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Form a Business

Delinquent Taxes

V.S.A. tit. 32, ch. 133, subch. 9
in effect

32 V.S.A. § 5136 Interest on overdue taxes

5136. Interest on overdue taxes (a) When a municipality votes under an article in the warning to collect interest on overdue taxes, such taxes, however collected, shall be due and payable not later than December 1 and shall bear interest at the rate of not more than one percent per month or fraction thereof, for the first three months and thereafter one and one-half percent per month or fraction thereof, from the due date of such tax. Such interest shall be imposed on a fraction of a month as if it were an entire month. A municipality having so voted to collect interest as hereinbefore provided, and the amount thereof, shall thereafter collect such interest each year until the municipality shall vote otherwise at a meeting duly warned for the purpose of voting on such question. (b) Whenever a municipality votes to collect interest on overdue taxes pursuant to this section, interest in like amount shall be paid by the municipality to any person making any overpayment of taxes occurring as a result of a redetermination of the grand list of the taxpayer on appeal provided by chapter 131 of this title. (b) Whenever a municipality votes to collect interest on overdue taxes pursuant to this section, interest in like amount shall be paid by the municipality to any person making any overpayment of taxes occurring as a result of a redetermination of the grand list of the taxpayer on appeal provided by chapter 121, subchapter 1A of this title. Amended 1973, No. 86, § 3, eff. for the tax year beginning April 1, 1974, and thereafter; 1981, No. 133 (Adj. Sess.), § 4, eff. April 2, 1982 for tax year beginning April 1, 1982, and thereafter; 1997, No. 50, § 12, eff. June 26, 1997; 2025, No. 170 (Adj. Sess.), § 49, prospectively eff. January 1, 2031.

32 V.S.A. § 5137 Recording delinquent payments

5137. Recording delinquent payments A collector of taxes for a town or municipality within it shall receipt for every payment made to the collector on account of delinquent taxes. Such receipt shall be written in triplicate in a bound book or other permanent record purchased at the expense of the municipality and shall indicate the date of the payment, the name of the person making the payment, the name of the person against whom was assessed the tax on which the payment is to be applied, the year in which such tax was assessed, and if a partial payment on an annual tax bill, whether applied on personal property or real estate taxes. Such collector shall deliver the original receipt forthwith to the person making the payment and one copy thereof within 30 days to the town clerk who shall keep such copy on file. Annually, on or before February 5, the collector shall deliver to the auditors of each municipality for which the collector is acting all such bound volumes in which entries pertaining to such municipality have been made during the year ending January 31 next preceding, and the auditors shall audit the books forthwith and after the completion of audit shall return such books to such collector. Amended 1977, No. 118 (Adj. Sess.), § 8, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978; 2003, No. 100 (Adj. Sess.), § 4; 2007, No. 121 (Adj. Sess.), § 31.

32 V.S.A. § 5138 Power of collector as to delinquent taxes

5138. Power of collector as to delinquent taxes Within 10 years from the time of receiving a tax bill, the collector may collect a tax in any place in the State and execute his or her warrant wherever he or she finds the property or person of a delinquent. When a person against whom the collector has a tax is absent from the State when the tax bill is received or removes therefrom within two years thereafter and has no property in the State that can be distrained for taxes, the collector may collect the tax within six years from the time he or she returns to the State or has known property therein liable to distress.

32 V.S.A. § 5139 Collection of taxes by sheriff

5139. Collection of taxes by sheriff A collector having an unpaid tax against a person may make an abstract containing the person’s name, his or her grand list, and the tax against him or her and append it to a copy of his or her warrant certified by him or her and deliver it to any sheriff or constable. Such sheriff or constable may collect the tax as such collector might have done. The powers, liabilities, and fees therein of such sheriff or constable shall be the same as such collector’s in the collection of such delinquent tax.

32 V.S.A. § 5140 Collection from estate of deceased

5140. Collection from estate of deceased When the property of a deceased person is set in the list to such person’s estate without naming the executor or administrator, if the executor or administrator does not pay the taxes assessed on such estate, any personal property of the estate may be taken and sold for the payment of such taxes, with costs, upon the same notice and demand upon such executor or administrator, and in the same manner as provided by law for the collection of taxes. Real estate belonging to such estate shall be holden as provided in section 5061 of this title and may be sold as provided in sections 5252-5255 of this title.

