WeVote
Log In

Bill

Bill

H 443

An act relating to a tax on vacant properties

2025-2026 Regular Session Introduced by Rebecca Holcombe and 2 co-sponsors

The bill would impose a tax on vacant residential and commercial properties to discourage long-term vacancy and fund housing initiatives.

Read first time and referred to the Committee on Ways and Means
0
WeVote Research Nonpartisan
Bill Summary · H 443

Summary of H 443 (2025-2026) — Vermont: An act relating to a tax on vacant properties

Purpose and intent

  • The bill proposes establishing a tax on vacant residential and/or commercial properties as a revenue-raising mechanism and policy tool.
  • The overarching goal is to discourage prolonged vacancy, encourage property utilization, and potentially address housing supply and markets impacted by vacant units.
  • The bill reflects legislative interest in leveraging taxation to influence real estate markets and land use discipline.

Key provisions and changes (as introduced)

  • Taxable Subject Property: Vacant properties—properties that are not actively used or occupied for a specified period, or as defined by the tax code or implementing rules.
  • Tax Base and Rate: The bill would define the basis for the tax (e.g., assessed value, market value, or a statutory value) and set or authorize the setting of a tax rate applicable to vacant status.
  • Vacancy Definition and Classification: A clear definition of what constitutes “vacant” (e.g., unoccupied for a minimum continuous period, or legally unused, including those under construction or held for investment) and criteria for determining vacancy status.
  • Exemptions and Defenses: Possible exemptions (e.g., properties under active sale or lease, properties with tenant protections, seasonal vacancies, religious or charitable properties, or properties undergoing significant rehabilitation) to avoid undue hardship.
  • Administration and Compliance: Procedures for recording vacancy status, notifying the property owner, filing requirements, and assessment processes. This would likely include deadlines, reporting forms, and interaction with the state or local assessor.
  • Revenue Allocation: Provisions on how tax revenue from vacant properties would be allocated (e.g., into general funds, housing programs, or targeted affordable housing initiatives) and any special funds or purposes.
  • Enforcement and Penalties: Penalties for non-compliance, late filings, or misrepresentation of vacancy status, consistent with existing tax administration penalties.

Who would be affected

  • Property owners of vacant or underutilized real estate within Vermont.
  • Landlords and developers who hold properties that are currently not in use.
  • Real estate investors with holdings in Vermont who may face vacancy-related taxation.
  • Local governments and state agencies responsible for tax collection and property classification, if state-level administration is involved.
  • Housing and urban development programs that could receive revenue earmarked from the tax.

Practical and policy implications

  • Behavioral impact: Potential incentives for owners to reduce vacancy, rent or sell underutilized properties, or convert vacant units into housing.
  • Housing market effects: Possible reduction in long-term vacancy, contributing to increased housing availability or affordability, depending on exemptions and how revenue is utilized.
  • Administrative considerations: Implementation would require robust vacancy verification processes, audit capabilities, and clear guidelines to prevent disputes or misclassification.
  • Equity considerations: Exemptions and thresholds would influence who pays and how burdens are distributed, with attention to unintended impacts on distressed properties or owners facing legitimate vacancy due to circumstances.

Procedural and timeline aspects

  • Current status: Read first time and referred to the Committee on Ways and Means on 2025-02-28.
  • Next steps likely include committee hearings, potential amendments, and consideration by the full House. If advanced, the bill would proceed through standard Vermont legislative process (readings, possible revisions, passage by both chambers, and potential gubernatorial signature or veto).

Sponsor information

  • Co-sponsors: Rebecca Holcombe, Monique Priestley, Teddy Waszazak.

Note: The summary reflects typical elements of a vacancy tax bill as introduced. Specific numeric rates, exact vacancy definitions, exemptions, and administration details will be determined in the bill’s text and any adopted amendments during committee and floor deliberations.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.