tax/les/documents/PVR-316.pdf
Q: When do I use these forms?
A: These forms are used for properties under construction or purchased after April 1, upon request by the
homeowner who will occupy that dwelling by April 1 of the following year.
The housesite value represents what was there on April 1, which may include an allocation of value (ex.
Subdivision).
COMPARABLE SALES
Q: How can I nd comparable sales?
A: Here are some suggestions:
• Listers will be able to access sales statewide using the Vermont Department of Taxes VTax system.
• Ask local real estate agents and check out real estate web sites, some have sold properties lists.
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• Ask other listers, especially when looking for unique properties such as gravel pits.
• Check out the Northern New England Real Estate Network (MLS) at hps://www.neren.com/. To begin a
search on properties, click “Search” at the top of the homepage.
• Stay up-to-date on real estate ads and publications. Become familiar with what is for sale in your market
area. That way when sales occur, you may already be familiar with the property.
• Property transfer web sites. This site contains information from some towns: www.cohosting.com/
vtportal.
• There are commercial sites that oer PTTR information subscriptions (search for Vermont Property
Transfers).
• Try doing a web search. There are a number of real estate websites that provide useful information.
• Appraisers probably frequent your oce—ask them for suggestions, as they usually have a good amount
of comparable sales data.
• Some towns have assessment information and property record cards online. Look at town websites in your
market area for on-line information. This can be a quick way to check out property aspects to see if specic
sold properties have similar features to your subject property.
Q: Do comparable sales have to be from this town?
A: When looking for potential comparable sales for grievance and reappraisal purposes, you may not nd
suitable recent sales within your town. It is okay to use sales from nearby towns as long as that town’s real
estate market is similar to yours. Look for sales from nearby neighborhoods that are similar in appeal and
value to your subject property. The more unique the property, the farther you will likely have to search to nd
suitable comparables.
CONSERVATION EASEMENTS
Q: Where can I get guidance on valuing conservation easements?
A: The document, Conservation Easements and Property Valuation, that will help:
hps://tax.vermont.gov/sites/tax/les/documents/FS-1102.pdf
CONTACT INFORMATION/LISTER RESOURCES
District Advisors
Your District Advisor (DA) will strive to answer your questions. In most cases, contact your DA rst with
questions and concerns.
District Advisor List/Contact Information: hp://tax.vermont.gov/content/district-advisor-list
Email: [email protected]
District Advisor Help Desk: (802) 828-6887
District Advisors are assigned specic days to answer the Help Desk phone. If your DA is unavailable,
call the Help Desk with immediate questions: (802) 828-5860 from 7:45 a.m. to 4:30 p.m. Monday through
Friday
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PVR’s IT HelpDesk in Montpelier
Phone: (802) 828-0428
Email: TAX.IT[email protected]
The IT Help Desk sta can help you with passwords, downloads, electronic 411 submissions, signing up for
and troubleshooting eCuse, myVTax, and computer questions.
Property Valuation and Review
Website: tax.vermont.gov/municipal-ocials
Phone: (802) 828-5860
Email: [email protected]
Mailing Address:
Vermont Department of Taxes
Property Valuation and Review
133 State Street
Montpelier, VT 05633-1401
Current Use Program
Website: tax.vermont.gov/property-owners/current-use
Phone: (802) 828-5860, option 1 (Current Use)
Towns A-G: (802) 828-6633
Towns H-Q: (802) 828-6637
Towns R-W: (802) 828-6636
Discontinuance/Appeals: (802) 828-6634
Email: [email protected]
NEMRC (New England Municipal Resource Center)
NEMRC oers training and seminars to support their software (NEMRC & MicroSolve CAMA).
They have tutorials and instructions on their website: hp://www.nemrc.com. Click “Support (FAQ).”
Technical and use support is available to towns with service contracts: (800) 387-1110.
Vermont League of Cities & Towns
Website: www.vlct.org
Phone: (802) 229-9111
• Public records law
• Weekly legislative reports
• Resources: municipal law; index to municipal law; municipal handbooks
Vermont Secretary of State’s Oce
Website: sos.vermont.gov
The Municipal Center includes guides, records, directories, and municipal law.
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CONTIGUOUS PROPERTY
Q: What constitutes contiguous property?
A: Contiguous property is any land under the same ownership that has a connection point (also see the main
section of this handbook). For example, if someone owns land on two sides of the road and the property
would have a connection point if the road were not there, it is contiguous. This applies to land with railways,
interstate roads, streams, rivers, etc., running through it. Even if the land would only touch at a narrow point,
it is contiguous. If there is a lake in between two parcels it would depend upon the size of the lake, but the
land would likely not be considered contiguous.
COST SHEETS
Q: What is a cost sheet?
A: It is an assessment breakdown of the value of a property. Data is entered via a mass appraisal model
costing system.
CURRENT USE
Q: Do we need to send notices for annual Advisory Board Use Value changes?
A: No. Current Use property owners are advised of annual Advisory Board use value changes via a leer from
the director of Property Valuation & Review.
Statutory language:
32 V.S.A. § 4111 Abstracts of individual lists
(e) No notice shall be required for a change solely to reect a new use value set by the Current Use Advisory
Board or the adjustment of that value by the common level of appraisal.
eCUSE
Q: Why do we need eCuse?
A: eCuse is a place where listers can see the Current Use applications and their status in the pipeline.
These applications will allow you to learn what changes are coming and can help facilitate quicker
CU le exchanges and lead to 100% certication earlier. For town clerks, this program is where they
check for new applications and those that need recording.
If you need help with your eCuse password, please contact the helpdesk (802) 828-6844.
DISTRICT ADVISORS
Q: When does it make sense to schedule a visit with our District Advisor?
A: You can schedule a visit anytime you need help that can’t be easily accomplished by phone.
Annual times where when you would typically meet include: before and after a reappraisal (before in
order to discuss questions and concerns, along with geing specic information and advise and after
to discuss what worked, what went wrong, and to discuss your suggestions regarding the reappraisal
process); March/April to meet with new listers to discuss training needs; May, to go over utilities
valuation as needed; June-September for Equalization Study meetings to go over a number of items;
and January/February if you are appealing your Equalization Study results.
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Q: I’m a new lister – how do I contact my District Advisor?
A: Here is a link to the DA list, along with their assigned towns: District Advisors & Territories
Please leave a message for your district advisor. However, if you need immediate assistance and are
unable to wait for a return call please call (802) 828-5860, select option 3 and ask to speak to another
district advisor if one is available.
Help Desk & DA numbers
PVR GENERAL HELP LINE (802) 828-5860 ext. 3
IT HELP DESK (802) 828-6844
DISTRICT ADVISOR HELP LINE (802) 828-6887
EDUCATION—LISTERS/ASSESSORS
Q: If a town votes to eliminate listers, can they still get education grant money from the state?
A: In 2016, towns did not receive lister education funds, but the legislature changed the funding to provide
training to listers and assessors at no charge.
EXEMPTIONS
Q: Do properties leased by a nonprot corporation or town qualify for a tax exemption?
A: No. Privately held property needs to be owned by a nonprot entity in order to pass qualication for
exemption, even if a lease limits the property to public use.
FEDERAL PROPERTY
Q: Do state and federal properties require a Change of Appraisal Notice when values change?
A: No. Federally owned property is tax exempt and does not require a Change of Appraisal Notice.
FIBER OBTICS
Q: Are ber optics taxable?
A: Yes, ber optics are taxable and would be listed on the utility’s inventory form.
FORECLOSURES
Q: Which foreclosure transfers require Property Transfer Tax Returns?
A: A Property Transfer Tax Return (PTTR) is required when there is a “transfer by deed of title to property.”
See 32 V.S.A. § 9602. The timing of the transfer of title depends upon the type of foreclosure action:
1. Strict Foreclosure—Generally, in a strict foreclosure, title transfers with the judgment order, and a PTTR
must be led when the foreclosure judgment is led. A court may order a sale in a strict foreclosure
proceeding. 12 V.S.A. § 4941.
2. Court-Ordered “Judicial” Sale—If the mortgage includes a power-of-sale clause, either party may request
that the court order the sale of the property. 12 V.S.A 4945(b). In this type of foreclosure, transfer of title
occurs when the conrmation order is led in the land records and a PTTR is required at that time.
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3. Non-judicial Foreclosure Sale—Under 12 V.S.A. § 4961, a mortgagee may “upon breach of mortgage
condition, foreclose upon the property without rst commencing a foreclosure action or obtaining a
foreclosure decree. . . . No sale under and by virtue of a non-judicial power of sale shall be valid and
eectual to foreclose the mortgage unless the conditions of this subchapter are complied with.”
FUEL STORAGE TANKS
Q: Are fuel storage tanks real or personal/trade xture property?
A: It depends. Trade xtures are classied as the personal property of the owner installing them; they retain
their chael (an object of movable quality) character regardless of annexation. Elements for a trade xture are:
• Annexed to realty by the tenant
• Enables the tenant to carry on the trade or enterprise addressed by the tenancy contract
• Can be removed without material or permanent injury to the freehold (see Powell’s Treatise on Property,
Section 57.06).
• There exists an intention that the annexation was not meant to be permanent.
• 32 V.S.A. § 3618. Business personal property
(1) "Business personal property" means tangible personal property of a depreciable nature used or held for use
in any trade, business, professional practice, transaction, activity, or occupation conducted for prot including
all furniture and xtures, apparatus, tools, implements, books, machines, boats, construction devices, and
all personal property used or intended to be used for the production, processing, fabrication, assembling,
handling, or transportation of anything of value, or for the production, transmission, control, or disposition of
power, energy, heat, light, water, or waste. "Business personal property" does not include inventory, or goods
and chaels so axed to real property as to have become part thereof, and which are therefore not severable or
removable without material injury to the real property, nor does it include poles, lines, and xtures which are
taxable under sections 32 V.S.A. § 3620 and 32 V.S.A. § 3659 of this title.
So if a fuel storage tank is owned by the owner of the real estate and is axed in a permanent manner to the
real estate, it is real property.
If it is owned by a lessor to the owner of the real estate, it could be either real or personal property, depending
upon the intention to make it permanent. (If the lease says the lessor has the right to remove the tank, then the
tank keeps its chael nature and is not real estate, unless you have just cause to believe the lease was wrien in
such a manner strictly to avoid taxation and that there is no intention of removing the tank in the future.) If the
lessor has a history of removing tanks from lessees’ properties under certain circumstances, you should treat
the tank as personal property.
GRAVEL PITS
Q. How should we value gravel pits?
A: This topic was discussed among listers and assessors on the listserv. Here are some ideas from the emails:
• Send an email to Comp60 ListServe to ask for specic advice and comparable sales.
• Consider hiring a commercial appraiser who has gravel/batch plant experience.
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• Grade the land comparable to commercial properties in town.
• Keep track of gravel pit sales and get as much information about them as you can from Act 250
Vermont site:
GREENHOUSES
Q. How should we treat greenhouse valuation?
A. The Department has a technical bulletin regarding greenhouses. See hp://tax.vermont.gov/sites/tax/les/
documents/TB21.pdf. Depending on the whether or not the greenhouse can be removed from the property, it is
either business personal property or included in the real property assessment.
GRIEVANCE
Q: What is the process for a new buyer to become an agent for the seller of a property in the grievance
process?
A: A signed leer detailing permission and submied to the listers would be sucient.
Q: Can we make house visits the night of grievance hearings?
A: Yes, as long as it doesn’t mean that you are not in the oce during the times you posted for grievance.
Q: If someone walks into our oce on grievance day without previous notice, do we have to hear them?
A: Yes, provided that they give you a wrien and signed piece of paper stating that they want to grieve. You
will be obligated to schedule a time to hear them.
Q: How do I change the lister names on the Result of Grievance Notice?
A: Go to NEMRC’s main menu. Choose: I – Installation/Listers Tab. Make the changes and they will
automatically transfer to the notice.
Q: If a lister wants to grieve their own assessment can they still sit in on other grievances?
A: Listers can grieve their own assessment. There is no tax law provision to prohibit them from siing in
on other grievances. However, as a general rule, they should not (it can be easily construed as a conict of
interest). If a lister is unhappy with his/her own assessment, our “Best Practice” advice to towns is to have the
other two listers look at the property ahead of time. If they concur that adjustments are justied, then they can
make agreed-upon changes and perhaps avoid an ocial grievance.
HS-122/HOMESTEADS
The Department has a fact sheet on the Homestead Declaration:
hps://tax.vermont.gov/sites/tax/les/documents/FS-1051.pdf
Fact sheet on the Property Tax Credit:
hps://tax.vermont.gov/sites/tax/les/documents/FS-1038.pdf
Q: Can the property owner appeal a homestead penalty to the listers?
A: The town’s selectboard determines whether or not to assess the homestead penalty in general. They can
vote to decide whether to apply a penalty or not. For selective or hardship cases when the penalty has not been
voted out, the Listers should pass the issue on to the Board of Civil Authority. It is not the lister’s responsibility
to determine who is responsible for paying the homestead penalty.
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Q: Do Homestead declaration changes need to go through Errors & Omissions after the grand list has been
led?
A: No. See 32 V.S.A § 4261. On correcting omissions from grand list, listers may make corrections resulting
from the ling or rescission of a homestead declaration without the approval of the selectboard. (Amended
2005, No. 38, § 14, e. June 2, 2005.) Listers should record these changes in the grand list using the appropriate
certicate.
Q: Do the 183 days minimum occupation to meet the Homestead denition need to be consecutive? Do they
need to be living in the home on April 1 each year?
A: No and No.
32 V.S.A. § 5401. Denitions
(A) "Homestead" means the principal dwelling and parcel of land surrounding the dwelling, owned and
occupied by a resident individual as the individual's domicile or owned and fully leased on April 1, provided
the property is not leased for more than 182 days out of the calendar year, or for purposes of the renter
property tax adjustment under subsection 6066(b) of this title, rented and occupied by a resident individual as
the individual's domicile.
HUD PROPERTIES
HUD-owned properties are non-taxable. Housing & Urban Development is a branch of the U.S. Government.
hp://legislature.vermont.gov/statutes/section/32/125/03802
hps://www.hud.gov/
IMPROVEMENTS TO PROPERTY
Q. Are extensive fencing and landscaping valuable improvements? How about tennis courts and in-ground
swimming pools?
A: You will need to look at your town’s real estate market to answer these questions. The answer can be
established with your hired reappraisal rm at the time of a reappraisal.
Fencing may add lile value in certain circumstances, but be desirable in Horsetown. A tennis court or in-
ground swimming pool may have limited to no appeal in Ruraltown, but could have enhanced market value
in Resorown. In some cases, buyers may pay less for a property with a swimming pool if they don’t want
the pool and they would have to pay to remove it. It also may depend upon the type of property. Higher-end
home buyers may expect fencing and a pool, whereas modest home buyers would not want to pay more for
these features. Get to know your market area. Paired sales analysis and inquiring with knowledgeable, local
real estate sales people are two ways of learning what specic improvements are worth in your market area.
