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H 646

An act relating to creating a residential property tax subclass for uninhabitable buildings

2025-2026 Regular Session Introduced by Larry Satcowitz

The bill allows Vermont municipalities to impose an annual uninhabitable property fee on such homes to recover costs for maintenance and safety, including liens if unpaid.

Read first time and referred to the Committee on Government Operations and Military Affairs
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WeVote Research Nonpartisan
Bill Summary · H 646

Overview

  • Bill: H.646
  • Session: 2025-2026
  • Jurisdiction: Vermont
  • Short title: An act relating to creating a residential property tax subclass for uninhabitable buildings
  • Sponsor: Rep. Lawrence Satcowitz ( Randolph)
  • Status: Introduced; referred to House Committee on Government Operations and Military Affairs (as of January 13, 2026)
  • Effective date: July 1, 2026

Purpose and intent

  • The bill authorizes municipalities to address uninhabitable residential properties by creating and applying an annual uninhabitable property fee.
  • The aim is to provide a mechanism for municipalities to recoup costs associated with maintaining or addressing uninhabitable buildings through a dedicated residential tax subclass and associated administrative processes.

Key provisions

Model rules and habitability guidance

  • Sec. 1: Amends 20 V.S.A. § 2736(g) to require the Commissioner of Public Safety, in consultation with the Commissioner of Health, to publish guidance and model rules for determining habitability under 24 V.S.A. § 2291(24).
  • The model rules must:
    • Define habitability
    • Incorporate existing state building and fire safety laws
    • Describe health and safety hazard bases for determinations
    • Include an administrative appeals process
  • Sec. 2: Requires publication of these model rules by November 15, 2026, on the Department of Public Safety’s website and to provide copies to specified legislative committees.

Habitability framework and authority

  • Sec. 3: Amends 24 V.S.A. § 2291 (Enumeration of Powers)
    • (24)(A): When a municipal official (building inspector, health officer, fire marshal, or other designated official) determines a building is uninhabitable, the town/city/village may:
    • (i) Assess the uninhabitable property fee under § 1539 until the property is repaired/maintained; or
    • (ii) Recover expenses for maintaining the uninhabitable building by placing a lien on the property, with procedures and remedies equivalent to those for taxes.
    • (B): Towns/villages adopting these powers must adopt rules to govern habitability and the process, including:
    • (i) Criteria for habitability (e.g., desertion/abandonment, boarded-up portions, existing unfitness orders, partially constructed/demolished abandoned portions)
    • (ii) Notice to the owner prior to incurring expenses and provisions for applying the uninhabitable property fee
    • (iii) An administrative appeals process
    • (C): A municipality may adopt the model rules as its own habitability rules.

Uninhabitable property fee

  • Sec. 4: Amends 24 V.S.A. § 1535 (Abatement)

    • Adds a clause allowing abatement of taxes/charges to the extent related to uninhabitable property fees once a property is subsequently maintained or repaired (consistent with other abatement authorities).

  • Sec. 5: Adds § 1539. Uninhabitable Property Fee

    • (a) Legislative body may impose an annual fee on uninhabitable properties. Amount:
    • The greater of 1% of the property’s appraised value or $5,000.
    • Due on the same date as property taxes.
    • (b) The fee applies only to properties determined uninhabitable under § 2291(24), not subject to administrative appeal, and not repaired/maintained within 30 days of determination or denial of appeal.
    • (c) Owner-initiated repairs/maintenance may request an abatement of a pro rata portion of the fee for the year in which repairs were made (per § 1535).

Administrative and effective provisions

  • Sec. 6: Effective date set for July 1, 2026.

Who is affected

  • Municipalities (cities, towns, incorporated villages) may adopt the habitability determinations and the uninhabitable property fee.
  • Property owners of buildings deemed uninhabitable by municipal officials.
  • Municipal building inspectors, health officers, fire marshals, and other designated officials who determine habitability.
  • State agencies (Commissioner of Public Safety, Commissioner of Health) for guidance and model rules.

Procedural and timeline notes

  • Model rules guidance to be published by November 15, 2026.
  • Habitability determinations and fee enforcement would follow the municipality’s adoption of habitability rules and the statutory framework.
  • The fee would be due with property taxes; an abatement mechanism exists for repairs.

Potential impacts (summary)

  • Provides a specific financial tool for municipalities to address uninhabitable residential buildings by levying a dedicated annual fee.
  • Creates a defined process for determining habitability, notifying owners, and administering appeals.
  • Establishes a lien mechanism or fee application to recover costs associated with maintaining uninhabitable properties.
  • Introduces an abatement option if owners repair or maintain properties, aligning with existing tax/fee abatement practices.
  • Sets a 2026–2027 time frame for model rule publication and an initial July 2026 effective date for the act.

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

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