Railroads

V.S.A. tit. 32, ch. 211, subch. 2

in effect

32 V.S.A. § 8211 Rate of tax and time of payment

8211. Rate of tax and time of payment (a) For each taxable year, there is assessed upon the appraised value of the property and corporate franchise of each person or corporation owning or operating a railroad located in whole or in part within this State a tax at the rate of one percent. The appraised value shall be obtained and established as provided under this subchapter. One-half of the tax imposed by this section, covering the six months ending with June 30 in each year, shall be paid to the Commissioner on or before the following October 15 by the person or corporation then owning or operating the railroad. The remaining one-half of the tax covering the six months ending with December 31 in each year shall be paid to the Commissioner on or before the following April 15 by the person or corporation then owning or operating the railroad. (b) Not later than May 15 in each year, the State shall pay to each town wherein railroad real estate is located 50 percent of that portion of the tax revenue that has been collected upon the property of the railroad in that town for the immediately preceding taxable year. Delinquent taxes, when collected, shall be treated in the same fashion. Amended 1971, No. 79, § 1, eff. date, see note set out below; 2021, No. 105 (Adj. Sess.), § 568, eff. July 1, 2022.

32 V.S.A. § 8212 Liability of lessees

8212. Liability of lessees When a railroad is operated in this State by a person or corporation under a lease or other contract, taxes assessed thereon under the provisions of section 8211 of this title shall be paid by the lessee of such railroad or holder of such contract and be charged against and deducted from any payment due or to become due under such lease or contract, unless it is otherwise expressly stipulated therein.

32 V.S.A. § 8241 Annual report required; contents

8241. Annual report required; contents A person or corporation owning or operating a railroad located in whole or in part in this State, annually, on or before July 1, shall file with the Commissioner a sworn copy of the Interstate Commerce Commission report and, upon forms to be prepared and furnished at the expense of the State, a report for the year ending December 31 next preceding. The report shall show, among other things, the amount of gross and net earnings of the person or corporation. If any portion of such railroad is outside this State, the returns shall give the amount of gross and net earnings per mile of the road; the length of the entire main line of road and the number of miles thereof in this State; the kind and weight of rail used on its main line; the kind and number of ties per mile; the kind of ballast; the number of miles of side and spur tracks; a list of its equipment; the amount and the value of its capital stock; its funded and floating debt; its surplus; its bonds secured by mortgage or other securities on the property of such person or corporation; the market value of its stock and bonds; and the amount of dividends, interest, or indebtedness paid annually or semiannually. If a railroad is leased and operated by the lessee, the returns shall also give the amount paid for the rental of the railroad and any other matter required by the Commissioner to carry out the provisions of this chapter. Whenever required in writing by the Commissioner, the person or corporation shall render a sworn statement of other and further facts relating to its financial or physical condition as shall be required in making the appraisal under this subchapter. Amended 1975, No. 43, § 1, eff. April 14, 1975; 2021, No. 105 (Adj. Sess.), § 569, eff. July 1, 2022.

32 V.S.A. § 8242 Reports on fiscal year basis

8242. Reports on fiscal year basis The Commissioner may permit a person or corporation required to report to him or her under the provisions of section 8241 of this title, which has an established system of bookkeeping or accounting covering a fiscal year ending at a time other than December 31, to make its report covering its fiscal year last prior to the time of making such report in lieu of the fiscal year ending December 31. Amended 1975, No. 43, § 2, eff. April 14, 1975.

32 V.S.A. § 8261 Railroad property

8261. Railroad property The words “property acquired, constructed, or used for railroad business or purposes” as used in this chapter and except as otherwise provided shall include all franchises, rights-of-way, roadbeds, tracks, bridges, stations, terminals, rolling stock, equipment, and all other real and personal property of whatever character used or employed in the operation of a railroad or in conducting its business and shall include all title and interest in such property as owner, lessee, or otherwise.

32 V.S.A. § 8281 Railroad operating wholly in State

8281. Railroad operating wholly in State The Director shall appraise at its fair and just value all property acquired, constructed, or used for railroad business or purposes held, possessed, or owned by a person or corporation operating a railroad located entirely within this State. Amended 1977, No. 105, § 14(a).

32 V.S.A. § 8282 Road operating within and outside the State

8282. Road operating within and outside the State When a person or corporation operates a line of railroad located partly within and partly outside this State, except as otherwise provided, the Director shall appraise at its fair and just value all property within this State acquired, constructed, or used in this State for railroad business or purposes held, possessed, or owned by the person or corporation operating the line of railroad. In making the appraisal, the Director may take into consideration the value of the entire railroad system operated by the person or corporation; the mileage both within and outside this State; its engines, cars, and other equipment; and other information, facts, and circumstances as will aid the Director. Amended 1977, No. 105, § 14(a); 2021, No. 105 (Adj. Sess.), § 570, eff. July 1, 2022.

