Introduced by Representative Jewett of Ripton
Subject: Taxation; property transfer tax; affordable housing deferral
Statement of purpose: This bill would defer the property transfer tax on transfers to or from qualified organizations for the purpose of creating or preserving affordable housing so long as the property is held for such purpose.
AN ACT RELATING TO A DEFERRAL OF THE PROPERTY TRANSFER TAX FOR AFFORDABLE HOUSING
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 9603(26) is added to read:
(26) Transfers to or from organizations qualifying under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and which prior to the transfer have been determined to meet the “public support” test of Section 509(a)(1) of the Internal Revenue Code of 1986, as amended, shall be exempt from tax, provided one of the purposes of the transfer is to acquire property or rights for the purpose of creating or preserving affordable housing and provided that the property transferred, or rights and interests in the property, will be held for this purpose. Any transferee for which tax is exempted under this subdivision shall repay the exempted tax amount if it later transfers to an organization which would not qualify for exemption under this subdivision, all or a part of the property or the rights for that property, up to a maximum of the consideration received for such later transfers. For purposes of this subdivision the definition of “affordable housing” in subdivision 5830c(c)(1) of this title shall apply.
The Vermont General Assembly
115 State Street