32 V.S.A. § 5141 Collection from earnings of municipal employees

5141. Collection from earnings of municipal employees (a) If an employee of a municipality is a delinquent taxpayer thereof, a treasurer or tax collector thereof may, after judicial hearing, collect the delinquent tax by causing to be deducted from the disposable earnings of the employee for any workweek an amount not exceeding: (1) 20 percent of the disposable earnings for that week; or (2) the amount by which the disposable earnings for that week exceed 30 times the federal minimum hourly wage prescribed by 29 U.S.C. § 206(a)(1) in effect at the time the earnings are payable, whichever amount is less. (b) The deductions may be made from time to time until the taxes, including costs, penalties, and interest, if any, are fully paid. This section shall not affect any other means or remedies for the collection of taxes. Amended 1971, No. 185 (Adj. Sess.), § 223, eff. March 29, 1972.

32 V.S.A. § 5142 Delinquent taxes; interest and collection fees

5142. Delinquent taxes; interest and collection fees (a) The acceptance of full or partial payment of overdue taxes by a town official shall not preclude the town from collecting any unpaid balance of taxes and any interest and collection fees accruing to the town, whether relating to the collected or uncollected portion of taxes. (b) Notwithstanding the provisions of subsection (a) of this section, the treasurer shall accept, on behalf of the collector of delinquent taxes, full payment of overdue taxes tendered after the due date fixed in the notice sent pursuant to section 4792 of this title but before the warrant is issued, provided such payment is accompanied by the collection fee and any interest. Taxes, fees, and interest collected under this subsection shall be turned over to the collector of delinquent taxes when the warrant is issued. (c) Notwithstanding the provisions of subsection (a) of this section, if taxes are not collected by the treasurer and the collector of delinquent taxes and the collector of current taxes are not the same person, the collector of current taxes shall accept, on behalf of the collector of delinquent taxes, full payment of overdue taxes tendered after the due date fixed in the notice sent pursuant to section 4772 of this title but before the list of delinquent taxpayers is delivered to the collector of delinquent taxes, provided such payment is accompanied by the collection fee and any interest. Taxes, fees, and interest collected under this subsection shall be turned over to the collector of delinquent taxes when the list of delinquent taxpayers is delivered. Added 1985, No. 91; amended 1989, No. 149 (Adj. Sess.), § 4, eff. April 24, 1990; 1997, No. 26, § 4.

32 V.S.A. § 5162 List of delinquent taxpayers

5162. List of delinquent taxpayers Annually, on or before January 15, the collector for a town or a municipality within it, shall make a list of the taxpayers of such municipality whose real and personal property taxes are unpaid as of December 31 next preceding, showing the amounts due and the years in which such taxes were due, certify under oath that such list is correct and deliver the same to the treasurer of such municipality. Amended 1977, No. 118 (Adj. Sess.), § 9, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978.

32 V.S.A. § 5163 Certification

5163. Certification The lists described in section 5162 of this title shall be submitted by the collector of taxes to the auditors of such municipality for verification and if correct shall be so certified by the auditors. The lists described in sections 4646 and 5162 of this title shall be open to public inspection.

32 V.S.A. § 5164 Penalties

5164. Penalties A collector of taxes for a town or municipality within it who fails for 10 days to report as required by sections 4646 and 5162 of this title may be fined not more than $100.00.

32 V.S.A. § 5191 Property subject to distraint

5191. Property subject to distraint At the expiration of the time for payment of tax as given in the notice required by section 4772 of this title or sooner in the case of a person whom he or she has just reason to believe is about to remove from town, the collector may distrain the goods, chattels, and capital stock in a corporation of a person whose tax is not paid. In the case of taxes assessed on real estate, he or she shall not distrain upon apparel, bedding, household furniture necessary for supporting life, one sewing machine kept for use, or provisions not exceeding $25.00 in value.

32 V.S.A. § 5192 Distraint by copy

5192. Distraint by copy Personal estate, which may be attached on a writ by leaving a copy in the town clerk’s office or by leaving a copy with the clerk or other officer of a corporation may be distrained for taxes by leaving in such town clerk’s office or with the clerk or other officer of such corporation, a copy of the warrant with the collector’s return thereon, giving a description of the property distrained and the character and amount of the tax; if stock in a corporation is sold by a collector to satisfy a tax, the clerk or other officer whose duty it is to make transfers of stock on the books of the corporation shall transfer the stock so sold to the purchaser on the books of the corporation and give the purchaser a certificate of stock.

