1. STATE OF VERMONT
DEPARTMENT OF TAXES
133 STATE STREET
MONTPELIER, VERMONT 05633
This booklet contains:
VERMONT PROPERTY TRANSFER TAX RETURN (Form PT-1)
REAL ESTATE WITHHOLDING RETURN (Form RW-171)
LAND GAINS WITHHOLDING TAX RETURN (Form LG-1)
LAND GAINS TAX RETURN (Form LG-2)
ACT 250 DISCLOSURE STATEMENT (Form 250)
USE THIS BOOKLET FOR TRANSACTIONS OCCURRING AFTER MARCH 10, 2008
Vermont Property Transfer Tax Return
In order to record a deed for the transfer of title to real property, you must file a Vermont Property Transfer Tax Return, even if no tax
is due. Complete the original and one copy of the return and deliver them to the town clerk with payment of any tax due. Make checks
payable to the Vermont Department of Taxes. The town clerk will forward the original return and payment to the Department of Taxes
and will retain a copy of the return at the town clerk’s office. For assistance with the Property Transfer Tax Return, call 802-828-2542.
Real Estate Withholding Tax Return
If any seller was a nonresident at the time of transfer, the buyer must withhold 2 1/2% of the full consideration paid for the transfer
and transmit it to the Commissioner of Taxes with Form RW-171 within 30 days of the transfer. If the buyer fails to withhold, the buyer
will be personally liable for the amount of the withholding. Send Form RW-171 directly to the Department of Taxes. Do not file Form
RW-171 with the town clerk. For assistance with the Real Estate Withholding Return, call 802-828-2777.
Land Gains Withholding Tax Return and Land Gains Tax Return
The Land Gains Tax is a tax on the gain from the sale or exchange of Vermont land which was held for less than six years. If the
seller has owned the land for less than six years, the buyer may be required to withhold 10% of the purchase price and remit it to the
Vermont Department of Taxes. This includes the sale of Timber and Timber Rights if land is 300 acres or more, please refer to the
Land Gains Tax Return (Form LG-2) for further details. Please read the instructions for the Land Gains and Land Gains Withholding
Tax Returns. For assistance with either return, call 802-828-2550.
Act 250 Disclosure Statement
If the transfer creates a partition or division of land, you must attach an Act 250 Disclosure Statement to the town clerk’s copy of the
Vermont Property Transfer Tax Return when you file a deed for recording. The town clerk will acknowledge receipt of the Act 250
Disclosure Statement on the face of the Property Transfer Tax Return. Do not file the Act 250 Disclosure Statement with the
Department of Taxes or the Natural Resources Board. For assistance with the Act 250 Disclosure Statement, call 802-828-3309
or your Act 250 regional office (see map on page 26).
Taxpayer Assistance
If you need help with any of the forms in this booklet, please call the appropriate number listed above. Assistance is available
weekdays between 8:00 a.m. and 4:30 p.m.
For forms, call 802-828-2515 or they are available on our website at http://tax.vermont.gov. The Vermont Department of Taxes
will accept clear black and white photocopies of these tax forms (except RW-171) if reproduced in original size.

2. VERMONT PROPERTY TRANSFER TAX RETURN (Form PT-1)
GENERAL INFORMATION
Line F - Enter the acreage of parcel being conveyed. (If the sale
WHEN IS A PROPERTY TRANSFER TAX RETURN REQUIRED TO involves less than a full acre, please indicate portion. Example: .25
BE FILED? acre).
The property transfer tax is a tax on the transfer by deed of title to real Line G - Special Factors - This portion is included to provide important
property in Vermont. A property transfer tax return must be filed with sales information describing the nature of the transfer. This information
a town clerk whenever a deed that shows the transfer of title to real is important to both the municipality and the State in understanding
property is delivered to a town clerk for recording. A town clerk can factors that could influence the sale value. Please complete as follows:
not record a deed unless it is accompanied by a completed tax return Development Rights - If development rights have been
and payment of any tax due. previously sold or conveyed or are being sold now, please check
If a transfer is exempt from the property transfer tax, no payment is YES. If development rights are being sold together with land as
due, but a property transfer tax return must be filed when a deed is one transfer, please check NO.
delivered to a town clerk for recording. Family Members - If sale was between family members (blood
The town will file this return with the department within 30 days of or marriage), please check YES and state relationship.
receipt. Financing - Please check appropriate box for Conventional/Bank,
Owner financing or other financing (for example, cash or trade).
WHO IS LIABLE FOR THE TAX?
Line H - Describe the buildings that were on the property at the time
The buyer (transferee) is liable for the tax.
of transfer. Check all boxes that apply. If multi-family dwellings or
condominiums were on the property, enter the number of units
WHAT DOCUMENTS ARE CONSIDERED TO BE DEEDS FOR
transferred. For any building, indicate whether the building was ever
PROPERTY TRANSFER TAX PURPOSES?
occupied; rented; and/or if planned to be rented after the transfer.
The following documents are considered to be deeds and must be
Lines I and J - Check the one box that describes the primary use of
accompanied by a completed property transfer tax return and tax
the property prior to and after transfer. Check the “primary residence”
payment when they are recorded: any warranty deed; quitclaim deed;
box if the occupant (regardless of whether the occupant is the owner
an instrument in which the grantee holds equitable title and has the
or lessee) uses the property as his or her primary residence. [Note
right to possession, such as a bond for deed, title bond, contract to
that checking this box does not necessarily entitle the buyer to the
convey, executory contract for sale, installment sale, or lease for a
principal residence rate which requires that property to be the buyer’s
deed; quitclaim deed, sheriff’s deed or other deed; bill of sale; order of
principal residence - see Rate Schedule Instructions on page 4.] A
a board, commission or court; or other instrument evidencing a
multi-family dwelling with up to four units is considered a primary
transfer of title to real property or a grant of a life estate, perpetual
residence if it is occupied as the main home or domicile of at least
easement, and all leases.
one tenant. A multi-family dwelling with five or more units is commercial
No return is required to be filed when the following documents are property. “Camp or vacation” property includes vacation rental property
delivered to a town clerk: mortgage deed; assignment of mortgage; which is purchased as an investment. If the property was purchased
subrogation of mortgage; full release or discharge of mortgage; by the tenant, please check YES. If the buyer holds title to any
attachment; lien; license to sell; agreement to sell; option to buy; deed adjoining property, please check YES.
of a cemetery plot; or utility line easement purchased by a public utility
Line K - If the land is now or was previously enrolled in any of the use
or municipality for $500 or less, disclaimers pursuant to 14 V.S.A.
value appraisal programs for agricultural, forest, farmland or working
Chapter 83.
farmland it may be subject to a lien to secure payment of a use change
tax, see 32 V.S.A. §3757(a).
LINE-BY-LINE INSTRUCTIONS
Line L - If the transfer is exempt from tax, insert the number of the
All information must be completed prior to recording.
exemption from the list that follows and describe the nature of the
Lines A and B - Enter the full name, the mailing address and social exemption.
security or federal identification number of each seller (transferor) and
The following transfers are exempt from the payment of property
buyer (transferee) named in the deed. Please black out social
transfer tax, see 32 V.S.A. §9603:
security and federal identification numbers from town copy only.