INCOMPATIBLE OFFICES
Q: Can spouses be listers on the same board?
A: In Vermont, spouses can work together as listers on the same board. However, if either grieves, the third
lister and/or a paid consultant should be responsible for addressing and determining the grievance outcome,
not either spouse.
Q: Can listers also be on the selectboard?
A: No. See 17 V.S.A. § 2647. Incompatible oces. See the Vermont League of Cities and Towns chart of
incompatible oces on the next page.
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Can a person hold
both of these
ofces?
Auditor
Select
person
School
Director
Town
Manager
Town
Treas.
Election
Ofcial &
Candidate
(Australian
Ballot)
Election
Ofcial &
Candidate
(Not
Australian
Ballot)
School
District
Employee
1
Spouse
Auditor
-- N N N N No, if opposed N Y
3
Selectperson
N -- Y N N N N Y --
School Director
N Y -- N N No, if opposed N N --
Town Manager
N N N -- N N N Y --
Town Treasurer
N N N N -- No, if opposed N Y --
Town Clerk
N Y Y N Y Y N Y --
Asst. Town Clerk
N Y Y N Depends
2
N/A N/A Y --
Town Agent
Y N N N Y No, if opposed N Y --
First Constable
N N N N Y Y N Y --
Road Commissioner
N Y Y N Y No, if opposed N Y --
Cemetery
Commissioner
Y Y Y N N No, if opposed N Y --
Trustee of Public
Funds
N Y Y N Y No, if opposed N Y --
Lister
Y N Y N Y No, if opposed Y Y --
Assessor
Y N Y N Y Y Y Y --
Tax Collector,
Current
N N N Y Y No, if opposed N Y --
Tax Collector,
Delinquent
N N N Y Y No, if opposed N Y --
Trustee of Public
Funds
N Y Y N Y No, if opposed N Y --
Grand Juror
Y Y Y N Y N N Y --
Inspector of
Elections
Y Y Y N Y Y N Y --
Justice of the
Peace
Y Y Y N Y Y N Y --
1
Within same supervisory union.
2
See 24 V.S.A. § 1622.
3
A spouse of a town clerk, town treasurer, selectperson, trustee of public funds, town manager, water commissioner, sewer
system commissioner, sewer disposal commissioner, rst constable, road commissioner, collector of current or delinquent
taxes, or town district school director, or any person who assists any of these ofcers may not be an auditor. 17 V.S.A. § 2647.
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INSPECTING PROPERTY
Q: Do listers need to obtain consent prior to inspecting real estate?
A: Listers absolutely need to obtain permission if: 1) they have been put on notice by the owner (in person or
via a communication) and 2) the property is legally posted with “No Trespassing” signage.
Although 32 V.S.A. § 4041 may appear to grant you authority to inspect a property, the prudent thing to do
is to obtain permission from the property owner before aempting to enter upon and inspect real estate. Do
not inspect the interior of a dwelling (or any other building that would commonly or reasonably be locked –
whether or not it is locked) without appropriate permission.
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VERMONT DEPARTMENT OF TAXES
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INTEREST
Q: Is a town obligated to pay interest on tax credit from an appeal?
A: When the appraised value of a property on appeal has been reduced, a taxpayer is entitled to a credit
against the tax for the next ensuing tax year and for succeeding years if necessary to use up the amount of the
credit. If the town has voted to collect interest on overdue taxes, a taxpayer will also become entitled to interest
at that same rate on his/her overpayment.
INVENTORY FORMS
Q: Are inventory forms public records?
A: No. Inventory forms, both utility and personal property, are not for public viewing.
LAND SCHEDULES
The term “Land Schedule” refers to a list of land values identied by size typically used by assessors as a
basis of land values. The values are derived from sales data in the town’s real estate market area at the time of
ad valorem reappraisal. The tables are developed to allow for uniform valuation of all property on an equal
basis. This information is embedded in the computer’s CAMA cost system and is used as a basis for land
values when costing property. The schedule is often modied by signicant characteristics such as location,
topography, accessibility, and availability of utilities to establish individual lot values for assessment purposes.
LAWS AND LEGISLATION
The Vermont League of Cities & Towns Municipal Assistance Center (MAC) provides municipal ocials and
employees with the education, training, and professional assistance they need to fulll their statutory duties.
Sta members will answer your questions. Also see legislature.vermont.gov.
LIFE ESTATES
Q: How should life estates be listed in the Grand List?
A: It is up to the listers. The Division of Property Valuation & Review recommends listing to the owner of the
life estate. This makes homestead declarations easier when the life estate owner lives on the property.
LISTERS (LACK OF)
Q: Can fewer than three listers sign the grand list?
A: Vermont law requires a town to have three listers (unless additional listers are elected or the town has voted
to eliminate the oce of lister pursuant to 17 V.S.A. § 2651(c). 17 V.S.A. § 2649(a)(1)(B). Vermont law requires
each lister to sign the grand list and swear that it is a true statement of all real estate and taxable personal
estate. 32 V.S.A. § 4151.
