AGRICULTURAL LAND, FOREST LAND, CONSERVATION LAND AND FARM BUILDINGS
USE VALUE APPRAISAL - APPLICATION AND INSTRUCTIONS
For local property tax purposes, eligible agricultural, forest land and conservation land will be appraised at use values determined by the Current Use Advisory Board. The landowner will pay taxes based on the use value. Eligible farm buildings will be exempt from all property taxes.
The purpose of the program is to keep productive agricultural and forest land in production and help to slow the development of these lands. When a landowner enrolls land in the program he or she is making a long term commitment to manage the land according to accepted farm, forest and conservation practices. If property enrolled in the program is
ever developed, the owner will be liable for a land use change tax on the portion of the property that is
ELIGIBLE LAND AND FARM BUILDINGS
A. Agricultural Land:
of the following conditions:
1. It is owned by a farmer and is part of the farm unit. 2. It is leased to a farmer as part of his farming operation under a written lease for at least three years. A copy of the lease must be submitted with the application. 3. It has and will continue to produce an annual gross income from the sale of farm crops in one of two, or three of the five, immediately preceding calendar years of at least $2,000 for parcels of up to 25 acres, and $75 per acre for each acre over 25, with the total income required not to exceed $5,000. Farm crops include, animal fiber, cider, wine and cheese produced on the enrolled land or on a house site adjoining the enrolled land from agricultural products grown on the enrolled land. 4. It is at least 25 contiguous acres and in active use to do one or a combination of the following: grow and annually harvest hay or cultivated crops; pasture at least one animal unit per three acres for a minimum of 30 days per year (an animal unit is defined as one horse, one cow, one mule, five goats or five sheep); cultivate and harvest Christmas trees; cultivate trees, bushes or vines to produce an annual crop of edible fruit; or produce an annual maple product. Forest land that is being pastured is not considered agricultural land for the purposes of this program and must be entered in the forest land category on this application. B. Farm Buildings: of a farming operation, are owned by a farmer or leased to a farmer under a written lease for a term of three years or more, and are situated on land that is enrolled in a use value appraisal program or on a house site adjoining enrolled land. “Farm Building” shall include up to $100,000 of the value of a farm facility processing farm crops, a minimum of 75 percent of which are produced on the farm and shall not include any dwelling other than a dwelling in use during the preceding tax year exclusively to house one or more farm employees, as defined in 9 V.S.A. §4469, and their families, as a nonmonetary benefit of the farm employment. “Farmer” means a person who earns at least one-half of the farmer’s annual gross income from the business of farming as that term is defined in Regulation 1.175-3 issued under the Internal Revenue Code of 1986 and/or from the sale of processed products produced from 75 percent of the farm crops produced on the farm. “Person” means any individual, firm, corporation, partnership or other form of organization or group of individuals. “Owner” means the person who is the owner of record. “Farm employee” means an individual employed by a farm employer in farming operations. “Farm employer” means an individual who earns at least one-half of his or her annual gross income from the business of farming as that term is defined in Section 1.175-3 of the regulation issued by the United States Department of the Treasury under the Internal Revenue Code of the United States, as amended. “Housing provided as a benefit of farm employment” means housing owned or controlled by the farm employer and provided for the occupancy of the farm employee and his or her family or household members for no consideration other than the farm employee's labor. Payment of utility and fuel charges paid by the farm employee does not affect the designation of housing provided as a benefit of farm employment. C. Forest Land: under an approved forest management plan for purposes of harvesting repeated forest crops in accordance with accepted forest management practices. Land which is not capable of growing 20 cubic feet per acre per year plus open land not to be restocked within two years under the provisions of a forest management plan cannot exceed 20% of the total eligible land appraised at use value. However, nonproductive land which exceeds the 20% rule may be eligible if approved by the County Forester. Also with County Forester approval, eligible forest land may include forest land designated as Ecologically Significant Treatment Areas (ESTAs), Significant Wildlife Habitat, Special Places/Sensitive Sites and Miscellaneous <1 acre. Please contact your County Forester for guidance and eligibility criteria and requirements. The management plan must be filed with the Department of Forest, Parks and Recreation by October 1 to receive use value appraisal in the next tax year. For continued eligibility a management activity report must be filed with the Department by February 1 of the year following the year when the management activity occurred. Forest land in the program will be inspected by state foresters at least once every ten years. Please consult with the county forester if there are any restrictions which would prevent the implementation of a forest management plan. D. Conservation Land: organization that was certified by the Commissioner of Taxes as a qualified organization as defined in 10 V.S.A. §6301a, and for at least five years preceding its certification was determined by the Internal Revenue Service to qualify as a Section 501(c)(3) organization which is not a private foundation