1. Transfers recorded prior to January 1, 1968;
The state copy does require social security and federal
identification numbers. 2. Transfers of property to the United States of America, the
State of Vermont, or any of their instrumentalities, agencies
Line C - Enter the street address and town. If no street address
or subdivisions;
exists, provide as complete a description as possible. If the property
is located in two towns, please list both towns. 3. Transfers directly to the obligee to secure a debt or other
obligation;
Line D - Enter the date the property was transferred.
4. Transfers which, without additional consideration, confirm
Line E - Check the box that describes the property interest being
or correct a transfer previously recorded;
acquired. A lease is subject to tax if it is for a period of at least 50
years (including possible renewals) or if the lessee has a purchase 5. Transfers between husband and wife, or parent and child, or
option and the right to construct a building or structure or make major child’s spouse, or grandparent and grandchild, or grand-
capital improvements, such as water systems, sewer systems, roads child’s spouse without actual consideration; and also
or parking facilities. transfers in trust or by decree of court to the extent of the
benefit to the donor or one or more of the related persons
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3. (a) To acquire property in order to preserve housing for
above named; and transfers from such a trust conveying or
low-income families; or
releasing the property free of trust as between such persons
and without actual consideration; (b) To operate a statewide public television station; or
6. Transfers directly to the obligor of release of property which (c) To act as a food clearinghouse to reduce the
is security for a debt or other obligation when such debt or incidence of hunger in Vermont and provided that the
other obligation has been fully satisfied; property transferred will be held by the transferee for
this purpose;
7. Transfers of partition;
22. Leases that meet the following condition:
8. Transfers made pursuant to mergers or consolidations of
corporations pursuant to which transfer no gain or loss is (a) Leases of land for less than 50 years, including
recognized under the Internal Revenue Code, and bona fide extensions (however, all leases regardless of term
transfers to shareholders of corporations in connection with are subject to tax if they contain an option to purchase
the complete dissolution; and allows the lessee to construct a building or make
major capital improvements);
9. Transfers made by a subsidiary corporation to its parent
corporation for no consideration other than cancellation or (b) Leases that had a completed Act 250 application filed
surrender of the subsidiary’s stock; with a local environmental commission or the
Environmental Board on or before June 22, 1989; or
10. Transfers made to a corporation at the time of its formation
pursuant to which transfer no gain or loss is recognized (c) Leases that were not subject to Act 250 and were
under §351 of the Internal Revenue Code*; under review by a municipal planning commission on
or before June 22, 1989.
11. Transfer to or by the Vermont Industrial Development
Authority or a non-profit local development corporation (See 23. Transfers to IRC §501(c)(3) organization which prior to the
10 V.S.A. §212(10)); transfer have been determined to meet the “public support”
test of §509(a)(1) of the Internal Revenue Code , shall not
12. Transfer to an IRC §501(c)(3) organization that meets the
be exempt from tax, but the tax shall be deferred, provided
public support test of §509(a)(2) of the Internal Revenue
one of the stated purposes of the organization is to acquire
Code to preserve farmland or open space land or transfer to
property or rights and less than fee interest in property in
a §501(c)(2) holding company for such organization;
order to preserve farmland or open-space land and
13. Transfer to a partnership or limited liability company at the
provided that the property transferred, or rights and
time of formation, if no gain or loss is recognized under the
interests in the property, will be held by the organization for
Internal Revenue Code*;
this purpose. Any transferee organization for which tax is
14. Transfer by a partnership to a partner or a limited liability deferred under this subdivision shall pay the deferred tax
company to a member in connection with a bona fide upon later transfer by that organization of all or a part of the
dissolution provided no gain or loss is recognized under the property or the development rights for that property, up to a
Internal Revenue Code; maximum of the consideration received for such later
15. Transfer of a utility line easement to a public utility or transfers.
municipality for $500 or less; If exemption is claimed, please indicate the number of the exemptions
16. Transfer between an obligor and primary obligee in involved on line L of the return.
foreclosure or a conveyance in lieu of foreclosure; Lines M, N and O - Note: This section must be completed even if the
17. Court-ordered transfer to spouse in divorce; transfer is exempt from tax.
18. Transfer to a limited equity cooperative to provide low or On Line M, enter the total consideration paid.
moderate income housing; transfer to a §501(c)(3) On Line N, enter the total consideration paid or to be paid for personal
organization or its wholly owned subsidiary to preserve property. Please list types of personal property on line provided.
housing for low income families;
On Line O, enter the total consideration paid or to be paid for real
19. Transfers of leasehold interests made to low income property. (Subtract N from M)
individuals by organizations qualifying under §501(c)(3) or
Consideration includes the amount of any cash, checks or notes
by a wholly-owned subsidiary of such an organization, when
given to the transferor; the amount of any liens or encumbrances that
such a transfer is made concurrently with the transfer of an
were on the property before transfer and were not removed; the
improvement located on the leasehold property or is a
amount of any indebtedness that was forgiven; the amount of any
renewal of such a lease where the purpose of the lease is to
mortgage assumed; and the fair market value of any other property
provide affordable housing, or to ensure the continued
given to the transferor in exchange for the property.
affordability of such housing, or both;
If the real property was transferred for less than fair market value
20. Recording of deed when the recording of an agreement,
enter the fair market value of the real property at the time of transfer,
instrument, memorandum or other writing evidencing the
and explain the circumstances on Line O.
same transfer of title to the property was previously taxed.
Line P - Compute the tax due using the Rate Schedule on the back of
21. Transfers made to §501(c)(3) organizations or to a wholly-
the return. Enter the total amount of tax due.
owned subsidiary corporation of such an organization
Line Q - Enter the date the seller acquired the property.
provided one of the stated purposes of the transferee is:
*Transfers made within 90 days of the formation of the entity are treated as exempt pursuant to Department practice. See Technical Bulletin 39
found on our web site at http://tax.vermont.gov.
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4. the lease contains an option to purchase and allows the
Line R - If a land gains tax return is not being filed, state the reason
lessee to construct a building or make major capital
why no return is required. Insert the number of the exemption from the
improvements);
list that follows and describe the nature of the exemption.
9. Sale of mineral rights for a limited period of time; or sale of
In general, anyone who sells Vermont land that was held by the seller
gravel, soil or similar items;
for less than six years is required to file a Vermont Land Gains Tax
Return (Form LG-2) within 30 days after the sale, even if no tax is due. 10. Sale of a perpetual easement for $1.00 or less;
The definition of land may include the sale of Timber and/or Timber
11. Sale of land that is a mobile home park which is transferred
Rights. The buyer of the property is required to file a Vermont Land
in a single purchase to a group composed of the mobile
Gains Withholding Tax Return (Form LG-1).
home park leaseholders or to a nonprofit organization that
If the Transfer is described in the list that follows, the parties may represents such a group.
claim the exemption on this return and thereby avoid the requirement
to file a land gains tax return or land gains withholding tax return.
