Lister Training

Division of Property Valuation and Review

Vermont Department of Taxes http://tax.vermont.gov/municipal-officials/

(802) 828-5860

Tax.listered@vermont.gov

2018

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Title

NEW LISTERS DUTIES- Table of Contents

March Take the Oath…………………………………………………………………….... Page 1 Office Hours………………………………………….……………………….….... Page 1

Access to Public Records…………………………………………………………… Page 1 Lister’s Logbook……………………………………………………………….…. Page 1 Public Relations………………………………………………………..............…. Page 1 Real Estate Market Knowledge………………………………………...............….. Page 1

Current Use Current Use Explanation…………………………………………………..……… Page 1 Current Use Information………………………………………………………..… Page 2 Use Value Allocation- Notice to Taxpayer…………………………………….… Page 3

April Produce a Defensible Grand List

The Grand List & Sample Grand List Document……….......……….....………........ Parcel Definition…………………………………………….......………......……… Fair Market Value Definition…………………………….......……….......………... The 411………………………………………………………………......…..……... Real Property Category Codes…………………………….………......………….... Business Personal Property & Codes……………….……....………......……..….... Ownership Codes………………………………………......…………...... ………... Tax Status Codes………….…………………………………………......……..…... Who Determines Taxability………………………………………………………… Exemption Coding………………………………………………......…………......... Exempt Property Types …………………………….……………........…………...... Grand List Data Maintenance………………………………...………......………..... Sample PTTR Check List……………………………………………......…………... Calculation of Property Values………………………………………......………….. Sample Property Record Card…………………….……......…….………………..... Sample Data Collection Form………………………………………......…………... Sample Cost Change Check List…..…………………………………......…………..

Inspection Process Site Visits…………………………………………………………......………….... Inspection …………………………………………………………......…………... Measuring …………………………...…………………….………......…………... Sample Apex Sketch…………………………………………………......…………... Reinspection Schedule………………………………………………......…………....

Page 3 Page 4 Page 4 Page 5 Page 6 Page 8 Page 8 Page 9 Page 9 Page 9 Page 10 Page 13 Page 13 Page 13 Page 14 Page 14 Page 15

Page 15 Page 15 Page 15 Page 17 Page 18

May Utility Property Valuation

Electric Utility Inventory Form….………………………......…………………… Page 19

June - July Reconciling Your Grand List

Reconciling ……………………………………..……….……………….…………. Page 19 Sample Reconciling Log Book ……………...……………………………………… Page 19

Grand List Lodging Grand List Lodging: Instructions for Listers – Website Access……………………. Page 20

July - December Other Grand List Maintenance Issues

Correcting Errors…………………………………………………………………… Page 20 Equalization Study

Lister Roll …………………………………………………………………………. Page 20 Equalization Study Explanation……………………………………….…………… Page 21 Reasons to Eliminate Sales………………………………………………………… Page 22 Sales Verification Form………………………………………………………….… Page 23 Common Level of Appraisal/Assessment (LOA) Calculation………………….… Page 23 Coefficient of Dispersion (COD) Calculation…………………………………….. Page 23

February Homestead and Housesite

Calculate & Assign Homestead and Housesite Values………………….………... Page 24 Homestead & Housesite Definition………………………………….…………… Page 24 HS122 Download Instructions – Website Access ………………………………… Page 25 Lister’s Certificate of Housesite Value – Website Access …………………….… Page 25

Monthly Property Map Maintenance………………………………………………….……. Page 25 Deed Research……………………………………………………………….…… Page 26 Reading Deeds by Charlie Merriman…………………………………………..… Page 27 Removing Name from GL………………………………………………………… Page 29

Lister Information Lister’s Handbook………………………………………….……….…................ Page 29 Lister Email Group information………………………………………………… Page 29 Spare Time Projects…………………………………………………...............…. Page 30

PVR Information Acronyms……………………………………………………….………………… Page 31 Category Codes ………………………………………………………………….. Page 31 Glossary…………………………………………………………………………… Page 32 Property Valuation & Review- functions…………………….…………………… Page 34 Property Valuation & Review Contacts & Reference Contacts………………….. Page 36

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March

BASIC RESPONSIBILITIES OF LISTERS:

TAKE THE OATH – Each time you are elected you are not officially a Lister until you go to the Town Clerk and take your oath. She/he will register this with the Secretary of State’s Office (32 VSA §3481).

OFFICE HOURS - be in the office on a regular basis. Post hours of meeting times (1 VSA § 315). Listers should hold an organizational meeting each year to determine office hours, elect Lister chair, newspaper of record and other operating procedures.

ACCESS TO PUBLIC RECORDS: • The Access to Public Records Law gives guidelines for allowing the public to review or copy all of

your records, with the exception of inventories. 1 VSA, § 315. The records should be availablebetween 9 and 12 a.m. and between 1 and 4 p.m., or during customary office hours if your office is notnormally open during those hours. If you keep your records at the town office, you may makearrangements with the Town Clerk so citizens can review a record even when you are not there.

• Open meeting law reference is Title 1 Chapter 5.

LISTER’S LOGBOOK - keep a logbook in a calendar book or notebook. This will serve as your minutes and hours worked. It will also help you better plan next year’s work. General notes on what was worked on will suffice. Official minutes are required certain times such as organizational meetings.

PUBLIC RELATIONS - be courteous and helpful to taxpayers – remember they pay your salary, however meager. Abuse you don’t have to take, ask the person to leave or make yourself scarce. However, an explanation, examples and just lending an ear will reduce grievance complaints. Classes will help you to learn how to answer many questions.

REAL ESTATE MARKET KNOWLEDGE - Constant and current knowledge of the real estate market for the town and the surrounding towns. This includes knowledge and study of the market influences and fluctuations within the town.

• Start by being a student of your market, look at for sale ads and drive by sold properties• Investigate sales – verify, talk to buyers and sellers• Sales studies – sales book, spreadsheets, maps and levels of assessment

CURRENT USE – Use Value appraisal for eligible farm and forestland. Qualifying agricultural, conservation and forest land and farm buildings may enroll in Vermont’s use value appraisal program. Enrolled land and buildings are required to be taxed at use value. Use Value Appraisal is defined in Vermont law in Title 32 VSA § 3752(12) with respect to land, the price per acre which the land would command if it were required to remain henceforth in agriculture or forest use, as determined in accordance with the terms and provisions of this subchapter. With respect to farm buildings, "use value appraisal" means zero percent of fair market value. The Current Use Advisory Board sets the use values for farm and forest land annually.

• CURRENT USE EXPLANATION - allocation of all property value enrolled and excluded from theprogram. This also includes knowledge of the program, knowledge of the effects on taxation andknowledge of changes within the program. This also includes calculating, notifying and defending allvalues for property enrolled in the program (this process is electronic & integrated with NEMRC).Electronic exchange begins on March 15th of each year.

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• CURRENT USE INFORMATION

The State of Vermont provides an annual payment to municipalities (Hold Harmless payments) to limit the increase on the municipal tax rate that occurs as a result of enrollment in use value (32 VSA § 3760). The use values are already computed on the electronic report. The Listers must make any necessary changes the allocation of enrolled property value estimates on continuing enrolled parcels and provide fair market values for new parcels.

If the Listers make any acreage changes, they must give a brief explanation of the reason.

The most time consuming part of the Listers’ work on the electronic file will be in determining the allocated values. The value of the parcel must be broken down into appropriate parts and a value allocated to each.

Most of the information you need to assign contributory value comes directly from your appraisal card/listing sheet and your land schedule. A separate value must be calculated for:

The house and site improvements and non-farm buildings

Farm buildings enrolled in the program

Enrolled Land

Excluded from program (Land not enrolled) ------------------------------------------- Total Listed Value

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• USE VALUE ALLOCATION – NOTICE TO TAXPAYER

• NOTICES - These notices can be printed directly from the Current Use download exchange screens but be sure to edit the grievance information each year. A Certificate of Mailing can also be printed directly from the current use download exchange screen.

• Current Use Workshops are provided regionally.

April PRODUCE A DEFENSIBLE GRAND LIST - completion of a Grand List as of the effective date

of April 1st of each year (32 VSA §4041 and 4044).

• April 1st is your effective assessment date; however, you will produce a Grand List after this date.

• THE GRAND LIST:

Please note the following when completing your Grand List books. In order for your Grand List to be accepted for the August 15th filing, it should contain all items below.

1. Complete name and mailing address of owner 2. Brief description of property 3. Parcel ID 4. Category 5. Resident status (town resident, state resident, non-state, corp. or other entity) also know as

Ownership code 6. Real estate or business personal property 7. Listed assessment of real estate 8. Listed assessment of taxable business personal property 9. Use value data, if applicable (if property is enrolled in Current Use program) 10. If the property would be taxable otherwise, and it has been voted exempt, the full listed value

(assuming no exemption), and exempted amount. The type of exemption, dates and statutory reference for vote must also be noted.

11. Housesite/Homestead Values 12. Span Number 13. Mobile home shall list name of manufacturer, model number, serial number and dimensions All of these items listed can be satisfied by correct use of the NEMRC Grand List program, now used by

all towns.

