Vermont § 81 - Tax classification; repeal of inventory tax

§ 81. Tax classification; repeal of inventory tax

• (a) Except for the property of utilities subject to the provisions of 30 V.S.A. chapter
  3, all personal and real property set out in the grand list that is not used as residential
  property, farmland, and vacant land zoned “recreation, conservation and open space
  (RCO)”, shall be classified as nonresidential property and shall be assessed at 120
  percent of fair market value; and further provided that inventories and personal property
  belonging to an owner whose total personal property does not exceed the fair market
  value of $45,000.00 shall no longer be set out in the grand list of the City as taxable
  personal estate. Additionally, every owner whose total personal property does exceed
  the fair market value of $45,000.00 shall be taxed only on the amount of that property
  that exceeds $45,000.00. The amount of the exemption may be increased by the City
  Council prior to approval of the next fiscal year’s budget. Properties upon which
  in-lieu-of-tax payments are made shall be likewise classified and assessed for the
  purposes of such payments. The tax on nonresidential personal property shall be eliminated
  effective July 1, 2026, or sooner by resolution of the City Council. (b) For the purposes of this section, “residential property” is hereby defined to include
  all property used for dwelling purposes including accessory property that is subordinate
  to or customarily incidental to the main residential use such as garages and outbuildings.
  Where a property is used for both residential and nonresidential purposes, then it
  shall be apportioned according to such uses and then classified and assessed as herein
  provided. Notwithstanding the foregoing, for the sole purpose of calculating the educational
  grand list and for the assessment of property taxes for education purposes under Act
  60, so-called, as the same may be amended from time to time, all nonresidential properties
  as above defined shall be assessed at 100 percent of fair market value. (Amended 1999, No. M-9, § 2, eff. June 1, 1999; 2011, No. M-12 (Adj. Sess.), § 2, eff. May 3, 2012; 2019, No. M-6, § 2, eff. May 23, 2019.)