RATE SCHEDULE INSTRUCTIONS
If the transfer is not included in this list, a land gains tax return or a land
A tax at the rate of one-and-one-quarter percent (0.0125) is imposed
gains withholding tax return must be filed. See LG-1 and LG-2
on all property other than a purchaser’s principal residence, property
Instructions.
enrolled in the current use program or a working farm. Real property
Note: To claim the builder’s exemption, the agriculture exemption, that will be the purchaser’s principal residence is taxed at one-half of
the affordable housing exemption, or the purchaser’s principal one percent (0.005) of the first $100,000 of value and one and one-
residence exemption, the buyer must file a Vermont Land Gains quarter percent (0.0125) of the value over $100,000. A subsequent
Withholding Tax Return and the seller must file a Vermont Land Gains purchase of contiguous land on which there is no dwelling and no
Tax Return. immediate plan to construct a dwelling is subject to tax at the higher
rate.
The following exemptions from the land gains tax may be claimed on
Line R of this return: With respect to the transfer of property to be used as a primary
residence, no tax is due on the first $100,000 in value if the Vermont
1. Sale of land held by the seller for six years or longer;
Housing Finance Agency has committed to make or purchase the
2. Transfer without consideration, such as a gift, devise,
mortgage. Value in excess of $100,000 is taxable at (0.0125). On
partition, or straw transfer by corrective deed;
Line 1(e) replace (0.005) with (0.000). Please provide documentation
3. Sale of up to ten acres of land beneath or contiguous to a from your lender of VHFA commitment.
dwelling that was the principal residence of the seller. If
Transfer of housing cooperative property, the sole purpose of which
local zoning requires more than ten acres for residential
is to provide principal residences for all its members or share holders,
property, then the minimum amount specified in the
is taxed at (0.005) on the first $100,000 in value and (0.0125) of the
ordinance will be exempted, up to a maximum of 25 acres.
value in excess of $100,000. If it ceases to be a housing cooperative
A principal residence includes a multi-family dwelling of four within six years of the transfer, transferee must pay back any
units or less if at least one unit was used as the seller’s reduction in tax.
principal residence. A dwelling may qualify as a principal
Property that is either enrolled in the current use program or is a
residence even though the resident maintains an office or
working farm is taxed at (0.005) of the entire value of the property. If
retail store in the dwelling;
land in the current use program is converted to a use which subjects
4. Court-decreed transfer of land between the parties to a it to the land use change tax or an obligation to repay tax benefits
divorce; within three years after the transfer, or if a working farm is taken out
5. Transfer to a mortgagee in foreclosure or voluntary of agricultural production within six years after the transfer, the buyer
conveyance in lieu of foreclosure, provided there is no gain must pay the additional tax balance at the (0.0125) rate. This property
from the transfer; transfer tax obligation is a lien running with the land.
6. Sale of land to the State of Vermont from an organization Line 1a: Enter up to $100,000 of value of land and dwellings that will be
qualifying under IRC §501 (c)(3); sale of land to a §501 used as the buyer’s principal residence, as defined in 32 V.S.A. §10002a.
(c)(3) organization that meets the public support test and A dwelling may qualify as a principal residence even though the resident
will use the property to preserve agricultural, forestry or maintains an office or retail store in the dwelling. A principal residence
open-space land for at least six years; or sale of also includes a multi-family dwelling of four units or less if the buyer will
conservation or preservation rights and interests to a occupy at least one unit as a principal residence. If a dwelling contains
qualified holder (i.e., the State of Vermont, a municipality, or five or more units, enter the value of only that portion of the dwelling that
a §501 (c)(3) organization that will use the land to preserve will actually be occupied by the buyer as a principal residence. The buyer
historic, agricultural, forestry or open space resources or a may also include as a principal residence land on which the buyer will
holding company for such organization); construct and occupy a principal residence within two years. If qualified
property has a value in excess of $100,000, enter $100,000 on Line 1a
7. Sale of land owned by the United States, the State of
and complete Line 2.
Vermont, an organization qualifying under §501 (c)(3)
provided that the sale is exempt from federal income Line 1b: Enter the value of any portion of the transferred property that
taxation, or a local development corporation (see 10 V.S.A. is enrolled in the current use program. A dwelling and two acres
§212(10)); surrounding it may not be included in the current use program and
should not be included in Line 1b. The land and dwelling may qualify
8. Leases of land for less than 50 years, including extensions
for the lower rate for a purchaser’s principal residence, however.
(however, all leases regardless of term are subject to
reporting if they are taxable under 32 V.S.A. §10004, or if
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5. within the jurisdictional area of the District Environ-
Line 1c: Enter the value of any land (excluding buildings) that is not
mental Commission in which the land being partitioned
enrolled in the current use program, but qualifies as a working farm.
or subdivided is located; and
A working farm is land that is actively farmed by a person who earns
at least one-half of his or her annual gross income from the business b. It is not one of 6 or more lots created by a person within
of farming. a continuous period of five years in a town which does
not have both permanent zoning and subdivison
INSTRUCTIONS FOR regulations; and
LOCAL AND STATE PERMITS c. No development, as defined in 10 V.S.A. §6001(3)(A)
AND ACT 250 CERTIFICATES or §6001a.-c., has taken place on the parcel after June
1, 1970; and
Lines A and B - This certificate is required by 32 V.S.A. §9606(c) and
d. The project is not a “substantial change” to a
(e).
subdivision or development in existence prior to the
Line C - 32 V.S.A. §9606(c) requires each party to certify whether the
effective date of Act 250 as specified in §6081(b).
property being transferred is in compliance with, or is exempt from,
NOTE: Lots created prior to June 1, 1970 may be exempt from the
rules governing wastewater systems and potable water supplies
requirements of Act 250. Contact the District Coordinator at the Act
under 10 V.S.A. Chapter 64. If a determination as to the status of the
250 Regional Office (see page 26) for additional information.
lot is desired, contact the appropriate Regional Office of the Agency of
Natural Resources listed on page 6 of this booklet. If an Act 250 permit has been issued for the property, enter the permit
number on Line D1. If the property is exempt from Act 250
Compliance: A wastewater system and potable water supply permit
regulations, give the reason on Line D2. Insert the letter of the
is required if any action is taken that requires a permit under the
exemption from these instructions.
Wastewater System and Potable Water Supply Rules.
Line E - 32 V.S.A. §9608 requires the seller to certify whether the
Exemption: A lot is exempt from the requirements for a permit under
conveyance creates the partition or division of land. If so, an Act 250
the Wastewater System and Potable Water Supply Rules if it meets
Disclosure Statement must be appended to the property transfer
the requirements of the exemptions listed in Section 1-304 of the
return prior to filing.
rules. For example: write in “§1-304(a)(1)” for a building or structure
that meets the conditions of the exemption. Please contact the
Agency of Natural Resources Regional Offices (not Act 250) for a list GENERAL INFORMATION FOR INCOME TAX
of exemptions. Office addresses and telephone numbers are on page WITHHOLDING AND CERTIFICATION
6.