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SAMPLE NEMRC GRAND LIST PAGE

• PARCEL DEFINITION –

• For tax administration, “parcel” is the base unit to be reported in the Grand List book and is defined as “all contiguous land in the same ownership, together with all improvements thereon” 32 VSA, § 4152(a) (3). This definition does not, however, govern the Listers’ determination of how to value the property. Highest and Best Use is paramount when appraising a property. Act 68 legislation has further defined the meaning of a “PARCEL” in the Homestead definition as “A homestead includes the entire parcel of land surrounding the dwelling, determined without regard to any road, river or stream that intersects the land (32 VSA § 5401(7)).

• For use value appraisal, “parcel” is defined for the purposes of the use value appraisal program as “all contiguous land in the same ownership, regardless of the number of deeds”.

• FAIR MARKET VALUE DEFINITION –

The estimated fair market value of a property is the price which the property will bring in the market when offered for sale and purchased by another, taking into consideration all the elements of the availability of the property, its use both potential and prospective, any functional deficiencies, and all other elements such as age and condition which combine to give property a market value. (See Title 32 VSA §3481 “In determining estimated fair market value, the sale price of the property in question is one element to consider, but is not solely determinative.”)

• FAIR MARKET VALUE – Appraise all real property subject to taxation at its fair market value.

This requires both knowledge of appraisal and familiarity of Vermont tax law. Although Listers are assessing at Fair Market Value, in order to maintain equity, the Common Level of Assessment (CLA) is applied OR the same standard of measurement is used to value new properties.

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• APPROACHES TO VALUE- Market / Sales Comparison Approach – Comparable Sales Cost Approach – Replacement or Reproduction Cost New Income Approach – Potential Income Stream

• WHAT IS AN APPRAISAL?

It is an estimate of value arrived at by analyzing and interpreting relevant data. It is done as of a specific date (April 1st for listing purposes).

• ASSESSED VALUE:

This is a dollar amount assigned to taxable property, both real and personal, by the Assessor or Listers for the purpose of taxation. Assessed value should equal Fair Market Value in a reappraisal year.

• THE “411” FORM: • The Listers are required to provide an annual Grand List, and 411 form to the Town Clerk for

forwarding to the Division of Property Valuation and Review (32 VSA § 4181). • The 411 form is a summary of total listed values of all taxable real and business personal property.

The data on the 411 is the basis for many of the reports required to be completed by Property Valuation and Review, as well as a key source for the compilation of the Equalized Education Grand List.

• When the Grand List is compiled the 411 will be an additional report you will print and a signed copy will become part of your Grand List documentation.

• Be sure to always compare & review your 411 before submitting!

Form 411:

Parcel Count

Real Property Categories

Total Education Listed Values

Total Real Values

Homestead + NonResidential = Total Education Listed Value

Cable Value

Total Municipal Listed Values

Business Personal Property - Business Machinery & Equipment & Inventory

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• REAL PROPERTY CATEGORY CODES – real property highest and best use codes

• Highest and Best Use - In order to estimate fair market value, you must first determine the highest and best use of the property. “Highest and best use” relates to the monetary return one can realize from a property. It is “that use that will generate the highest net return to the property over a reasonable period of time.” Property Assessment Valuation 2nd Ed., IAAO (1996). To determine the highest and best use, you must consider what use is physically possible, what type or types of uses are legal, what use is financially feasible, and in today’s market and the near future, what use will bring the highest monetary return.

DWELLINGS

• R1 and R2 – Residential -

Include houses with four apartments or less and non-operating farms with a highest and best use as year-round residences. If the parcel would more likely sell to be occupied on a seasonal basis or if a camp is not insulated, it would be more accurately defined as a seasonal property. Always keep in mind the highest and best use of the property when making this determination. The present use of the property and the ownership of the property are not the deciding factors.

If your town or city has enough condominiums to warrant a separate category, it is recommended that you use the “Other” category for that purpose—especially if the market shows condo values changing at a different rate than other properties.

R1- residential property with less than six acres of land. R2 - residential property with six or more acres of land.

• MHU – Mobile home unlanded -

This is a mobile home set up on land not owned by the owner of the unit. Also include trailer coaches (also called travel trailers) which are taxable under 32 VSA § 3692(b) unless you have designated the “Other” category specifically for this type of property.

• MHL – Mobile home landed -

A mobile home set up on land owned by the owner of the mobile home.

• S1 and S2 – Seasonal

Include all properties with a highest and best use for seasonal occupancy. This may include: summer homes, ski chalets, hunting camps, camps and cottages on lakes and ponds, etc. The highest and best use of the property determines the category. The present use of the property and the ownership of the property are not the deciding factors.

S1 - Seasonal property with less than six acres of land. S2 - Seasonal property with six or more acres of land.

COMMERCIAL

• C – Commercial -

Include properties whose highest and best use is in providing goods and services for sale. These include retails stores, malls, motels, hotels, filling stations, restaurants, office buildings, bowling alleys, golf courses, telephone switching offices (specifically built and designed for that purpose), etc. Do not include industrial manufacturing plants (businesses which use raw materials to produce a product, rather than simply providing a product or service for sale). Include these in the Industrial category.

Utility property is distinguishable from commercial property because of its specialized function, which limits

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its highest and best use to that of a public utility. For instance, a natural gas pipeline or a water filtration plant owned by a public utility would be coded UO. An office building which is not fitted especially for use by a public utility (e.g. administrative headquarters), which is likely to sell as a commercial enterprise, would better be coded Commercial. (A specialized building, such as a telephone switching office, which is specially fitted for telecommunications purposes would be unlikely to transfer to any entity other than another telephone company, should be coded UO.) The market is the controlling factor.

• CA - Commercial Apartments -

Commercial Apartments are buildings with more than four apartments.

INDUSTRIAL

Industrial property is distinguished from commercial property in that raw materials are used to produce a product, rather than a product or service simply being sold. There are three industrial categories—I, UE and UO.

• I – Industrial – Manufacturing Plants –

Include properties such as cheese-making facilities, microchip manufacturing plants, sawmills, creameries, ice cream factories, etc.

UTILITY

• UE - Electric Utilities -

Property owned by a utility company and used in the production, transmission or distribution of electrical energy. This includes solar, wind, biomass, hydro plants, substation, poles, lines and fixtures, etc.

Property owned by a utility which has a highest and best use other than for the production, transmission or distribution of electrical energy would be coded otherwise. For instance, an office building or switching station would be coded Commercial. Vacant land would be coded Miscellaneous. Again, consider highest and best use not ownership when coding.

• UO - Utilities Other - This includes real property owned by public utilities other than electric companies for which the highest and best use is in carrying on the business of that utility. This might include real property owned by water companies and gas distribution pipelines. Property owned by such a utility for which the highest and best use is for other than the business of the utility would not be included in the UO category. For instance, vacant land owned by a telephone company would be coded Miscellaneous. A house owned by a cable television company would be coded R1 or R2. *Do not include property used in carrying on a propane business in the utility category. This is not an industrial type property, but rather a commercial operation. Propane tanks owned by such companies and rented out are coded PP-M&E, large propane holding tanks are real property.

FARMING

• F – Farm - Include operating farms with buildings involved. Do not include properties that were formerly farmed and now have a highest and best use as a residential property. *Do not include vacant land that is not attached or contiguous to the operating farm in this category, even if it is used in the farming operation. Only include operating farms with buildings. A non-contiguous 15-acre parcel the farmer owns down the road, and upon which corn or hay is grown, is not a farm. It is vacant land and is to be coded as Miscellaneous.

VACANT LAND • W – Woodland -

Include undeveloped land, which is mostly wooded. Such parcels may have buildings of little value, such as the 100-acre parcel of forestland with a small deer camp of little value.

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• M – Miscellaneous - Include undeveloped land that is not mostly forest covered. Include shore lots, residential building lots, unimproved agricultural land, etc. Such parcels may have buildings of little or no value.

OTHER • O- Other -

Contact Property Valuation and Review for guidance on the use of this category. It is only to be used for a unique homogeneous market. If your town or city has enough condominiums to warrant a separate category, it is recommended that you use the “Other” category for that purpose—especially if the market shows condo values changing at a different rate than other properties. The Board of Listers may choose to use it for all condominium properties, lake front properties or other specific properties rather than dispersing these within the R1 and S1 categories if there is a distinguishable market for such properties. Listers may choose to use this category to separate the trailer coaches (travel trailers) if you have a large number of such properties and the market for these is different than for MHU’s.

• Do not use this category for exempt properties. Do not use this category unless it has been specifically earmarked for a type of property, and be sure you specify what type of property you are including when the 411 is filed with PVR.

BUSINESS PERSONAL PROPERTY There are two types of Business Personal Property – Business Machinery/Equipment and Business Inventory. Your town may have voted to exempt both of these, one of these or a portion of these. If your town taxes business personal property at all, this assessment does not apply to the Education Grand List. To ensure that this property is coded and taxed accurately, make sure to set the file to “Personal” and not “Real”. Business Personal Property will be appraised at fair market value or depreciated book value. Towns taxing business personal property will request and receive business personal property inventory forms by April 20th of each year.

• PP-I -Inventory (stock-in-trade) - Inventories of goods for sale, materials used in the manufacturing process, timber rights, etc. • PP-M&E - Machinery and equipment - Office furniture and equipment, equipment in a retail establishment not classified as fixtures, propane tanks, hotel and motel furniture and equipment, fixtures which are severable or removable without material injury to the real property, etc. • PP-Cable TV – Cable television lines and fixtures are always taxable on the Education Grand List and are taxable on the Municipal Grand List and Education Grand List if the town taxes business personal property.

