|BILL AS INTRODUCED||2007-2008|
Introduced by Senator Lyons of Chittenden District and Senator McCormack of Windsor District
Subject: Taxation; property tax; residential valuation at time of sale
Statement of purpose: This bill proposes to leave residential home values on the grand list unchanged until the time of sale of the property, except for an annual inflation factor and increases in value due to improvements. Thus, all residential properties would start at a grand list value at the time of sale, and thereafter, would be adjusted by a general rate of inflation every year, until the next time of sale and new grand list valuation. This valuation system would eliminate the reappraisal problem of sudden, large increases in property taxes of long-time residents when nearby properties have been purchased by
out-of-staters coming from states with higher housing prices and higher average incomes, who can easily afford property prices and taxes at high levels.
Properties which have not recently changed hands would remain on the grand list at the prior purchase price (plus improvements and indexed for inflation), and this would ensure that property taxes on all properties remain reasonably close to the level that the home purchaser expected at the time of purchase. Grand list values would not be changed in the case of transfer by inheritance.
AN ACT RELATING TO RESIDENTIAL PROPERTY TAX VALUATION AT TIME OF SALE
It is hereby enacted by the General Assembly of the State of Vermont:
(TEXT OMITTED IN SHORT-FORM BILLS)
The Vermont General Assembly
115 State Street