Vermont income tax is due on the gain from the sale of Vermont real
Line D - 32 V.S.A. §9608 requires the seller to certify whether the
estate, whether the seller is a resident, part-year resident or
transfer or any development thereon is in compliance with 10 V.S.A.
nonresident. For nonresident sellers, the buyer is required to withhold
Chapter 151 (Act 250) or is exempt as specified therein. If a
2.5% of the consideration paid for the transfer and send it to the
determination as to the status of the land is desired, a jurisdictional
Commissioner of Taxes with Form RW-171 within 30 days of the
opinion may be obtained from the District Environmental Coordinator
transfer.
at the Regional Offices, listed on page 26 of this booklet.
A nonresident individual is one who is domiciled outside the State at
Compliance: An Act 250 permit is required if:
the time of closing. A partnership, a limited liability company or a
1. The parcel is one of ten or more lots created by a person Subchapter S Corporation is deemed to be a nonresident of Vermont
within a continuous period of five years and within five miles if the controlling interest is held by nonresidents. A corporation (other
of the land being divided or partitioned or within the than a Subchapter S Corporation) that was incorporated outside
jurisdictional area of the District Environmental Commission Vermont is a nonresident unless it has its principal place of business
in which the land being partitioned or divided is located; or in Vermont and does no business in the state of incorporation.
2. The parcel is one of six or more lots created by a person Exemptions from Real Estate Withholding may apply. Read the
within a continuous period of five years within a town that instructions for Form RW-171. If this transfer qualifies for an
does not have both permanent zoning and subdivision exemption, check the appropriate box on the Withholding
regulations; or Certification section of the Property Transfer Tax Return.
3. The project is a development, as defined in 10 V.S.A. A Vermont Income Tax Return must be filed within the time prescribed
§6001(3)(A) or §6001a.-c.; or for filing the federal income tax return. Any tax liability in excess of
withholding must be paid by the seller with the return. Any excess
4. The project is a subdivision or development in existence
withholding will be refunded to the seller by the Department of Taxes.
prior to the effective date of Act 250 as specified in §6081(b)
which has been or will be substantially changed; or In the case of an installment sale the seller may elect for Vermont
purposes, to report the entire gain in the year of sale by paying a tax
5. The parcel is one of five or more lots within a radius of five
of 6% of the entire gain. If this election is not made, the withholding
miles which have been partitioned or divided, within a period
will be retained by the Department and applied as a credit against the
of 10 years, for the purpose of resale by public auction.
seller’s tax liability in each year that the installments are received.
Exemption: A parcel is exempt from the requirements for a permit
under Act 250 if:
a. It is not one of 10 or more lots created by a person
within a continuous period of five years and within five
miles of the land being subdivided or partitioned or
5

6. AGENCY OF NATURAL RESOURCES
Please go back to our website at
http://tax.vermont.gov
for a copy of the
Agency of Natural Resources
regional map.
Click “Forms”, then “Complete list of
forms”, then scroll down to
“ANR Map”.
6

7. VERMONT PROPERTY TRANSFER TAX RETURN
VERMONT DEPARTMENT OF TAXES
MONTPELIER, VERMONT 05633
(PLEASE TYPE OR PRINT CLEARLY)
A SOCIAL SECURITY NO. OR
SELLER'S (TRANSFEROR'S) NAME(S) COMPLETE MAILING ADDRESS FOLLOWING TRANSFER TAXPAYER IDENT. NO.
BLACK OUT ON TOWN COPY ONLY
B BUYER'S (TRANSFEREE'S) NAME(S) COMPLETE MAILING ADDRESS FOLLOWING TRANSFER SOCIAL SECURITY NO. OR
TAXPAYER IDENT. NO.
BLACK OUT ON TOWN COPY ONLY
D DATE OF CLOSING
C PROPERTY LOCATION (Address in full)
E INTEREST IN PROPERTY
1. FEE SIMPLE 3. UNDIVIDED 1/2 INTEREST 5. TIME-SHARE 7. EASEMENT/ROW
2. LIFE ESTATE 4. UNDIVIDED ________% INTEREST 6. LEASE 8. OTHER _________________
F LAND SIZE (Acres or fraction G SPECIAL FACTORS: HAVE DEVELOPMENT RIGHTS BEEN CONVEYED _________ NO _________ YES
F
thereof) WAS SALE BETWEEN FAMILY MEMBERS ________ NO ________ YES STATE RELATIONSHIP ___________________
FINANCING: CONVENTIONAL/BANK OWNER FINANCING OTHER ______________________________
H BUILDINGS ON PROPERTY AT THE TIME OF TRANSFER (CHECK ALL THAT APPLY):
1. NONE 5. FARM BUILDINGS 9. STORE
DWELLING UNITS
INSERT
2. FACTORY 6. MULTI-FAMILY WITH __________ ( NUMBER ) 10. OTHER ________________________
TRANSFERRED
DESCRIBE
3. SINGLE FAMILY DWELLING 7. MOBILE HOME YEAR __________ MAKE ___________________ SER. NO. ________________________
INSERT
4. CAMP/VACATION HOME 8. CONDOMINIUM WITH _________ ( ) UNITS TRANSFERRED
NUMBER
CHECK WHETHER THE BUILDINGS WERE EVER OCCUPIED RENTED WILL BE RENTED AFTER SALE
I PRIMARY USE OF PROPERTY BEFORE TRANSFER (CHECK ONE):
1. PRIMARY RESIDENCE 3. CAMP/VACATION 5. OPERATING FARM 7. COMMERCIAL/INDUSTRIAL _____________________
DESCRIBE
2. OPEN LAND 4. TIMBERLAND 6. GOVERNMENT USE 8. OTHER ________________________
DESCRIBE
J PRIMARY USE OF PROPERTY AFTER TRANSFER (CHECK ONE):
1. PRIMARY RESIDENCE 3. CAMP/VACATION 5. OPERATING FARM 7. COMMERCIAL/INDUSTRIAL _____________________
DESCRIBE
2. OPEN LAND 4. TIMBERLAND 6. GOVERNMENT USE 8. OTHER ________________________
DESCRIBE
WAS PROPERTY PURCHASED BY TENANT _______ NO _______ YES DOES BUYER HOLD TITLE TO ANY ADJOINING PROPERTY ______ NO ______ YES
K CURRENT USE VALUE PROGRAM: IS ANY PORTION OF THE LAND BEING CONVEYED SUBJECT TO A LIEN OR OTHER RESTRICTIONS UNDER THE AGRICUL-
TURAL AND MANAGED FOREST LAND USE VALUE PROGRAM CHAPTER 124 OF 32 V.S.A. YES NO
L IF TRANSFER IS EXEMPT FROM PROPERTY TRANSFER TAX, CITE EXEMPTION FROM INSTRUCTIONS AND COMPLETE SECTIONS M, N, AND O BELOW.
