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Introduced by   Representatives Sweaney of Windsor, Atkins of Winooski, Bohi of Hartford, Brooks of Montpelier, Chen of Mendon, DePoy of Rutland City, Dostis of Waterbury, Fisher of Lincoln, Green of Berlin, Head of S. Burlington, Howard of Rutland City, Hunt of Essex, Kiss of Burlington, Kitzmiller of Montpelier, Marek of Newfane, Martin of Wolcott, Masland of Thetford, McLaughlin of Royalton, Milkey of Brattleboro, Miller of Shaftsbury, Minter of Waterbury, Molloy of Arlington, Monti of Barre City, Nease of Johnson, Orr of Charlotte, Pillsbury of Brattleboro, Pugh of S. Burlington, Rodgers of Glover, Smith of Morristown, Tracy of Burlington, Valliere of Barre City, Young of Orwell and Zuckerman of Burlington

Referred to Committee on


Subject:  Taxation; property tax; PILOT; full funding

Statement of purpose:  This bill proposes to repeal the PILOT special fund limitation and require full funding of the state’s obligation under PILOT.


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


Sec. 89 of No. 60 of the Acts of 1997 (PILOT special fund and proration of PILOT payments in case of underfunding) is repealed, effective January 1, 2005.

Sec. 2.  32 V.S.A. § 3706 is amended to read:

§ 3706.  Payment to municipalities

(a)  Grants under this subchapter Annually, the state shall pay to each town the amount required under this subchapter.  Payments shall be made annually by the secretary of administration to each eligible municipality on or before December 1, 1997, and on or before October 31 in years thereafter each year from the PILOT special fund.  Nothing in this subchapter shall be construed or permitted to affect the tax exempt status of the University of Vermont and State Agricultural College, as provided by statute and guaranteed by that institution’s charter.

(b)  There is established a PILOT special fund, to be managed by the commissioner of taxes, pursuant to subchapter 5 of chapter 7 of this title.  The commissioner of finance and management may draw warrants for disbursements from this fund in anticipation of receipts. 

(c)  Annually, the general assembly shall appropriate to the PILOT special fund the amount necessary to meet the state’s full obligation under this subchapter for the following fiscal year, after taking into account the revenue from local option taxes for that fiscal year as estimated by the joint fiscal office.  Annually, on or before January 15, the director of property valuation and review shall report to the general assembly the state’s full PILOT obligation to each town for the current fiscal year and the estimated obligation to each town for the following fiscal year.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont