|BILL AS INTRODUCED||2007-2008|
Introduced by Senator MacDonald of Orange District
Subject: Taxation; property transfer tax; 12 percent tax; abatement of tax; primary residence
Statement of purpose: This bill proposes to increase the property transfer tax rate on primary residences to 12 percent, but to provide an abatement and refund of one-sixth of the tax for each year it is occupied as a primary residence. Unabated tax is refunded at the time of later sale, if the seller then purchases another Vermont primary residence. New revenue is appropriated to the Vermont Housing Finance Agency to assist first-time home buyers.
AN ACT RELATING TO PROPERTY TRANSFER TAX ON PRIMARY RESIDENCES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 9602 is amended to read:
§ 9602. TAX ON TRANSFER OF TITLE TO PROPERTY
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 percent of the value of the property transferred, or $1.00, whichever is greater, except as follows:
with respect to the transfer of property to be used for the principal residence
of the transferee or his or her lessee, the tax shall be imposed at the
five-tenths of one percent of the first $100,000.00 in value of the
property transferred and at the rate of one and one quarter percent of the
value of the property transferred in excess of $100,000.00 12 percent of
the value of the property transferred. One-sixth of the property transfer tax
paid under this subdivision shall be abated and refunded by the department of
taxes to the owner of the property at the end of each calendar year in which
the property was occupied during the entire year as the homestead by a lessee,
or by an owner who has timely declared the homestead under section 5410 of this
title. Any property transfer tax not abated and refunded at the time of sale
of the property by that owner shall be abated and refunded if, within six
months of the sale, that owner purchases another Vermont property to be used as
the principal residence of the transferee or his or her lessee.
* * *
(4) Eighty-five percent of the revenue from the tax imposed under subdivision (1) of this section shall be appropriated and transferred to the Vermont Housing Finance Agency for the purposes of assisting first‑time home buyers with interest rate buy-down, down-payment grants, or other means of assistance in purchasing a first home.
Sec. 2. EFFECTIVE DATE
This act shall apply to property transfers on or after July 1, 2008.
The Vermont General Assembly
115 State Street