Bill S.165, introduced by Senator Heffernan, aims to amend the property valuation process for parcels containing wetlands in Vermont. The bill mandates that assessing officials must consider state laws that regulate the use and development of land with wetlands when determining the value of such parcels for the grand list. Specifically, it stipulates that parcels with wetlands will be taxed similarly to other real estate, but any reduction in value due to development or use restrictions imposed by state and municipal law must be accounted for in the assessment.

The bill defines wetlands to include land classified as Class I wetlands, mapped as Class II wetlands on the Vermont Significant Wetlands Inventory, or identified as significant wetlands by the Secretary of Natural Resources. Additionally, it encompasses buffer zones around these wetlands. The proposed changes are set to take effect on July 1, 2026.