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Restricted Exemptions

V.S.A. tit. 32, ch. 125, subch. 2
in effect

32 V.S.A. § 3831 College, university, or fraternity property

3831. College, university, or fraternity property (a) Any real property acquired after April 1, 1941, by any college, university, or fraternity such as would be exempt from taxation under the provisions of section 3802 of this title shall be set to such institution in the grand list of the town or city in which such real property is located at the value fixed in the appraisal next preceding the date of acquisition of such property and taxed on such valuation. However, the voters of any town or city may at any legal meeting thereof vote to exempt such property from taxation, either in whole or in part. Except as provided under subsection (c) of this section, the value fixed on such property at such appraisal shall not be increased so long as the property is owned and used by such institution for other than commercial and investment purposes, whether or not improvements are made thereon. (b) The provisions of subsection (a) of this section shall not exempt from county, town, or school taxes lands owned by a college and leased “as long as wood grows and water runs,” securing to the lessees the right of preemption, unless such lands were chartered as sequestered for the benefit of the college or became the property of the college prior to the organization of the town in which they lie. (c) In the event of a general reappraisal of all property in the municipality completed after 1982, the appraisal value of property subject to subsection (a) of this section shall first be changed to an amount that yields a tax liability (computed with reference to the tax rate applicable to the first tax year based on the reappraisal) equal to the tax liability for such property for the tax year immediately preceding the reappraisal, provided that in the event the tax liability imposed on the majority of all taxable properties in the municipality increases in the first tax year based on the reappraisal, then any appraisal value of property subject to subsection (a) of this section shall be further changed to an amount that yields the tax liability computed above adjusted by the average percentage increase or decrease in the tax liability of all taxable properties in the municipality. (d) As used in this section, the term “fraternity” shall also mean “sorority.” Amended 1957, No. 219, § 2, eff. July 1, 1961; 1987, No. 215 (Adj. Sess.), § 1, eff. May 27, 1988.

32 V.S.A. § 3832 Public, pious, and charitable uses

3832. Public, pious, and charitable uses The exemption from taxation of real and personal estate granted, sequestered, or used for public, pious, or charitable uses shall not be construed as exempting: (1) real and personal property held in trust for a municipal corporation by virtue of a trust that takes effect after May 20, 1959 when the property is located outside the town where the municipal corporation has its principal place of business, unless the town or municipality in which the property is located so votes at any regular or special meeting duly warned therefor; (2) real estate owned or kept by a religious society other than a church edifice, a parsonage, the outbuildings of the church edifice or parsonage, a building used as a convent, school, orphanage, home, or hospital, land adjacent to any of the buildings named in this subdivision, kept and used as a parking lot not used to produce income, lawn, playground, or garden, and the so-called glebe lands; (3) property of railroad corporations; (4) a municipal electric light plant when located outside the town wherein the municipality owning it is situated; (5) real and personal property held by the State and located in any town other than that in which the institution of which it forms a part is located; (6) real and personal property owned or kept by an orphanage, home, or hospital, including a diagnostic and treatment center not used for the purpose of such institution but leased to others for income or profit, whether or not the institution is conducted by or connected with a religious society, unless the town or municipality in which the property is located so votes at any regular or special meeting duly warned therefor; or (7) real and personal property of an organization when the property is used primarily for health or recreational purposes, unless the town or municipality in which the property is located so votes at any regular or special meeting duly warned therefor, and except for the following types of property: (A) buildings and land owned and occupied by a health, recreation, and fitness organization that is: (i) exempt from taxation under 26 U.S.C. § 501(c)(3); (ii) used its income entirely for its exempt purpose; and (iii) promotes exercise and healthy lifestyles for the community and serve citizens of all income levels; and (B) real and personal property operated as a skating rink, owned and operated on a nonprofit basis, but not necessarily by the same entity, and that, in the most recent calendar year, provided facilities to local public schools for a sport officially recognized by the Vermont Principals’ Association. Amended 1959, No. 187; 1965, No. 71; 2013, No. 174 (Adj. Sess.), § 55, eff. Jan. 1, 2015; 2017, No. 113 (Adj. Sess.), § 187.

