Bill > H0273

This bill modifies Vermont's Use Value Appraisal Program, which allows agricultural and forestry land to be taxed at a lower rate based on its current use rather than its potential development value. The bill makes three key changes: First, it reduces the income threshold for qualifying as a "farmer" from 50 percent to 25 percent of annual gross income from farming, making it easier for smaller agricultural operations to participate in the program. Second, it expands the definition of "farmer" to include individuals who earn at least 25 percent of their income from raising, feeding, or managing equines (horses), which was previously not explicitly included. Third, the bill reduces the land use change tax from 10 percent to six percent of the full fair market value when agricultural or forestry land is developed, which could make land conversion less financially punitive. These modifications aim to provide more flexibility for farmers and potentially encourage agricultural preservation by lowering barriers to entry and reducing financial penalties for land use changes. The bill will take effect immediately upon passage.

Agriculture and Natural Resources

https://legislature.vermont.gov/bill/status/2026/H.273