The Hold Harmless payment is designed to hold the municipality harmless from loss in municipal revenue resulting for the assessment of property at use value. 32 V.S.A. §3760. The methodology to calculate the payment is as follows:
- District tax rate set by municipality
- Total municipal listed value as of April 1, 20xx
- Total exempt reduction due to use value enrollment
- Adjusted Muni LV assuming no enrollment (B + C)
- Total municipal taxes assessed
- Previous hold harmless payment
- Total funds to be raised assuming no enrollment (E+F)
- Tax Rate assuming no enrollment (G/D*100)
- HOLD HARMLESS PAYMENT (C*H/100)
The Hold Harmless payment is based solely on the municipal tax rate unless the current use land is also located in a district on which your municipality levies an additional rate (“sub-municipal tax district”). In cases where current use land is known by PVR to be in sub-municipal tax districts, an estimate for payment for that sub-municipal tax district is also calculated. If any additional sub-municipal tax districts should be used in the Hold Harmless calculation, the town must notify PVR in writing in order for an additional sub-municipal tax rate to be applied.
As of FY17 this program is no longer administered as a grant.
Fiscal Year 2021 (Actual)
The FY21 payment was based on property enrolled in the Current Use program as of April 1, 2019. The total cost of the FY21 Hold Harmless payments exceeded the FY21 appropriation by less than 1%. Please note that these numbers are the actual payment to be made on or about November 2nd, 2020 and represent over 99% of the total amount due. The Department will seek the additional spending authority early in the next legislative session to be able to pay the remaining amount.