The bill H.773, introduced by Representative Mihaly, aims to amend the current property tax sale laws in Vermont to allow municipalities to conduct tax sales on properties with outstanding taxes of less than $1,500. This provision is contingent upon the municipality obtaining a court order declaring the property abandoned and the dwelling unfit for human habitation. The bill outlines the necessary steps for municipalities to follow, including filing a complaint in the Civil Division of the Superior Court, which must detail the property’s status and the delinquent taxes owed. If the court grants the order, municipalities can proceed with tax sales regardless of the minimum tax threshold.

Additionally, the bill makes several amendments to existing tax collection procedures, including changes to the notice requirements for delinquent taxpayers and mortgagees. It specifies that municipalities must offer a reasonable repayment plan to delinquent taxpayers before initiating tax sale proceedings. The bill also includes provisions for securing properties against illegal activities and fire hazards after a warrant and levy for delinquent taxes have been recorded. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 32-5252, 32-5258