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Introduced by   Committee on Agriculture


Subject:  Taxation and finance; agricultural and forest land use value program

Statement of purpose:  This bill proposes to include in the definition of farmer for the purposes of the use value property tax program those who process their farm products, to include as a farm building up to $100,000.00 of the value of the farm facility where those products are processed, to clarify that these changes do not alter the effect of the definition of farming for Act 250 or the definition of farm structure for the purposes of the exemption from local zoning regulation, and to authorize the agency of agriculture to assist the director of property valuation and review in determining eligibility when the determination relates to agricultural issues within the agency's expertise.


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

Sec. 1.  32 V.S.A. § 3752(7) is amended to read:

(7)  “Farmer” means a person:

(A)  who earns at least one-half of his the farmer’s annual gross income from the business of farming as that term is defined in Regulation 1.175-3 issued under the Internal Revenue Code of 1954; or

(B)(i)  who produces farm crops that are processed in a farm facility situated on land enrolled by the farmer in a use value appraisal program or on a housesite adjoining the enrolled land;

(ii)  whose gross income from the sale of the processed farm products pursuant to subdivision (i) of this subdivision (B), when added to other gross income from the business of farming as used in subdivision (A) of this subdivision (7), equals at least one-half of the farmer’s annual gross income; and

(iii)  who produces on the farm a minimum of 75 percent of the farm crops processed in the farm facility; 

(C)  The agency of agriculture, food and markets shall assist the director in making determinations of eligibility pursuant to subdivision (B) of this subdivision (7).

Sec. 2.  32 V.S.A. § 3752(14) is amended to read:

(14)  “Farm buildings” means all farm buildings and other farm improvements which are actively used by a farmer as part of a farming operation, are owned by a farmer or leased to a farmer under a written lease for a term of three years or more, and are situated on land that is enrolled in a use value appraisal program or on a housesite adjoining enrolled land; but “farm.  “Farm buildings” shall include up to $100,000.00 of the value of a farm facility processing farm crops, a minimum of 75 percent of which are produced on the farm and shall not include any dwelling other than a dwelling in use during the preceding tax year exclusively to house one or more farm employees, as defined in section 4469 of Title 9, and their families, as a nonmonetary benefit of the farm employment.  This subdivision shall not affect the application of the definition of “farming” in subdivision 6001(22) of Title 10 or the definition of “farm structure” in subdivision 4413(d)(1) of Title 24.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont