Assessing Property 
Buying and Selling Property
Exemptions
Grievance and Appeals
Lister Roles and Responsibilities

Assessing Property

Can two or more non-contiguous parcels (separate parcel IDs) be conveyed with one property transfer tax return?

Yes, if they are on one deed then there is one transfer return. Use the value, SPAN, and category from the
larger parcel when filling out your portion of the PTTR..

Do comparable sales have to be from this town?

Listers may be asked to provide property record cards and cost sheets for comparable properties by grieving taxpayers. These are public records and should be provided as any other public record request. As a lister, when looking for potential comparable sales for grievance and reappraisal purposes, you may not find suitable recent sales within your town. It is acceptable to use nearby towns’ sales so long as that town’s real estate market is similar. Look for sales from nearby neighborhoods that are similar in appeal and value to your subject property. The more unique the property, the farther you may have to search for suitable comparable sales.

Do state and federal properties require a change of appraisal notice when values change?

No. Federally owned property is tax exempt and does not require a Change of Appraisal Notice.

What is the best way to handle bank appraisals when presented as evidence of value?

Check the appraisal to gauge its validity for use in the grievance process:

• Check calculations to ensure adjustments are legitimate and correctly applied.
• Review the comparable sales used.
• Look for new items about the property.
• Check the effective date of the appraisal and if there are any assumptions or limiting conditions attached to the value estimate

Remember that an appraisal is an opinion of value, and there is a range of value for every property.

Bank appraisals (also called fee appraisals) are not written or intended for tax valuation purposes; there may be wording that would invalidate its appropriateness for grievance purposes (such as extenuating  circumstances, conditions, assumptions, and past or future valuation dates).

The property owner may not have obtained permission from the appraiser to use the appraisal in that manner. Bank appraisals can be good tools as a piece- of-the-valuation-puzzle, but you will need to confirm that the data and methods are correct. They should neither be automatically discounted nor automatically accepted.

What is the lowest amount cable can be depreciated?

Cable companies are only allowed to depreciate their inventory down 40%.

Why do we update cable company property every year?

Cable property valuations change annually because of line extensions, improvements, etc. Towns will find the current year valuations in VTPIE annually in May. Contact your District Advisor for help.

What is the most accurate choice for determining parcel size?

When you have discrepancies in various documents relating to parcel size, it is best to rely on any of the following documents:

• A recorded survey by a qualified surveyor
• Up-to-date property tax maps
• Deed

Use the best evidence available.

What is the proper way to value excluded current use land?

Excluded land is to be valued as that portion’s fair market value as a stand-alone parcel as defined in 32 V.S.A. § 3756(d). When determining that portion’s fair market value you will need to be familiar with accompanying maps and take into consideration factors such as grade, wet areas, access, zoning, etc. Contact your district advisor if you have any questions.

What should we do if qualified housing owners do not file?

Qualified housing owners are obligated to file each year. If they do not, the value should be changed appropriately with a Change of Appraisal Notice being sent.

When should I update my Marshall & Swift books?

You should update when a reappraisal is completed. At the time of reappraisal, the Marshall & Swift cost information will be updated in your computer-assisted mass appraisal (CAMA) files. The Marshall & Swift books (residential and commercial) should reflect those new cost tables. Do not upgrade your books in between reappraisals because values will not match the system you are using until you reappraise, and all property will be valued using this version until you reappraise.

Who determines the allocation if a homestead is in more than one town?

Discuss this with the listers in the other town(s) to determine percentages.

Without building permits, how do I find out who is working on their home?

Knowing when to inspect a property for improvements can be a challenge when the town doesn’t require building permits. Interior changes are the most challenging, as most towns don’t require permits for interior improvements that don’t affect the square footage of the building. Here are a few suggestions to find out about work being done:

• Be observant as you drive around town. Look for clues such as construction dumpsters and construction vehicles.
• Listen for construction projects around town.
• Real estate ads will often list recent improvements.
• Drive around all of your neighborhoods to observe new projects: decks, outbuildings, additions, pools, etc.

What constitutes contiguous property?

Contiguous property is any land under the same ownership that has a connection point. For example: if someone owns the land on two sides of the road and the property would have a connection point if the road were not there, it is contiguous. This applies to land with railways, interstate roads, streams, rivers, etc. running through it. Even if the land would only touch at a short point, it is contiguous. If there is a lake in between two parcels, it depends upon the size of the lake, but the land would likely not be considered contiguous.