OWNERSHIP CODES Check this coding carefully. Keep in mind that all types of property owned by a corporation, partnership or other entity must be coded as such. For instance, Brown Brothers Farm Inc. is corporate-owned. The property does not have to be a large commercial or industrial property to warrant this type of ownership code. Please code all such properties as such. Please check all these codes yearly - especially on those properties that have transferred. Many times the ownership code changes when the property changes hands. Make sure your data entry people know the meanings of these codes so they can make the necessary changes as they come up. The Listers and Assessors are responsible for the accuracy of this data, and for the training of those employees using the computer system. • C – CORPORATION Ownership is held by a Corporation, partnerships or other entity. Include all properties owned by these business entities – regardless of the category of property. This ownership coding applies to all types of property, not limited to commercial, industrial and utility. • S – STATE RESIDENT Owner who lives in Vermont, but not in the town in which the property is located.

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• NS – NON RESIDENT Owner who lives outside of the State of Vermont. • T – TOWN RESIDENT Owner who lives in the town in which the property is located.

TAX STATUS CODES The tax status code directly below the location field in the Grand List program will be set to either Non-Tax, Tax or State (the dropdown screen or F1 key will give you the codes). Nontaxable should only be used for statutorily nontaxable properties. Review these lists to avoid errors. • T – TAXABLE All property that is fully taxable (this will be a majority of the grand list properties). • N – NON-TAXABLE Any property that is exempt specifically by statute (law). • S – STATE Any property owned by the State of Vermont. • T – TAXABLE BUT EXEMPT BY VOTE (code [T] under tax status with contract/exemption

amount) Any property that the town elected to vote exempt in whole or part (must have authority under law to vote exemption).

WHO DETERMINES TAXABILITY Listers are the first stop in the determination of taxability. Listers should use the resources available to them for this purpose; statutes, the Listers Handbook, District Advisor and town attorney or VLCT. When a property is in question, it is the property owner’s responsibility to provide the listers with the evidence necessary to make this determination. Property owners can appeal further to Board of Civil Authority in order to appeal to Superior Court. Go to State website at Tax.vermont.gov enter “Public Pious” in the search field and click on Form PVR-317 or go to: tax.vermont.gov/sites/tax/files/documents/PVR-317.pdf

• EXEMPTION CODING The value of exemptions must be accounted for properly. Make sure to code as taxable and then enter exemption amount beside Contract on Value/Exempt TAB with the appropriate contract code. When Contract information is entered, you must go to the ‘Contract/Chg of Appraisal’ TAB and enter contract information (if exemption is voted).

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• EXEMPTION PROPERTY TYPES – (shown in NEMRC)

• VETERAN EXEMPTION – (32 VSA § 3802) Refer property owners to Vermont Office of

Veterans Affairs (VOVA). Qualified Veterans receive an automatic 10,000 exemption. The town may vote to exempt an additional 10,000 to 30,000 more (total maximum exemption is 40,000).

Address questions regarding the application process and eligibility to: Vermont Office of Veterans Affairs 118 State Street Montpelier, Vermont 05620-4401 Phone Number: (802) 828-3379 Fax Number: (802) 828-5932 Toll Free (888) 666-9844 (in Vermont) If the veteran brings in the paperwork to the Listers office please fax or call VOVA.

• COVENANT RESTRICTED HOUSING – (32 VSA § 3843). Calculated – removed from value (possible as misc. adjustment) then entered as a percentage of value removed on Parcel tab. (shown in NEMRC)

• 3-SNOW MAKING AND SKI LIFTS – (32 VSA § 5401). • 4-WHEY TANKS– (32 VSA § 5401). • 5-VERMONT YANKEE – phasing out • 6-QUALIFIED HOUSING/ SUBSIDIZED HOUSING (32 V.S.A. § 3481) Low income qualified

housing enjoys a yearly exemption of up to 10% as well as the potential to be valued based on income and expense calculation (32 VSA § 5404a(6))

• 7-SOLAR– (32 VSA § 8701 & 30 VSA § 8002). • 8-WIND – (32 VSA § 5402c). • 9-COURT ORDERED – Must have copy of order on file.

(shown in NEMRC)

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The NEMRC program has been modified to code all these exemptions and a summary of all exemptions will show on 411.

Review all exemptions yearly before printing your Grand List!

Personal

Property and Exemption Summary located on the second page of the

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Bottom Portion of the 411

Grand List Values Total after all exemptions removed

Exemptions Summary - for all Exempt Properties

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• Voted Exemptions on page 3 of 411 – Always check year of expiration in November.

• Sample Non-Taxable (Statutory) Exemptions on last page of 411

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GRAND LIST DATA MAINTENANCE • Complete and accurate listing / assessing of properties (includes recording, researching, collecting

and assessing all permits and property tax transfer returns within the town). Listers are responsible for maintaining current ownership records for all grand list properties.

• SAMPLE PTTR CHECK LIST (Listers may choose to develop something similar)

Checklist for PTTR’s Done By Date 1 REVIEW PTTR

2 READ DEED

3 CHECK FOR CONTIGUOUS OWNERSHIP (IF APPLICABLE)

4 RESEARCH AND/OR CLARIFY ANY ACREAGE DISCREPANCIES

5 RECORD TRANSFER IN NEMRC USING PARCEL TRANSFER ROUTINE

6 MAKE CHANGE TO VALUE IN APPRAISAL SYSTEM (IF APPLICABLE)

7 RECALCULATE HOUSESITE/HOMESTEAD (IF APPLICABLE)

8 REVIEW CURRENT USE PARCELS (IF APPLICABLE)

9 PRINT NEW COST SHEET(S)/PROPERTY RECORD CARD WITH CHANGES

10 FLAG FOR CHANGE OF APPRAISAL WITH REASON (IF APPLICABLE)

11 MAKE CHANGES TO MAPS

12 RECORD CHANGES IN LOG BOOK & MARK UP GRAND LIST (IF APPLICABLE)

13 CHECK FOR ANY EXEMPTIONS TO PROPERTY

14 REVIEW AND CHANGE CATEGORY (Subdivision) and/or OWNERSHIP CODE

15 LISTERS REVIEW AND AGREE

CALCULATION OF PROPERTY VALUES

• Calculating, assigning and defending all assessed values established for each property located within the town (Includes data collection, data entry, taxpayer questions and problems, knowledge of assessment procedures, knowledge of computer appraisal system, knowledge of grand list system and knowledge of fair market value and equity).

• Listers need to learn the Lister’s card in their office to be proficient at explaining all fields to the public.

• Listers need to learn the data collection form & process to become proficient at collecting data and determining value.

• Listers need to understand fair market value and its relationship to equity and the current assessments.

• Listers need to understand the reappraisal process.

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• SAMPLE PROPERTY RECORD CARD FROM NEMRC/MICROSOLVE CAMA PROGRAM

• SAMPLE DATA COLLECTION CARD FROM NEMRC/MICROSOLVE CAMA PROGRAM

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• SAMPLE COST CHANGE CHECK LIST – (towns may choose to create / use some variation of this) CHECKLIST FOR COST CHANGES PARCEL # NAME DONE

BY DATE

1 INSPECT PROPERTY (If Applicable)

2 DATA ENTER PROPERTY IN APPRAISAL CAMA SOFTWARE

3 PRINT NEW COST SHEET / PROPERTY RECORD CARD

4 RECORD VALUE CHANGE IN NEMRC

5 RECALCULATE HOUSESITE / HOMESTEAD (IF APPLICABLE)

6 FLAG FOR CHANGE OF APPRAISAL WITH REASON (IF APPLICABLE)

7 MARK UP OLD (LISTER’S COPY) GRAND LIST OR TRACKING FILE

8 LISTERS REVIEW AND AGREE 9

INTIALS OF TWO LISTERS __________ __________ INSPECTION PROCESS - Inspect properties year-round and keep up with transfers.

SITE VISITS

• Listers will inspect properties throughout the year that have had a permit issued for changes. If the town does not have permitting the Listers will make every attempt to inspect properties that have had any changes.

• Although the effective value date is April 1st of each year, many inspections can be done throughout the year.

• Develop a tracking system for pending permits and changes to properties. Properties with changes that will affect value should be viewed by the Listers and assessed using the existing valuation system to represent the property as it exists on April 1 of that year.

INSPECTION

• Take Data Collection Classes/Workshops • When inspecting a house, discuss the inspection process with current or veteran Listers and then

establish a routine for the inspection. • Make sure to re-check and track incomplete properties each year. • Use your Marshall and Swift manual. Learn and understand how to apply this to YOUR

community. • Be prepared with the appropriate tools; your graph paper, your data collection card, pencils,

measuring tape, flashlight, calculator, clipboard and camera. • Consider purchasing magnetic signs for Lister’s cars to make identification easier. Magnetic signs

cost approximately $50.00 each and are a good investment. • New Listers can practice on their own home, other Lister’s homes or nontaxable properties to

become familiar with the process.

MEASURING

• Always measure the above grade exterior of the building. Starting at an exterior corner utilizing a 25’-100’ measuring tape, measure and record the length of all walls in a systematic manner. Round your measurements to the nearest foot. Note the length of dormers and any overhangs.

• Make a sketch of the home's perimeter, recording all dimensions. • If you must measure some areas from inside, (typically the second floor of a 1 ½ story home)

add six inches for an exterior wall.

