32 V.S.A. § 5412 — Reduction of listed value and recalculation of education tax liability

(a)(1) If a listed value is reduced as the result of an appeal or court action made pursuant
to section 4461 of this title, a municipality may submit a request for the Director of Property Valuation and Review
to recalculate its education property tax liability for the education grand list value
lost due to a determination, declaratory judgment, or settlement. The Director shall
recalculate the municipality’s education property tax liability for each year at issue,
in accord with the reduced valuation, provided that:
(A) The reduction in valuation is the result of an appeal under chapter 131 of this title
to the Director of Property Valuation and Review or to a court, with no further appeal
available with regard to that valuation, or any judicial decision with no further
right of appeal, or a settlement of either an appeal or court action if the Director
determines that the settlement value is the fair market value of the parcel. The Director
may waive the requirement of continuing an appeal or court action until there is no
further right of appeal if the Director concludes that the value determined by an
adjudicated decision is a reasonable representation of the fair market value of the
parcel.
(B) The municipality submits the request on or before January 15 for a request involving
an appeal or court action resolved within the previous calendar year.
(C) [Repealed.]
(D) The Director determines that the municipality’s actions were consistent with best
practices published by the Property Valuation and Review in consultation with the
Vermont Assessors and Listers Association. The municipality shall have the burden
of showing that its actions were consistent with the Director’s best practices.
(2) A determination of the Director made under subdivision (1) of this subsection may
be appealed within 30 days by an aggrieved municipality to the Commissioner for a
hearing to be held in accordance with 3 V.S.A. §§ 809-813. The Commissioner’s determination may be further appealed to Superior Court, which
shall review the Commissioner’s determination using the record that was before the
Commissioner. The Commissioner’s determination may only be overturned for abuse of
discretion.
(3) Upon the Director’s request, a municipality submitting a request under subdivision
(1) of this subsection shall include a copy of the agreement, determination, or final
order, and any other documentation necessary to show the existence of these conditions.
(b) To the extent that the municipality has paid that liability, the Director shall allow
a credit for any reduction in education tax liability against the next ensuing year’s
education tax liability.
(c) If a listed value is increased as the result of an appeal under chapter 131 of this
title or court action, whether adjudicated or settled, and the Director determines
that the settlement value is the fair market value of the parcel with no further appeal
available with regard to that valuation, the Director shall recalculate the municipality’s
education property tax for each year at issue, in accord with the increased valuation,
and shall assess the municipality for the additional tax at the same time the Director
assesses the municipality’s education tax liability for the next ensuing year, unless
the resulting assessment would be less than $300.00. Payment under this section shall
be due with the municipality’s education tax liability for the next ensuing year.
(d) Recalculation of education property tax under this section shall have no effect other
than to reimburse or assess a municipality for education property tax changes that
result from property revaluation.
(e) A reduction made under this section shall be an amount equal to the loss in education
grand list value multiplied by the tax rate applicable to the subject property in
the year the request is submitted. However, the total amount for all reductions made
under this section in one year shall not exceed $1,000,000.00. If total reductions
for a calendar year would exceed this amount, the Director shall instead prorate the
reductions proportionally among all municipalities eligible for a reduction so that
total reductions equal $1,000,000.00.
(f) Prior to the issuance of a final administrative determination or judicial order, a
municipality may request that the Director certify that best practices were followed
for purposes of meeting the requirements of subdivision (a)(1)(D) of this section.
The Director may choose to grant certification, deny certification, or refrain from
a decision until a request is submitted under subdivision (a)(1) of this section.
The Director shall consider the potential impact on the Education Fund, the unique
character of the subject property or properties, and any extraordinary circumstances
when deciding whether to grant certification under this subsection. The Director shall
be bound by a decision to grant certification unless the municipality agrees to a
settlement after such certification was made. (