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H.448

Introduced by   Representatives McCullough of Williston, Condon of Colchester and Shand of Weathersfield

Referred to Committee on

Date:

Subject:  Taxation; property transfer tax; principal residence value increase; local option tax

Statement of purpose:  This bill proposes to allow a local option property transfer tax of one percent, and to increase the principal residence value from the 1988 value of $100,000.00 to a value of $160,000.00, which is the current median house cost in Vermont.

AN ACT RELATING TO LOCAL OPTION PROPERTY TRANSFER TAX

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

Sec. 1.  32 V.S.A. § 9602a is added to read:

§ 9602a.  Local Option Property Transfer Tax

If the legislative body of a municipality by a majority vote so recommends, the voters of a municipality may, at an annual or special meeting warned for that purpose, by a majority vote of those present and voting, assess a tax upon any transfer of property which is subject to taxation under section 9602 of this chapter.  The rate of the local tax shall be one percent of any value which is taxed at one and one-quarter percent under section 9602.  This tax shall be administered in the same manner as the property transfer tax imposed under section 9602, except that the revenue from this tax shall not be remitted to the commissioner, but shall be paid to the municipality, which shall use at least one‑half of the revenues for current or future creation of new affordable housing in that community.

Sec. 2.  32 V.S.A. § 9602 is amended to read:

§ 9602.  TAX ON TRANSFER OF TITLE TO PROPERTY

A tax is hereby imposed upon the transfer by deed of title to property located in this state.  The amount of the tax equals one and one quarter one‑quarter percent of the value of the property transferred, or $1.00, whichever is greater, except as follows:

(1)  with respect to the transfer of property to be used for the principal residence of the transferee the tax shall be imposed at the rate of five-tenths of one percent of the first $100,000.00 $160,000.00 in value of the property transferred and at the rate of one and one quarter one‑quarter percent of the value of the property transferred in excess of $100,000.00 $160,000.00, provided that no tax shall be imposed on the first $100,000.00 $160,000.00 in value of the property if the purchaser obtains a purchase money mortgage that the Vermont housing finance agency has committed to make or purchase;

* * *

(3)  with respect to the transfer to a housing cooperative organized under chapter 7 and whose sole purpose is to provide principal residences for all of its members or shareholders, or to an affordable housing cooperative under chapter 14 of Title 11, of property to be used as the principal residence of a member or shareholder, the tax shall be imposed in the amount of five-tenths of one percent of the first $100,000.00 $160,000.00 in value of the residence transferred and at the rate of one and one-quarter percent of the value of the residence transferred in excess of $100,000.00 $160,000.00; provided that the homesite leased by the cooperative is used exclusively as the principal residence of a member or shareholder.  If the transferee ceases to be an eligible cooperative at any time during the six years following the date of transfer, the transferee shall then become obligated to pay any reduction in property transfer tax provided under this subdivision subdivision, and the obligation to pay the additional tax shall also run with the land.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us