2011 Vermont Code
Title 32 Taxation and Finance
Chapter 124 AGRICULTURAL AND FOREST LANDS
§ 3752 Definitions

§ 3752. Definitions

For the purposes of this subchapter:

(1) "Agricultural land" means any land, exclusive of any housesite, in active use to grow hay or cultivated crops, pasture livestock or to cultivate trees bearing edible fruit or produce an annual maple product, and which is 25 acres or more in size except as provided below. There shall be a presumption that the land is used for agricultural purposes if:

(A) it is owned by a farmer and is part of the overall farm unit; or

(B) it is used by a farmer as part of his or her farming operation under written lease for at least three years; or

(C) it has produced an annual gross income from the sale of farm crops in one of two, or three of the five, calendar years preceding of at least:

(i) $2,000.00 for parcels of up to 25 acres; and

(ii) $75.00 per acre for each acre over 25, with the total income required not to exceed $5,000.00;

(iii) exceptions to these income requirements may be made in cases of orchard lands planted to fruit producing trees, bushes or vines which are not yet of bearing age. For the purposes of this section, the term "farm crops" also includes animal fiber, cider, wine and cheese produced on the enrolled land or on a housesite adjoining the enrolled land from agricultural products grown on the enrolled land.

(2) "Assessing officials" means the listers or other assessing authority of the municipality or the state of Vermont.

(3) "Board" means the current use advisory board established in section 3753 of this chapter.

(4) "Commissioner" means the commissioner of the department of taxes.

(5) "Development" means, for the purposes of determining whether a land use change tax is to be assessed under section 3757 of this chapter, the construction of any building, road or other structure, or any mining, excavation or landfill activity. "Development" also means the subdivision of a parcel of land into two or more parcels, regardless of whether a change in use actually occurs, where one or more of the resulting parcels contains less than 25 acres each; but if subdivision is solely the result of a transfer to one or more of a spouse, parent, grandparent, child, grandchild, niece, nephew, or sibling of the transferor, or to the surviving spouse of any of the foregoing, then "development" shall not apply to any portion of the newly-created parcel or parcels which qualifies for enrollment and for which, within 30 days following the transfer, each transferee or transferor applies for reenrollment in the use value appraisal program. "Development" also means the cutting of

timber on property appraised under this chapter at use value in a manner contrary to a forest or conservation management plan as provided for in subsection 3755(b) of this title, or contrary to the minimum acceptable standards for forest management; or a change in the parcel or use of the parcel in violation of the conservation management standards established by the commissioner of forests, parks and recreation. The term "development" shall not include the construction, reconstruction, structural alteration, relocation, or enlargement of any building, road or other structure for farming, logging, forestry, or conservation purposes, but shall include the subsequent commencement of a use of that building, road or structure for other than farming, logging or forestry purposes.

(6) "Director" means the director of the division of property valuation and review created by 3 V.S.A. { 2289.

(7) "Farmer" means a person:

(A) 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; or

(B)(i) who produces farm crops that are processed in a farm facility situated on land enrolled by the farmer in a use value appraisal program or on a housesite adjoining the enrolled land;

(ii) whose gross income from the sale of the processed farm products pursuant to subdivision (i) of this subdivision (B), when added to other gross income from the business of farming as used in subdivision (A) of this subdivision (7), equals at least one-half of the farmer's annual gross income; and

(iii) who produces on the farm a minimum of 75 percent of the farm crops processed in the farm facility;

(C) The agency of agriculture, food and markets shall assist the director in making determinations of eligibility pursuant to subdivision (B) of this subdivision (7).

(8) "Housesite" means the two acres of land surrounding any house, mobile home or dwelling.

(9) "Managed forest land" means:

(A) any land, exclusive of any house site, which is at least 25 acres in size and which is under active long-term forest management for the purpose of growing and harvesting repeated forest crops in accordance with minimum acceptable standards for forest management; or

(B) any land, exclusive of any house site, which is:

(i) certified under 10 V.S.A. { 6306(b);

(ii) is owned by an 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

(iii) is under active conservation management in accord with standards established by the commissioner of forests, parks and recreation.

(10) "Owner" means the person who is the owner of record of any land. When enrolled land is mortgaged, the mortgagor shall be deemed the owner of the land for the purposes of this subchapter, until the mortgagee takes possession, either by voluntary act of the mortgagor or foreclosure, after which the mortgagee shall be deemed the owner.

(11) "Person" means any individual, firm, corporation, partnership or other form of organization or group of individuals.

(12) "Use value appraisal" means, with respect to land, the price per acre which the land would command if it were required to remain henceforth in agriculture or forest use, as determined in accordance with the terms and provisions of this subchapter. With respect to farm buildings, "use value appraisal" means zero percent of fair market value. The director shall annually provide the assessing officials with a list of farm sales, including the town in which the farm is located, the acreage, sales price, and date of sale.

(13) "Minimum acceptable standards for forest management" refer to certain standards established by the commissioner of the department of forests, parks and recreation.

(14) "Farm buildings" means all farm buildings and other farm improvements which are actively used by a farmer as part 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 housesite adjoining enrolled land. "Farm buildings" shall include up to $100,000.00 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 section 4469 of Title 9, and their families, as a nonmonetary benefit of the farm employment. This subdivision shall not affect the application of the definition of "farming" in 10 V.S.A. { 6001(22) or the definition of "farm structure" in 24 V.S.A. { 4413(d)(1).

(15) "Active use" of agricultural land includes that portion of otherwise eligible land that is enrolled in a conservation reserve enhancement program for agricultural lands through a contract with the state or federal government. (Added 1977, No. 236 (Adj. Sess.), { 1; 1981, No. 14, eff. Jan. 1, 1981; amended 1981, No. 14, eff. Jan. 1, 1981; 1983, No. 220 (Adj. Sess.), §§ 1, 2; 1987, No. 57, { 1, eff. May 16, 1987; 1987, No. 130 (Adj. Sess.), { 1; 1995, No. 29, { 39, eff. April 14, 1995; 1995, No. 178 (Adj. Sess.), { 286; 1997, No. 60, { 60, eff. Jan. 1, 1998; No. 60, { 68d; 1999, No. 49, { 86, eff. June 2, 1999; 2001, No. 140 (Adj. Sess.), §§ 31, 41, eff. June 21, 2002; 2003, No. 66, §§ 286, 286a; 2003, No. 149 (Adj. Sess.), { 11, eff. June 3, 2004; 2005, No. 76, §§ 1-3; 2007, No. 205 (Adj. Sess.), { 9, eff. June 10, 2008; 2009, No. 160 (Adj. Sess.), { 12, eff. June 4, 2010.)