Answer 14 We enclose herewith copy of Article XIII of our State constitution which will explain the provisions referring to our system of property taxation. VERMONT Answer 1 Total property tax revenues for fiscal year 1972 were $116,710,157. They represented 43.9 percent of all State and local tax revenue. Answer 2 Local listers or assessors are elected and there are presently no requirements for meeting any professional standards. Answer 3 Neither State nor local jurisdictions currently provide any salary incentives for assessors who complete special educational courses. Answer 4 The first level of appeal is to the local assessors or board of listers, as they are referred to in Vermont. The second step is also to a local jurisdiction known as the board of civil authority, which is composed of the selectmen of the town, the elected justices and the town clerk. All of these persons are locally elected officials of the town. Their authority derives from the holding of their respective offices. Answer 5 Members of the State Tax Appeals Board, three in number, are appointed by the Commissioner of Taxes for a period of 1 year. Two boards conduct appeals onsite throughout the entire State. Such boards have no responsibility for assessing intercounty property, nor do they have any authority with respect to the supervision of local assessment standards or administration. Answer 6 The Property Tax Division of the Department of Taxes is responsible for the biennial equalization of all grand lists in the State. This is accomplished through sales ratio studies, where sufficient sales have occurred, and through the appraisal of randomly selected sample properties. Since the resulting equalized fair market values are an input of the State Aid-to-Education formula, officers of each town and school district are provided with the results. Additionally, they are published in the "Biennial Report of the Commissioner of Taxes." copies of which are provided each member of the General Assembly and other requesting agencies. All categories of real property are subject to the study with the exception of "Government Land," the as sessed or listed value of which is fixed by statute. A category is sampled when its total assessed value exceeds 10 percent of the total assessed value of all categories in the town. The list of categories is as follows: (1) residential, (2) vacation, (3) commercial, (4) industrial, (5) farm, (6) timberland, and (7) miscellaneous (vacant land only). Additionally, mobile homes with land and mobile homes without land may be surveyed. Answer 7 The annual budget of the property tax division for fiscal year 1973 is $450,093. It employs three supervisors or review appraisers, 21 property assessment advisers, and three industrial appraisers, for a total of 27 professional staff employees. One of the property assess ment advisers specializes in the appraisal of utilities. Answer 8 Assessment jurisdiction has long been retained at the local, town level. There is presently considerable pressure to convert to some type of county or artificial district system of assessing. Answer 9 Until 1963, only $3,000 of household furniture and equipment was exempted. At that time that limitation was eliminated and all household furniture and equipment became exempt provided it was "not regularly used as income producing property." The change was made because of the impracticability of administering the law as previously written. Until 1972, all or a certain percentage of the value of livestock could be exempted only by local option. Effective with the 1972 tax year, livestock became statutorily exempt as a means of relieving the farmer's tax burden. Standing timber which has been sold and conveyed without the land on which it stands, is taxable to the owner thereof, although little use is made of that provision in the law today. Answer 10 Vermont law provides that all property shall be appraised at fair market value and listed (assessed) at 50 percent of that value. The only exception to that involves State-owned land. the fair market value of which is fixed by statute at not more than $8 per acre. Answer 11 For all statutes concerning the exemption of real property from ad valorem taxation, please refer to enclosure 1. No attempt has been made at either State or local level to determine the fair market value of statutorily exempt property. (Ch. 125, secs. 3802-3, 3831-3844.) Answer 12 Current law does not provide for the taxation of any land at its use value and there are no so-called Greenbelt laws or other restric tive agreements. There is a statutory provision which permits a municipal corporation, by vote of two-thirds of those present and voting at any annual or special town meeting, to authorize its legislative body to enter into tax stabilization contracts with farmers and certain other owners. (Ch. 61, sec. 2741.) In 1969 a law was passed which authorizes any owner of real property to sell or donate any right or interest therein to a municipality or agency of the State. (Ch. 155, secs. 6301-6308.) Where the conveyance of such rights or interests is less than fee simple, the agreement must be for a specified number of years. The owner of the remaining rights or interests not conveyed shall then be taxed only on the value of the remaining rights or interests to which he retains title. The rights and interests acquired by the State shall then be considered as all other State-owned lands with respect to taxation and State reimbursement in lieu of taxes. As of this writing, this statute has never been utilized. Answer 13 State law provides that a person 65 years of age, or older, who meets certain requirements with respect to his domicile, shall be entitled to a credit against his Vermont income tax liability which is equal to the amount by which his property taxes, or his rent constituting property taxes, upon his homestead for the taxable year exceeds 7 percent of his total household income for that taxable year, multiplied by a local rate factor. (Ch. 151, secs. 5961-5967.) In fiscal year 1972, a total