32 V.S.A. § 5193 Sale on distraint

5193. Sale on distraint When a tax with costs and charges is not paid within four days after distress is made, the collector may sell the property at public auction. At least six days before such sale, he or she shall post notice thereof in a public place in the town where the property was taken. After deducting the tax and his or her charges, he or she shall return the balance realized from the sale to the taxpayer, on demand, with an account of the tax and his or her charges.

32 V.S.A. § 5221 Commencement of action; disqualifications

5221. Commencement of action; disqualifications When the treasurer, collector of taxes, or other proper officer has a delinquent tax in his or her hands for collection, he or she may notify the agent or other proper officer whose duty it is to prosecute and defend suits wherein such municipality is interested of the amount of such tax and of all fees accrued thereon, who, in his or her discretion, may institute suit therefor under the provisions of sections 5222-5226 and 5291 of this title, and a tax collector may institute suits as tax collector in his or her own name and join in one action to recover all taxes in his or her hands for collection against one taxpayer. A constable or sheriff shall not be disqualified to serve and return mesne, final, or other process in such suit, by reason of being a taxpayer in such municipality, by reason of being collector of taxes therein, or by reason of any act done or fees in his or her behalf accrued on account of such unpaid taxes.

32 V.S.A. § 5222 Taxes collectible by action

5222. Taxes collectible by action Taxes imposed or assessed under the provisions of this chapter and of chapters 127 and 129 of this title and all fees accruing or accrued against the taxpayer on account of delinquency may be recovered with costs in an action brought in the name of the town or municipality within it to which such taxes are due.

32 V.S.A. § 5223 Recognizance requirement

5223. Recognizance requirement A town or municipality within it shall not be required to furnish recognizance or other security for costs in any proceeding instituted under the provisions of sections 5222-5224 of this title; but, unless otherwise provided, upon final judgment, the Court may make such order relating to the payment of costs by the plaintiff for defendant as it shall deem just and reasonable.

32 V.S.A. § 5224 Trustee process

5224. Trustee process (a) A person or corporation may be summoned as trustee of the defendant and the goods, effects, and credits of such defendant in the hands of such trustee at the time of service of the writ thereon or that shall thereafter come into the hands or possession thereof before disclosure, shall thereby be attached and held to respond to final judgment in such cause, notwithstanding the tax or taxes whereon action is so brought are less than the sum of $10.00. A person or corporation so summoned as trustee may be adjudged liable as such notwithstanding the value of the goods, effects, or credits in the hands or possession thereof belonging to such defendant is less than $10.00. (b) In suits for the collection of taxes by trustee process, when the defendant contests the validity of the tax and does not prevail, judgment shall be rendered against him or her for all taxable costs and execution issued accordingly, notwithstanding such costs are greater than the amount of the judgment against the trustee.

32 V.S.A. § 5226 Presumption of lawful assessment

5226. Presumption of lawful assessment Except as otherwise provided in sections 5224-5226 and 5291 of this title, a tax bill regular on its face that has been theretofore placed for collection in the hands of the treasurer, collector of taxes, or other officer designated by law to collect the same, in a town or municipality within it so bringing suit, shall be prima facie evidence that the taxes therein standing against the name of the defendant were lawfully assessed against him or her.

32 V.S.A. § 5227 Judge not disqualified

5227. Judge not disqualified A judge shall not be disqualified to try an action for the collection of taxes by reason of being a taxpayer in the municipality where the tax is voted. Amended 1973, No. 249 (Adj. Sess.), § 102, eff. April 9, 1974.

32 V.S.A. § 5251 Definitions

5251. Definitions As used in sections 5251-5258 and 5292-5295 of this title: (1) The assessment of a tax shall be defined to mean all acts required by law to be done in respect to such tax by the officials of the town designated by law for that purpose, from the time of the making of a warning for an annual town meeting, up to and including the time that a tax bill is placed in the hands of the town treasurer for collection, in cases where the town votes to collect by its treasurer, or when the town does not so vote, up to and including the time that a tax bill with a warrant annexed thereto for collection has been placed in the hands of the town tax collector for collection. (2) The collection of a tax shall be defined to mean all acts required by law to be done or permitted by law to be done in respect to such tax, by either the town treasurer or the town tax collector, from the time specified in subdivision (1) of this section as marking the end of the assessment of the tax, up to and including the last act required or permitted by law to be done by the town tax collector in the enforcement of the collection of the tax.

