Vermont § 9603 - Exemptions The following transfers are exempt from the tax imposed by this chapter:

§ 9603. Exemptions The following transfers are exempt from the tax imposed by this chapter:

• (1) Transfers recorded prior to January 1, 1968. (2) Transfers of property to the United States of America; the State of Vermont; or any
  of their instrumentalities, agencies, or subdivisions. (3) Transfers directly to the obligee to secure a debt or other obligation. (4) Transfers that, without additional consideration, confirm or correct a transfer previously
  recorded. (5) Transfers between two spouses, or parent and child or child’s spouse, or grandparent
  and grandchild or grandchild’s spouse, without actual consideration therefor; and
  also transfers in trust or by decree of court to the extent of the benefit to the
  donor or one or more of the related persons named in this subdivision; and transfers
  from a trust named in this subdivision conveying or releasing the property free of
  trust as between those related persons and without actual consideration therefor. (6) Transfers to effectuate a mere change of identity or form of ownership or organization
  where there is no change in beneficial ownership. (7) Transfers directly to the obligor of release of property that is security for a debt
  or other obligation when such debt or other obligation has been fully satisfied. (8) Transfers of partition. (9) Transfers made pursuant to mergers or consolidations of corporations pursuant to which
  transfer no gain or loss is recognized under the Internal Revenue Code, and bona fide
  transfers to shareholders of corporations in connection with the complete dissolution
  thereof, except where the Commissioner finds that a major purpose of such dissolution
  is to avoid the property transfer tax. (10) Transfers made by a subsidiary corporation to its parent corporation for no consideration
  other than cancellation or surrender of the subsidiary’s stock. (11) Transfers made to a corporation at the time of its formation pursuant to which transfer
  no gain or loss is recognized under 26 U.S.C. § 351, except where the Commissioner finds that a major purpose of such transaction is
  to avoid the property transfer tax. (12) Transfers made to, or made by, a local development corporation as defined under 10 V.S.A. § 212(10). (13) Transfers made to, or made by, an authority established pursuant to 10 V.S.A. chapter
  12. (14)(A) Transfers to organizations qualifying under 26 U.S.C. § 501(c)(3), as amended, and that prior to the transfer have been determined to meet the “public
  support” test of 26 U.S.C. § 509(a)(2), as amended, provided one of the stated purposes of the organization is to acquire
  property or rights and less than fee interest in property in order to preserve farmland
  or open-space land, and provided that the property transferred, or rights and interests
  in the property, will be held by the organization for this purpose. As used in this
  section, “farmland” means real estate that will be actively operated or leased as
  part of a farm enterprise, including dwellings and agricultural structures, and “open-space
  land” means land without structures thereon. (B) Transfers to organizations qualifying under 26 U.S.C. § 501(c)(3), as amended, and that prior to the transfer have been determined to meet the “public
  support” test of 26 U.S.C. § 509(a)(1), as amended, shall not be exempt from tax, but the tax shall be deferred, provided
  one of the stated purposes of the organization is to acquire property or rights and
  less than fee interest in property in order to preserve farmland or open-space land,
  and provided that the property transferred, or rights and interests in the property,
  will be held by the organization for this purpose. Any transferee organization for
  which tax is deferred under this subdivision shall pay the deferred tax upon later
  transfer by that organization of all or a part of the property or the development
  rights for that property, up to a maximum of the consideration received for such later
  transfers. (C)