as defined in Section 509(a) of the Internal Revenue Code, and is under active conservation management in accord with standards established by the commissioner of forest, parks and recreation. Conservation plan must be approved by and filed with the Department of Forest, Parks and Recreation by October 1 to receive use value appraisal in the next tax year. For continued eligibility a management activity report must be filed with the Department by February 1 of the year following the year when the management activity occurred. Conservation land in the program will be inspected by state foresters at least once every ten years. Conservation land will be enrolled at the forest land use value. THE APPLICATION PROCESS A separate application form must be submitted for each noncontiguous parcel. By September 1 of your property for next year and submit it to Property Valuation and Review. All information must be provided or the application will be rejected. For parcels that contain ONLY agricultural land and farm buildings, enclose 3 copies of a map of your property that are to state standards (see standards below). Also enclose a check for the application fee for $40.00 made payable to By October 1 applicant must submit to the Department of Forest, Parks and Recreation a conservation or forest management plan and 3 copies of a map of FORM LU-AFCFB Rev. 7/27/09 PLEASE DO NOT SEPARATE THIS FORM. the property that are to state standards. The plan and maps must be approved by the Department. Send conservation plans to the commissioner of Forest, Parks and Recreation and forest plans to your County Forester. All maps must meet the following standards: 1. The map must be prepared using a Vermont Base Map Orthophoto by drafting on an orthophoto original or tracing from an orthophoto. If you use a tracing, the four Vermont Coordinate System coordinates nearest the parcel's boundaries must be indicated on the map; also include an insert locus map to indicate the parcel's location. 2. The map must include the following: owner's name, town in which the parcel is located, name of draftsperson, orthophoto number, north arrow, scale, date prepared/revised and SPAN (School Property Account Number). 3. The map must show the boundaries of the entire parcel, the boundaries of the portion of the parcel to be included in the program, and the boundaries of the portion of the parcel to be excluded from the program. These areas must be labeled and the acreage of each area must be listed in a chart. If the parcel is divided by a town line, develop a map chart for each town. 4. The map must delineate and label the agricultural land, the enrolled farm buildings, and each stand of trees of forest land to be enrolled. The forest or conservation type and acreage of each forest or conservation stand must be included. 5. A chart must be included on the map or attached to the map to show the acreage for agricultural land, the acreage of productive forest land by stand or conservation areas, the acreage of nonproductive forest land by stand and all other categories. If the total acreage calculated off the orthophoto does not agree with the acreage in the town records, the enrolled acreage must be prorated (adjusted) to match town records. Do not prorate the actual acreage excluded. By April 15, Property Valuation and Review will notify the landowners of their property's acceptance/rejection to the program. The property is formally enrolled in the program as of April 1st, unless a formal appeal to withdraw has been received by the Director of Property Valuation and Review on or before the close of grievance hearings for that town in which the parcel is located. Once this application is signed by the landowner(s) and approved by the state, the application will be recorded in the land records of the town and will constitute a lien to secure payment of the land use change tax to the state upon development of the parcel. Change of Ownership - be completed for each parcel to be enrolled and filed within 30 days of the conveyance with Property Valuation and Review. If a portion of the property is retained by the original owner and is to continue enrollment under the original owner, then the original owner must complete and sign Change of Ownership and submit a new Application and maps in order for the retained land to remain enrolled. LINE-BY-LINE INSTRUCTIONS PRINT IN INK OR TYPE. ALL INFORMATION MUST BE PROVIDED OR THE APPLICATION WILL BE REJECTED. Line 1 parcels in different ownership. If a husband holds title to one parcel, and the husband and wife hold joint title to a contiguous parcel under another deed, two applications must be filed because these parcels are under separate unique ownership. Line 2 Line 3 conservation management plan are to be filed with the county forester or commissioner respectively by October 1, one month following the application deadline. Line 4 each town. Line 5 and Mountain Road”. Line 6 Line 7 says you have, but for this program the town listed acreage is what the state must use. Line 8 surrounding any dwelling, house, or mobile home. You also must exclude the acreage of land used for commercial mining, excavation or landfill, or that land directly related to non-farming, non-forestry or non-conservation purposes and for buildings not used for forestry or farming purposes. Additionally, if you plan to build on land in the program, or sell less than 25 acres in the near future, you may wish to initially exclude this land so that you are not charged a land use change tax in the future. Line 9 have a precise description of the excluded property. Attach an additional sheet of paper if there is not enough room. Refer to your map whenever possible. Make sure the excluded portions are clearly marked on your maps. Line 10 acreage to be appraised into the appropriate categories according to your map and enter the acres by category. For those organizations qualifying, conservation land must be entered