32 V.S.A. § 3834 Factories; quarries; mines

3834. Factories; quarries; mines If the amount invested exceeds $1,000.00, manufacturing establishments, quarries, mines, and such machinery, tramways, appliances, and buildings as are necessary for use in the business, machinery placed in an unoccupied building to be used in such business, and capital and personal property used in such business may be exempted from taxation for a period not exceeding 10 years from the commencement of business if the town so votes.

32 V.S.A. § 3835 Reporting exemption

3835. Reporting exemption Within 10 days after the adjournment of any town meeting at which an exemption is granted under the provisions of section 3834 of this title, the town clerk shall report to the director, upon forms to be furnished by him or her, the date upon which such exemption was granted and the length of the term thereof. Amended 1977, No. 105, § 14(a).

32 V.S.A. § 3836 Homes and dwellings

3836. Homes and dwellings Annually at town meeting, a town may vote to exempt from taxes the first $75,000.00 or a smaller amount of the appraised value of buildings used and occupied exclusively as homes, dwelling houses, or farm buildings whether for sale or rent, provided such buildings have been constructed or put in the process of construction during the 12 months immediately preceding the meeting or are to be constructed or put in the process of construction during the 12 months immediately following the meeting. The duration of such exemption shall not exceed three years, to be determined by the vote. The exemption shall first be applicable against the grand list of the year in which the vote is taken. Amended 1961, No. 255, eff. July 31, 1961; 2003, No. 76 (Adj. Sess.), § 31.

32 V.S.A. § 3837 Airports

3837. Airports At an annual or special meeting, a town may vote to exempt, for a period not exceeding five years at a time, real and personal estate used and occupied for or in connection with airport purposes.

32 V.S.A. § 3838 Hotels

3838. Hotels At an annual or special meeting, a town may vote to exempt, for a period not exceeding five years at a time, real and personal estate used and occupied for hotel purposes. When a majority of those voting on the question of such exemption at an annual meeting vote in favor thereof, such vote shall not be valid unless it shall appear that the total grand list of such majority is equal to at least one-half of the total grand list of those voting on such question. When a majority of those voting on the question of such exemption at a special meeting vote in favor thereof, such vote shall not be valid unless it shall appear that such majority is equal in number to one-third of the total number of legal voters in such town, nor unless it shall appear that the total grand list of such majority is equal to at least one-half of the total grand list of those voting on such question.

32 V.S.A. § 3839 Municipally owned lakeshore property

3839. Municipally owned lakeshore property (a) Notwithstanding section 3659 of this title, a town may vote to exempt from its municipal taxes, in whole or in part, any parcel of land, but not buildings, that provides public access to public waters, as defined in 10 V.S.A. § 1422(6), and that is also: (1) owned by the Town of Hardwick, and located in Greensboro, Vermont; or (2) owned by the Town of Thetford, and located in Fairlee and West Fairlee, Vermont. (b) An exemption voted by a town under subsection (a) of this section shall be for up to ten years. Upon the expiration of the exemption, a town may vote additional periods of exemption not exceeding five years each. Added 2013, No. 174 (Adj. Sess.), § 56.

32 V.S.A. § 3840 Charitable and fraternal organizations

3840. Charitable and fraternal organizations When a society or body of persons associated for a charitable purpose, in whole or in part, including fraternal organizations, volunteer fire, and ambulance or rescue companies, owns real estate used exclusively for the purposes of such society, body, or organization, such real estate may be exempted from taxation, either in whole or in part, for a period not exceeding 10 years, if the town so votes. Upon the expiration of such exemption, a town may vote additional periods of exemption not exceeding five years each. Amended 1961, No. 24, eff. March 17, 1961; 1975, No. 156 (Adj. Sess.), § 1.

32 V.S.A. § 3843 Housing projects for low- and moderate-income occupants

3843. Housing projects for low- and moderate-income occupants A municipality may vote at any regular or special meeting to exempt, in full or in part, for a term not to exceed 40 years, a federally subsidized low- or moderate-income housing project from education property tax if federal assistance would not be available in the absence of such an exemption. Added 1969, No. 268 (Adj. Sess.), § 1, eff. April 8, 1970; amended 2007, No. 190 (Adj. Sess.), § 6, eff. June 6, 2008.

32 V.S.A. § 3845 Renewable energy sources

3845. Renewable energy sources (a) At an annual or special meeting warned for that purpose, a town may, by a majority vote of those present and voting, exempt renewable energy sources, as defined herein, from real and personal property taxation. Such exemption shall first be applicable against the grand list of the year in which the vote is taken and shall continue until voted otherwise, in the same manner, by the town. (b) As used in this section, renewable energy shall have the same meaning as in 30 V.S.A. § 8002 for energy used on the premises for private, domestic, or agricultural purposes, no part of which may be for sale or exchange to the public. The term shall include grist mills, windmills, facilities for the collection of solar energy or the conversion of organic matter to methane, net-metering systems regulated by the Public Utility Commission under 30 V.S.A. § 8010, and all component parts thereof, but excluding land upon which the facility is located. Added 1975, No. 226 (Adj. Sess.), § 2; amended 2007, No. 92 (Adj. Sess.), § 23; 2013 No. 99 (Adj. Sess.), § 8, eff. Jan. 1, 2017; 2013, No. 174 (Adj. Sess.), § 28, eff. Jan. 1, 2015.

32 V.S.A. § 3846 Farmland appraisal contracts

3846. Farmland appraisal contracts (a) As used in this section: (1) “Farmland” means real estate that is actively and exclusively devoted to farming and that is at least 25 acres in area and is operated or leased as a farm enterprise by the owner. (2) “Forestland” means any land, exclusive of any housesite, which is at least 25 acres in size and which is under active forest management for the purpose of growing and harvesting repeated forest crops. (3) “Owner” of farmland or forestland means the record holder of the legal title (with closed leaseland, of the perpetual leasehold interest therein) individually, jointly with a member of his or her family, or as a member of a partnership all members of which are actively engaged in agriculture in Vermont. (b) The legislative body of a municipality may negotiate tax stabilization contracts with the owners of farmland or forestland pursuant to the provisions of 24 V.S.A. § 2741, except that to negotiate such contracts, the legislative body of the municipality shall be deemed to have the authorization of the municipality under 24 V.S.A. § 2741(b). (c) Any tax stabilization contract negotiated without the approval of a vote of the municipality under subsection (b) of this section shall provide that each appropriate taxing jurisdiction in which the property is located, including municipalities and school districts, shall compute the difference between the taxes due on such land under a farmland or forestland stabilization contract and the amount of taxes that would have been owed on such land at a fair market value appraisal. In the event of a conversion of the land from farmland or forestland to another use in breach of the contract, the sum of the differences between these two amounts of taxes for the previous three years shall be paid by the owner of the land under contract to the municipality within 30 days of the conversion. The contract shall constitute a lien in favor of the municipality against the property subject to the contract for payment of any amounts due the municipality under this subsection. (d) Whenever the assessing officials deny in whole or in part any application for classification as farmland or forest land or grant a different classification than that applied for, or fix an erroneous use value appraisal for eligible land, the aggrieved owner may appeal the decision in accordance with the provisions set forth in chapter 131 of this title. The appeal shall be heard in the same manner and under the same procedures as other appeals relating to real property appraisals and taxation. (d) Whenever the assessing officials deny in whole or in part any application for classification as farmland or forestland or grant a different classification than that applied for, or fix an erroneous use value appraisal for eligible land, the aggrieved owner may appeal the decision in accordance with the provisions set forth in section 3419 of this title. The appeal shall be heard in the same manner and under the same procedures as other appeals relating to real property appraisals and taxation. Added 1977, No. 105, § 24; amended 2025, No. 170 (Adj. Sess.), § 47, eff. January 1, 2031.

