State Payment in Lieu of Property Taxes

V.S.A. tit. 32, ch. 123, subch. 4

in effect

32 V.S.A. § 3701 Definitions

3701. Definitions As used in this subchapter: (1) “State-owned property” means (A) State-owned buildings, including buildings of the Vermont State Colleges that are tax-exempt under 16 V.S.A. § 2178; buildings of the University of Vermont and State Agricultural College used for educational and not commercial purposes; and buildings of the Agency of Transportation and the Department of the Military; but excluding the value of land on which the buildings are located, and excluding all highways and bridges and any land pertaining to them; and (B) State-owned lands that pertain to State correctional facilities. (2) “Assessed value of State buildings” means the estimation of the current cost of replacing a building, maintained for insurance purposes by the State agency or other entity responsible for insuring the building, depreciated by the age and condition of the building. (3) “Assessed value of State lands” means the fair market value of lands that pertain to State correctional facilities, as determined by the Division of Property Valuation and Review, subject to the provision of subsection 3704(b) of this title. (4) “Adjusted municipal grand list” means the total assessed value of any State-owned property located in a municipality, multiplied by the common level of appraisal for the municipality as determined by the Division of Property Valuation and Review, multiplied by one percent, and added to the grand list of the municipality as determined pursuant to chapter 129 of this title. (5) “Adjusted municipal tax rate” means the total sum of money voted by a municipality for all noneducational expenses pursuant to 17 V.S.A. § 2664 or 24 V.S.A. § 1309, divided by the adjusted municipal grand list of the municipality. (6) “Municipality” means an incorporated city, town, village, or unorganized town, grant, or gore in which a tax is assessed for noneducational purposes. Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), §§ 23, 24, eff. July 1, 1997; 1999, No. 1, § 106a, eff. March 31, 1999; 2005, No. 207 (Adj. Sess.), § 7; 2021, No. 105 (Adj. Sess.), § 515, eff. July 1, 2022.

32 V.S.A. § 3702 Payment of grants authorized

3702. Payment of grants authorized The Secretary of Administration shall determine annually the amount of payment due, as a State grant in lieu of property taxes, to each municipality in the State in which is located any State-owned property, in accordance with the provisions of this subchapter. Added 1997, No. 60, § 53.

32 V.S.A. § 3703 Grant formula

3703. Grant formula (a) The amount of a grant to a municipality authorized by this subchapter shall be based on the total assessed value of any State-owned property located in the municipality, multiplied by the common level of appraisal for the municipality as determined by the Division of Property Valuation and Review, multiplied by one percent, and multiplied by the adjusted municipal tax rate for the municipality in which the property is located. (b) [Repealed.] (c) The total of any grants under subsection (a) of this section for buildings owned by the University of Vermont and State Agricultural College shall be limited to a maximum of $750,000.00. (d) [Repealed.] (e) The Secretary of Administration shall have authority to reduce any payments under this subchapter to avoid multiple payments to a municipality in the same year in lieu of taxes with respect to the same property. Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), § 26, eff. July 1, 1997; 1999, No. 1, § 106b, eff. March 31, 1999.

32 V.S.A. § 3704 Determination of assessed values; appeal

3704. Determination of assessed values; appeal (a) Prior to August 1, 1997, and to May 1 of each taxable year thereafter, the Secretary of Administration shall provide assessed values of State buildings and lands, as defined under this subchapter, to every municipality to which a grant is payable under this subchapter. (b) Any municipality aggrieved by the action of the Secretary under this section may, within 30 days of receipt of the assessed values, appeal to the Superior Court of the district in which the municipality is located. Added 1997, No. 60, § 53.

32 V.S.A. § 3705 Adjusted municipal grand list and adjusted municipal tax rate

3705. Adjusted municipal grand list and adjusted municipal tax rate (a) Prior to October 1 in each taxable year, the Division of Property Valuation and Review shall provide the Secretary of Administration with the following: (1) the adjusted municipal grand list for the prior assessment year, with the assessed values of all State-owned property shown separately, together with a statement of the common level of appraisal used to weight the assessed values of State-owned property; (2) the adjusted municipal tax rate to be used in assessing taxes on the prior adjusted municipal grand list; and (3) the total sum of money voted by the municipality for all noneducational expenses, pursuant to 17 V.S.A. § 2664. (b) Prior to issuing a grant under this subchapter, the Secretary of Administration may substitute his or her calculations of the adjusted municipal grand list or the adjusted municipal tax rate for a municipality if the Secretary finds that those calculations provided by the municipality under this section are in error or are inconsistent with assessed values as determined pursuant to section 3704 of this title. Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), § 25, eff. July 1, 1997.

32 V.S.A. § 3706 Payment to municipalities

3706. Payment to municipalities Grants under this subchapter shall be made annually by the Secretary of Administration to each eligible municipality on or before December 1, 1997, and on or before October 31 in years thereafter. Nothing in this subchapter shall be construed or permitted to affect the tax exempt status of the University of Vermont and State Agricultural College, as provided by statute and guaranteed by that institution’s charter. Added 1997, No. 60, § 53.

32 V.S.A. § 3707 Rules

3707. Rules The Secretary of Administration may adopt rules under 3 V.S.A. chapter 25 to carry out the provisions of this subchapter. Added 1997, No. 60, § 53.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/123Fetched: 10/21/2026