O
N
M TOTAL PRICE PAID FOR PRICE PAID FOR
PRICE PAID $ ____________________ PERSONAL PROPERTY $ ____________________ REAL PROPERTY $ ________________________
STATE TYPE OF PERSONAL PROPERTY _______________________________________________
IF PRICE PAID FOR REAL PROPERTY IS LESS THAN FAIR MARKET VALUE, PLEASE EXPLAIN: _____________________________________________________
PROPERTY TRANSFER TAX
MAKE CHECKS PAYABLE TO: VERMONT DEPARTMENT OF TAXES
$
TAX DUE: Enter amount from rate schedule on reverse side. COMPLETE RATE SCHEDULE FOR ALL TRANSFERS
P
Q DATE SELLER ACQUIRED ___________________________________________
R IF A VERMONT LAND GAINS TAX RETURN IS NOT BEING FILED, CITE EXEMPTION FROM INSTRUCTIONS ON PAGE 4 OF THIS BOOKLET _______________
(CONTINUED ON REVERSE SIDE)
THIS SECTION TO BE COMPLETED BY TOWN OR CITY CLERK
TOWN/CITY ______________________________________________________ ACKNOWLEDGMENT TOWN NUMBER
DATE OF RECORD ________________________________________________ RETURN RECEIVED (INCLUDING CERTIFICATES AND
BOOK NUMBER __________________________ PAGE NO. ________________ ACT 250 DISCLOSURE STATEMENT) AND TAX PAID.
LISTED VALUE $ _____________________ GRAND LIST YEAR OF ___________
PARCEL ID NO. ___________________________________________________ CLERK
SIGNED _______________________________________
GRAND LIST CATEGORY ___________________________________________ DATE _________________________________________
SPAN ___________________________________________________________
(Rev. 9/05) FORM PT-1
7

8. RATE SCHEDULE
1. Tax on Special Rate Property:
a. Value of purchaser's principal residence (not to exceed $100,000) (See Instructions) ................................................... 1. a. $ _____________________
b. Value of property enrolled in current use program .................................................................................................... b. $ _____________________
c. Value of qualified working farm .............................................................................................................................. c. $ _____________________
d. Add Lines 1a, b and c ............................................................................................................................................ d. $ _____________________
0.005
e. Tax rate ............................................................................................................................................................... e. _____________________
f. Tax due on Special Rate Property: Multiply Line 1d by Line 1e .................................................................................. f. $ _____________________
2. Tax on General Rate Property:
a. Enter amount from Line O on front of return ............................................................................................................. 2. a. $ _____________________
b Enter amount from Line 1d of Rate Schedule above ................................................................................................... b. $ _____________________
c. Subtract Line 2b from Line 2a ................................................................................................................................. c. $ _____________________
0.0125
d. Tax Rate ............................................................................................................................................................... d. _____________________
e. Tax due on General Rate Property: Multiply Line 2c by Line 2d .................................................................................. e. $ _____________________
3. Total Tax Due:
Add Lines 1f and 2e and enter here and on line P on front of return ............................................................................. 3. $ ____________________
LOCAL AND STATE PERMITS AND ACT 250 CERTIFICATES
Buyer(s) and Seller(s) certify as follows:
A. That they have investigated and disclosed to every party to this transaction all of their knowledge relating to flood regulations, if any, affecting the property.
B. That the seller(s) advised the buyer(s) that local and state building regulations, zoning regulations and subdivision regulations and wastewater system and
potable water supply rules under Chapter 64 of Title 10 pertaining to the property may limit significantly the use of the property.
C. That this transfer is in compliance with or is exempt from the wastewater system and potable water supply rules of the Agency of Natural Resources for the
following reasons:
1. This property is the subject of Permit No. __________________ and is in compliance with said permit, or
2. This property and any retained parcel is exempt from the wastewater system and potable water supply rules because (see instructions for exemptions):
a. Parcel to be sold: Exemption Number __________________________
b. Parcel retained: Exemption Number __________________________
Seller(s) further certifies as follows:
D. That this transfer of real property and any development thereon is in compliance with or exempt from 10 V.S.A. Chapter 151, Vermont's Land Use and
Development law (Act 250), for the following reason:
1. This property is the subject of Act 250 Permit No. _________________ and is in compliance with said permit, or
2. This property is exempt from Act 250 because: (list exemption number from Line D in instructions) ____________________________________________
E. That this transfer does/does not (strike one) result in a partition or subdivision of land. Note: If it does, an Act 250 Disclosure Statement must be attached
to this return before filing with the town clerk (see Line E instructions).
WITHHOLDING CERTIFICATION
Buyer(s) certifies that Vermont income tax has been withheld from the purchase price and will be remitted to the
Commissioner of Taxes with Form RW-171 within 30 days from the transfer,
OR that the transfer is exempt from income tax withholding for the following reason (check one):
1. Under penalties of perjury, seller(s) certifies that at the time of transfer, each seller was a resident of Vermont or an estate.
2. Buyer(s) certifies that the parties obtained withholding certificate no. _________________from the Commissioner
of Taxes in advance of this sale.
3. Buyer(s) certifies that this is a transfer without consideration. (See instructions for Form RW-171).
4. Seller(s) is a mortgagor conveying the mortgaged property to a mortgagee in a foreclosure or transfer in lieu of
foreclosure, with no additional consideration.
WE HEREBY SWEAR AND AFFIRM THAT THIS RETURN, INCLUDING ALL CERTIFICATES, IS TRUE, CORRECT AND COMPLETE TO THE BEST OF OUR KNOWLEDGE.
SELLER(S) SIGNATURE(S) DATE BUYER(S) SIGNATURE(S) DATE
Preparer's Signature ____________________________________________________ Prepared by ________________________________________________
Preparer's Address _____________________________________________________ Buyer's Representative _____________________ Tel. ________________
(Print or Type)
Rev. 9/05 FORM PT-1
Keep a copy of this return for your records.
8

9. VERMONT WITHHOLDING TAX RETURN
FOR TRANSFER OF REAL PROPERTY
TO BE COMPLETED BY THE BUYER OR OTHER TRANSFEREE REQUIRED TO WITHHOLD
FILE THIS RETURN AND ALL SCHEDULE quot; A quot; s WITH THE
VERMONT DEPARTMENT OF TAXES, 133 STATE STREET, MONTPELIER, VERMONT 05633
PLEASE TYPE OR PRINT CLEARLY. USE BLUE OR BLACK INK ONLY.
2. SOCIAL SECURITY NUMBER / FEDERAL I.D. NUMBER
1. NAME OF WITHHOLDING AGENT (BUYER OR OTHER TRANSFEREE)
3. ADDRESS (NUMBER AND STREET)
4. CITY, STATE, AND ZIP CODE
5. NAME OF WITHHOLDING AGENT (BUYER OR OTHER TRANSFEREE) 6. SOCIAL SECURITY NUMBER / FEDERAL I.D. NUMBER
7. ADDRESS (NUMBER AND STREET)
8. CITY, STATE, AND ZIP CODE
9. LOCATION AND DESCRIPTION OF PROPERTY 10. DATE PROPERTY ACQUIRED BY SELLER
13. RATE OF WITHHOLDING
11. DATE OF TRANSFER 12. TOTAL CONSIDERATION PAID
14. AMOUNTWITHHELD
(A) 2.5% OF SALES PRICE
(B) LESS THAN 2.5%. Attach withholding certificate
and enter
certificate number
15. NUMBER OF SCHEDULE quot;Aquot;s FILLED OUT FOR THIS PROPERTY TRANSFER
(A Schedule A is required for each individual or entity receiving proceeds from the transfer.)