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DETERMINE FINISHED LIVING AREAS

• Must be space intended for human occupancy. • Must have walls, floors and ceilings of materials generally accepted for interior construction. • Mark all unfinished areas on your sketch.

SPECIAL CIRCUMSTANCES - Measuring Guidelines

• Rooms with Sloped Ceilings Such as the loft found in an A-Frame home. If you measure room dimensions where the sloped walls meet the floor, you are including space that isn't truly usable. Include only the portion of the room where ceiling height is at least five feet, this is termed a Knee Wall. An example of a building where this might be applicable would be a Cape or an A-Frame.

• Open Foyer & Other Open Space Do not include open unfinished space as part of the square footage for an upper level. On the main level, measure the space that is open from above, wall to wall. On the second floor sketch, calculate and deduct the area from the Gross Living Area (GLA)

CALCULATING • Squares and Rectangles

Multiply length times width to find the number of square feet in a square or rectangular room. Remember to calculate unfinished areas and deduct them from the total.

To calculate the area of a triangle, multiply its base length by its height and divide that figure by two or ½ the base times height. Use Your Measurements to Calculate GL

Combination Shapes Split irregular shapes into easy-to-calculate areas.

• The dimensions of nearly any building or room can be split into multiple shapes to make calculations easier. The area above can be split into a square and a triangle.

• Take additional measurements of important segments if you notice that odd shapes are emerging as you sketch the house.

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Area of a Square or a Rectangle = Length x Width Length = 10 Width = 10

10 x 10 = 100

10 x 10 = 100 sf + 10 x 5 = 50 / 2 = 25 (Width x Length) / 2

Split odd shaped areas into easily 10 calculated areas

100 sf + 25 sf = 125 sf

Length = 10 Width = 10 10 X 5 = 50 / 2 = 25 sq ft (Width x Length) / 2 = sq

Area of a Triangle = Base X Height ÷ 2

OR ½ Base x Height

Base = 10 Height = 10

5 x 10 = 50 sf

OR 10 x 10 = 100 ÷ 2 = 50 sf Base

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Circular Shapes and Octagons • Some houses have bay windows or circular areas that jut out from the house

• The area of a circle is determined by multiplying the radius by itself and multiplying that figure by 3.14159265 (π).

• Calculate the area of an octagon by splitting it into a rectangle and triangles. • You can also do polygon in Apex Sketching program if all sides are the same.

Final Calculation

• Most calculations will involve squares, rectangles and triangles. • To calculate, multiply the Length times Width (L x W). • Deduct any unfinished or open spaces. • Above Grade Finished Areas is included in GLA & Below Grade Finish would be in FBA

Double-Check Your Figures

• Take a close look at your sketch before you leave the house. Should your diagram show shorter portions of walls in order to calculate the areas of subdivided shapes?

• Is there anything else you should document? • Did you note the offset length for porches from the corner? • Does the front & back balance? • Does the side to side balance? • Marshall & Swift Manual has a section on measuring and story height in the front of the black book.

(Residential Cost Manual)

SAMPLE APEX SKETCH

12 6 5

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12 x 22 = 264 6 x 12 = 72 x 2 = 144 6 x 5 = 30 / 2 = 15 x 4 = 60 264 + 144 + 60 = 468sf

Area = 3.14159265 x R² or (x = R²) Radius = ½ Diameter

R = 20ft 3.14159265 x (20 x 20) = Radius

3.14159265 x 400 = 1257sf

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• REINSPECTION SCHEDULE (for use on properties that are less than 100% complete on April 1st)

This is also found in the “Marshall & Swift Residential Cost Manual” book under Useful Information. Can be used in the field, filed with the parcel data and used each year a property is under construction.

Reinspection Schedule Owner ___________________________ Parcel ID ____________

Location ________________________________________________________ Inspection 1 2 3 4 Dates Excavation, Backfill 1% Footings, Foundation 8% Concrete floor, Basement/Garage 2% Water Supply to house 3% Sewage Disposal/Septic 2% 1st Floor Deck or Slab 5% Framing, Sheathing, Partitions 17% Roofing, Exterior Trim 2% Exterior Doors, Windows, Combinations 6% Siding 5% Insulation 3% Sheetrock, taped/Paneled walls/ceilings 5% Plumbing Rough-tub, pipes in walls, ceiling 2% Finish-drain/supply lines, fixture 3% Electric Rough-in and main power to house 3.5% Finish-switch, recept., fixtures 1.5% Heat Rough-wires/Duct/Piping and Chimney behind sheetrock 2.5% Finish Furnace, Fuel Tank, Heaters 3.5% Interior Doors, Trim, Millwork 5% Kitchen & Bath Cabinets & Counters 4% Exterior Paint/Stain 1% Interior Paint/Stain/Decorating 2% Flooring 4% Steps, Decks, Walks, Driveway 3% Topsoil, Grading, Seeding 1% Kitchen Appliances 2% Fireplace or Wood Stove Flue 3% PERCENT COMPLETE 100%

PERCENT DUE THIS INSPECTION

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May

UTILITY PROPERTY VALUATION

ASSESSING UTILITY PROPERTIES • Assessment of all utility properties within the town are adjusted every year using inventory of plant

and then applying the common level of appraisal for your town. Utility properties are reviewed & updated every year. This also includes the notification and defense of all utility property value assessed. Consult with your District Advisor when reviewing these properties. Electric utility inventory forms are filed with Property Valuation & Review on May 1st and copies are provided to the towns.

June / July

RECONCILLING YOUR GRAND LIST - http://nemrc.com/support/grandList/ • RECONCILLING

Print the following Grand List Reports: • Print 411 and compare previous to current and note differences (keep copies)

• Tax Book summary page from when bills were printed • Tax Book summary page anytime adjustments are made in the grand list. (You might not have

printed a summary page every time you made an adjustment • State Treasurers Report -Show all parcels where the tax amounts changed • “Filed Past Late HS-122 Deadline” report. Because of the way these bills are calculated you must

keep a careful record of these parcels • 411 Report from when tax bills were printed compared to your current 411 • Transaction Tracking Report • Transfer Report • Comparison Reports

• SAMPLE RECONCILIATION LOG BOOK – (towns may choose to create / use some variation) Listers should have some accounting process – beginning to end. Comparison & Grand List Reconciliation Processes are also available in the NEMRC Grand List program

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GRAND LIST LODGING

See updated Grand List Lodging for 2018 on http://Tax.Vermont.Gov Website in the Search box type “Grand List Lodging” and hit Enter

July - December

OTHER GRAND LIST MAINTENANCE ISSUES

• CORRECTING ERRORS: • As Listers, you have the option/responsibility to change the Grand List prior to December 30th. Any

changes after the filing of the final Grand List with the Town Clerk must be Select Board approved and changes recorded in the back of the lodged Grand List. A corrected electronic 411 should also be sent to Property Valuation & Review to reflect the change or changes. Any value changes made by the Listers must include notification to the property owner so that he/she has all grievance rights.

• There is no specific form for Errors & Omissions. • Any errors discovered after December 30th can only be corrected in the following year’s Grand List.

Be careful and be specific about what qualifies as an Error or Omission. Errors & Omissions does not equal grievance. Example: Taxpayer A comes to you in November stating you have erred in the depreciation of his/her house. This is not a clear error in data and does not qualify for Errors & Omissions. You should advice the taxpayer that they can grieve the following year or add them to your review and inspect list. Example: Taxpayer B comes to you in October and says you erred in taking off the barn on their property that fell down in March. This qualifies as an error and you should complete the Errors & Omission process – change the value, get the Select Board’s approval, send the taxpayer a change of appraisal notice, notify the treasurer to send a revised tax bill and record changes with Errors & Omissions in the grand list vault copy.

• Abatement is a process available after Dec 30th to correct tax liability for errors. Abatement deals with taxes only, not the grand list.

• EQUALIZATION STUDY LISTERS ROLE – Assist Property Valuation & Review in analyzing and investigating sales for the

Equalization Study. Since Act 68, these numbers have a large direct dollar effect on taxation. Listers should understand how the numbers are derived and the implication on taxation and reappraisal status. The result / products of the EEGL (Equalized Education Grand List), the CLA (Common Level of Assessment) and COD (Coefficient of Dispersion).

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• EQUALIZATION STUDY EXPLANATION:

PURPOSE – to develop an Equalized Education Grand List (EEGL) (Required by VSA 32 § 5406, definitions in VSA 32 § 5401). • Estimate the aggregate fair market value for all properties in towns (including those exempt under VSA

32 § 5404). • How is that done? - Developing ratios between fair market sales and their listed value. • Grand List value is equalized to 100% fair market value by application of ratios to each category. QUALIFICATION OF SALES

• As part of the equalization process, the District Advisor will be meeting with the Listers each year to review sales. This is an opportunity for the town to provide PVR with data about any sale, to correct errors and help protect the validity of the sales information. Have your documentation ready for your District Advisor to show why the sale should be removed, corrected or added.

• Obvious reasons not to use a sale are shown in the “Listers Handbook” and are provided to you with your sales spreadsheet along with the appropriate non-arms length codes.

• It is imperative that only arms-length fair market value sales are used in the calculation of the equalization ratio and coefficient of dispersion about the median. Sales should be investigated in order to make the determination of whether or not they should be included in the Equalization Study. Listers can use calls or send verification forms for this information.

