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H 134

An act relating to calculating land use change tax and creating a new land use change tax exemption for developing affordable housing

2025-2026 Regular Session Introduced by Charlie Kimbell and 3 co-sponsors

Vermont bill exempts affordable housing developments from land use change tax while recalculating the tax, balancing housing affordability against farmland preservation goals.

Rep. Kornheiser of Brattleboro moved that the Committee on Ways and Means be relieved of the bill and that the same be committed to the Committee on Agriculture, Food Resiliency, and Forestry, which was agreed to
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Bill Summary · H 134

Legislative bill overview

H 134 modifies Vermont's land use change tax (a tax on converting agricultural, forest, or open space land to developed uses) by adjusting how it's calculated and creating a new exemption for developments that include affordable housing. The bill was initially referred to the Ways and Means Committee but has been reassigned to the Agriculture, Food Resiliency, and Forestry Committee, suggesting the focus is on land conservation implications rather than pure revenue impact.

Why is this important

Vermont's land use change tax is a key tool for discouraging sprawl and preserving agricultural and forestry land. Adding an affordable housing exemption creates a policy tension: it incentivizes developers to include affordable units but reduces revenue from a tax designed to protect working lands. This reflects broader debates about balancing housing affordability with farmland preservation in states facing both housing shortages and agricultural decline.

Potential points of contention

  • Revenue impact: The exemption will reduce tax collections, potentially underfunding land conservation programs that depend on this revenue
  • Incentive design: Questions about whether the exemption will actually increase affordable housing development or simply reduce taxes on projects that would proceed anyway
  • Geographic fairness: Exemptions may disproportionately benefit some regions over others depending on where development pressure and affordable housing needs align

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

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