32 V.S.A. § 5252 Levy and notice of sale; securing property

5252. Levy and notice of sale; securing property (a) When the collector of taxes of a town or of a municipality within it has for collection a tax assessed against real estate in the town and the taxpayer owes a minimum of $1,500.00 and is delinquent for a period longer than one year, the collector may extend a warrant on such land. However, no warrant shall be extended until a delinquent taxpayer is given an opportunity to enter a written reasonable repayment plan pursuant to subsection (c) of this section. If a collector receives notice from a manufactured home park owner pursuant to 10 V.S.A. § 6248(b), the collector shall, within 15 days after the notice, commence tax sale proceedings to hold a tax sale within 60 days after the notice. If the collector fails to initiate such proceedings, the town may initiate tax sale proceedings only after complying with 10 V.S.A. § 6249(f). If the tax collector extends the warrant, the collector shall: (1) File in the office of the town clerk for record a true and attested copy of the warrant and so much of the tax bill committed to the collector for collection as relates to the tax against the delinquent taxpayer, a sufficient description of the land so levied upon, and a statement in writing that by virtue of the original tax warrant and tax bill committed to the collector for collection, the collector has levied upon the described land. (2) Advertise forthwith such land for sale at public auction in the town where it lies three weeks successively in a newspaper circulating in the vicinity, the last publication to be at least 10 days before such sale. (3) Give the delinquent taxpayer written notice by certified mail requiring a return receipt directed to the last known address of the delinquent of the date and place of such sale at least 30 days prior thereto if the delinquent is a resident of the town and 30 days prior thereto if the delinquent is a nonresident of the town. If the notice by certified mail is returned unclaimed: (A) notice shall be provided to the taxpayer by resending the notice by first-class mail or by personal service pursuant to Rule 4 of the Vermont Rules of Civil Procedure; and (B) notice shall be provided by email, provided the tax collector can acquire the email address of the delinquent taxpayer using reasonable effort; and (C) notice shall be affixed to the front door of the property subject to tax sale, provided it has a structure. (4) Give to the mortgagee or lien holder of record written notice of such sale at least 30 days prior thereto if a resident of the town and, if a nonresident, 30 days’ notice to the mortgagee or lien holder of record or the mortgagee’s or lien holder’s agent or attorney by certified mail requiring a return receipt directed to the last known address of such person. If the notice by certified mail is returned unclaimed, notice shall be provided by resending the notice by first-class mail or by personal service pursuant to Rule 4 of the Vermont Rules of Civil Procedure. (5) Post a notice of such sale in some public place in the town. (6) Enclose the following statement, with directions to a resource translating the notice into the five most common non-English languages used in this State, with the notices required under subdivisions (3) and (4) of this subsection and with every delinquent tax notice: Warning: There are unpaid property taxes at (address of property), which you may own, have a legal interest, or may be contiguous to your property. The property will be sold at public auction on (date set for sale) unless the overdue taxes, fees, and interest in the amount of (dollar amount due) is paid. To make payment or receive further information, contact (name of tax collector) immediately at (office address), (mailing address), (email address), or (telephone number). (7) The resource for translation of the notice required under subdivision (6) of this subsection shall be made available to all municipalities by the Vermont Department of Taxes. (b)(1) If the warrant and levy for delinquent taxes has been recorded pursuant to subsection (a) of this section, the municipality in which the real estate lies may secure the property against illegal activity and potential fire hazards after giving the mortgagee or lien holder of record written notice at least 10 days prior to such action. (2) Notwithstanding any provision of this section to the contrary, when a warrant and levy for delinquent taxes has been recorded pursuant to subsection (a) of this section, it shall be for all delinquent taxes due at the time the warrant and levy is filed. (3) Notwithstanding subsection (a) of this section, the collector of taxes may extend a warrant on land pursuant to subsection (a) of this section when an amount less than $1,500.00 is owed, provided the parcel has no dwelling capable of habitation on a year-round basis and the parcel was not declared as part of a homestead pursuant to section 5410 of this title. (c)(1) A municipality shall not initiate a tax sale proceeding until it has, after attempting to consult with the taxpayer, offered a delinquent taxpayer a written reasonable repayment plan and the taxpayer has either denied the offer, failed to respond within 30 days, or failed to make a payment under the plan within the time frame established by the collector. When establishing a plan under this subsection, the municipality may request related information and shall consider the following: (A) the income and income schedule of the taxpayer, if offered by the taxpayer; (B) the taxpayer’s tax payment history with the municipality; (C) the amount of tax debt owed to the municipality; (D) the amount of time tax has been delinquent; and (E) the taxpayer’s reason for the delinquency, if offered by the taxpayer. (2) A collector is only required to offer one payment plan per delinquency, without regard for whether it is agreed to by the delinquent taxpayer. (3) A collector may void a payment plan and proceed to tax sale if a delinquent taxpayer agrees to a payment plan under this subsection and fails to make a timely payment. Amended 1993, No. 141 (Adj. Sess.), § 16, eff. May 6, 1994; 2017, No. 7, § 2; 2017, No. 117 (Adj. Sess.), § 3; 2023, No. 106 (Adj. Sess.), § 4, eff. May 13, 2024; 2025, No. 73, § 66, eff. July 1, 2025; 2025, No. 170 (Adj. Sess.), § 36, eff. July 1, 2026.