PLEASE REMEMBER TO ATTACH ALL SCHEDULE quot;Aquot;s FROM LINE 15 TO THIS FORM
FOR PROPER REW CREDIT. FORM WILL BE RETURNED WITHOUT PROPER NUMBER
OF SCHEDULE quot;Aquot;s AND/OR IF SCHEDULE quot;Aquot;s ARE INCOMPLETE.
MAKE CHECK PAYABLE TO: VERMONT DEPARTMENT OF TAXES
I hereby certify that this return and attached Schedule quot;Aquot;s are true, correct and complete to the best of my knowledge. If
prepared by a person other than the taxpayer, this declaration further provides that under 32 V.S.A. §5901 this information has
not been and will not be used for any other purpose or made available to any person other than for the preparation of this
return unless a separate valid consent form is signed by the taxpayer and retained by the preparer.
Signature of buyer Date
Signature of preparer if other than taxpayer Date
Signature of buyer Daytime Telephone Number
Signature of buyer Date Address of preparer
Telephone Number
Signature of buyer Daytime Telephone Number
BUYERS: PLEASE COMPLETE AND
Form RW-171 (Rev. 9/05)
Keep a copy of this return for your records. ATTACH SCHEDULE quot;Aquot;s FOR
(Replaces Form REW-1)
☞
PAGE 1 PROPER REW CREDIT
9

10. VERMONT WITHHOLDING TAX RETURN
FOR TRANSFER OF REAL PROPERTY (Form RW-171)
3. Reduced withholding is appropriate because the 2.5%
GENERAL INFORMATION
amount exceeds the seller’s maximum tax liability;
PURPOSE OF FORM - A 2.5% withholding obligation is generally 4. Reduced withholding is appropriate to reflect the gain
imposed on the buyer or other transferee when Vermont real property allocated to a Vermont resident when there are both
is acquired from a nonresident of Vermont. The buyer must withhold Vermont resident and nonresident sellers.
2.5% of the consideration paid on the transfer. If the buyer fails to
To obtain a certificate that no tax is due, or that a reduced amount may
withhold, the buyer will be personally liable for the amount of
be withheld, call 802-828-2777.
withholding.
LINE-BY-LINE INSTRUCTIONS
WHO MUST FILE - A buyer or other transferee of a Vermont real
property interest, including a corporation, limited liability company, (Use Blue or Black ink Only)
partnership or fiduciary that is required to withhold tax, must file Form Form RW-171 is a two page form. Please submit page 1 (signature
RW-171. If two or more persons are joint transferees, each of them page) with page 2 (Schedule A) together. Failure to do so will result
is obligated to withhold. However, the obligation of each will be met
in form being returned to buyer.
if one of the joint transferees withholds and transmits the required
Lines 1-8. Enter the name, address, social security number or federal
amount to the commissioner.
ID number of each withholding agent (buyer).
A nonresident individual is one who is domiciled outside the state at
Line 9. Enter the location of the property, including town and street
the time of closing. A Partnership, Limited Liability Company or a
address.
Subchapter S Corporation is deemed to be a nonresident of Vermont
Line 10. Enter the date the property was acquired by the seller.
if the controlling interest is held by nonresidents. A Corporation (other
than a Subchapter S Corporation) that was incorporated outside Line 11. Enter the date of this transfer.
Vermont is a nonresident unless it has its principal place of business
Line 12. Enter the total contract sales price.
in Vermont and does no business in the state of incorporation.
Line 13. Check the appropriate box to indicate the amount withheld.
WHEN TO FILE - A transferee must report and transmit the tax If the parties obtained a withholding certificate from the
withheld to the Commissioner of Taxes by the 30th day after the date Commissioner of Taxes authorizing a reduced rate of withholding,
of transfer. enter the certificate number and attach a copy of the certificate to the
return.
WHERE TO FILE - File Form RW-171 directly with the Commissioner
of Taxes, Vermont Department of Taxes, 133 State Street, Line 14. Enter the dollar amount withheld.
Montpelier, Vermont 05633. Do not file this return with the town clerk.
Line 15. Enter the number of Schedule “A”s filled out for this property
EXEMPTIONS - The buyer is not required to withhold or file this return transfer. A separate Schedule “A” is required for each individual or
if one of the following applies: entity receiving proceeds from the transfer.
1. At the time of the transfer, the seller certifies to the buyer on
SCHEDULE A
the property transfer tax return, under penalty of perjury, the
If the seller is a Partnership, Trust, Limited Liability Company, S-
transferor’s social security number and the fact that each
Corporation, Corporation or there are multiple sellers, the buyer must
seller is a Vermont resident or an estate.
fill out a separate Schedule A for each individual or entity receiving
2. The buyer or seller has obtained a certificate from the
proceeds from the property disposition. (Husband and wife may be
Commissioner of Taxes in advance of the sale, stating that
included on a single Schedule A.)
no income tax is due or that the parties have provided
adequate security to cover the liability. Line 1. Partnerships, S-Corporations, Trusts, and Limited Liability
3. The buyer certifies on the property transfer tax return that Companies, please check box “Individual” and complete a Schedule
this is a transfer without consideration. A transaction is NOT A for each individual receiving proceeds from the sale. C-
exempt if consideration is paid. Consideration paid includes Corporations check appropriate box.
such items as the value of services or goods, forgiveness of
Lines 2-6. Enter the social security number or federal ID number,
debt, or other items which may be determined as
name, and address of the individual or entity.
consideration under the Internal Revenue Code.
4. The seller is a mortgagor conveying the mortgaged property Line 7. Enter the location of the property, including town and street
to a mortgagee in a foreclosure or transfer in lieu of address.
foreclosure, with no additional consideration.
Line 8. Enter the date the property was acquired by the seller.
Please check the corresponding box on the Property Transfer Tax
Line 9. Enter the date of this transfer.
Return Withholding Certification section if one of these exemptions
applies. Line 10. Enter the total contract sales price from Line 12, Page 1.
WITHHOLDING CERTIFICATE ISSUED BY THE COMMISSIONER Line 11. Enter the percentage of the total proceeds from the property
OF TAXES - A withholding certificate may be issued by the transfer that was received by this particular individual or entity. The
Commissioner of Taxes to reduce or eliminate withholding on percentages reported for all Schedule “A”s must add up to 100%.
transfers of Vermont real property interests by nonresidents. A
Line 12. Enter the amount of tax withheld on behalf of this taxpayer.
certificate may be issued if:
1. No tax is due on the gain from the transfer;
2. The seller or buyer has provided adequate security to cover
the tax liability;
10

11. *021711299*
REW - SCHEDULE A
*021711299*
FILE ORIGINAL ONLY. DO NOT COPY. ATTACH TO RW-171, PAGE 1
PLEASE TYPE OR PRINT CLEARLY. USE BLUE OR BLACK INK ONLY.
