Code of Vermont Rules › Agency 10 - AGENCY OF ADMINISTRATION › Sub-Agency 062 - CURRENT USE ADVISORY BOARD › Chapter 001 - RULES FOR IMPLEMENTING USE VALUE APPRAISAL OF AGRICULTURAL AND FOREST LAND IN VERMONT › Section 10 062 001 - RULES FOR IMPLEMENTING USE VALUE APPRAISAL OF AGRICULTURAL AND FOREST LAND IN VERMONT

Current through June, 2024
These rules are prepared pursuant to the authority vested in
				  the Current Use Advisory Board under 32 V.S.A., Chapter 124, section
				  1.
PURPOSE
The purpose of the use value appraisal law is to encourage
				  and assist in the maintenance of Vermont's productive agricultural and forest
				  land; to encourage and assist in their 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 of 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 interest of the public
				  health, safety and welfare.
OVERVIEW
An overview of the procedures by which the statute implements
				  these purposes is as follows. For local property tax purposes, eligible farm
				  and forest land will be appraised by local assessing officials at its use value
				  according to criteria and rules established by the Current Use Advisory Board.
				  The state will reimburse the town for lost property tax revenues resulting from
				  use value appraisals. Such reimbursement is limited to and is dependent upon
				  funds available for this purpose. If land which has been appraised at use value
				  is withdrawn by the owner or determined to be ineligible, it will thereafter be
				  appraised at fair market value. If land which has been appraised at use value
				  is developed, the owner is liable for a land use change tax payable to the
				  State of Vermont, unless the State is unable to reimburse the town for 100% of
				  lost property tax revenues, in which case the owner may withdraw from the
				  program without liability. The land use change tax is calculated as 10% of the
				  fair market value of the developed land as of the time it ceased being
				  appraised at use value.
Rule No.1
				Definitions
(1) "Agricutural land" means any
				land, exclusive of housesite(s), which meets any one of the following
				conditions:
(a) It is at least 25 acres,
				owned by a farmer, and part of the overall farm unit.
(b) It is at least 25 acres and used by a
				farmer as part of his farming operation under a written lease for at least
				three years.
(c) It has produced an
				annual gross income from the sale of farm crops in one of two, or three of five
				immediately preceding calender years of at least $ 2,000 for parcels of up to
				25 acres, and $ 75 per acre for each acre over 25, with the total income
				required not to exceed $ 5,000. Exceptions to these income requirements may be
				made in cases of orchard lands planted to fruit producing trees which are not
				yet of bearing age. Land less than 25 acres in size can qualify as agricultural
				land if it meets the requirements of this paragraph.
(d) It is at least 25 contiguous acres and in
				active use to do one or a combination of the following: grow and annually
				harvest hay or cultivated crops; pasture at least one animal unit per three
				acres (an animal unit is defined as one horse, one cow, one mule, five goats,
				or five sheep); cultivate and harvest Christmas trees; cultivate trees to
				produce an annual crop of edible fruit; or produce an annual maple
				product.