32 V.S.A. § 5253 Form of advertisement and notice of sale

5253. Form of advertisement and notice of sale The form of advertisement and notice of sale provided for in section 5252 of this title shall be substantially in the following form: The resident and nonresident owners, lien holders, and mortgagees of lands in the town of_______________________________________________________________________ in the county of_______________________________________________________________________ are hereby notified that the taxes assessed by such town for the years___________ (insert years the taxes are unpaid) ___________remain , either in whole or in part, unpaid on the following described lands in such town, to wit, ___________ (insert description of lands) and so much of such lands will be sold at public auction at_______________________________________________________________________ a public place in such town, on the___________ day of_____________________ (month) ,___________ (year) at___________ o’clock___________ (am/pm), as shall be requisite to discharge such taxes with costs and fees, unless previously paid. Be advised that the owner or mortgagee, or the owner’s or mortgagee’s representatives or assigns, of lands sold for taxes shall have a right to redemption for a period of one year from the date of sale pursuant to 32 V.S.A. § 5260. Dated at_______________________________________________________________________ , Vermont, this___________ day of_____________________ (month) ,___________ (year). ___________ Collector of Town Taxes Amended 1995, No. 106 (Adj. Sess.), § 1; 2023, No. 106 (Adj. Sess.), § 5, eff. May 13, 2024.

32 V.S.A. § 5254 Sale of realty

5254. Sale of realty (a) When the tax with costs and fees is not paid before the day of sale, the real property on which the taxes are due shall be sold to pay such taxes, costs, and fees. (b) Notwithstanding the provisions of subsection (a) of this section, the owner of the property being sold for taxes may request in writing, not less than 24 hours prior to the tax sale, that a portion of the property be sold. Such request must clearly identify the portion of the property to be sold and must be accompanied by a certification from the District Environmental Commission and the town zoning administrative officer that the portion identified may be subdivided and meets minimum lot size requirements. In the event that the portion identified by the taxpayer cannot be sold for the tax and costs, then the entire property may be sold to pay such tax and costs. Amended 1995, No. 106 (Adj. Sess.), § 2; 1995, No. 169 (Adj. Sess.), § 13, eff. May 15, 1996; 1999, No. 49, § 70, eff. June 2, 1999.