TO BE COMPLETED BY THE BUYER OR OTHER TRANSFEREE REQUIRED TO WITHHOLD
1. Check box to indicate whether SELLER is: Individual(s) ** C-Corporation
** (Partnerships, S-Corporations, Trusts & LLC's check Individual and complete a Schedule A for each individual receiving proceeds from the sale.)
2. Taxpayer’s Social Security Number Spouse’s Social Security Number 3. Federal ID number of seller (if applicable)
-
- - - -
4. Taxpayer’s Last Name First Name Initial
Spouse’s Last Name First Name Initial
C-Corporation Name
5. Mailing Address (Number and Street or Road Name)
6. City or Town State Zip Code
-
7. Location and description of property
8. Date property acquired by seller 9. Date of transfer 10. Total consideration
, .
,
11. Percentage of total gross proceeds received by this seller 12. Amount withheld for this seller
. , .
,
%
DO NOT COPY. For additional Schedule quot;Aquot;s, call (802) 828-2515.
Form RW-171 (8/02)
(Replaces Form REW-1) PAGE 2
11

12. THIS PAGE INTENTIONALLY LEFT BLANK
12

13. *021711299*
REW - SCHEDULE A
*021711299*
FILE ORIGINAL ONLY. DO NOT COPY. ATTACH TO RW-171, PAGE 1
PLEASE TYPE OR PRINT CLEARLY. USE BLUE OR BLACK INK ONLY.
TO BE COMPLETED BY THE BUYER OR OTHER TRANSFEREE REQUIRED TO WITHHOLD
1. Check box to indicate whether SELLER is: Individual(s) ** C-Corporation
** (Partnerships, S-Corporations, Trusts & LLC's check Individual and complete a Schedule A for each individual receiving proceeds from the sale.)
2. Taxpayer’s Social Security Number Spouse’s Social Security Number 3. Federal ID number of seller (if applicable)
-
- - - -
4. Taxpayer’s Last Name First Name Initial
Spouse’s Last Name First Name Initial
C-Corporation Name
5. Mailing Address (Number and Street or Road Name)
6. City or Town State Zip Code
-
7. Location and description of property
8. Date property acquired by seller 9. Date of transfer 10. Total consideration
, .
,
11. Percentage of total gross proceeds received by this seller 12. Amount withheld for this seller
. , .
,
%
DO NOT COPY. For additional Schedule quot;Aquot;s, call (802) 828-2515.
Form RW-171 (8/02)
(Replaces Form REW-1) PAGE 2
13

14. THIS PAGE INTENTIONALLY LEFT BLANK
14

15. VERMONT LAND GAINS WITHHOLDING TAX RETURN (Form LG-1)
INSTRUCTIONS FOR BUYER (TRANSFEREE)
GENERAL INFORMATION Line 4. Enter the date the seller acquired the property that is being sold.
This form is used by the buyer to report withholding of Vermont land Line 5. Enter the month, day and year the seller transferred title to the
gains tax, which is a tax owed by the seller on the gain from the sale land. The transfer of an option is considered a transfer of title to land. The
or exchange of Vermont land held for less than six years. The land sale or exchange of shares in a corporation or other entity is also
gains tax is reported by the seller on Form LG-2. considered a transfer of title to land if it effectively entitles a purchaser to
use or occupy land. In the case of a contract for deed, enter the date
If the seller is a nonresident of Vermont, the buyer also may be
consideration first passed to the seller under the contract. A mere
required to withhold Vermont income tax, the Vermont Withholding
promise to purchase land and amounts paid as earnest money or
Tax Return for Transfer of Real Property (Form RW-171) must also be
amounts paid in deposit or escrow, to which the seller has no immediate
filed.
right, do not constitute the passing of consideration.
WHO IS REQUIRED TO WITHHOLD Line 6. Enter the total sale price of land and buildings.
THE LAND GAINS TAX?
Line 7. Enter the fair market value of the land at the time of transfer. You
Anyone who purchases Vermont property that was held by the seller may allocate gain between land and buildings using: 1) Percentages on
for less than six years is required to withhold 10% of the purchase municipal listers card. Divide the listed value of the land plus
price of the land from the seller and remit it to the Department of Taxes improvements (e.g.: septic system or well) by the listed value of the land,
with this return immediately after the sale. A purchaser who fails to improvements and buildings. Multiply the result by the total sale price on
withhold or remit the tax is personally liable for the amount required to Line 6, and enter the portion of the sale price attributable to the land on
be withheld, plus statutory interest and penalty. Exceptions to the Line 7. Attach a separate sheet showing computation. 2) A qualified
withholding requirement are as follows: appraisal. Attach a copy of the appraisal. 3) The percentages specified
in Technical Bulletin 34 found on our web site at http://tax.vermont.gov
Simultaneous Filing
Alternatively, you may allocate the amount realized between building
If the buyer and seller simultaneously file this return (Form LG-1) and
and land. See Technical Bulletin 34 for more information on how to use
the Vermont Land Gains Tax Return (Form LG-2) and the seller pays
this method.
the full amount of land gains tax due, the buyer is not required to
withhold tax from the purchase price. If the seller fails to pay the full Line 8. The buyer may claim the purchaser’s principal residence
amount of tax due, however, the buyer is liable for the deficiency, up exemption, the builder’s exemption or the farmer’s exemption.
to 10% of the purchase price of the land.
If the buyer claims one of these exemptions, the buyer relieves the
Advance Certification seller of any liability for the payment of the land gains tax. If the
conditions for exemption are not met, the buyer assumes liability
If the seller, in advance of the sale, has obtained a certificate from the
for the payment of the seller’s land gains tax plus statutory interest,
Commissioner of Taxes stating that the land gains tax has been paid
penalties and late filing fees. Buyer’s potential liability must be
or that no tax is due, the buyer is still required to file this return, but is
shown on Line 8. This amount may be obtained from the seller’s
not required to withhold the tax. If the seller has obtained certification
return (Form LG-2) Line 19(a).
of the amount required to be withheld, the buyer is required to
withhold the amount of tax shown on the tax certificate. Line 8(a) - Purchaser’s Principal Residence Exemption. Sale of a
dwelling and up to ten acres of land on which the buyer will occupy
Exemptions
within one year of purchase as a principal residence, or if no dwelling
The buyer is not required to withhold tax if the buyer or seller has a exists on the land, land on which the buyer will construct and occupy
valid claim that the entire transaction is exempt from tax. a principal residence within two years from purchase is exempt from
land gains tax. If local zoning requires more than ten acres for
WHO IS REQUIRED TO FILE A RETURN? residential property, then the acreage specified in the ordinance will be
exempted, up to a maximum of 25 acres.