32 V.S.A. § 8283 Single or separate appraisals

8283. Single or separate appraisals In appraising the property specified in sections 8281 and 8282 of this title, except as otherwise provided, the Director may include in a single appraisal and valuation all such property so held, possessed, or owned by such person or corporation. In his or her discretion, he or she may include in two or more separate appraisals and valuations such portion or portions of such property so held, possessed, or owned by such person or corporation as he or she shall designate. As hereinafter provided, he or she shall make a record of such separate appraisals and valuations and of the aggregate appraisals and valuations of each person or corporation. Amended 1977, No. 105, § 14(a).

32 V.S.A. § 8284 Appraised value as true value

8284. Appraised value as true value For the purpose of taxation under the provisions of section 8211 of this title, such appraised valuation when made as aforesaid, except as otherwise provided, shall be taken to be the true value of such properties and franchises within this State so acquired, constructed, or used.

32 V.S.A. § 8285 Defective, insufficient, or invalid appraisals

8285. Defective, insufficient, or invalid appraisals When for any cause an appraisal required under the provisions of this article or article 6 of this subchapter is omitted or is found to be defective, insufficient, or invalid, the Director thereupon may make a new appraisal of the property whose appraisal has been so omitted or is defective, insufficient, or invalid. A record of such appraisal on the date thereof shall be made in the manner provided in section 8341 of this title and notice thereof given to the person or corporation specified in section 8343 of this title. Amended 1977, No. 105, § 14(a).

32 V.S.A. § 8286 Property exempt from appraisal

8286. Property exempt from appraisal The aforesaid appraisals shall not include the following classes of property owned by railroad companies: tenement houses and the lands whereon the same are located; lands or buildings leased to or occupied by another person or corporation for other than railroad purposes; timber, farming, meadow, or pasture lands; and water power or electric plants not used for railroad purposes. The section of the North Stratford, New Hampshire to Beecher Falls, Vermont railroad line owned by the State of New Hampshire and situated in the Town of Canaan shall be exempt from taxation under this subchapter when this section of railroad line is used solely for public recreation purposes, and not for railroad purposes, during the entire taxable year. Each railroad company that owns property coming within the scope of this section shall maintain with the clerk of each town or city wherein such property is located a certified list describing all such property within the town or city. When the status of any railroad property changes, the railroad shall notify forthwith the town clerk in the town where the property is located of such change. Amended 1959, No. 28, eff. March 11, 1959; 1989, No. 222 (Adj. Sess.), § 32, eff. May 31, 1990.

32 V.S.A. §§ 8301-8306 Repealed. 1997, No. 156 (Adj. Sess.), § 11, eff. April 29, 1998.

32 V.S.A. § 8321 General rule

8321. General rule All appraisals made under the provisions of article 4 of this subchapter shall be made in each even year on or before December 31. Amended 1975, No. 43, § 3, eff. April 14, 1975; 1997, No. 156 (Adj. Sess.), § 12, eff. April 29, 1998.

32 V.S.A. § 8322 Subsequent appraisals

8322. Subsequent appraisals (a) When, subsequent to the date whereon such appraisals are required to be made, trains, other than construction trains, commence running on a railroad located in whole or in part within this State or on any extension or branch of a railroad theretofore appraised, on or before December 31 in the year in which such trains so commence running, the Commissioner shall appraise such railroad, extension, or branch in the manner hereinbefore provided for appraising such property. (b) When, subsequent to the time thereof appraisals are required to be made in an even year, a person or corporation operating a railroad constructs, acquires, or begins to use one or more electric power plants subject to the appraisal under the provisions of article 4 of this subchapter, the Commissioner shall, on or before December 31 in the year in which such plant was constructed, acquired, or first used in whole or in part for railroad purposes, appraise such plants in the manner hereinbefore provided for appraising such property. (c) If, during the period between the appraisals, extensive repairs, improvements, or additions through acquisition or new construction have been made to the property of a railroad operating in this State, or if during such period there has been a large depreciation in the value of the property of such a railroad by reason of fire, flood, or other accident or disaster, or by reason of abandonment of lines or tracks, on or before December 31 in any odd year, the Commissioner may increase or decrease the amount of the last appraisal as he or she deems just. Notice of such action of the Commissioner, shall be given, and a party aggrieved thereby may appeal in the manner provided in respect to the regular biennial appraisals, and the taxes payable on or before October 15 next following and thereafter, until a new appraisal becomes effective, shall be based on such increased or decreased appraisal. Amended 1997, No. 156 (Adj. Sess.), § 13, eff. April 29, 1998.