32 V.S.A. § 5255 Report of sale; form

5255. Report of sale; form Within 30 days after such sale of the land, the collector shall make a complete return of his or her doings and file the same for record in the town clerk’s office of the town wherein such land lies, which return shall be prima facie evidence of the facts therein stated and shall be substantially in the following form: By virtue of a warrant (or warrants as the case may be) lawfully committed to me for the year(s) 20_____ by the treasurer of the town of __________ (or by the selectboard of the town of _________ if the town has voted to collect its taxes by its collector and the tax bill annexed thereto) and the delinquent tax bill annexed thereto, I gave notice as required by law to the taxpayers of the town of _________ of the place where and the time when I would receive such taxes, and said taxpayers having failed and neglected to pay their said taxes upon such demand, on the __ day of ____ 20__ , I did extend and levy my said warrant(s) in the manner provided by law upon the following described land(s) of the following named delinquent taxpayer situated within the town, for the following described taxes due thereon, to wit: Name of Delinquent Taxpayer Description of Land Amount of Tax And on the __ day of ____ , 20__ , I did cause notice of the time and place of sale of the above described land(s) to be published three weeks successively in _________ a ____ newspaper circulating in the town of ___ and vicinity, for the issues of ____ , which said notice of sale therein provided that the same would be holden at __________ , a public place in the town of _____ at __ o’clock in the ____ noon, unless said land(s) was previously redeemed by the payment of said tax, and on the ___ day of _ , 20_ , I gave the delinquent taxpayer __ notice by registered mail of the time and place of such sale, and on the same date posted at __ , a public place in said town, notice of the time and place of such sale (also here insert facts as to the mortgagee, if any). And he or she (or they) having failed and neglected to pay said taxes and costs, at _______ (place of sale) on the ___ day of _____ , 20___ at ___ o’clock in the ____ noon, the time and place set by me for said sale, pursuant to the notice thereof, I did sell so much of said land(s) as was necessary to satisfy the tax and costs thereon to __________________ of _______ , for cash in the sum of _____ , he or she being the highest bidder therefor, the land and premises thus sold being particularly described as follows (here describe the lands). From the proceeds of said sale, I did satisfy myself for my own fees and the legal costs of said sale amounting in the whole to the sum of _______ , and on the ___ day of ____ , 20___ , turned over to _______________ the treasurer of the town of __________ , the sum of _________ in (part) satisfaction of the taxes due said town on said premises thus sold. And now at __________ in said County, this ___ day of _______ , 20___ , I make return of my doings hereunder by filing the same as herein set forth with the town clerk of the town of __________________ for record as provided by law. Attest, _________________________________________ Collector of Town Taxes.

32 V.S.A. § 5256 Sale of lands subject to lease

5256. Sale of lands subject to lease The reversionary interest of the owner of property subject to lease may be distrained by a collector of taxes by delivering to the lessor and lessee of such property a copy of his or her warrant with his or her return thereon, giving a description of the taxes and of the property and the lessor’s interest. The collector may sell such interest in the same manner as is required by law for the sale of the property for taxes when it is not under a lease.

32 V.S.A. § 5257 Sale of realty to satisfy personal property taxes

5257. Sale of realty to satisfy personal property taxes Real estate of a taxpayer may be levied upon and sold in the manner prescribed in sections 5252-5255 of this title for the collection of a delinquent personal property tax, but the sale thereof shall be subject to homestead rights and all existing liens and encumbrances of record on such property and all taxes validly assessed on such real estate. Amended 1959, No. 218, § 2; 1977, No. 118 (Adj. Sess.), § 10, eff. Feb. 3, 1978, for tax years beginning Jan. 1, 1978.

32 V.S.A. § 5258 Fees and costs allowed after warrant and levy recorded

5258. Fees and costs allowed after warrant and levy recorded (a) The fees and costs allowed after the warrant and levy for delinquent taxes have been recorded shall be as follows: (1) levy and extending of warrant, $10.00; (2) recording levy and extending of warrant in the town clerk’s office, $15.00, to be paid to the town clerk; (3) notices and publication of notices, actual costs incurred, including the costs of service pursuant to subdivisions 5252(a)(3) and (4) of this title; (4) expenses actually and reasonably incurred by the town in securing a property for which property taxes are delinquent against illegal activity and fire hazards, to be paid to the town clerk, provided that the expenses shall not exceed 20 percent of the uncollected tax; (5) when authorized by the selectboard, expenses actually and reasonably incurred by the tax collector for legal assistance in the preparation for or conduct of a tax sale, provided that the expenses shall not exceed 15 percent of the uncollected tax; (6) travel reimbursement at the rate established by the contract governing State employees; (7) attending and holding the sale, $10.00; (8) making return and recording the return in the town clerk’s office, $15.00 per page, to be paid to the town clerk; and (9) collector’s deed, $15.00 per page. (b) The fees and costs allowed in subsection (a) of this section, together with a collector’s fee of up to eight percent, shall be in lieu of all other fees and costs. Amended 1963, No. 124; 1983, No. 116 (Adj. Sess.); 1985, No. 264 (Adj. Sess.), § 4; 1995, No. 106 (Adj. Sess.), § 3; 2017, No. 7, § 1; 2017, No. 117 (Adj. Sess.), § 4; 2021, No. 73, § 12.