Should subsidized rental housing values be adjusted annually?

The Subsidized Housing valuation process was crafted to allow the value, once determined, to remain the same until and unless the town reappraised all properties. However, there is nothing to prohibit a taxpayer from requesting a new appraisal of the property. Further, the property can and likely should be revalued if there is a substantial change, such as additional units, accelerated depreciation, etc..

How can I find comparable sales?

Here are some suggestions:

• Access sales statewide using the Vermont Department of Taxes' myVTax system. For
  additional information, please contact the District Advisor.
• Reach out to local real estate agents and survey real estate websites, some have sold properties lists.
  Establish a relationship local agents to learn what is going on in real estate markets (and others).
• Reach out to other listers, especially when looking for unique properties such as gravel pits. The
  COMP60 ListServe is a great resources for this type of question.
• View sold properties on the Northern New England Real Estate Network (MLS).
• Talk to appraisers as they usually have a good amount of comparable sales data.
• Reviewing vetted sales from any town’s equalization study. Each town’s certified sales report provides sales data from the various categories (R1, Misc. Land, etc.). Certain types of sales may not be included, such as
  recently subdivided parcels (unless the town had done a reappraisal that year) and abutter sales (which
  are typically removed from the study).

Please note: Some towns have assessment information and property record cards online. This can be a quick way to check out property features to see if they are similar to your subject property.

Are fiber optics taxable?

Yes, fiber optics are taxable and would be listed on the utilities inventory form.

Are fuel storage tanks real or personal property? (trade fixture vs. real estate improvement)

It depends. Trade fixtures are classified as the personal property of the owner installing them; they retain their chattel (an object of movable quality) character regardless of annexation. Elements for a trade fixture are:

• Annexed to realty by the tenant.
• Enables the tenant to carry on the trade or enterprise addressed by the tenancy contract.
• Can be removed without material or permanent injury to the freehold (see Powell’s Treatise on Property, Section 57.06).
• An intention that the annexation was not meant to be permanent.
• 32 V.S.A § 3618(c)(1) Business personal property:

  "Business personal property means tangible personal property of a depreciable nature used or held for use in any trade, business, professional practice, transaction, activity, or occupation conducted for profit including all furniture and fixtures, apparatus, tools, implements, books, machines, boats, construction devices, and all personal property used or intended to be used for the production, processing, fabrication, assembling, handling, or transportation of anything of value, or the production, transmission, control, or disposition of power, energy, heat, light, water, or waste. "Business personal property" does not include inventory, or goods and chattels so affixed to real property as to have become part thereof, and which are therefore not severable or removable without material injury to the real property, nor does it include poles, lines, and fixtures which are taxable under sections 3620 and 3659 of this title."

So, if a fuel storage tank is owned by the owner of the real estate and is affixed in a permanent manner to the real estate, it is real property.

If it is owned by a lessor to the owner of the real estate, it could be either real or personal property, depending upon the intention to make it permanent. (If the lease says the lessor has the right to remove the tank, then the tank keeps its chattel nature and is not real estate, unless you have just cause to believe the lease was written in such a manner strictly to avoid taxation and that there is no intention of removing the tank in the future.) If the lessor has a history of removing tanks from lessees’ properties under certain circumstances, you should treat the tank as personal property.

Buying and Selling Property

If a town purchases property after April 1st, how do they do handle taxes?

The property is taxable as of April 1 and needs to stay listed as such for that grand list year. The town should base their tax rate on not owning the property. The town can abate the taxes on the property if they choose, or like other taxpayers, they can handle the tax liability at closing.

Is the sale date the recording date or the closing date?

The Division of Property Valuation & Review recommends using the recording date, although towns should determine which they will use and remain consistent with that method. One disadvantage of using the recorded date is that a sale could have closed years ago and had only recently been recorded. Calling that the sale date would be misleading, and the market could have changed significantly between the closing and recording dates.

Can a new owner appeal the value of the property purchased after April 1?

Because values are established as of April 1 and tax bills are issued to the owner of record as of April 1, only the seller can appeal. However, the seller can designate the new owner as agent to the seller. As an agent, the buyer can participate in the grievance by acting on behalf of the owner of record. The seller can submit a signed letter to the Board of Listers stating they wish to designate the buyer as their agent in the grievance process.

Our town has erroneously been collecting taxes on a parcel that was transferred to a different owner over a year ago. the transfer was confusing and the parcel didn’t get processed correctly, what should we do?