32 V.S.A. § 8341 Record of appraisals

8341. Record of appraisals On or before January 15 following any appraisal made under the provisions of articles 4 and 6 of this subchapter, the Commissioner shall make a record thereof in a book kept in the Commissioner’s office for that purpose. Amended 1997, No. 156 (Adj. Sess.), § 14, eff. April 29, 1998.

32 V.S.A. § 8342 Sufficiency of record and notice

8342. Sufficiency of record and notice A record of notice of such appraisals showing, among other things, that all of the property within this State acquired, constructed, or used for railroad business or purposes and held, possessed, or owned by a person or corporation so operating a railroad, other than such as is enumerated in section 8286 of this title, has been appraised at the amount therein named, shall be deemed a sufficient and valid record and notice.

32 V.S.A. § 8343 Notice of appraisal; time appraisal in force

8343. Notice of appraisal; time appraisal in force On or before January 15 following such appraisals, the Commissioner shall notify in writing, by mail or otherwise, every person or corporation operating a railroad located in whole or in part within this State of the amount of all appraisals of property so operated by them and required to be appraised under the provisions of articles 4 and 6 of this subchapter and the amount of taxes annually assessed therein. Failure on the part of the Commissioner to give such notice, or of the person or corporation to receive the same, shall not invalidate such appraisal. An appraisal of such property made pursuant to the provisions of this chapter shall remain in full force and effect until a subsequent appraisal has been lawfully made and established. Amended 1997, No. 156 (Adj. Sess.), § 15, eff. April 29, 1998.

32 V.S.A. § 8344 Definition of representative; notice

8344. Definition of representative; notice The person or corporation operating a railroad in this State shall be the representative of every title and interest in property acquired, constructed, or used in the operation and business thereof as owner, lessee, or otherwise. Notice to the operating person or corporation shall be notice to all interests in the railroad property for the purpose of taxation. The appraisal and taxation of property so acquired, constructed, or used in the name of the owner, lessee, or operating person or corporation shall be deemed an appraisal and taxation of all title and interest in such property of every kind and nature.

32 V.S.A. § 8361 General rules for appeals

8361. General rules for appeals (a) A party aggrieved, including the State represented by the State Treasurer, on or before February 15 following such an appraisal, may appeal therefrom to a Superior judge designated by the Chief Superior Judge, not excluding themselves, who shall hear such appeal. (b) In the manner prescribed in this section and within 15 days from the date of notice prescribed in section 8285 of this title, appeals to the Superior judge may be taken from appraisals made agreeably to the provisions of such section 8285. Such proceedings shall be had in relation thereto as are prescribed in this section and section 8362 of this title and shall be heard and determined within 60 days from the date whereon the same are instituted. (c) Such Superior judge shall appraise at its fair and just value all property required to be appraised by the Commissioner under the provisions of sections 8281-8286, 8321, and 8322 of this title, from the appraisal of which an appeal has been taken. Such appraisal shall be made pursuant to the provisions of this chapter and shall stand in lieu of the appraisal made by the Commissioner from which such appeal is taken. (d) Upon establishing its appraisal, such Superior judge shall notify, in writing, the State Treasurer and the Commissioner of the amount thereof, and a record thereof shall be made by the Commissioner in the book wherein appraisals of railroad property are recorded. Notice in writing shall likewise be given to the person or corporation operating the property thus appraised. (e) A party aggrieved by any action of the Superior judge may appeal to the Supreme Court. Amended 1971, No. 185 (Adj. Sess.), § 232, eff. March 29, 1972; 1973, No. 106, § 13, eff. May 25, 1973; 1979, No. 181 (Adj. Sess.), § 19; 1997, No. 156 (Adj. Sess.), § 16, eff. April 29, 1998; 2021, No. 147 (Adj. Sess.), § 29, eff. May 31, 2022.