32 V.S.A. § 5259 Municipality may acquire land on tax sale

5259. Municipality may acquire land on tax sale By the act of its mayor or selectboard, when a tax warrant is extended on any land in this State, the city or town by which the tax is assessed may become the purchaser at the tax sale thereof, if a bid not equal to the tax and costs is made at such sale. When a tax warrant is extended on a manufactured home located in a manufactured home park in proceedings initiated after notice pursuant to 10 V.S.A. § 6248(b), the municipality may purchase the manufactured home or may sell the manufactured home to the highest bidder at the sale, although the bid is less than the taxes and costs due the municipality. If there is a release or a potential release of a hazardous substance, as defined in 10 V.S.A. § 6602(16), upon land that a municipality purchases at tax sale, the municipality shall have the right, prior to the expiration of the redemption period, to enter onto the land for the purpose of assessing and remediation on the land. Amended 1993, No. 141 (Adj. Sess.), § 17, eff. May 6, 1994; 2005, No. 81, § 1.

32 V.S.A. § 5260 Redemption

5260. Redemption (a) When the owner, lien holder, or mortgagee of lands sold for taxes, the owner’s, lien holder’s, or mortgagee’s representatives or assigns, within one year from the day of sale, pays or tenders to the collector who made the sale or in the case of the collector’s death or removal from the town where the land lies, to the town clerk of such town, the sum for which the land was sold with interest thereon calculated at a rate of one percent per month or fraction thereof from the day of sale to the day of payment, a deed of the land shall not be made to the purchaser, but the money paid or tendered by the owner, lien holder, or mortgagee or the owner’s, lien holder’s, or mortgagee’s representatives or assigns to the collector or town clerk shall be paid over to such purchaser on demand. In the event that a municipality purchases contaminated land pursuant to section 5259 of this title, the cost to redeem shall include all costs expended for assessment and remediation, including expenses incurred or authorized by any local, State, or federal government authority. (b) During the redemption period, the tax collector shall: (1) Serve the delinquent taxpayer with the written notice required under subsection (c) of this section between 90 and 120 days prior to the end of the redemption period using certified mail requiring a return receipt, directed to the last known address of the delinquent taxpayer. If the notice by certified mail is returned unclaimed, notice shall be provided by resending the notice by first-class mail or by personal service pursuant to Rule 4 of the Vermont Rules of Civil Procedure. (2) Post the notice in some public place in the municipality between 90 and 120 days prior to the end of redemption period. (c) The tax collector shall enclose the following statement, with directions to a resource translating the notice into the five most common non-English languages used in this State, with every notice required under this section: Warning: There are unpaid property taxes at (address of property), which you may own, have a legal interest in, or may be contiguous to your property. The property was sold at public auction on (date). Unless the overdue taxes, fees, and interest are paid by (last day of redemption period), the deed to the property will transfer to purchaser. To redeem the property and avoid losing your legal interest, you must pay (dollar amount due for redemption). The amount you must pay to redeem the property increases every month due to interest, mailing costs, and other costs. To make payment or receive further information, contact (name of tax collector) immediately at (office address), (mailing address), (email address), and (telephone number). (d) The resource for translation of the notice required under subsection (c) of this section shall be made available to all municipalities by the Vermont Department of Taxes. Amended 1989, No. 119, § 21, eff. June 22, 1989; 2005, No. 81, § 2; 2023, No. 106 (Adj. Sess.), § 6, eff. May 13, 2024.

32 V.S.A. § 5261 Deed by collector

5261. Deed by collector When the time for redemption has passed and the land is not redeemed, the collector or his or her successor shall execute to the purchaser a deed, which shall convey to him or her a title against the person for whose tax it was sold and those claiming under him or her.

32 V.S.A. § 5262 Recording lands not redeemed

5262. Recording lands not redeemed Within 30 days from the expiration of the time for redemption, the collector shall deposit with the town clerk for record a list of the lands that have not been redeemed, but a failure to comply with this provision shall not affect the title of the purchaser.