• Document what you research and discover throughout the year. • Sales investigation should begin when a PTTR is received. Don’t underestimate the value of this

process!! OTHER SOURCES OF INFORMATION

• There are a number of sources of information that should be utilized to make the determination of whether or not a sale is a valid arms-length sale as follows: Local Knowledge – clerk, veteran listers. Real Estate Agent/Broker/Appraiser – ask questions in person or by telephone calls. The Seller/The Buyer – through verification forms and /or telephone calls. The Decision – know when to discontinue the investigation when satisfied with validity of sale. PTTR – look at questions and boxes on Property Transfer Tax Return

Grantee Grantor

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• REASONS TO ELIMINATE SALES FROM EQUALIZATION STUDY The Tax Department reserves Numbers one through seven for administrative purposes (such things as corrective deeds, etc.). We have tried to eliminate the condominium timeshares sales but may not have caught all. If you find a timeshare please code with a “4”.

0 - 7. Reserved for Tax Department

4. Time Share

8. Sales between members of the immediate family.

9. Sales between a corporation and a stockholder.

10. Tax sales; sheriff’s sales; bankruptcy; receivership, dissolution or liquidation sales.

11. Sales by and to guardians, trustees, executors, and administrators.

All Estate sales should be verified and the circumstances documented. Details to be checked include market exposure, length of time on the market, whether an appraisal was done, and seller motivation. Liquidation of an estate for distribution may result in a sale for less than market value.

12. Sales to or from the U.S. Government, the state of Vermont or any political subdivision of Vermont.

13. Sales to or from any charitable, religious or benevolent organization.

14. Sales where unusual financing significantly affected sale price.

15. Sales where all assessed interests were not sold thereby affecting sale price (timeshare-use code 4, common area, life interest retained, development rights retained, etc.)

16. Sales of property assessed in more than one town.

17. Any sales that include business personal property, where the value of such business personal property has been determined and reported.

18. Sales of property conveying only a portion of the assessed unit, such as a lot or lots sold off from a larger parcel (Subdivisions).

19. Other reasons (will not be accepted without written explanation). Example: Sale to abutter that has not had market exposure.

20. PVR use only.

21. Sales where the property sold was substantially changed with improvements after the assessment date but prior to date of sale. Requires explanation. See definition of “Substantial Improvements.”

22. Resale. (Show the buyer/seller and date of previous sale). The earlier sale is tagged with this code.

50. Reserved for Tax Department (statistically influential sale).

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• SALES VERIFICATION FORM – this is only a sample – a variation may be used by the town, but should

include similar questions (not required but very useful).

VERMONT DEPARTMENT OF TAXES SAMPLE Sales Verification Form Town Location Buyer . Seller . Broker. Phone # Phone # Phone # Sale Price Sale Date Property Type/Category

Questions

1. Were the buyer and seller family members or close friends? Please state relationship: 2. Did the sale involve a trade, like kind exchange, etc.? Please explain: 3. Did the buyer rent, lease, or occupy the property before the sale?

Yes No

4. Was this property adjoining a parcel already owned by the buyer? 5. Was the sale price affected by divorce, estate, court decree, etc?) Please explain: 6. Were any back taxes, lot rent, liens, etc. included in the sales price? Please explain: 7. Were any MAJOR changes made to the property just before the sale? Please explain: 8. Did the seller provide (take back) any mortgage financing? If so, amount. Mortgage $ Interest Rate 9. Was an appraisal done on the property for this purchase?

If so, the appraised value. $________ 10. Do you feel that the sale price reflected a fair market value at time of sale? Please explain: 11. Was any personal property included in the sale price? If so, what? What is the

value? $

12. Did the BUYER look at other properties before selecting this one? 13. Was the final sales price the result of negotiating the price?

How many?

Date PVR-VF001

Verifying Persons Signature

• COMMON LEVEL OF APPRAISAL (CLA) • It is the measure of how close a town or city’s local assessments are to fair market value. A CLA of

below 80% will trigger a reappraisal order. CLA is also applied directly to education tax rates and use value calculations.

• COEFFICIENT OF DISPERSION (COD) • The coefficient of dispersion is a measurement of uniformity/equity of assessed values and can be a

measure of the quality of the assessment process. A COD of above 20 will trigger a reappraisal order.

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February

HOMESTEAD AND HOUSESITE • CALCULATE AND ASSIGN HOMESTEAD AND HOUSESITE VALUES

• Calculating, assigning and defending all Homestead and Housesite Values for each applicable property located within the town (includes data collection, data entry, taxpayer questions and problems, knowledge of ACT 68- definitions and implementation, knowledge of computer appraisal system, knowledge of NEMRC Grand List system).

• HOMESTEAD & HOUSESITE DEFINITION THE TERM “HOMESTEAD” is defined in Vermont law as follows:

• A homestead is the principal dwelling owned and occupied by a Vermont resident individual as the individual’s domicile. A homestead includes the entire parcel of land surrounding the dwelling, determined without regard to any road, river or stream that intersects the land. A homestead does not include buildings or an improvement detached from the home and used for business purposes and does not include that portion of a principal dwelling used for business purposes if the portion used for business purposes includes more than 25 percent of the floor space of the building. The value of outbuildings and other improvements not used for business purposes are included in the value of the homestead, e.g. swimming pools, tennis courts, landscaping. See 32 VSA § 5401(7) and Reg. § 1.5401(7) for details and examples. The homestead value is used in the tax classification system. (Homestead vs. NonResidential tax rates)

THE TERM “HOUSESITE” is defined in Vermont law as follows:

• A housesite is that portion of a homestead that includes the principal dwelling and as much of the land surrounding the dwelling as is reasonably necessary for use of the dwelling as a home, but in no event more than two acres per dwelling unit, and in the case of multiple dwelling units, no more than two acres per dwelling unit up to a maximum of 10 acres per parcel. The housesite value is not used in the tax classification system. It is used in the State’s income sensitivity programs. See 32 VSA § 5401(11). (Calculation of state payments)

Simply speaking, a housesite means the dwelling, situated within the State of Vermont, owned by the claimant, and as much of the land surrounding it, up to two acres as is reasonably necessary for use of the dwelling as a home. Not included would be any area that the property owner would receive money for business use (over 25% of dwelling use) or any rental use no matter of percentage of use. Outbuildings are not included if there is any business or rental use in that outbuilding(s).

INCLUDE: (IN HOUSESITE & HOMESTEAD) Water and sewer/septic Landscaping Swimming pools Tennis courts Attached and detached garages/sheds not used for commercial purposes (business or rental)

NOT INCLUDED: (IN HOUSESITE & HOMESTEAD) Detached buildings – if any portion is used for business / commercial purposes (farm =

business) Principal Dwelling – that portion used for business / commercial purposes (any

business use over 25% is excluded). All Rental portion is excluded. If a housesite is portion of a parcel that is larger than two acres, value only the two-acre

housesite. It should be valued as if it is a separate parcel. Housesite includes two acres, homestead includes entire parcel.

Second dwelling and individual site improvements (water & sewer) for the second dwelling are included in homestead if not rental but never included in housesite.

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• HS 122 DOWNLOAD INSTRUCTIONS: See updated 2018 Form HS-122 Instructions for 2018 on http://Tax.Vermont.Gov Website in the Search box type “HS 122 Instructions” and hit Enter

********Remember throughout the year that it is very important to maintain the SPAN with the property as it was originally assigned and may have been subject to a homestead declaration. This is an important consideration when you are considering changing parcel numbers and subdividing properties. If you have questions about this please ask the IT help desk at (802) 828-0428 or ask your district advisor. ********* • LISTER’S CERTIFICATE OF HOUSESITE VALUE – this form is used for properties under

construction or purchased after April 1st upon request by the homeowner who will occupy that dwelling by April 1st of the following year. The housesite value represents what was there on April 1st which may include an allocation of value (ex. subdivision).

You may create your own form and save it using the same terminology as the form found on the State of Vermont Website. You may download the new Lister’s Certificate of Housesite value form (PVR-316 or PVR-315 (formerly PVR Form 5861g) - Request For Lister’s Certificate Of Housesite Value. The LV-315 and PVR 316 are fillable PDF formatted forms so that you may fill out and print to give to property owner.

Look for the following forms:

Monthly

• PROPERTY MAP MAINTENANCE – Updating of property maps to reflect changes in acreage, ownership and recording of surveys (this may include extensive time and research to ensure accuracy). Acreage is determined by the “best information available”. Often property maps are or become the best information available to the Listers. Property maps are a wonderful town resource and should be maintained yearly to continue the integrity of the product.

2018 Form HS-122 Instructions tax.vermont.gov/sites/tax/files/documents/2018-HS-122-Instr.pdf

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• If you have a maintenance contract for your maps – develop a system to notify your mapper of all changes needed for the following year.

Evidence of land size

Recorded survey Property maps Clear deed with measurements

Tax maps, although they do not carry as much weight as a registered survey, are an excellent tool for determining acreage. These maps, prepared from aerial photographs, are entitled to substantial weight. As a general rule, a survey done by a Vermont registered land surveyor is entitled to the greatest evidentiary weight, followed by a tax map and finally by a recorded deed. Surveys, maps, deeds and any other evidence of acreage of a particular parcel should ALL be considered by a Lister in determining value of properties.

Responsibility for the acquisition and distribution of digital orthophotographic (DOQ) imagery has been transferred from the Department of Taxes to the nonprofit Vermont Center for Geographic Information (VCGI). If you are interested in acquiring DOQ information or have questions about its availability, you can reach VCGI by calling (802) 522-3054 or by using the link on the state website (http://vcgi.vermont.gov/

Deed and Land Description Example:

Beginning on the west line of the Morse Place, so-called, at the northeasterly corner of a house lot owned in February, 1906 by on George W. Donohue, and running thence northerly along the west line of said Morse Place, seventy-three and one-half (73 ½) feet, more or less to land owned by the late George E. Tuttle at the time of his decease; thence westerly along the south line of said land owned by said Tuttle at the time of his decease to land owned by one Charles Sterns in February, 1906 (formerly Warren Daniels) thence southerly along the east line of land of said Sterns and the east line of land now or formerly of Helen B W Smith to land of said Donohue; and thence easterly along the north line of land of said Donohue to the place of beginning. Property Map Example Survey Example

• DEED RESEARCH – as needed to ensure accuracy of properties being transferred, surveyed or divided to ensure that all information pertaining to the rights and ownership of the property is accurately recorded and assessed (when there is a question Listers should look at the deed).

Legal questions should be deferred to the town attorney and/or VLCT.

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• READING DEEDS (Charles Merriman 2005)

DEFINITION OF DEED • A Conveyance of realty; a writing signed by grantor, whereby title to realty is transferred from one to

another. Black’s Law Dictionary 414(6th ed. 1990) • Conveyance of land or of an estate or interest therein may be made by deed executed by a person having

authority to convey the same, or by his or her attorney, and acknowledged and recorded as provided in this chapter. 27V.S.A. § 301.

Interesting Historical Trivia • Prior to 1536 the grantor (feoffer), grantee (feoffee) and witnesses would meet in sight of or on the land

to be conveyed. The grantor would pick up something from the property and hand it over to the grantee to symbolize the conveyance.

• The Saxons would get a group of young boys from the neighborhood to be witnesses because they would live longer and remember. Then they would smack them over the head hard in order to ensure that they would remember.

TYPES OF DEEDS

• Bargain & Sale Deed – Includes words of conveyance & consideration but usually not any covenants. It is a bare conveyance to grantee of whatever interest grantor has at the time of conveyance.

• Contract for Deed – Is an agreement by the seller to deliver the deed upon completion of certain conditions, such as final payment of the entire purchase price.

• Quitclaim Deed – Whatever interests I have/had in the property is now yours. A quitclaim deed releases or quits to the grantee whatever title, interest or claim the grantor has in the property.

• Sheriff’s Deed – Gives ownership to a buyer at a sheriffs’ sale, usually in foreclosure of a mortgage.

• Special Warranty Deed – Similar to Quitclaim deed, it limits the grantor’s warranty of good title as against the grantee and people claiming by, through or under the grantee.

• Tax Deed – Conveys ownership from the government to a purchaser who purchased a property in a tax sale.

• Trust Deed – Places legal title in trustee(s), usually to secure the performance of a loan or the performance of some condition(s). A trust deed serves a similar purpose as a mortgage.

• Warranty Deed – A deed in which the grantor warrants good clear title. A warranty deed or general warranty deed will most often contain covenants concerning the right of the grantee to possess the property, enjoy it, sell it, etc.

• Elements of a Deed Although the order may change, a deed usually contains at least 4 “Know all Men By These Presents, that I, (grantor’s name) of (town) in the County of (county), State of (state), grantor [maybe some language regarding consideration] do freely give, grant, convey and confirm unto (grantee’s name) of (town) in the County of (county), State of (state) a certain piece of land”. Often included in this section is a second key element words indicating a present intent to convey. Usually, the next element to follow is a description of the land and the restrictions, if there are limitations or conditions of ownership (such as the grantee has to use the property for a particular purpose). Finally, there is the grantor’s signature.

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TYPES OF OWNERSHIP, CONCURRENT ESTATES

• Concurrent Estates are estates in which two or more people have concurrent and equal rights to possession and use of the property. The three types of concurrent estates that you will most likely run into are; tenancies in common, joint tenancies and tenancies by the entirety.

• Tenancy in Common – Requires that the owner have unity of possession. That is, that they have the right to possess the property concurrently. Tenancies in Common do not include a right of survivorship. Therefore, if one owner dies, his or her interest in the property will most likely be probated.

Importantly, Vermont law favors tenancies in common over joint tenancies, with a few exceptions – most notably conveyances made to husband and wife.

Estates In Common Preferred To Joint Tenancy: Conveyances and devises of lands, whether for years, for life or in fee, made to two or more persons, shall be construed to create estates in common and not in joint tenancy, unless it is expressed therein that the grantees or devisees shall take the lands jointly or as joint tenants or in joint tenancy or to them and the survivors of them. This provision shall not apply to devises or a conveyance made in trust or made to husband and wife or to conveyance in which it manifestly appears from the tenor of the instrument that it was intended to create an estate in joint tenancy. 27 VSA § 2.

• Joint Tenancies –usually include the four unities of 1) time; 2) title; 3) interest; and 4) possession and enjoyment. That is, ownership rights in a joint tenancy are usually created at the same time, through the same deed, include equal fractional and types (or quantum) of interests, and provide that all joint tenants have the same right of possession and enjoyment. A joint tenant can convey his or her interest in the property. When this is done, the joint tenancy is transformed into a tenancy in common, at least with regard to the conveying joint tenant. If there were more than two joint tenants, the non-conveying joint tenants remain joint tenants as among themselves.

Joint Tenancy does include a right of survivorship. Needs research to make sure the Joint Tenancy was not severed. Therefore, upon the death of a joint tenant – and assuming that the joint tenancy was not severed during the decedent’s life in a manner that transformed the joint tenancy into a tenancy in common – the ownership interests of the decedent pass to the remaining joint tenants.

• Tenancy by the Entirety – ownership rights are equal. Vermont is one of approximately 20 states that recognize this subset of Joint Tenancies. Tenancy by the Entirety does include a right of survivorship. Tenancies by the Entirety differ from Joint Tenancies in one critical way – one party cannot destroy the right of survivorship in a Tenancy by the Entirety without the participation and consent of the other party.

MISC. ISSUES

• Life Estates – this is ultimately up to the Listers on how to list this. We recommend that the Remainderman be listed first with the Life Estate owner listed as C/O (life estate). It is probably easier for the Life Tenant (Estate) to claim a homestead if it is just in their names.

• Name Changes – Vermont law provides that a person whose name “has been changed” can file a certificate to that effect. Do not just change a name because someone walks in and tells you that they are now married, divorced or just changed their name. Have the documentation so you are able to follow the name flow years down the road. Divorce Decrees must be recorded when the real estate is affected. As for a death, Listers should wait for a probate decree or death certificate to remove the name, but type of ownership should be considered.

• Change in Name or Status Of Owner Of Real Estate: Any person or corporation owning real estate or having an interest in real estate whose name has been changed, and any corporation which has been merged into or consolidated with another, may file with the Town Clerk of the town in which the real estate is located a certificate giving the names before and after the change, merger or consolidation, and the Town Clerk shall record and index the certificate in the land records. 27 VSA § 350.

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REMOVING NAMES FROM THE GRAND LIST:

• DIVORCE DECREES

Question- how do Listers find out about name changes due to divorce?

Since title to real estate is affected, divorce decrees must be recorded in the land records of the town in which the real estate is affected and a PTTR will be filed (Title 15 VS A § 751). Listers should also be aware of 27 VSA, sec 350, which allows for name changes in certain circumstances using the certificate of name change form, filed with the Town Clerk. When a property owner changes their name, there must be a Certificate of Name Change on file.

• SPOUSAL DEATH

Question- what is the Lister’s obligation as far as name change is concerned when one of the joint owners dies and there is no property transfer?

Listers should await the recording of a probate decree or death certificate affecting the property before listing the single owner. This would change the listing for the next Grand List. You should always read the deed and check the rights of survivorship before you remove any name(s) due to death.

Lister Information

• LISTER HANDBOOK - by all means be very familiar with the Lister’s handbook. If you want clarification, call your District Advisor or PVR, Secretary of State’s Office (802)828-2363 or VLCT (802)229-9111. Type “Lister Handbook” in search box at Vermont tax website.

• LISTER EMAIL GROUP – this is a group email to all municipalities (Lister’s Office) used if you have a question or issue you may send an email to all Lister’s emails in the State. The email address recently changed to: comp60-l@list.vermont.gov

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• SPARE TIME PROJECTS:

• Mobile home numbers as required to be part of a complete grand list. • Surveys –

Do you have all? Do you need copies in your records?

• Deed Research – Is the ownership correct? When in question and upon receipt of a PTTR (Property Transfer Tax Return) – it is never a

bad idea to look at and obtain a copy of the warranty deed for your records. • Check local real estate information to see what is for sale in your town, review inventory, continue to

build market knowledge and keep a file. Check NNEREN.com for local real estate listings and sales. Local papers. For Sale magazines in your town.

• Sales Verification file Sales verification forms. Sales booklet. Sales spreadsheets. Sales map(s)

• Files – Clean out files. Organize files – order. Review inventory of files and make additions where needed.

o Is each file complete, organized labeled and consistent? • Public Files – creation of or upkeep of a public file – Property records? • Sketches and Photos – do all files have a physical and electronic copy of the photos and sketches. • Permit file – develop & maintain a consistent and organized tracking process.

Process of tracking permits. Revisits (incomplete, renovations, etc.). Property under construction, etc.

• Grand list auditing for accuracy – Check property descriptions – are they written consistently? Check categories with acreage and descriptions – are they correct? Check use of fields in NEMRC program – are you using field consistently?

(These could be checked in written format with a draft of the grand list, by using the [F1] key on each of these fields or by using export or custom reports.)

• Nontaxable & voted exemption(s) – Check statute Check value source and real value Check description Check continued eligibility

• Record destruction/retention – work with VOSARA (Vermont State Archives and Records Administration) on developing a system for record retention and destruction.

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Information • ACRONYMS

• BCA – Board of Civil Authority • CAMA – Computer Assisted Mass Appraisal Program • CLA – Common Level of Appraisal • COD – Coefficient of Dispersion • CU – Current Use (alias Land Use) • DA – District Advisor • EEGL – Equalized Education Grand List • ETR – Effective Tax Rate • GL – Grand List • IAAO – International Association of Assessing Officers • LOA – Level of Assessment • MICROSOLVE – NEMRC Microsolve CAMA Program • NEMRC – New England Municipal Resource Center (State Supported) • PILOT – Payment in Lieu of Taxes • PRD – Price Related Differential (Regression Index) • PTTR – Property Transfer Tax Return • PVR – Property Valuation & Review • TIF – Tax Increment Financing District • TOEC – Town Officers Education Conference • VALA – Vermont Assessors & Listers Association • VEDA – Vermont Economic Development Authority • VEPC – Vermont Economic Progress Counsel • VLCT – Vermont League of Cities and Towns • VOVA – Vermont Office of Veterans Affairs • VPACP – Vermont Property Appraiser Certification Program

CATEGORY CODES:

• R1 – Residential Property under 6ac • R2 – Residential Property 6ac and Over • MHU – Mobile Home Unlanded (no land) • MHL – Mobile Home w/Land • S1 – Seasonal Property under 6ac • S2 – Seasonal Property 6ac and Over • COMM – Commercial Property • CMA – Commercial Apartments Property (5 or more units) • IND – Industrial Property • UE – Utility Electric • UO – Utility Other (Water / Gas etc.) • F – Farm • O – Other (Specified w/ District Advisor) • WOOD – Woodland • MISC – Miscellaneous / Open Land

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GLOSSARY OF TERMS Aggregate ratio (weighted mean) – The sum of the listed values divided by the sum of the fair market

values (sale prices). This is the ratio applied by PV&R in the equalization process.

Average ratio – Sum of the ratios divided by the number of transactions.

Appraised Value – the estimated value as determined by a Lister/Assessor of a property before any adjustments are made to that value for taxing purposes. Adjustments could include an assessment ratio if the property is to be taxed at a value other than full fair market value, either a full or partial exemption, or at a value established under a stabilization agreement.

Assessed Value – amount in dollars at which a property is put on the assessment rolls. It differs from the appraised value for three major reasons, such as fractional assessment laws, exemptions or stabilization agreements, and decisions by assessing officials to override appraised value estimates.

Microsolve CAMA 2000 – Computer Assisted Mass Appraisal Program, which uses cost tables from Marshall & Swift Valuation Services. Microsolve CAMA 2000 is software available to Vermont municipalities and supported by the Tax Department. Microsolve CAMA 2000 has periodically updated cost tables based on Marshall & Swift.

Category – All taxable properties in Vermont are classified into 15 categories based on their use. For example, R1 refers to small acreage residential and UE to utility electric. The goal is to group properties with similar uses together.

Class – There are three classes of property that are formed by the aggregation of the 15 categories into like-use groups. They are Residential (R1, R2, MHU, MHL, S1 and S2) commercial / industrial (COMM, CMA and IND), and open land (Farm, Wood and MISC). This grouping is used when equalization results are not reliable for smaller category groupings.

Coefficient of Dispersion (COD) – The coefficient of dispersion (COD) is a measure of uniformity of appraisals for all properties on the Grand List. If, for example, a town has valued every single property at 100% of fair market value (that is, every property has an assessment to fair market value ratio of 100%), then there is zero dispersion, hence 0.00 % COD. Similarly, if every single property is assessed at 80% of fair market value, there is zero dispersion. If, however, the town average assessment to sales ratio is 80%, but individual assessments vary markedly, either above or below the average, then the disparity of assessments will reflect in a COD greater than 0%. As the disparity increases, the COD correspondingly increases.

Zero is a perfect score as a coefficient of dispersion. It indicates absolute fairness insofar as every taxpayer is appraised at exactly the same percentage of fair market value. The higher the number, the greater the dispersion, or disparity in how properties are assessed in that town. Because of fluctuations in the market, and because properties are constantly being improved or changed, a perfect score is impossible. A coefficient of dispersion of lower than 10 is unusual.

Statistically, it is the average absolute deviation of a group of numbers from the mean expressed as a percentage of the median.

Common Level of Appraisal (CLA) – In Vermont law, “the ratio of the aggregate value of local education property tax Grand List to the aggregate value of the equalized education property tax Grand List.” 32 VS A § 5401(3).

It is essentially a measure of how close a town or city’s local appraisals are to fair market value. Vermont municipalities will be required to reappraise when the CLA falls below 80%. 32 VSA section 4041(a).

Education Grand List – See Grand List

Effective Tax Rate (ETR) – It is what the tax rate would be if all taxable property were appraised at full value.

It is also called the equalized tax rate. The effective school tax rate is calculated by dividing the school taxes assessed by the equalized education Grand List.

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Equalized Education Property Value – The Division of Property Valuation and Review’s estimate of the

fair market value of all nonresidential and homestead real property that is required to be listed at fair market value, plus the aggregate value of property required to be listed at a stipulated value under a stabilization agreement, plus the aggregate use value of property enrolled in the Current Use program.

Equalized Education Property Tax Grand List (EEGL) – One percent of the equalized education property value. Statutorily defined in 32 VS A § 5401(6).

Grand List – One percent of the listed value established by the local assessing officials. The “local Grand List” or “municipal Grand List” is the value used to raise municipal taxes. It includes any business personal property taxable at the local level, and excludes locally voted exemptions. Properties subject to local stabilization agreements are included at their stabilized values.

The “education property tax Grand List” is one percent of the education property values. See 32 VSA §5404. It is the value to be used to raise the State Education Tax and the Local Share Tax. It generally does not include inventory or business personal property. It includes the value of properties exempted by local vote (if not “grandfathered”), and it includes the full value of properties subject to local stabilization agreements as defined under 32 VSA §5401(5).

Homestead - is the principal dwelling owned and occupied by a Vermont resident individual as the individual’s domicile. A homestead includes the entire parcel of land surrounding the dwelling, determined without regard to any road, river or stream that intersects the land. A homestead does not include buildings or improvements detached from the home and used for business purposes and do not include that portion of a principal dwelling used for business purposes if the portion used for business purposes includes more than 25 percent of the floor space of the building. The value of outbuildings and other improvements not used for business purposes are included in the value of the homestead, e.g. swimming pools, tennis courts, landscaping. See 32 VSA §5401(7) and Reg. § 1.5401(7) for details and examples.

Housesite - The housesite value is not used in the tax classification system. It is used in the State’s income sensitivity programs. A housesite is that portion of a homestead that includes the principal dwelling and as much of the land surrounding the dwelling as is reasonably necessary for use of the dwelling as a home, but in no event more than two acres per dwelling unit, and in the case of multiple dwelling units, no more than two acres per dwelling unit up to a maximum of 10 acres per parcel. See 32 VSA section 5401(11).

International Association of Assessing Officers (IAAO) – A non-profit educational association whose mission is to promote innovation and excellence in property appraisal and property tax policy and administration through professional development, education, research, and technical assistance.

Local (municipal) Grand List – See Grand List

Mean – The result of adding all the values and dividing by the number of values. For instance, the mean (average) of 3, 5 and 10 is 6. (3+5+10=18: 18/3 = 6). Also called the arithmetic mean or the average.

Median Ratio – The midpoint or middle value when a set of values is ranked in order of magnitude; if the number of values is even, the midpoint or average of the two middle values.

Orthophotograph – a composite product made from overlapping aerial photographs. It appears similar to a standard enlarged aerial photograph, but because tilt and relief displacement have been eliminated (the land is essentially flattened out), the photo becomes close to being a map upon which property lines and other data can be plotted.

Parcel – For tax administration, it is the base unit to be reported in the Grand List book and is defined as “all contiguous land in the same ownership, together with all improvements thereon.” 32 VS A § 4152(a) (3)”. This definition does not, however, govern the Listers’ value to property. The following factors must be considered when making that decision. The highest and best use, whether the property was conveyed in one deed: the land’s character and use; whether separately deeded tracts are contiguous and whether the property functions as one tract for the owner.

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Payment-In-Lieu-of-Taxes (PILOT) – A payment to a town or city to compensate for a part of the cost

for services on property which is exempt from the regular tax. For example, the State of Vermont makes a PILOT for state-owned buildings. Towns and cities may enter agreements with owners of low and moderate- income housing whereby a PILOT is paid, rather than the full tax based on fair market value. See 32 VSA section 3843.