32 V.S.A. § 8362 Procedure

8362. Procedure The judge shall establish rules and regulations relative to the time and method of hearing and determining appeals as the judge shall deem just, provided that the appeal shall be finally determined and the appraisal by the judge made and established on or before June 1 following the appeals. The cost of the appeals shall be paid as the judge shall determine. The State Treasurer and the Attorney General shall represent the State in all such appeal proceedings unless the Attorney General is disqualified to act in the proceedings. In case of disqualification, the State shall be represented by the State Treasurer and by counsel as the State Treasurer may select with the approval of the Governor. Selected counsel shall be paid upon a warrant issued by the Commissioner of Finance and Management. Amended 1983, No. 195 (Adj. Sess.), § 5(b); 2021, No. 105 (Adj. Sess.), § 571, eff. July 1, 2022.

32 V.S.A. § 8363 Appraisal invalid in part

8363. Appraisal invalid in part When an action is pending to recover a tax assessed upon an appraisal made under the provisions of articles 4 and 6 of this subchapter and it shall be therein determined that such appraisal is valid in part, the court shall render judgment for so much of such tax as is based upon that portion of such appraisal so determined to be valid. Amended 1997, No. 156 (Adj. Sess.), § 17, eff. April 29, 1998.

32 V.S.A. §§ 8391-8393 Repealed. 1961, No. 275, § 4, eff. Aug. 1, 1961.

32 V.S.A. § 8394 Petition and hearing for relief from taxes

8394. Petition and hearing for relief from taxes Upon the written petition of any railroad corporation operating a railroad located in whole or in part within this State, setting forth that the financial condition of such corporation is such that the payment of any taxes assessed against it under the provisions of this chapter would imperil the continued operation of such railroad and would be detrimental to the general good of the State, the Public Utility Commission shall fix a time and place for hearing thereon and give due notice thereof, including notice to the Attorney General who shall attend such hearing and represent the interests of the State. Amended 1961, No. 275, § 1, eff. Aug. 1, 1961.

32 V.S.A. § 8395 Findings

8395. Findings Upon hearing, if the Commission finds that the enforced payment of the taxes would imperil the continued operation of the railroad and that the suspension of collection thereof would promote the general good of the State, it shall certify its findings to the Governor in writing, together with its recommendations in connection therewith. Thereupon, the Governor, by executive order, may suspend the collection thereof for the period of one year. The suspension may be extended by the Governor from year to year upon certification of reviewed findings and recommendations by the Commission. Any unpaid tax, the payment of which is suspended under this section, shall continue to constitute a first lien upon the property of the railroad in accordance with section 8102 of this title, except that in the case of the sale of a part of the real property of any railroad whose taxes have been suspended under this section, the Governor, upon recommendation of the Commission, may release such lien from such real estate sold upon payment of a reasonable share of the proceeds towards such suspended taxes, and the balance of taxes remaining shall continue to constitute such a first lien upon the remaining property of the railroad. Amended 1961, No. 275, § 2, eff. Aug. 1, 1961.

32 V.S.A. § 8396 Reducing tax claims in reorganization plans

8396. Reducing tax claims in reorganization plans In the event that a plan for the financial reorganization of any such railroad corporation shall be proposed, involving as an element thereof, a compromise or reduction of the claim of the State for unpaid taxes, and notice thereof, together with the details of such plan or reorganization, including the method proposed for the liquidation of such claim for taxes be given to the Governor, he or she shall forthwith refer the matter to such Commission, which, with the assistance of the Attorney General, shall investigate the same and certify its findings in respect thereto to the Governor in writing, together with its recommendations thereon.

32 V.S.A. § 8397 Acceptance of plan

8397. Acceptance of plan If the Commission finds and reports that the proposed plan of reorganization is fair, feasible, and practicable; that, if consummated, it will result in the continuous operation of the railroad for the benefit of the public served thereby; that there is a reasonable probability that it will be able to pay, when due, all taxes thereafter assessed against it by the State; that reduction of the claim for unpaid taxes due the State, in such amount as the Commission may recommend, is essential to the effective consummation of the plan; that the acceptance of the proposed compromise, the reduction of the claim in the amount recommended, and the cooperation by the State to the extent stated in carrying the proposed plan into effect will promote the general good of the State, the Governor, with the approval of the Emergency Board, may compromise, adjust, and settle the claim in accordance therewith. Amended 1961, No. 275, § 3, eff. Aug. 1, 1961.

32 V.S.A. § 8398 Revocation of waiver or compromise upon failure of railroad

8398. Revocation of waiver or compromise upon failure of railroad Should any such railroad cease operation, whether because of failure of consummation of any feasible plan of reorganization or for any other reason, then and in such event the provisions of this article relating to suspension of collection of taxes and to waiver or remission of penalties or forfeitures shall not be operative. In such case, the provisions of this chapter relating thereto shall apply in all respects, anything herein to the contrary notwithstanding.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/211Fetched: 10/21/2026