First, it should be noted that it is the taxpayer’s responsibility to keep track of their holdings and assessments annually; there is a shared responsibility on the part of the listers and taxpayers to review an assessment. Assuming the grand list books have been closed out each year with a Certificate of No Appeals or Suits Pending form (Form 4155), there is no recourse for the taxpayer to go back in time to recoup payments.

Similarly, the time for Errors and Omissions would have passed on December 31. The only possibly recourse for the taxpayer is to request a Board of Abatement hearing. They could argue that a mistake was made and ask for compensation for taxes paid in error. Many Boards of Abatement are reluctant to go back further than one year, as anything more than that could create a potential opening for any number of claims.

A property owned by a veteran on April 1st sells April 12, can the Veteran’s exemption be removed since it is before the May 1 filing deadline?

If a veteran owns property and resided there on April 1, the exemption stays and can be dealt with at closing if the parties choose. If a veteran sells after April 1, they cannot get the exemption on a different property that year—the exemption is for the property they owned and resided in on April 1.

Exemptions

A Veteran just had a rental house built on their property; how does this affect their exemption amount?

It should not affect the exemption amount. Example: The town does a $40,000 exemption and the veteran’s land and trailer was worth $38,000. The new house value will not be taken into account to go beyond the $38,000 exemption. The exemption would remain at the cap of $38,000.

Does a qualified housing building automatically retain its exemption after transfer to a new owner?

No. See Tax stabilization agreements; tax increment financing districts 32 VSA § 5404a.

Do properties leased by a non-profit corporation or town qualify for a tax exemption?

No, privately held property needs to be owned by a non-profit entity to pass qualification for exemption, even if a lease limits the property to public use.

How should we account for railroad property?

Railroad property is nontaxable. See 32 VSA §3803(1). Railroad corporations pay a separate tax based on track mileage.

Grievance and Appeals

Can property owners submit new evidence at a board of civil authority (BCA) or state level?

Yes, they don’t have to use any of the evidence submitted during lister level grievance if they don’t want to. Each hearing is considered "de novo," meaning "new." This applies to evidence submitted by the property owner and by the town.

Can we make house visits on the night of grievance hearings?

Yes, as long as it doesn’t mean that you are not in the office during the times you posted for grievance.

Upon winning a tax appeal, should the taxpayer get credit for the prior years’ taxes?

That depends. An appeal on the municipal level by a taxpayer of the listed valuation is a challenge of the current year’s tax bill, assuming they appealed this year. In instances where the decision is reached in a subsequent tax year, often the case with court cases or Appeals to the Director, the taxpayer would receive credit. See 32 V.S.A. § 4469.

Is the use value change a grievable item?

If you change nothing on your use value records and the new year is the Common Level of Appraisal and the Advisory Board set current use per acre values, you are not obligated to send a Change of Allocation Notice. Some listers send notices to all property owners in the Current Use Program for the use value change because it shows an updated taxability to prevent property owners from claiming they were not notified. Property owners receive notification from Current Use reflecting the annual per acre values. Allocation changes on the municipal level are made and noticed from VTPIE.

Allocation can be grieved, and the property owner needs to receive a notice when listers change allocation amounts. Ultimately, any taxpayer can grieve, but the listers do not have the authority to change use value.

Is a town obligated to pay interest on tax credit from an appeal?

When the appraised value of a property on appeal has been reduced, a taxpayer is entitled to a credit against the tax for the next ensuing tax year and for succeeding years if necessary to use up the amount of the credit. If the town has voted to collect interest on overdue taxes, a taxpayer will also become entitled to interest at that same rate on the overpayment.

If someone walks into our office on grievance day, do we have to hear them?

Yes, provided that they give you a written and signed piece of paper stating their intent to grieve; schedule their grievance.

How long does the state board value have to stay?

The state board decision stays for three years unless:

• You do a reappraisal within that timeframe
• There is a major change to the property

Lister Roles and Responsibilities

Can spouses be listers on the same board?

In Vermont, spouses can work together as listers on the same Board. However, if either grieves, the third lister and/or a paid consultant should be responsible for addressing and determining the grievance outcome, not the other spouse.

Can the property owner appeal a Homestead penalty to the listers?