If only one lister signs the grand list, the town faces the risk that a taxpayer will argue that the grand list is
invalid. 32 V.S.A. § 4262 allows listers to legalize a defective or invalid grand list (including when they fail to
subscribe and aach the oath required in section 4151) on or before February 15 of the following year.
If there are fewer than three listers, the selectboard shall ll the vacancy/vacancies until the next election.
24 V.S.A. § 963. If the board of listers falls below a majority and the selectboard is unable to nd a person or
persons to appoint as lister(s), it can appoint an assessor to perform the listers’ duties until the next annual
meeting. 17 V.S.A. § 2651c(a).
Be aware that a town could alter these requirements in its charter, so the town’s charter should be consulted as
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well.
Another scenario: if there have been changes made to the values of any parcels in town and those changes
have been made without the knowledge and support of the other listers, to the point where the listers have
reservations about signing the grand list, then it is incumbent upon the listers to resolve this. If necessary, they
may need to change the values back to their original levels. Refusing to sign a grand list because of changes
made by another lister does not relieve a lister of his or her responsibility for the grand list product, nor from
the responsibility for upholding the oath of oce that was sworn to when elected.
MARSHALL & SWIFT COST SYSTEM
Q: When should I update my Marshall & Swift books?
A: You should update when a reappraisal is completed. At the time of reappraisal, the Marshall & Swift cost
information will be updated in your computer assisted mass appraisal (CAMA) les. The Marshall & Swift
books (residential and commercial) should reect those new cost tables in your computer. Do not upgrade
your books in between reappraisals. If you do and you use updated gures (for new construction, for
example), you will be applying values inequitably
Q: How do we order our Marshall & Swift books at the time of reappraisal?
A: It is up to the town to order and get billed for the books. You will want to discuss the book version/cost
tables needed with your reappraisal contractor prior to ordering. Contact NEMRC directly to order the books.
METHANE DIGESTERS
Q: Do methane digesters qualify as building under Current Use?
A: The Department has a technical bulletin addressing this question at hp://tax.vermont.gov/sites/tax/les/
documents/TB65.pdf
MOBILE HOMES
Q: Is there a place to get mobile home values?
A: NADA books work for travel trailers. Mobile homes should go through your CAMA system.
Q: Does an owner of a mobile home still qualify for an adjustment payment if he/she owns the land
beneath it under dierent ownership?
A: No, they may qualify for a property tax adjustment on the moble home, but not the land.
MORTGAGE COMPANIES
Q: If a mortgage company overpays the taxes, who is entitled to the refund – the property owner or the
mortgage company?
A: The taxpayer is the person legally responsible for paying the taxes regardless of who actually does pay. The
mortgage company is paying the taxes on behalf of the owner. The homeowner is ultimately liable for the tax
owed – therefore, the homeowner is the taxpayer and any refund should be paid to the homeowner.
NAME/OWNERSHIP CHANGES
Q: A Current Use notication has two added names, trustees of an estate. Can I just add their names to the
property by reason of this change or do I need a PTTR or name change form to add the names to the GL?
A: The CU application in itself is not a reason to make a listing change. A deed or other appropriate instrument
recorded at the Town Clerk’s oce is what you should look for to justify an ownership/name change in your
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Grand List.
Q: What is required to change an ownership name after a marriage?
A: A warranty deed & PTTR (property transfer tax return) OR a Certicate of Name Change (available at many
town oces) and a recording fee to get it into the land records.
Here is a link to a sample form from the Vermont Municipal Clerks’ and Treasurers’ Association:
Sample Name Change Form
OPEN MEETING LAW
The Vermont League of Cities and Towns (VLCT) has general information about the open meeting law:
Quick Guide to Vermont’s Open Meeting Law: hp://www.vlct.org/vermont-local-government/
vermont-open-meeting-law/
Public Records: hps://www.vlct.org/resource/public-records-act-faq
VLCT has Frequently Asked Questions on Open Meeting Law:
hps://www.vlct.org/open-meeting-law-faqs
The Vermont Secretary of State’s Oce has information on open meetings and government transparency:
hps://sos.vermont.gov/municipal-division/
Rules of Procedure for Municipal Boards, Commissions,amd Commiees:
hps://www.vlct.org/resource/vlct-model-rules-procedure-municipal-boards-commissions-and-commiees
ORCHARD LANDS
32 V.S.A. § 3607. Orchard lands
When the owner of land, cultivated or uncultivated, has planted the same to fruit trees, such land shall
continue to be set in the list at the same valuation as similar land not so planted, but which is used for general
agricultural purposes. Increase in the valuation of such land for taxation shall not be made for 15 years on
account of trees growing thereon.
OUTDOOR FURNACES
Q: How would I enter an outdoor wood heating furnace in CAMA?
A: Enter it by name and rate, although be aware that it may not warrant additional consideration beyond a
heating system, which is part of the base calculations. What does your market show?
PILOT (STATE) BUILDING VALUES
Q: Should state-owned buildings be listed as assessment or insurance value?
