Download this document in MS Word format


AutoFill Template

S.29

Introduced by   Senator Dunne of Windsor District and Senator MacDonald of Orange District

Referred to Committee on

Date:

Subject:  Taxation; property transfer tax; cooperatives

Statement of purpose:  This bill proposes to expand the application of the residential property transfer tax rate to certain cooperatives.

AN ACT RELATING TO PROPERTY TRANSFER TAX RATE FOR COOPERATIVE ENTITIES

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

Sec. 1.  32 V.S.A. § 9602(3) is amended to read:

(3)  with respect to the transfer to a housing cooperative organized under chapter 7 and whose sole of property to a cooperative entity whose primary purpose is to provide principal residences, including multi-unit buildings, or to provide housesites for principal residences, for all of its members or shareholders, or to an affordable housing cooperative under chapter 14 of Title 11, of if the property is to be used as the principal residence of a member or shareholder or as contiguous common land, the tax shall be imposed in the amount of five-tenths of one percent of the first $100,000.00 in value of the residence property transferred and at the rate of one and one‑quarter percent of the value of the residence property transferred in excess of $100,000.00; 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 subdivison subdivision, and the obligation to pay the additional tax shall also run with the land.

Sec. 2.  EFFECTIVE DATE

This act shall apply to transfers on and after July 1, 2005.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us