Price-Related Differential (PRD) – The mean ratio divided by the aggregate ratio. This statistic is used to determine whether assessment practices are progressive or regressive. A PRD above 1.03 tends to indicate assessment regressivity (lower valued properties are assessed at a higher ratios). A PRD below .98 tends to indicate assessment progressivity (higher valued properties are assessed at a higher ratio) (Also called the regressivity index).

Regressivity Index (RI) – See price –related differential (also called price-related differential).

Use Value Appraisal – The value of property for a specific use (as opposed to the broader “highest and best use”).

Qualifying farm and forest land and farm buildings may enroll in Vermont’s use value appraisal program. Enrolled land and buildings are required to be assessed at use value. Use Value Appraisal is defined in Vermont law as meaning, “with respect to land, the price per acre which the land would command if it were required to remain henceforth in agriculture or forest use, as determined in accordance with the terms and provisions of this subchapter. With respect to farm buildings, ‘use value appraisal’ means 10 percent of fair market value.” 32 VS A § 3752(12). The Current Use Advisory Board sets the use values for farm and forest land annually.

Weighted mean – See aggregate Ratio.

• PROPERTY VALUATION & REVIEW – FUNCTIONS & CONTACTS

DIVISION OF PROPERTY VALUATION AND REVIEW SUMMARY OF FUNCTIONS PERFORMED BY PROPERTY VALUATION

The Division provides administrative support for the Vermont’s property tax system as well as roles in the development and execution of State property tax related programs. All major functions assigned to the Division involve taxes and programs that are primarily or partially administered by municipal governments, hence PVR works extensively with local governments in the performance of its duties.

Specific programs and functions include conducting an annual Equalization Study to estimate the fair market value of all taxable property in the State, administration of the use value (Current Use) program, the State’s mapping program, the development and support of assessment and tax administration software (CAPTAP) for use by local governments, quasi-judicial functions associated with property tax appeals, Current Use and the Equalization Study, provision of technical assistance and education programs on related State taxes, the collection and analysis of data on the property tax and the administration of a payment in lieu of taxes (PILOT) program for State owned buildings and land. The Division frequently serves several other functions such as the appraisal of State owned buildings and lands and provides staffing for both Executive and Legislative studies and commissions.

EQUALIZATION STUDY – Annually, the Division conducts a study based on sales data that results in estimates of the fair market value of all taxable property in all Vermont school districts. The major product of the study is an estimate of the total fair market value of property that is taxable for school purposes (the equalized education Grand List – EEGL).

CURRENT USE – The Current Use, or the Use Value Appraisal, program allows enrolled property owners with eligible land and buildings to have their property taxes assessed on the productive value of their property, as opposed to its fair market value (which is the legal standard for assessment of all other real property). Enrolled owners agree to keep this property in productive agriculture and forest use. Owners pay property tax based on separate agriculture and forest productive values that are the same for all enrolled land statewide. Agriculture enrollees can also have qualified farm buildings taxed at 0% of fair market value. All enrolled property is assessed at its respective use value and this reduction in value is reflected in PVR’s Equalization Study, which results in lower education property taxes for impacted municipalities. The Division administers a “hold harmless” program that reimburses municipalities for

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the revenue reduction associated with municipal taxes resulting from this program. COMPUTER ASSISTED MASS APPRAISAL PROGRAM – To assist local officials and enhance the

standardization of assessment practices with the State, PVR has traditionally supported software for determining property values and administrating the property tax. We support a set of software programs called Microsolve CAMA 2000. The Tax Department contracts with selected software developers to produce the programs and provide updates to the software. Currently, the majority of Vermont municipalities are using a version of our NEMRC Microsolve CAMA 2000 software.

PROPERTY TAX APPEALS – PVR fulfills several quasi-judicial functions with regard to property taxation. The most important involves appeals of property values as set by municipalities. Attached to PVR are the “State Appraisers” who hear assessment appeals from local level. The State Appraisers serve as independent hearing officers and set values based on the evidence resulting from appeals hearings. Aside from property assessment appeals, the Director of PVR hears appeals related to the Current Use program and the results of the Equalization Study.

TECHNICAL SUPPORT OF THE PROPERTY TAX SYSTEM – The division has 7 District Advisors who offer direct support to local assessment officials (Listers). The Advisors are regionally located to offer legal and technical advice to Listers throughout the State. The expertise available through the Advisors is particularly important as many local officials have a limited background in property assessment and the availability of support both enhances the reliability of assessments and results in greater standardization of assessment practices throughout the State. Aside from the District Advisors, the Tax Department provides support to local officials through an attorney and other centrally located staff with expertise in property assessment and property tax administration.

STATE REAL ESTATE TAXES (REAL ESTATE WITHHOLDING, PROPERTY TRANSFER AND LAND GAINS)

– In order to centralize all taxes related to real estate in one part of the Department, the Real Estate Withholding (REW), Property Transfer and Land Gains taxes have recently been transferred to PVR. The REW program is not a tax per se, but a 2.5 percent withholding of the consideration involved in a transfer of real property interests by persons and corporations that are not resident to Vermont. The withholding is required to insure that the appropriate amount of taxes on any gain resulting from the transfer is paid when the seller files a Vermont income tax return. The property transfer tax is an amount due from a buyer of Vermont real property and is based on a percentage of the sale price. Typically, the tax rate is 1.25 percent of the total sales price, though for property that is to be used as a principal residence there is a split rate with .5 percent applied to the first $100,000 and 1.25 percent applied to the remaining value. The Land Gains is a tax imposed on the seller of real property that was held for a relatively short period and then resold. Hence, the purpose of the tax is to mitigate against speculative property purchases by imposing a sliding scale rate that is higher for shorter term holdings against the gain realized through the sale of the property. All three of these taxes have exemptions that reduce or eliminate the tax under special statutorily defined circumstances.

DATA COLLECTION AND ANALYSIS – PVR has the statutory role of collecting and disseminating information about property taxation in Vermont. The primary data collections include property assessments from all municipalities (the Grand Lists and the summary of the Grand Lists) and property tax rates. Beyond this, the division annually collects information about utility values, local elected municipal officials and property sales. The division makes this information available to local officials, State government and the public through its Annual Report. The division also produces and distributes to municipalities a number of forms that are used in the administration of the property tax.

PAYMENT IN LIEU OF TAXES (PILOT) – Municipalities in Vermont cannot tax state-owned property. The PILOT program serves to partially compensate municipalities for the potential reduction in tax base due to the presence of State-owned buildings and land. PILOT payments are made annually and are based on a calculation that considers the value of State-owned property in a municipality and calculate the tax due that would result from those properties if they had been on the tax rolls. This calculation is based on the municipal part of the tax rate (as opposed to school taxes)

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• PV&R CONTACTS

Department of Taxes - Division of Property Valuation & Review 133 State Street, Montpelier, VT 05601

Administrative – Main Office Line: 828-5860 Fax: 828-2239 Current Use – 828-5860 X 1 Elizabeth Hunt Supervisor / Appeals X 4

Towns A thru F X 1 Towns G thru P X 2 Towns R thru W X 3

Information System Staff – 828-0428 - Technical / Computer Help Desk District Advisors

Doug Lay (DA Supervisor) 828-6801 c323-3411 Doug.Lay@vermont.gov Christie Wright (DA Supervisor) 828-6886 c855-3897 Christie.Wright@vermont.gov Barbara Schlesinger 828-6609 c369-9081 Barbara.Schlesinger@vermont.gov Chris Landin 828-6608 c449-7006 Chris.Landin@vermont.gov Cy Bailey 828-6604 c233-3841 Cy.Bailey@vermont.gov Roger Kilbourn 828-6607 c233-4255 Roger.Kilbourn@vermont.gov Teri Gildersleeve 828-6602 c855-3917 Teri.Gildersleeve@vermont.gov

• REFERNCE CONTACTS

Grand List and Assessment/Appraisal Questions – District Advisor email or phone field office) see list above PV&R District Advisor on duty 828-5860 http://tax.vermont.gov Vermont Office of Veteran Affairs 828-3379 http://veterans.vermont.gov

Current Use Questions – 828-5860 http://tax.vermont.gov/property-owners/current-use HS 122 Download Questions –

IT Help Desk 828-0428 email: TAX.ITHelpdesk@vermont.gov Complex HS122 Questions after DA help – Taxpayer services (802)828-2865 or toll free (866)828-2865 Homestead Declaration Forms: http://tax.vermont.gov/property-owners/homestead-declaration

Computer Questions – IT Help Desk 828-0428 email: TAX.ITHelpdesk@vermont.gov NEMRC (800)387-1110 email: support@nemrc.com website http://nemrc.com

Legal Questions – Town Attorney Name: _____________________ Telephone # ______________________ (Fill in) Vermont League of Cities and Towns 229-9111 https://www.vlct.org/

Voting Questions – Secretary of States’ Office 828-2363 https://www.sec.state.vt.us/ Statute website http://legislature.vermont.gov/statutes/

Public Office Rolls & Questions – Secretary of States’ Office 828-2363 https://www.sec.state.vt.us/ Statute website http://legislature.vermont.gov/statutes/

Destruction / Retention Records – Vermont State Archives and Records Administration https://www.sec.state.vt.us/archives-records.aspx email: megan.wheaton-book@sec.state.vt.us

Vermont Office of Veterans Affairs Vermont Office 828-3379 http://veterans.vermont.gov/ (888)666-9844 (toll free in Vermont only) Fax 828-5932