House amends bill to change property tax abatement and tax-sale procedures

The House on the floor amended House Bill 629, a measure to change property tax-abatement and tax-sale procedures across Vermont, and ordered the bill for third reading.

Representative Demerall (member from Corinth), speaking for the House Ways and Means Committee, summarized the strike-all amendment and said the changes seek to bring consistency and clarity to municipal abatement and tax-sale practice. The amendment incorporates language from H.19 and H.61, establishes written-decision requirements for boards of abatement, permits municipalities to hear groups of similar abatement requests as a class in disaster situations and requires municipalities to provide notice to taxpayers of their ability to request abatement when attempting to collect municipal fees or interest.

Key provisions described by the committee include: amendments to 24 VSA 1535 to permit de minimis abatements and class hearings; a notice form created in the 24 VSA series to inform taxpayers about abatement rights; requirements in 32 VSA 6065 to add explanations about how to file for property tax credits and to provide translated materials; a one-year delinquency minimum before a collector may initiate a tax sale (32 VSA 5252); changes to tax-sale advertising and a one-year right of redemption after sale (32 VSA 5253); and a reduction of the monthly interest rate during the redemption period from 1% to 0.5% (32 VSA 5260). The amendment also creates a working group tasked with recommending equitable approaches for municipalities and sunsets on June 30, 2025.

Representative McCarthy (member from Saint Albans City) offered the strike-all amendment, saying it clarifies that boards of abatement must meet and establish a class before hearing grouped claims (useful after floods or large fires), shifts authority to abate de minimis taxes to municipal legislative bodies for ease in practice, clarifies that door-affixed notice is required only when a structure exists on the property, adds lienholders among those who may redeem a property, and adds a bar-appointed real-estate attorney to the working group.

Opposition came from the member from Poltenay, who argued that requiring a one-year delinquency before initiating a tax sale would delay municipalities’ ability to recoup revenue and that lowering interest to 0.5% would constrain local budgets. During debate a member (identified in the transcript as 'member from Hultene') claimed municipalities are facing a roughly "20% increase in property taxes" this year and said lowering interest and delaying tax-sale authority would tie local hands; that claim was contested in debate and not otherwise quantified in the record.

The House first held a voice vote, then, on division, proceeded to a roll call; the clerk recorded 92 votes in favor and 44 opposed and announced the amendment to the Ways and Means report was adopted. The body then approved the bill as amended and ordered third reading.

What happens next: H.629 was ordered to third reading; further floor action will determine final passage and any additional amendments before enrollment.

Quotations: “Tax sales are a municipality's last resort in collecting property tax from a delinquent taxpayer,” Representative Demerall said, summarizing the committee's intent to reduce the likelihood of tax sales and to inform delinquent taxpayers of their options. Member from Poltenay said, “My vote is no,” citing concerns about timing and municipal revenue.

Notes: The transcript contains exact statutory references as read on the floor (24 VSA 1535; language referencing 24 VSA 50 5144 as read; 32 VSA 6065; 32 VSA 5252; 32 VSA 5253; 32 VSA 5260). In a few instances the floor reader's punctuation grouped numbers in a way that is reflected literally in the transcript (for example, some numeric section citations as spoken).