Subordination of a Lien

When land is enrolled in the Current Use Program, the Vermont Department of Taxes places a lien on the land. If the land is developed, then the Land Use Change Tax is due. The lien serves as security to ensure the tax is paid.

The Current Use Program lien takes priority over any other liens or encumbrances that may be placed on the land later. However, the Commissioner of Taxes has been given the ability to subordinate the lien, meaning the commissioner may move the lien to lesser importance in favor of a lender’s mortgage lien as long as the interests of the State of Vermont are protected. The Department will review requests ensuring the State’s liens are protected, and owners comply with program eligibility standards.

How to Make a Request

The applicant (landowner, buyer, or lender) may submit an application for a lien subordination to the Department using Form CU-306, Application for Subordination of Current Use Lien and Form SB-804, Subordination Fee Payment Voucher. Applicants also must submit supporting documents, such as title opinion, Subordination Agreement Form, maps, and pay a fee of $179. Descriptions of required documents can be found in the subordination regulation, Reg. § 1.3777 and on the application form.  

We must receive the payment before we can begin processing your application, so the preferred submittal method is via the mail to:

Current Use Program
Vermont Department of Taxes
PO Box 1499
Montpelier, VT   05601-1499

Expected turnaround time is 4 weeks once all of the documents are received.

Contact Us

Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

Taxpayer Assistance Window
Office Hours: 7:45 a.m. - 4:30 p.m. Monday - Friday

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