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NO. M-5. AN ACT RELATING TO THE SOUTH BURLINGTON CHARTER.

(H.321)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. APPROVAL OF CHARTER AMENDMENT

The charter of the City of South Burlington is amended as provided in this act. Proposals of amendment were approved by the voters on May 21, 1996.

Sec. 2. Section 1504 of Chapter 15 of the Charter is amended to read:

Section 1504. BUSINESS INVENTORY AND BUSINESS PERSONAL PROPERTY TAX

(a) *[The City shall exempt from the business inventory tax the following percentages of business inventory for the following years]*

*[% Total Inventory]* *[Tax year]*

*[10%]* *[1982/83]*

*[20%]* *[1983/84]*

*[30%]* *[1984/85]*

*[40%]* *[1985/86]*

*[50%]* *[1986/87]*

*[60%]* *[1987/88]*

*[70%]* *[1988/89]*

*[80%]* *[1989/90]*

*[90%]* *[1990/91]*

*[100%]* *[1991/92]*

*[and shall utilize the alternative method of taxing business machinery and equipment as set forth in 32 V.S.A. § 3618 commencing fiscal year 1982/83.]* The City shall exempt business inventory as defined in 32 V.S.A. § 3848 from the property tax.

(b) *[(The Council shall fix and maintain the value of the business inventory of each taxpayer by averaging the assessed value of such inventory as of April 1, 1980 and April 1, 1982. (Fixed value) If the fixed value of a taxpayer’s inventory as of April 1 in any given year is less than the percentage of the assessed value of inventory to be taxed in accordance with subsection (a) above, such taxpayer’s inventory tax shall be based upon 100% of the fixed value and not the percentage of actual value.)]* Business personalproperty as defined in 32 V.S.A. § 3618(c) shall be appraised in accordance with the provisions of 32 V.S.A. § 3618, as such provision is from time to time amended.

(c) Subsection (b) notwithstanding, all business personal property first located in the City after April 1, 1996, shall be exempt from property tax.

(d) Subsection (b) notwithstanding, the listed value of business personal property included in the City grand list for FY 1996, shall be reduced by 20% for FY 1997, and each year thereafter, or the maximum amount authorized under the provision of 32 V.S.A. § 3618(a), whichever is greater, and deleted from the grand list when reduced to zero listed value.

Sec. 3. Section 1505 of Chapter 15 is added to read:

Section 1505. TAX STABILIZATION AGREEMENTS

Notwithstanding any other provisions of this Charter or the requirements of the general law of the State of Vermont, the City Council is authorized and empowered to negotiate and execute agreements between the City and taxpayers regarding assessment and taxation of taxable commercial and industrial property located within the City, subject only to requirements of the Vermont Constitution and the limitation that no agreement shall be for

a term longer than ten (10) years. Any agreement entered into under this provision shall require approval by four (4) members of the City Council.

Sec. 4. EFFECTIVE DATE

This act shall take effect upon passage.

Approved: May 5, 1997