Current Use Liens - Policy Preparation Update
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 there is a Current Use application of record, for title insurance purposes, the following Schedule B, Exception should be taken:
Terms and conditions of enrollment in Vermont's Current Use program as evidenced by instrument recorded in Book ___, Page ____.
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
tax runs with the land. The
ax 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 Additionally, there is a payment due if/when the property is withdrawn from the Program.
For more information visit the State's website or call the VATC office.