Changes Impacting Reappraisals, Act 68 (H.480)
Immediately removes the Common Level of Appraisal (CLA) as a factor triggering reappraisal orders issued by the Department of Taxes’ Division of Property Valuation and Review (PVR), which historically have been issued when a municipality’s property values are significantly different than fair market value.
Effective retroactive to April 1, 2022, and applicable to grand lists lodged on or after April 1, 2022.
Phases in a reappraisal cycle, requiring that every municipality reappraise at least every six years.
A municipality will be required to conduct a reappraisal of its grand list properties if it has a Coefficient of Dispersion (COD) greater than 20, or if a municipality has not begun the reappraisal process within six years of the date on which its previous reappraisal process began.
Effective January 1, 2025
Studying a possible Statewide Reappraisal System and Distinguishing Between Types and Uses of Properties, Act 68 (H.480), Sec. 4
As detailed below in "Studies," Act 68 requires the Department to produce two reports, a progress and final report, which focus on:
- Exploring implementation of a statewide reappraisal system housed at PVR and related topics.
- Proposals and recommendations for distinguishing between different types and uses of property through updated property classifications and centralizing existing municipal property data at the state level.
Training and Certification for Listers and Assessors, Act 68 (H.480)
Requires that certified training includes bias reduction training and education on racial disparities in property valuation outcomes. The Department shall continue to receive an allocation to provide educational opportunities at no cost, and scholarships for attendance at national programs will be available.
Effective July 1, 2023.
Clarifies that elected listers or board of listers need approval from the Director of PVR to perform reappraisal work themselves.
All elected listers must meet PVR training requirements within a year of commencing their duties.
Effective January 1, 2026.
- When a town votes to eliminate the office of lister, the selectboard is to notify PVR within 14 days and shall employ or contract with a professionally qualified assessor who must meet the training requirements before they conduct any work.
- Repeals language regarding maintenance of duplicate property records within the Department of Taxes’ Division of Property Valuation and Review.
All changes in these sections are effective June 19, 2023.
Amends the definition of “improvements” to include the funding of debt service interest payments for a period of up to two years, beginning on the date on which the first debt service in incurred.
Amends the definition of “financing” to include an allowance for bond anticipation notes to be used as a method of financing, although they shall not be considered the first incurrence of debt.
- Specifies that the physical boundary lines of a district shall not be adjusted after approval of the district plan.
- Annual taxes paid to the Education Fund by a municipality shall not be less than the aggregated tax due on the original taxable value.
If a municipality with a TIF has entered into an agreement that reduces the municipality’s education property tax liability, the municipality’s municipal and education tax increment shall be calculated based on the assessed value of properties and not on the stabilized value.
Eliminates the ability of Vermont Economic Progress Council (VEPC) to apply to the State Emergency Board to increase the six-district limit of allowable TIF districts while the Vermont Legislature is not in session.
- Per the request of the City of Barre, relative to its TIF district, the ability of the City of Barre to retain municipal and education tax increment is extended to June 30, 2039.
- Per the request of the Town of Hartford, relative to its TIF district, the ability of the Town of Hartford to incur indebtedness has been extended until March 31, 2026, and to retain municipal and education tax increment has been extended until June 30, 2036.
Adoption of Local Option Tax by Town of Shelburne, Act M-11 (H.489)
Approves an amendment to the charter of the Town of Shelburne authorizing the adoption of a one percent LOT on sales, meals, alcoholic beverages, and rooms.
Effective June 8, 2023.
Adoption of Local Option Tax by City of Rutland, Act M-13 (H.505)
Amends the charter of the Town of Berlin to authorize the Town Treasurer, with Selectboard approval, to waive the personal property or inventory tax when the total assessed value of the personal property or inventory is less than or equal to $1,650.00.
Effective June 8, 2023.