Introduced by Representatives Koch of Barre Town and Molloy of Arlington
Subject: Property taxation; Vermont National Guard; local option; exemption
Statement of purpose: This bill allows a municipality to exempt from education and municipal property taxes a portion of the homestead of any Vermont resident member of the Vermont National Guard who served on active duty during any part of the current and previous tax years.
AN ACT RELATING TO PROPERTY TAX RELIEF FOR CERTAIN ACTIVATED MEMBERS OF THE VERMONT NATIONAL GUARD
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A § 3850 is added to read:
§ 3850. HOMESTEAD OF ACTIVATED NATIONAL GUARD MEMBERS
(a) By majority vote of those present and voting at an annual or special meeting warned for the purpose, a municipality may elect not to tax $20,000.00 of appraisal value of a qualifying homestead of any resident serving on active duty in the Vermont National Guard during any part of the current and previous tax years.
(b) For the purposes of this section:
(1) “Active duty” means mobilization under 10 U.S.C. § 12301(a) or (d) in times of war or in times of national emergency as declared by the United States Congress or the president of the United States.
(2) “Qualifying homestead” means the Vermont National Guard member’s declared homestead, as required under section 5410 of this title.
(c) Only one person may claim an exemption for a qualifying homestead under this section each year.
(d) Written verification of the National Guard member’s activated status shall be included with the exemption application submitted to the municipal office where the qualifying homestead is located.
(e) Exemptions voted under this section shall apply to the municipal property tax imposed by chapters 121 and 123 of this title and to the education property tax imposed by chapter 135 of this title. Exemptions voted under this section shall affect the education property tax grand list and shall reduce the municipality’s education property tax liability under chapter 135 of this title for the year of the exemption. A municipality’s education property tax liability under chapter 135 of this title shall be reduced by the difference between the amount of the property taxes assessed on the subject property and the amount of education property taxes that would have been assessed on such property if its fair market value were taxed at the equalized residential rate for the tax year.
Sec. 2. EFFECTIVE DATE AND TERMINATION
This act shall take effect from passage and shall terminate January 1, 2007 unless extended by act of the general assembly.
The Vermont General Assembly
115 State Street