A: Insurance values are the basis for PILOT payment, as determined by the state. Towns can list the properties
at insurance or assessed values.
PROPERTY TRANSFERS
Q: Can two or more non-contiguous parcels (separate parcel IDs) be conveyed with one Property Transfer
Tax Return (PTTR)?
A: Yes, if they are on one deed then there is one transfer return. Use the value and category from the larger
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parcel when lling out your portion of the PTTR.
PUBLIC POSTING
Q: What constitutes a public place for posting the “Notice to Taxpayers” document?
A: This notice needs to be posted in 5 public places (the Town Clerk’s oce plus 4 others). The public places
do not all have to be in your town, they can include neighboring areas that residents of your town frequent.
The following examples are considered to be public places:
• Town Clerk’s Oce (always post there)
• Outdoor public bulletin boards
• Grocery store bulletin board
• Library
• Post oce
• Gas station
• Town website
PUBLIC RECORDS
Q: Are things like draft cost sheets and listers’ notes considered to be public record?
A: The only things in listers’ les not considered public record are personal property information, income and
expense information, and inventory forms. Temporary CAMA information (such as in a reappraisal, when a
Property Record Card is still subject to change) is subject to the public records law.
If you provide someone with information that is subject to change, you should note that it is subject to change
on their copy of the documents. (To cover your bases you may want to photocopy what you give to people so
you have proof that you wrote “Subject to Change” on their copy.)
Q: Where can I get information about public records?
A: The Vermont Secretary of State’s Oce is a good resource: hps://sos.vermont.gov/municipal-division/
public-records/.
Also, here is something from the Vermont League of Cities & Towns: Public Records:
hps://www.vlct.org/resource/public-records-act-faq
QUALIFIED HOUSING
Q: Does a qualied housing building automatically retain its exemption after a transfer to a new owner?
A: No. See tax stabilization agreements; tax increment nancing districts 32 VSA §5404a.
Q: What should we do if qualied housing owners do not le?
A: Qualied Housing owners are obligated to le each year. If they do not, the value should be changed
appropriately with a Change of Appraisal Notice being sent.
Q: Should subsidized rental housing (Qualied Housing) values be adjusted annually?
A: The subsidized housing valuation process was crafted to allow the value, once determined, to remain the
same until and unless the town reappraised all properties. However, there is nothing to prohibit a taxpayer
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from requesting a new appraisal of the property. Further, the property can and likely should be revalued if
there is a substantial change, such as additional units, accelerated depreciation, etc.
Q. What should we do if we have reason to suspect an owner of Qualied Housing is including capital
expenses in their annual expenses total?
A: You can request a breakdown of the expenses. If they refuse and it goes to grievance, you can request the
information again in the grievance process. The Tax Department has a technical bulletin that may be of help:
hp://tax.vermont.gov/sites/tax/les/documents/TB32.pdf
RAILROAD PROPERTY
Q: How should we account for railroad property?
A: Railroad property is non-taxable (Code 22). 32 VSA §3803(1). Railroad corporations pay a separate tax based
on track mileage.
REAPPRAISALS
Q: We are a reappraisal town and don’t want to duplicate our eorts. Should we process Current Use
downloads now, even though we don’t have land size changes, value changes, etc. yet from the reappraisal?
A: When there is a subdivision of property or name change of property that is enrolled in Current Use, often
the Current Use Program does not have this information until it is provided by the listers/assessor. Once the
Current Use Program is aware of these changes, they are required to write a leer to the property owners to
request a new application, change of ownership application, etc. and the own is aorded a minimum of 30
days to report back.
This process may take much longer than 30 days because of mapping needs, forester review, Current Use
review, etc. Because of this timeline, it is crucial for Current Use to nd out as early as possible about any of
these changes. For reappraisal towns, this means that the values might not be correct yet, but at a minimum if
you can complete the le for acreages, names, and updated SPANS, it will start the rest of the timeline moving
sooner
SALE DATE
Q: Is the “Sale Date” the recording date or the closing date?
A: PVR recommends using the recording date, although towns should determine which they will use and
remain consistent with that method. One disadvantage of using the recorded date is that a sale could have
closed years ago and has only recently been recorded. Calling that the sale date would be misleading, and the
market could have changes signicantly between the closing and recording dates.
SHEDS
Q: Are sheds on skids (or other movable buildings) taxable or personal property?
A: There are a few things to consider when making this determination:
• Intent—is it the intent of the owner to leave it and utilize it for the property’s benet indenitely?
• Is it annexed to the real estate (foundation or other aachment)?
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• Is it adapted to the realty by site work and/or landscaping?
If the answer is “yes” to any of the above, the shed is likely real property for taxation purposes unless:
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• There is compelling evidence (more than verbal assertion) that the owner is merely storing the shed there
temporarily.
• The property owner is a business, in which case it may be a trade xture and, therefore, personal property.
(Even when the owner is a business, there is a good likelihood that the shed may be real property, based on
the intent and utilization.)
• If the listers have agreed not to list sheds of a certain size and this one ts those parameters.
SOLAR POWER
Q: Can the town assess the land underneath solar projects more than it is/was currently charging it as a
farm eld?
A: The short answer is yes, they can. The key question is “Should they?” If the assessing ocials determine
that the highest and best use of that particular site is no longer farming but instead an ideal site for a solar
project—and they have data to support an increased valuation—then they would be within their duties to
adjust the land value for a dierent use.
The fairness question is another issue. Have they also done increases on other solar sites within the town
or is a certain project being singled out for “special” treatment? What is the data that supports an increased
valuation? Many questions come into play on this subject and research is an important aspect in determining
the answer.
STATE HEARING OFFICERS
Q: Can property owners submit new evidence at state-level hearings?
A: Yes, they don’t have to use any of the evidence submied during lister level grievance if they don’t want to.
Each level of appeal is considered to be “de-novo” (new).
STATE-OWNED PROPERTY
Q: Do state & federal properties require a Change of Appraisal Notice when values change?
A: No. See Determination of assessed values; appeal at 32 V.S.A. § 3704.
SUBDIVIDED LAND
Q: We are doing a reappraisal. How should we value parcels that have permied subdivisions or contiguous
parcels that are legally subdivided?
A: A reappraisal is an appropriate time to set up standards for placing value on all properties, especially the
type mentioned. It is important to keep in mind all new values should be at—but not above— market value.
This is true for undeveloped, yet permied lots in developments or adjoining lots owned in common. Here are
some guidelines we apply and try to follow during a reappraisal:
• Stick with the land schedule developed and used for other properties in town. We generally use one non-
waterfront residential land schedule and adjust for location (neighborhood multiplier) and then each
parcel is further adjusted for the specic characteristics (grade) as a site and residual (bulk) land. When
applied correctly, this system is exible (technically elastic in economic terms) enough to address nearly all
variations in parcels of land (whether improved or not) in a town from the same land schedule.
• Each town must determine at what point Highest and Best Use is realized in their market and apply site
values in accordance with that research and determination.
SUGARHOUSES
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Q: Are sugarhouses tax exempt?
A: There is no statute exempting sugarhouses. However, they can be enrolled and exempted in the Current
Use Program as qualifying farm buildings for qualied farmers.
TAX CREDIT
Q: Upon winning a tax appeal, should the taxpayer receive credit for the prior year’s taxes?
A: No. An appeal by a taxpayer of the listed valuation is a challenge of the current year’s tax bill, assuming
they appealed this year.
TAXING THE WRONG PERSON
Q: Our town has erroneously been collecting taxes on a parcel that transferred to a dierent owner over a
year ago. The transfer was confusing and the parcel didn’t get processed correctly. What should we do?
A: First, it should be noted that it is the taxpayer’s responsibility to keep track of their holdings and
assessments annually; there is a shared responsibility on the part of the listers and taxpayers to review an
assessment. Assuming the grand list books have been closed out each year with a Certicate of No Appeals or
Suits Pending form (Form 4155), there is no recourse for the taxpayer to go back in time to recoup payments.
Similarly, the time for Errors and Omissions would have passed on December 30. The only possibly recourse
for the taxpayer is to request a Board of Abatement hearing. They could argue that a mistake was made and
ask for compensation for taxes paid in error. Many Boards of Abatement are reluctant to go back further than
one year, as anything more than that could create a potential opening for any number of claims.
TOWN-OWNED PROPERTY
Q: If a town purchases property after April 1, how do they handle taxes?
A: The property is taxable as of April 1 and needs to stay listed as such for that grand list year. The town
should base their tax rate on not owning the property. The town can abate the taxes on the property if they
choose.
TREEHOUSES
Q: Are treehouses taxable?
A: It depends. Would the average buyer pay more for that property because of the tree house? How big is it?
Is it of substantial quality—enough to be of value? What can it be used for? Look at all of the factors about this
particular structure and make a determination. Treehouses vary greatly in substance, so consider the previous
questions when making a determination.
It might help to do some research online to get an idea of how much companies are charging to build similar
treehouses. If a structure is homemade using low-cost materials and is open and small, it likely has no market
value. If, however, it is a nished, fully-functioning structure that can be rented for income, you will want to
place a value on it.
TRUSTS/TRUSTEES
Q: When there is a new trustee of a trust, what paperwork is required?
A: The trustee, and not the trust, is technically the owner of the property. For current use purposes, we require
a new application to the Current Use Program when a new trustee is added. See question #7 on the “Applying
for the Current Use Program: FAQs for Trusts and Trustees” at hp://tax.vermont.gov/sites/tax/les/
documents/FS-1063.pdf. The new trustee should probably also le a notice of change in trustee in the land
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records to document the new trustee. If or when the property is ever conveyed, a Notice of Change in Trustee
or Certicate of Trust is usually led in the land records to document the new trustee’s authority to convey the
property.
TWO TOWNS
Q: Who determines the allocation of a property/building is in more than one town?
A: Discuss this with the listers in the other town(s) to determine percentages.
