Attention: out of state sellers

If you are an out of state seller of real property in Vermont something to remember is that all non-resident property owners in the State of Vermont are obligated to set aside 2.5% of the gross sales price to protect the assessment and collection of the State of Vermont capital gains tax. (At the closing it is actually the buyer who effectuates this withholding) There is a limited opportunity to obtain a reduced withholding or a certificate of no withholding required if the transaction is a clear loss on its face. However, if the property was depreciated or rented the likelihood of a successfully obtained certificate is greatly reduced. The only way to be certain of the outcome is to submit the certificate request prior to closing to the Vermont Department of Taxes.

The Shoreland Protection Act (Chapter 49A of Title 10 §1441 et seq.) establishes a state regulation for guiding development within Protected Shoreland Area (PSA), 250 feet from the mean water level, of all lakes greater than 10 acres in size. The intent of the Act is to prevent degradation of water quality in lakes, preserve habitat and natural stability of shorelines, and maintain the economic benefits of lakes and their shorelands. The Shoreland Protection Act recognizes that many shoreland properties in Vermont are already developed or are small lots that cannot meet the standards. Developed properties are “grandfathered” unless the owner proposes redevelopment. In the case of small lots, Shoreland Permit Program staff will work with homeowners so that standards are met to the best extent possible.

For more information: http://dec.vermont.gov/sites/dec/files/wsm/lakes/docs/Shoreland/lp_Shoreland%20Protection%20Act%20Summary.pdf