32 V.S.A. § 3847 Neighborhood housing improvement programs

3847. Neighborhood housing improvement programs At an annual or special meeting, a municipality may vote to exempt, for a period not exceeding five years, the property tax on the value of improvements made to principal dwelling units with funds provided in whole or in part by a nonprofit, neighborhood, or municipal housing improvement program that limits eligibility to residents with incomes below the median income of the State. Such programs include neighborhood housing services, Community Loan Funds, community land trusts, neighborhood planning associations, and municipal housing improvement programs. Added 1989, No. 23.

32 V.S.A. § 3848 Inventory tax; local option

3848. Inventory tax; local option (a) At an annual or special meeting warned for the purpose, a municipality may, by a majority vote of those present and voting, elect not to tax inventory of manufacturers and merchants and of other trades and businesses, including professional practices, except as otherwise provided by law. An election by a town not to tax inventory shall remain in effect until repealed or amended by a similar vote of the town. (b) As used in this section, “inventory” means tangible personal property of a nondepreciable nature held for consumption, sale, resale, leasing, or to be furnished under contracts of service, in a trade or business, and includes raw materials, work in process, semi-finished or finished goods of manufacturers and processors, and the stock-in-trade of wholesalers and retailers. (c) A repeal of the tax on inventory may be effective for 100 percent of inventory in the tax year following the vote, or the town may vote to exempt a stated percentage of inventory each year for a number of years not to exceed ten, until 100 percent of inventory is exempt. Added 1991, No. 203 (Adj. Sess.), § 2, eff. May 27, 1992.

32 V.S.A. § 3849 Business personal property; local option

3849. Business personal property; local option (a) At an annual or special meeting warned for the purpose, a municipality may, by a majority vote of those present and voting, elect not to tax, in whole or in part, business personal property according to this section. An election by a town not to tax business personal property shall remain in effect until repealed or amended by a similar vote of the town. (b) As used in this section, “business personal property” means property defined in subsection 3618(c) of this title. (c) If a town elects to repeal in whole the tax on business personal property, it may do so effective for 100 percent of property in the year following the vote, or it may vote to exempt an increasing percentage of property each year for a number of years not to exceed 10 years, until 100 percent of business personal property is exempt. Added 1991, No. 203 (Adj. Sess.), § 3, eff. May 27, 1992.

32 V.S.A. § 3850 Blighted property improvement program

3850. Blighted property improvement program (a) At an annual or special meeting, a municipality may vote to authorize the legislative body of the municipality to exempt from municipal taxes for a period not to exceed five years the value of improvements made to dwelling units certified as blighted. As used in this section, “dwelling unit” means a building or the part of a building that is used as a primary home, residence, or sleeping place by one or more persons who maintain a household. (b) If a municipality votes to approve the exemption described in subsection (a) of this section, the legislative body of the municipality shall appoint an independent review committee that is authorized to certify dwelling units in the municipality as blighted and exempt the value of improvements made to these dwelling units. (c) As used in this section, a dwelling unit may be certified as blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare. (d) If a dwelling unit is certified as blighted under subsection (b) of this section, the exemption shall take effect on the April 1 following the certification of the dwelling unit. (d) If a dwelling unit is certified as blighted under subsection (b) of this section, the exemption shall take effect on the January 1 following the certification of the dwelling unit. Added 2013, No. 59, § 14a; amended 2025, No. 164 (Adj. Sess.), § 38, eff. July 1, 2031.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/125Fetched: 10/21/2026

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