Vermont 2025-2026 Regular Session

Vermont House Bill H0773

Introduced
1/23/26  

Caption

An act relating to property tax sales for property that is abandoned or unfit for human habitation

Summary

H.773 would change Vermont’s property tax sale rules for certain delinquent properties, with a focus on abandoned buildings and dwellings that are unfit for human habitation. Under current law, a municipality generally may not proceed to tax sale unless the delinquent real-estate taxes total at least $1,500 and have been delinquent for more than one year. The bill keeps that general framework, but creates an exception allowing a municipality to seek a Superior Court order finding that a property is abandoned and the dwelling is unfit for human habitation; if the court grants that order, the municipality may proceed with a tax sale even when the delinquent taxes are below the $1,500 minimum. The bill also expands and standardizes notice requirements in tax sale proceedings. It requires additional efforts when certified mail is returned unclaimed, including resending by first-class mail or personal service, attempting email notice, and posting notice on the property if there is a structure. It also requires a warning notice with translation directions into the five most common non-English languages used in Vermont, and directs the Department of Taxes to make a translation resource available to municipalities. In addition, the bill requires municipalities to offer a written reasonable repayment plan before initiating tax sale proceedings, unless the taxpayer declines, does not respond, or defaults on the plan. The bill would amend state law governing delinquent tax collection, tax sale procedure, notice, and recoverable fees and costs under 32 V.S.A. §§ 5252 and 5258. It would authorize municipalities to secure delinquent properties against illegal activity and fire hazards after recording a warrant and levy, and it would clarify that the warrant and levy covers all delinquent taxes due at the time of filing. The bill also updates the list of allowable costs tied to tax sale administration, including notice, service, securing property, legal assistance, travel, and deed preparation, while preserving limits on certain expenses. Overall, the bill appears aimed at helping municipalities address long-vacant or unsafe properties while adding procedural protections for taxpayers and other interested parties. Because there is no recorded committee testimony or vote history in the provided materials, there is no documented public sentiment or formal opposition in the record here. Based on the text alone, the measure balances stronger municipal enforcement tools with expanded notice, translation, and repayment-plan requirements.

Impact

H.773 would amend Vermont’s delinquent property tax collection statutes to create a new court-supervised pathway for tax sale of abandoned or uninhabitable properties below the usual $1,500 delinquency threshold, while also tightening notice and repayment-plan procedures for all tax sales. It would affect municipalities, tax collectors, property owners, mortgagees, lienholders, and other parties with recorded interests in real property, and it would add responsibilities for the Department of Taxes to support multilingual notice translation resources.

Sentiment

No committee transcripts or vote records were provided, so there is no direct evidence of legislative debate, support, or opposition in the available record. From the bill text, the policy approach is generally pro-enforcement but tempered by consumer-protection features such as enhanced notice, translation access, and required repayment-plan offers.

Contention

The main point of potential contention is the new exception allowing tax sale of property with less than $1,500 in delinquent taxes if a court finds the property abandoned and the dwelling unfit for human habitation. Supporters are likely to view this as a tool to address blight, unsafe structures, and municipal code-enforcement problems, while opponents may worry about due-process protections, the risk of tax sale on low-dollar delinquencies, and the burden on vulnerable property owners. A second area of concern could be the expanded notice requirements and repayment-plan mandate, which may be seen either as necessary safeguards or as added administrative complexity for municipalities.

Companion Bills

No companion bills found.

Previously Filed As

VT HJR15

Property taxes would end at the time that a morgage is paid off unless the property is left abandoned for more than four years

VT HJR28

Property taxes would end at the time that a morgage is paid off unless the property is left abandoned for more than four years

VT SB388

Modifies provisions relating to deteriorated or abandoned property

VT H8101

Amends several definitions to the general law chapter relating to abandoned property, adds a definition for "eligible nonprofit corporation", provides criteria for when properties are considered abandoned or a public nuisance.

VT SF2435

A bill for an act relating to local government by modifying property tax credits and rent reimbursements, provisions governing abandoned mobile homes and personal property in rural areas, and tax sales.(Formerly SF 2024.)

VT S725

Permits municipalities to acquire real property that is abandoned, vacant, or subject to unpaid taxes.

VT HB2716

vacant; abandoned property; inspection; maintenance

VT HB59

Property Tax – Tax Sales – Revisions

VT SB192

Property Tax - Tax Sales - Revisions

VT SF269

A bill for an act relating to local government by modifying provisions relating to liens, property tax credits and rent reimbursements, abandoned mobile homes and personal property in rural areas, driver's licenses, and tax sales.

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