of $816,000 in tax credits was allowed or paid to 6,761 claimants. Answer 14 The only reference to taxation contained in the constitution of the State of Vermont is found in chapter 1, article 9, a verbatim transcript of which follows: Article 9. That every member of society hath a right to be protected in the enjoyment of life, liberty and property, and therefore, is bound to contribute his proportion towards the expense of that protection, and yield his personal service, when necessary, or an equivalent thereto, but no part of any person's property can be justly taken from him, or applied to public uses, without his own consent, or that of the representative body of the freemen, nor can any man who is conscientiously scrupulous of bearing arms, be justly compelled thereto, if he will pay such equivalent; nor are the people bound by any law but such as they have in like manner assented to, for their common good: and previous to any law being made to raise a tax, the purpose for which it is to be raised ought to appear evident to the legislature to be of more service to community than the money would be if not collected. VIRGINIA Answer 1 The latest data on property tax revenues are from "Governmental Finances" in 1970-71, U.S. Department of Commerce publication GF 71 No. 5: All State and local tax revenues Local property tax revenue (28.5 percent of total)---. Answer 2 $1, 755, 000, 000 500, 900, 000 515, 200, 000 (a) For the statutory 4 and 6 year assessments, real estate assessors are selected from among the citizens of the county, or city, by the judge of the court of record to serve in such a capacity. For those localities undertaking annual assessments, the real estate assessors are appointed by and serve at the pleasure of the local governing body. (b) Local property tax assessors are not required to meet any professional qualifications. Answer 3 One city and two counties provide salary incentives to appraisers, who complete special training. The State does not make a financial contribution. Answer 4 Members of boards of equalization of real estate assessments in all localities are primarily appointed by the judge of the court where deeds are admitted to record. Some appointments are, however, made by the governing body. None are elected. None of the appointees hold other local governmental positions. Answer 5 (a) Virginia does not assist on the State level with the equalization function. The department of taxation upon the request of the locality is required to render assistance to the local board of equalization on the local level. Calendar year in counties-first 6 months in cities. (b) Virginia's constitution provides for the assessment of public service corporations (e.g., railroads or utility companies with public service charters) by a central State agency. Assessed values are fixed by the State corporation commission and annually certified to the local governmental units. Taxes on such assessed values are extended locally. (c) There is no direct supervision over local assessment standards and administration. Answer 6 (a) Department of taxation. (b) Biennially. (c) Biennially, distributed throughout the State. (d) Real estate only. Answer 7 There is no State agency charged with this responsibility. The constitution of Virginia segregated real and tangible personal property for exclusively local taxation. Virginia does, however, make the aid and assistance of the Virginia department of taxation available to any county or city on a voluntary basis. The State maintains a "corps" of about 40 trained real estate appraisers to assist counties and cities with general re assessments, minerals, machinery and tools in the mining and manufacturing businesses and any difficult assessment problem. Answer 8 During the past 10 years there has been the consolidation of three counties with three cities into three rather than six separate taxing districts. Several incorporated towns that were formerly within county boundaries have become cities and, as such, separate taxing districts. Other than these there has been little change, and today there are about the same number of taxing districts as there were 10 years ago. Answer 9 Tangible personal property has been segregated for exclusively local taxation. Any local governmental unit may exempt from taxation household goods and personal effects. Intangible personal property (stocks, bonds, money, etc.) is not subject to local taxation. Moreover, there is no State tax on intangible personal property except to the extent that it is a part of the capital of certain businesses. No. Answer 10 Answer 11 (a) See attachment A. (Article X, sec. 6, State constitution) (b) State statutes do not require such a listing. No local official is charged by law with the responsibility to fix the value of tax-exempt real estate. Recent statutes authorize the governing body of any county, city, or town to levy a service charge on tax-exempt real estate. This would presumably authorize the local assessing officer to make a listing for such as required to be shown on the land book. Service charge charges extend to all tax-exempt real estate exclusive of churches and the residences of ministers and may not exceed 40 percent of the real estate rate. (c) Land books for locality only. Answer 12 See attachments B and C (subsection 6). (Ch. 461, laws of 1966; title 58, Ch. 15, 769.4-769.16, code of Virginia). Answer 13 Virginia's new constitution adopted July 1, 1971, provided the general assembly with the authority to grant tax relief for Virginia's elderly citizens who were deemed to carry a tax burden disproportionate to their income and net worth. Statutes have been adopted granting the governing body of any county, city, town, or regional government with the authority to provide for deferral or exemption from real estate taxes on the sole dwelling owned and occupied by persons 65 years of age or older whose income is less than $7,500 per annum and whose net worth does not exceed $20,000. Implementation is by local option and ordinances within statutory limits are up |