32 V.S.A. § 9602 — Tax on transfer of title to property

A tax is hereby imposed upon the transfer by deed of title to property located in
this State, or a transfer or acquisition of a controlling interest in any person with
title to property in this State. The amount of the tax equals 1.25 percent of the
value of the property transferred, or $1.00, whichever is greater, except as follows:
(1) With respect to the transfer of property to be used for the principal residence of
the transferee, the tax shall be imposed at the rate of 0.5 percent of the first $200,000.00
in value of the property transferred and at the rate of 1.25 percent of the value
of the property transferred in excess of $200,000.00, except that no tax shall be
imposed on the first $250,000.00 in value of the property transferred if the purchaser
obtains a purchase money mortgage funded in part with a homeland grant through the
Vermont Housing and Conservation Trust Fund or that the Vermont Housing and Finance
Agency or U.S. Department of Agriculture and Rural Development has committed to make
or purchase; and tax at the rate of 1.25 percent shall be imposed on the value of
that property in excess of $250,000.00.
(2) [Repealed.]
(3) With respect to the transfer to a housing cooperative organized under 11 V.S.A. chapter 7 and whose sole purpose is to provide principal residences for all of its members
or shareholders, or to an affordable housing cooperative under 11 V.S.A. chapter 14, of property to be used as the principal residence of a member or shareholder, the
tax shall be imposed in the amount of 0.5 percent of the first $200,000.00 in value
of the residence transferred and at the rate of 1.25 percent of the value of the residence
transferred in excess of $200,000.00; provided that the homesite leased by the cooperative
is used exclusively as the principal residence of a member or shareholder. If the
transferee ceases to be an eligible cooperative at any time during the six years following
the date of transfer, the transferee shall then become obligated to pay any reduction
in property transfer tax provided under this subdivision, and the obligation to pay
the additional tax shall also run with the land.
(4) Tax shall be imposed at the rate of 3.4 percent of the value of the property transferred
with respect to transfers of:
(A) residential property that is fit for habitation on a year-round basis;
(B) will not be used as the principal residence of the transferee; and
(C) for which the transferee will not be required to provide a landlord certificate pursuant
to section 6069 of this title. (