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Eligible Property

Below is a brief overview of eligible property, tax benefits, and the penalty for development or conversion. For more information, see the instructions to Form CU-301, Use Value Appraisal Application for Agricultural Land, Forest Land, Conservation Land and Farm Buildings or you can refer to eCuse, our online application portal.

Agricultural Land

  • At least 25 contiguous acres in active agricultural use; or smaller parcels which generate at least $2,000 annually from the sale of farm crops, or actively used agricultural land owned by or leased to a farmer.
  • Taxed at use value.
  • Perpetual obligation to pay land use change tax of 10% of the fair market value of the developed portion.

Annual Requirement for Owners of Agricultural Land or Buildings

On or before Nov. 1 of every year, owners of agricultural lands and buildings enrolled in the Current Use Program must certify in writing under oath to the Vermont Department of Taxes that all enrolled land and buildings continue to meet the requirements for enrollment at the time of the certification. Owners are required to use a certification form provided by the Department. Learn more about the certification process.

Removal of Agricultural Land and Farm Buildings for Water Quality Violations

The Agency of Agriculture, Food, and Markets (AAFM) has the authority to direct the Vermont Department of Taxes to remove agricultural land and farm buildings from the Current Use Program when the land or buildings are used by a person who is in violation of the water quality requirements established in law, administrative rule, or any permit or certification. A landowner whose land has been removed from the Current Use Program as a result of this provision may have the right to appeal AAFM’s decision. All appeals must be made to the AAFM. If you have questions, please contact the AAFM’s chief policy enforcement officer at 802-828-1732.

Forest Land

  • At least 25 contiguous acres of forest land managed according to state standards and an approved forest management plan.
  • Taxed at use value.
  • Perpetual obligation to pay land use change tax of 10% of the fair market value of the developed portion.
  • More information is available through the Vermont Department of Forests, Parks and Recreation.

Conservation Land

  • Any land, exclusive of any house site which is certified under 10 V.S.A § 6306(b), is owned by an organization that was certified by the commissioner of taxes as a qualified organization as defined in 10 V.S.A. § 6301 and for at least five years preceding its certification was determined by the internal revenue service to qualify as a Section 501(c)(3) organization which is not a private foundation as defined in Section 509(a) of the Internal Revenue Code and is under active conservation management in accord with standards established by the commissioner of forests, parks and recreation.
  • Taxed at use value.
  • Perpetual obligation to pay land use change tax of 10% of the fair market value of the developed portion.

Farm Buildings

  • Eligible farm buildings include all farm buildings and other farm improvements which are actively used by a farmer as part of a farming operation, are owned by a farmer or leased to a farmer under written lease for a term of three years or more, and are situated on land that is enrolled in a use value appraisal program or on a housesite adjoining enrolled land. A dwelling is not eligible as farm buildings unless it has been in use during the proceeding tax year exclusively to house one or more farm employees and their families, as a nonmonetary benefit of the farm employment.
  • Eligible farm buildings are exempt from all property taxes.

For statutory definitions, see 32 V.S.A. § 3752