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H.141

Introduced by Representative Larson of Burlington

Referred to Committee on

Date:

Subject:  Taxation; property tax; homestead rate; estate of deceased homestead owner

Statement of purpose:  This bill proposes to allow the estate of a deceased homestead owner to declare the property as a homestead.

AN ACT RELATING TO HOMESTEAD OWNED BY AN ESTATE

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

Sec. 1.  32 V.S.A. § 5401(7)(G) is added to read:

(G)  For purposes of homestead declaration and application of the homestead property tax rate, “homestead” also means a residence which was the homestead of the decedent at the date of death, and from the date of death through April 1 is owned by the estate of the decedent and not rented.

Sec. 2.  32 V.S.A. § 5410 is amended to read:

§ 5410.  DECLARATION OF HOMESTEAD

(a)  A resident homestead owner shall declare ownership of a homestead for purposes of education property tax.

(b)  Annually on or before the due date for filing the Vermont income tax return, without extension, each resident individual homestead owner shall, on a form prescribed by the commissioner, which shall be verified under the pains and penalties of perjury, declare his or her homestead, if any, as of, or expected to be as of, April 1 of the year in which the declaration is made.

* * *

Sec. 3.  ESTATE DECLARATION OF HOMESTEAD; 2004 TRANSITION

             RULE

For purposes of the homestead declaration under 32 V.S.A. § 5410, a residence owned by an estate between January 1 and April 2, 2004 shall be deemed to have been timely declared a homestead for the 2004 grand list if the residence qualified as the homestead of the decedent at the time of death and was not rented or transferred by the estate before April 2, 2004.  Any resulting change to the education property tax liability on such a property shall be determined, and any refund based on that change shall be paid to the taxpayer by the commissioner of taxes out of the education fund.

Sec. 4.  32 V.S.A. § 6061(11) is amended to read:

(11)  “Housesite” means that portion of a homestead, as defined under subdivision 5401(7) of this title but not under subdivision 5401(7)(G), which includes as much of the land owned by the claimant surrounding the dwelling as is reasonably necessary for use of the dwelling as a home, but in no event more than two acres per dwelling unit; and in the case of multiple dwelling units, no more than two acres per dwelling unit up to a maximum of 10 acres per parcel.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us