UNLANDED BUILDING
Q: Person A built a camp (or house) on Person B’s land. Person B just told us he is giving the camp to Person
C. Does this transaction need a property transfer return led?
A: Yes, a Property Transfer Tax Return needs to be led, along with a bill of sale or a deed to evidence the
transfer of the structure (whether it be a camp, dwelling or mobile home, etc.). If it is axed to the underlying
land (aached to utilities, not likely to be moved) it becomes part of the land and is considered real property,
even though the land is not owned by the same party.
USE VALUE CHANGE
Q: Is a change to the use value a grievable item?
A: If you change nothing on your use value records and the only thing that is dierent in a new year is the
Common Level of Appraisal and the current use value, you are not obligated to send a Change of Allocation
Notice. Some listers send notices to all property owners in the Current Use Program for the use value change
because it shows an updated taxability, and then the property owners can’t come back to the listers and say
they weren’t notied. Property owners receive use value change notices from the Current Use Program.
Allocation can be grieved, and the property owner needs to receive a notice when you change allocation
amounts.
UTILITIES
Q: Why do we update electric utilities every year?
A: Utilities tend to have changes every year—extending lines, improvements, etc. Bring their values up to fair
market value and apply the Common Level of Appraisal each year. You will receive inventory documents from
the state annually in May. Contact your District Advisor if you need help.
VETERANS’ EXEMPTIONS
The Department has a fact sheet, “Veterans and Property Taxes: What You Should Know,” at
hps://tax.vermont.gov/sites/tax/les/documents/FS-1003.pdf
Q: A property is owned by a veteran on April 1 sells on April 12. Can the veteran’s exemption be removed
since it is prior to the May 1 deadline?
A: If a veteran owns property and resided there on April 1, the exemption stays and can be dealt with at
closing if the parties choose. If a veteran sells after April 1, they cannot get the exemption on a dierent
property that year—the exemption is for the property they owned and resided in on April 1.
Q: A veteran just had a rental house built on his property. How does this aect his exemption amount?
A: It should not aect his exemption amount. Example: If your town does a $40,000 exemption and a veteran’s
land and trailer was worth $38,000—the new house value will not be taken into account to go beyond the
$38,000 exemption. The exemption would remain at the cap of $38,000.
VERMONT HOUSING FINANCE AGENCY (VHFA)
Q: I recently got a leer in the mail from the Vermont Housing Finance Agency. It states that a house it now
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owns is exempt from real estate taxes for the upcoming tax year. Is this a valid statement?
A: Yes. See the relevant statute, Title 10: Conservation And Development, Chapter 25: Vermont Housing
Finance Agency (10 V.S.A. § 641).
YURTS
Q: How should we value yurts?
A: This topic was discussed among listers and assessors on the listserv. Here are some ideas from the emails:
• Look online at dierent yurt websites (there are a lot in the western part of the U.S.). One example is Pacic
Yurts at hp://www.yurts.com.
• Look at Marshall & Swift for a guideline. See the “Useful Information” section in the residential handbook.
• Some yurts come in close to camp prices, and one recommendation is to use cabin rates for interior nish.
• Factors having a large impact on value: Cover material, roong, nish-extent and quality, platform.
• Remember to consider construction costs when considering kit pricing.
• These structures will likely depreciate faster than a home.
• Yurt sales are uncommon but try asking for comparable sales information on the listserv.
Online Resources
Assessment Toolbox
• hp://tax.vermont.gov/municipal-ocials/listers-and-assessors/assessing-property
Current Use Property - Assessing & Allocating
• hps://tax.vermont.gov/municipal-ocials/listers-and-assessors/assessing-property/current-use
Documents & Forms
• hps://tax.vermont.gov/municipal-ocials/resources
Exempt properties
• hps://tax.vermont.gov/business-and-corp/nonprots/property-tax
• hps://tax.vermont.gov/content/form-pvr-317
Insurance value reporting
• hps://tax.vermont.gov/sites/tax/les/documents/FS-1061.pdf
• hps://tax.vermont.gov/content/form-cr-001
Lister Handbook
• hps://tax.vermont.gov/sites/tax/les/documents/GB-1143.pdf
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Lister Task List
• hps://tax.vermont.gov/sites/tax/les/documents/lister_calendar.pdf
myVTax and eCuse
• hps://tax.vermont.gov/municipal-ocials/listers-and-assessors
NEMRC Grand List Support
• hp://www.nemrc.com/support/grandList
NEMRC MicroSolve CAMA/APEX Support
• hp://www.nemrc.com/support/cama
Open Meeting Law
• hps://www.vlct.org/resource/quick-guide-vermonts-open-meeting-law
• hps://www.vlct.org/resource/open-meeting-law-faqs
• hps://www.vlct.org/end-covid-19-state-emergency-faqs
(See question on temporary laws passed to deal with COVID-19 that expire Dec. 31, 2021)
Property Tax Appeals
• hps://sos.vermont.gov/media/wjwkmnd2/tax_appeal_handbook_2007.pdf
• hps://www.vlct.org/municipal-assistance/municipal-topics/property-tax-appeals
Public Records
• VLCT Public Records Act FAQ
• Uniform Charges Schedule - Vermont Secretary of State