Anyone who purchases Vermont property that was held by the seller
for less than six years is required to file this return at the time payment A principal residence includes a multi-family dwelling of four units or less
is made to the seller, even if no tax is required to be withheld. A if at least one unit will be used as the buyer’s principal residence. A
withholding return is required even if the buyer claims the builder’s dwelling may qualify as a principal residence even though the resident
exemption, the agricultural exemption, the affordable housing maintains an office or retail store in the dwelling. In order for a pre-
exemption, or the purchaser’s principal residence exemption. existing dwelling to qualify as a purchaser’s principal residence, the
Exceptions to the filing requirement are listed on page 4 of this purchaser must become a domiciliary of Vermont and occupy the
booklet (Line R instructions, Property Transfer Tax Return). dwelling as his principal residence within one year of the date of
purchase.
LINE-BY-LINE INSTRUCTIONS
Line 8(b) - Builder’s Exemption. Sale of up to ten acres of land on
Line 1 and 2. Enter the full name, mailing address and social security or which the buyer (a builder) will build a dwelling that will be the principal
federal identification number of each transferor and transferee. residence of the next purchaser is exempt from land gains tax. If local
zoning requires more than ten acres for residential property, the acreage
Line 3. Enter the street address and town where the property is located.
specified in the ordinance will be exempted, up to a maximum of 25
List all towns if more than one town is involved.
acres. The builder must begin construction of a dwelling within one year,
complete construction within two years, and sell the dwelling within three
15

16. years to a buyer who will occupy it as a principal residence. (If the land and the number of acres or square feet that are subject to tax on Line
is sold as more than one parcel by the builder who acquired it, each 9(b).
parcel must meet these three conditions.) In addition to claiming the
Only ten acres of land qualify for the seller’s or purchaser’s principal
exemption on Line 8, the builder must file three Certificates of Principal
residence exemption or the builder’s exemption, unless local zoning
Residence Construction (Form LG 1.3, 1.4 and 1.5). The person buying
requires more than ten acres for residential property. If so, the minimum
from the builder must indicate on a subsequent Property Transfer Tax
acreage specified in the ordinance may be exempted, up to a maximum
Return that the property will be used as the buyer’s principal residence.
of 25 acres.
Line 8(c) - Agricultural Exemption - If this exemption is claimed,
When the purchaser’s or seller’s principal residence exemption is
identify which type by checking Box 1 or Box 2.
claimed for a dwelling used in part for non-qualifying purposes, reduce
Box 1. Sale of agricultural land by a farmer to the farmer’s grandparent, the exempt area by the proportion that the square footage of the dwelling
parent, stepparent, brother, sister or child. The buyer must use the land used for non-qualifying purposes bears to the total square footage of the
as agricultural land for a period of time which, when added to the time the dwelling. For example, if a five-unit apartment building is sold, and only
land was used as agricultural land by the transferor, equals or exceeds 1/5 of the building will be occupied by the buyer as a principal residence,
six years. To qualify as a farmer, an individual must earn at least one-half the buyer may claim exemption for only 1/5 of the ten acres that would
of his or her gross annual income from the business of farming. otherwise qualify for exemption, or two acres. Attach a separate sheet
Agricultural land must be at least 25 acres or produce an annual gross showing the computation of the number of taxable acres or square feet.
income of $2,000 from the sale of farm crops in one of two, or three of the
Line 10 - To qualify as an installment sale, the land must have been held
five, preceding calendar years.
by the seller for at least one year; the total land gains tax liability must
Box 2. Sale of 25 acres or less to a farmer (32 V.S.A. §3752) for active exceed $2,000; and the payments must be made directly to the seller in
and direct use by that farmer, and which, upon transfer, but for the installments after the date of closing. A sale financed by a mortgage,
acreage, meets the definition of agricultural or forest land in §3752 and deed of trust, or other financing arrangement in which the seller is paid in
continues to meet that definition for at least six years after the transfer. full on the date of closing is not an installment sale.
Line 8(d) - Seller’s Principal Residence Exemption - Sale of up to ten If the sale qualifies as an installment sale, a separate withholding return
acres of land (or up to 25 acres if required by a local zoning ordinance) is required for each payment, including amounts paid at closing. On Line
that was occupied by the seller as a principal residence. The buyer 10(a), enter the amount of this principal payment. If this is the first
cannot claim this exemption for withholding purposes unless the seller withholding return filed for this sale, attach a copy of the promissory note
has claimed the exemption on a Vermont Land Gains Tax Return. Note: or other documentation establishing the dates and amounts of
Check this box only if a portion of the land is subject to tax. If the entire payments. Divide Line 9 by Line 6 and enter the result on Line 10(b).
parcel is exempt from tax, the buyer is not required to file this return. The Multiply Line 10(a) by Line 10(b) and enter this amount on Line 10(c).
seller may claim the exemption on the Property Transfer Tax Return.
Example: Seller sells land and buildings for $60,000, of which $15,000
Line 8(e) - Affordable Housing Exemption. An organization that is attributable to taxable land. Buyer is required to pay $12,000 at closing
qualifies under section 501(c)(3) of the Internal Revenue Code and also and $4,800 per year for ten years thereafter. At closing, the amount
meets the “public support” test section 509(a)(2) of the Code and also has subject to withholding is $3,000:
as one of the stated purposes of the organization to provide affordable $15,000 (Line 9)
housing may qualify for one of two exemptions: x $12,000 (Line 10(a)) = $3,000
$60,000 (Line 6)
1. If the land will be held by the organization for 6 years or more
For each subsequent payment, the amount subject to withholding is
following the sale, then only one-half of the tax otherwise
$1,200:
imposed is due. If the organization does not hold the land
for at least 6 years, the organization is liable for the $15,000 (Line 9)
x $4,800 (Line 10(a)) = $1,200
remainder of the tax. $60,000 (Line 6)
2. If the organization sells the land within 12 months of the
Line 11 - If this is an installment sale, enter 10% of Line 10(c) on Line 11.
transfer to a buyer who qualifies under an affordable
If the seller has obtained advance certification of the amount of tax due,
housing program and such buyer occupies a dwelling on the
enter the number of the Commissioner’s Certificate and the amount of
land as the principal residence as required by 32 V.S.A.
withholding required under that certificate. In all other cases, enter 10%
§10002(b), no tax is due on the transfer to the organization.
of Line 9 on Line 11. If the sale, qualifies for the affordable housing
However, if the organization fails to transfer the land within
exemption, as stated in instruction 8(e), please remit ½ of tax due, if
12 months to a qualified buyer, the organization is liable for
applicable.
the tax due on the original transfer and the transfer by the
organization. Similarly, if the land is transferred without a If the seller is simultaneously filing a Vermont Land Gains Tax Return
dwelling and a qualified buyer fails to complete and occupy (Form LG-2) and paying the full amount of tax due, check the appropriate
a principal dwelling within 2 years of purchase from the box. Under those circumstances, the buyer is not required to pay a
organization, the organization is liable for the tax on the first withholding tax; if the seller fails to pay the full amount due, however, the
transfer and the buyer is liable for the tax on the subsequent buyer will be liable for the deficiency, up to 10% of the purchase price of
transfer. the land.
Line 9 - If the entire parcel is subject to tax, enter the sales price
attributable to land on Line 9. If the entire parcel is exempt from tax, enter
zero on Line 9. If only a portion of the land is exempt (Line 7) from the land
gains tax, enter the total number of acres or square feet sold on Line 9(a)
16