32 V.S.A. § 5263 Limitation of actions against grantee in possession

5263. Limitation of actions against grantee in possession An action for the recovery of lands, or the possession thereof, shall not be maintained against the grantee of such lands in a tax collector’s deed, duly recorded, or his or her heirs or assigns, when the grantee, or his or her heirs or assigns have been in continuous and open possession of the land conveyed in such deed and have paid the taxes thereon, unless commenced within one year after the cause of action first accrues to the plaintiff or those under whom he or she claims. Amended 1959, No. 218, § 5; 2017, No. 117 (Adj. Sess.), § 2.

32 V.S.A. § 5291 Disputing validity of tax

5291. Disputing validity of tax In case the defendant disputes the validity of some part or all of a tax for the recovery of which suit is brought under the provisions of sections 5222-5226 of this title, or for the recovery of which a suit is brought by the town for the foreclosure of a tax lien, he or she shall not avail himself of such defense unless, by appropriate answer or notice in writing, he or she shall set forth therein a certified copy of his or her objections to the validity of the assessment of the tax as provided in sections 5292-5294 of this title, obtained from the town clerk of the town wherein the tax is assessed, which certified copy shall show upon its face that the original thereof was filed with the town clerk within the period of limitations prescribed in section 5292 of this title and unless also by appropriate answer or notice in writing, he or she shall set forth all other particular grounds whereon he or she claims such tax is invalid or unlawful. When such grounds are so set forth, the burden of proof shall be upon the plaintiff in so far as the validity of such tax is thus put in issue.

32 V.S.A. § 5292 Filing of taxpayer’s objections

5292. Filing of taxpayer’s objections (a) A taxpayer shall not contest the validity of any tax assessed against his or her person, personal property, or real estate, nor the validity of the action of the listers or selectboard in assessing such tax, nor the validity of any grand list, unless the taxpayer filed his or her objections to the validity thereof, in the office of the town clerk wherein the tax is assessed, within a period of two months from November 15 of each year in which the tax is assessed. (b) If the taxpayer desires to object upon the ground that the notice he or she received, although given in the manner prescribed by law, is based upon invalid or defective proceedings in making up of the appraisal, grand list, or in the assessment thereof, he or she shall file at the place and within the time prescribed by subsection (a) of this section his or her specific objection that the notice received was so based. Amended 1957, No. 219, § 2, eff. July 1, 1961; 1959, No. 218 § 3.

32 V.S.A. § 5293 Time limitation on assertion of defenses by taxpayer

5293. Time limitation on assertion of defenses by taxpayer If the taxpayer is a resident of the State, within six months or if he or she is a nonresident, within one year from the date when collection of the tax might first be enforced against him or her, he or she may assert as a defense against the collection of the tax lack of notice and opportunity to be heard in all proceedings relating to the levying of such tax, including the making of the appraisal and grand list. Amended 1957, No. 219, § 2, eff. July 1, 1961.

32 V.S.A. § 5294 Time limitations on actions or suits by taxpayer

5294. Time limitations on actions or suits by taxpayer Unless commenced within one year from the time that collection is sought to be enforced against the taxpayer by arrest, distraint, or levy, an action shall not lie wherein a taxpayer may question the validity of: (1) an act required to be done by a treasurer of a town relating to a tax assessed; (2) notice by the treasurer to the taxpayer as to the amount of the tax or the time of the payment thereof; (3) acts of the treasurer as to turning over the unpaid portion of the tax bill and the annexed warrant to the tax collector for collection; (4) acts of the tax collector relating to the collection of the tax either before or after the tax became delinquent. Amended 1959, No. 218, § 1.

32 V.S.A. § 5295 Construction of limitation period

5295. Construction of limitation period For the purpose of determining when the statutory period of one year has begun to run, the following provisions shall apply: (1) If the taxpayer is arrested on a tax collector’s warrant, within one year from the date of his or her arrest. (2) If collection is sought to be enforced by distraint of personal property on the tax collector’s warrant, within one year from the date of the distraint. (3) If collection is sought to be enforced by sale of real estate, within one year from the date of the levy thereon by the tax collector. (4) If a taxpayer pays a tax to a town or subdivision thereof under protest, he or she shall commence action for the recovery of the tax thus paid within one year from the time of such payment. Amended 1959, No. 218, § 4.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/133Fetched: 10/21/2026

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