A taxpayer may appeal a determination of domicile for purposes of a homestead declaration or an assessment of fraud penalty under this section to the Commissioner in the same manner as an appeal under chapter 151 of this title. A taxpayer may appeal an assessment of any other penalty under this section to the listers within 14 days after the date of mailing of notice of the penalty, and from the listers to the Board of Civil Authority and thereafter to the courts, in the same manner as an appraisal appeal under chapter 131 of this title. The legislative body of a municipality shall have authority in cases of hardship to abate all or any portion of a penalty appealable to the listers under this section and any
tax, penalty, and interest arising out of a corrected property classification under this section; and shall state in detail in writing the reasons for its grant or denial of the requested abatement. The legislative body may delegate this abatement authority to the Board of Civil Authority or the Board of Abatement for the municipality. Requests for abatement shall be made to the municipal treasurer or other person designated to collect current taxes, and that person shall forward all requests, with that person’s recommendation, to the body authorized to grant or deny abatement.

Do listers need to obtain consent before inspecting real estate?

Listers need to obtain permission if: 1) they have been put on notice by the owner (in person or via a communication) or 2) the property is legally posted with “No Trespassing” signage.

Although 32 V.S.A. § 4041 may appear to grant listers authority to inspect a property, it is prudent to obtain permission from the property owner before attempting to enter upon and inspect real estate. Do not inspect the interior of a dwelling (or any other building that would commonly or reasonably be locked – whether or not it is locked) without appropriate permission.

There are instances when listers or assessors need to consider alternatives to interior inspections to ensure that all properties are assessed equitably. Here are some options:

• Send out inventory sheet (mailer) for correction
• Log onto the contractor’s website to make corrections to data
  • Online Property Assessment Data Verification
• Video tour of property
  • Real-time tour with smart phone (not recorded or saved). 
  • If recorded or saved, the videos become public record
• Homeowner could provide interior photos for viewing only
  • If photos are submitted, they become public record
• Telephone interview with homeowner
• Interview with homeowner at door

Are things like draft cost sheets and listers’ notes considered to be public records?

The only things in listers’ files not considered public record are personal property information, income and expense information, and inventory forms. Temporary CAMA information (such as in a reappraisal, when a Property Record Card is still subject to change) is subject to the public records law.

If you provide someone with information that is subject to change, you should note that it is subject to change on their copy of the documents. (Consider keeping a photocopy of what was provided that includes the lister-created “Subject to Change” note.)

What constitutes a public place for posting the “Notice To Taxpayers” document?

This notice needs to be posted in 5 public places (the Town Clerk’s office plus 4 others). The public places do not all have to be in your town, they can include neighboring areas that residents of your town frequent. The following examples are considered to be public places:

• Town Clerk’s office (always post one here)
• Grocery store bulletin board
• Post Office
• Outdoor public bulletin boards
• Library
• Gas station
• Town website

How do we process a value change from a property appeal to a State Board of Court?

A copy of the decision goes in the listers’ file. Attach a copy to the back of the appeal year’s grand list. Change your grand list value for the current year and going forward. The decision will stand for: the appeal year and the next two years unless you do a reappraisal. If they make improvements, you can add the improvements, but it would be wise to leave the other aspects of the valuation in line with the court or hearing officer’s decision. Accounting: Assuming the value was lowered by the decision, calculate the amount of overpayment (plus interest if applicable – see below) and then issue that as a credit against the next tax bill.

How can listers help to educate the BCA?

It is not the Listers’ job to teach the Board of Civil Authority (BCA) the valuation process, but it is sometimes advisable or necessary or both for towns to provide resources for the BCA. The Vermont League of Cities and Towns (VLCT) is a good place to start. Some towns have utilized the League’s attorneys in presenting BCA members with a seminar to explain the valuation and grievance process help ensure fairness and equity.

How do I handle allocation changes after the grand list is filed?

32 V.S.A. § 4261. Correcting omission from the grand list. When real or personal estate is omitted from the grand list by mistake, or an obvious error is found, the listers, with the approval of the Selectboard, before December 31, may supply such omissions or correct such errors and make a certificate thereon of the fact; provided, however, the listers may make a correction resulting from the filing or rescission of a homestead declaration without the approval of the Selectboard. (Amended 2005, No. 38, § 14, eff. June 2, 2005.)

There is no specific errors and omissions form.

Can listers also be on the select board?

No. See 17 V.S.A. § 2647. Incompatible offices. Also, the Vermont League of Cities and Towns has a chart of incompatible offices (login required).

How should life estates be listed in the Grand List?

It is up to the listers. The Division of Property Valuation & Review recommends listing to the owner of the life estate with the words "life estate" in parentheses. Also, you could list the remaining owner on line #2. Consistency is key.