as “Conservation Land”. Line 11 Line 12 20%” rule, a maximum of 20% of the total eligible land to be enrolled may be enrolled as nonproductive forest (Site IV) or open land. To determine this amount take the number of acres of “Productive Forest Land” you have listed on Line 10 and divide by 4. This will give you the maximum number of additional acres which may be enrolled in a combination of Nonproductive Forest and open land. If you have more nonproductive acreage than the 20% rule allows, it must be excluded on Line 8 or enrolled with County Forester approval. Complete Section 2. ALL LANDOWNERS MUST SIGN. If signature by other than owner(s), attach copy of recorded power of attorney or other recorded authorization. RETURN ALL COPIES application fee made payable to Mail to: Property Valuation and Review Current Use Program VT Department of Taxes 133 State Street Montpelier, VT 05633-1401 Please check if: 2. PHONE: 6. ACCOUNT NUMBER (SPAN): 4. town, file a separate application for each town): 5. Road #14): 7. 8. (At a minimum you must exclude: 2 acres of land surrounding each dwelling, house, or mobile home. See instructions for other exclusions. 9. ______________________________________________________________________________________________________________________________________ 10. FARMER: <1 Mile >1 Mile Active Agriculture ________ ________ Open/Idle Ag (20% Rule Limit) ________ ________ Productive Forest I, II, III ________ ________ Nonprod Forest (20% Rule Limit) ________ ________ Ecologically Significant TA* ________ ________ Sugarhouse ___________ Greenhouse ___________ Farm Employee Housing ___________ Farm Crop Processing Facility ___________ Barn ___________ Shed ___________ Silo ___________ TOTAL ___________ 12. A. B. If YES, give number and type:___________________________________________________________________ C. Regulation 1.175.-3 of the Internal Revenue Code of 1986 and/or from the sale of processed products produced from 75 percent of the farm crops produced on the farm? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D. as defined in 9 V.S.A. §4469, and their families, as a nonmonetary benefit of the farm employment? . . . . . . . . . . . . . . . . . . E. a written lease of at least 3 years? (Enclose copy of lease stating farm buildings being leased.) . . . . . . . . . . . . . . . . . . . . . . . F. 1. Cropland ____ Hay land ____ Orchard ____ Sugarbush ____ Christmas trees ____ Pasture ____ 2. a. b. c. (Enclose copy of lease stating actual property being leased.) G. 1. 2. 3. in the next town, making at least 25 acres? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H. 1. 2. 3. not a private foundation as defined in Section 509a of the Internal Revenue Code for at least five years preceding certification as defined in 10 V.S.A. §6301a? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SECTION 2. attorney or other recorded authorization. Do not separate this form. I hereby certify that I intend to have all my property described on this application appraised at use value except those portions specifically excluded on Line 8. I acknowledge that I, my heirs or assigns, are subject to the provisions of 32 V.S.A. Chapter 124 and the regulations and use values as adopted and prescribed by the Current Use Advisory Board and state statutes. records of the municipality and shall constitute a lien to secure payment of the land use change tax to the municipality upon development of the parcel. The lien shall run with the land. The landowner shall bear the recording cost. Owner Signature: ____________________________________________________________________ Date: ________________________ Owner Signature: ____________________________________________________________________ Date: ________________________ Owner Signature: ____________________________________________________________________ Date: ________________________ Date ______________________________ _______________________________________________, DIRECTOR, Division of Property Valuation & Review SECTION 3. From the information herein certified by the applicant, I have determined that the applicant's property is eligible for use value appraisal. 3. to: 133 State Street, Montpelier, VT 05633-1401. copies of the map and a check for $40.00 made payable to Property Valuation and Review 1. AGRICULTURAL LAND, FOREST LAND, CONSERVATION LAND AND FARM BUILDINGS USE VALUE APPRAISAL APPLICATION FORM Please read instructions on cover page - DO NOT SEPARATE THIS FORM. SECTION 1. FORM LU-AFCFB Rev. 7/27/09 White - Property Valuation and Review Canary - Town Green - County Forester Goldenrod - Landowner <1 Mile >1 Mile Conservation ________ ________ Nonprod Forest (>20% Rule)* ________ ________ Significant Wildlife Habitat* ________ ________ Special Places/Sensitive Sites* ________ ________ Miscellaneous/<1 Acre* ________ ________ *Requires County Forester approval with forest management plan.
developed. Development means the construction of any dwelling, camp, mobile home or other buildings not directly related to farming or forestry
purposes, or the commencement of commercial mining, excavation, landfill activity or fee hunting or fishing on land enrolled in the program or,
the subdivision of enrolled property into parcels less than 25 acres in size. Please see the law and rules for further definitions of development. The
amount of the tax will be twenty percent of the fair market value of the developed portion of the land, calculated at the time the land ceased
receiving use value appraisal. The tax will be ten percent for any portion enrolled more than ten years. Land may be voluntarily withdrawn from
use value appraisal at any time by the owner, or it may become ineligible through some other action of the owner. The land will then return to fair
market value appraisal, but the land use change tax would not be due unless and until the land is developed, or the owner wishes to discharge the
lien to clear the title.