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H.389

Introduced by   Representatives Metzger of Milton, Endres of Milton and Wright of Burlington

Referred to Committee on

Date:

Subject:  Education finance; property tax; exemption of older residents

Statement of purpose:  This bill proposes to exempt from payment of the education property tax homeowners who are age 70 and older and farmers whose adjusted gross income in the previous year was less than or equal to $50,000.00.

AN ACT RELATING TO AN EDUCATION PROPERTY TAX EXEMPTION FOR HOMEOWNERS AGE 70 AND OLDER AND LOW INCOME FARMERS

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

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

(7)  “Homestead”:

(A)  “Homestead” means the principal dwelling and parcel of land surrounding the dwelling, owned and occupied by a resident individual as the individual’s domicile.

(B)  The parcel of land surrounding the dwelling shall be determined without regard to any road which intersects the land.  If the parcel of land surrounding the dwelling is owned by a cooperative housing corporation incorporated under 11 V.S.A. chapter 14, or owned by a nonprofit land conservation corporation or community land trust with exempt status under Section 501(c)(3), the homestead includes a pro rata part of the land upon which the dwelling is built, as determined by the cooperative corporation, nonprofit corporation, or land trust.

(C)  A homestead may consist of a part of a multi-dwelling or

multi-purpose building, including cooperative property occupied as a permanent residence by a member of a cooperative housing corporation incorporated under 11 V.S.A. chapter 14.  A mobile home may constitute a principal dwelling for purposes of this chapter.

(D)  A dwelling owned by a trust may qualify as a homestead if it meets the requirements of subsection 6062(e) of this title.

(E)  A homestead also includes a dwelling on the homestead parcel owned by a farmer as defined under section 3752 of this title, and occupied as the permanent residence by a parent, sibling, child, or grandchild of the farmer, or shareholder, partner, or member of the farmer-owner, provided that the shareholder, partner, or member owns more than 50 percent of the

farmer-owner, including attribution of stock ownership of a parent, sibling, child, or grandchild, except that a homestead does not include the principal dwelling and parcel of land surrounding the dwelling, owned and occupied by a resident individual as the domicile where that person is (i) a farmer, as defined in subdivision 3752(7) of this title and based on gross income in the taxable year, and whose adjusted gross income in the taxable year was $50,000.00 or less; or (ii) at least 70 years old as of December 31 of the taxable year.

(F)  A homestead also includes any other improvement or structure on the homestead parcel which is not used for business purposes.  A homestead does not include that portion of a principal dwelling used for business purposes if the portion used for business purposes includes more than 25 percent of the floor space of the building.

Sec. 2.  32 V.S.A. § 5401(10)(J) is added to read:

(10)  “Nonresidential property” means all property except:

* * *

(J)  The principal dwelling and parcel of land surrounding the dwelling, owned and occupied by a resident individual as the domicile, if that person is (i) a farmer, as defined in subdivision 3752(7) of this title and based on gross income in the taxable year, and whose adjusted gross income in the taxable year is $50,000.00 or less; or (ii) at least 70 years old as of December 31 of the taxable year.


Sec. 3.  EFFECTIVE DATE

This act shall apply to education grand lists and equalized education grand lists in 2004 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us