Senate adds a one-time fee to 'current use'
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Sen. Claire Ayer, D-Addison, speaks during the 'current use' debate Monday at thte Statehouse. STEFAN HARD/TIMES ARGUS |
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By DANIEL BARLOW Vermont Press Bureau - Published: May 4, 2010
MONTPLIER – Senate lawmakers gave final approval to a sweeping change in the state's 30-year-old "current use" program, setting a one-time fee for users and boosting penalties for pulling land out of the program early.
Known within state government as the Agricultural and Managed Forest Land Use Value Program, the 1970s-era policy taxes land used for forestry or farming at a lower rate than how undeveloped land is typically taxed in the state, which is based on its potential development value.
The program is widely popular, but facing a severe budget crisis, lawmakers sought to trim about $1.6 million from the cost of running it. Senate lawmakers have proposed making up those funds through a one-time $128 fee for all landowners enrolled in the program, differing with a proposal in the House.
Sen. Ann Cummings, D-Washington, the chairwoman of the Senate Finance Committee, defended the bill against criticism, saying it is a change in tax policy, not state agricultural policy. The $128 fee will cover the cut in the budget, she explained.
"This is not the first time we have changed policy and this is the same process as last time," she said on the Senate floor Monday afternoon, referring to previous tweaks of the program.
About one-third of the state's land, around 12,000 landowners, are enrolled in the current use program. Property in Vermont is typically taxed at its development value, but land enrolled in the program is taxed based on the way it is used, such as for farming, forestry and for other uses such as wildlife habitat improvement and recreation.
The changes approved by the Senate were backed by all but a handful of lawmakers, though 10 supported an amendment that would have removed some of the bill's provisions. Under the bill, some provisions of the program will change, while others will not.
Backers of the bill said land already enrolled in the program will continue to enjoy the tax breaks, although everyone will need to pay the one-time fee. Also, if a portion of enrolled land is taken out of the program to be developed, the landowner would have to pay a higher penalty to the state than under current provisions.
House lawmakers have taken a different tack. They passed a moratorium on new land being enrolled in current use as a way of saving money. But Senate lawmakers jettisoned that proposal because they had heard intense criticism of the enrollment limit.
Sen. Sara Kittell, D-Franklin, the chairwoman of the Senate Agriculture Committee, was among the critics of the Snetae plan. She said these changes were being rushed through the political process "without having landowners at the table."
"We don't want to destroy a successful program," she said. "And current use is a successful program."
The bill could face a veto from Gov. James Douglas.
Jonathan Wood, the secretary of Agency of Natural Resources, and Roger Allbee, the secretary of the Agency of Agriculture, sent a letter to lawmakers this week asking them to "immediately … stop the effort to increase taxes on farm and forest landowners enrolled in the Current Use program."
Wood, who watched the Senate debate on Monday, said he was disappointed with the vote for the one-time fee.
"It's shocking for the Legislature to raise taxes and fees on Vermont's working landscape during the worst recession in memory," Wood said.
But many organizations representing land management and farms in Vermont were supportive of the bill. Darby Bradley, a special assistant at the Vermont Land Trust, said the changes made by lawmakers this year strengthens the program for the long-term.
Daniel.Barlow@timesargus.com
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