Current Use Program Introduction and Background
Revised July 2019
In 1978, the State of Vermont established the Use Value Appraisal of Agricultural, Forest, Conservation and Farm Buildings Property. Today, this program is known as “Current Use” and is administered by the Department of Taxes, Division of Property Valuation and Review.
Prior to 7/1/2019, the filing of an application in the land records constituted a lien. On 7/1/2019 legislation was enacted such that the filing of an application in the land records became a contingent lien. The law is retroactive and all Current Use applications, whenever filed, are now continent liens.
If the enrolled land is ever developed, a Land Use Change Tax is due and the State must file a Notice of Development providing the tax amount due.The tax is calculated as 10% of the fair market value of the developed parcel, or portion thereof.
Development includes any of the following:
- Subdivision so that one or more of the resulting parcels is less than 25 acres
- Construction of buildings, roads, or structures not used for forestry purposes
- Commercial mining, excavation or landfill activity, or cutting timber contrary to the management plan or contrary to state standards
If a tax becomes due, the obligation to pay the tax runs with the land. The tax is not due unless and until the land is developed; however, it may be prepaid if the landowner wishes to clear the title. Additionally, there is a payment due if/when the property is withdrawn from the Program.
If there is a Current Use application of record, for title insurance purposes, a Schedule B, Exception must be taken for: Terms and conditions of enrollment in Vermont’s Current Use program as evidenced by instrument recorded in Book ___, Page ____.
For more information visit the State’s website or call the VATC office.