An act relating to a property transfer tax surcharge to fund housing

This bill allows Vermont towns to vote on adding an optional surcharge to property transfer taxes for high-value real estate transactions. The surcharge applies only to properties worth $1 million or more, with rates ranging from 0.5% to 2% depending on the property value. Revenue collected from the surcharge must be used to fund infrastructure that supports the creation of workforce housing, which is defined as owner-occupied homes or rental units priced at or below 150% of local averages. Seventy percent of the collected funds go to the municipality that imposed the surcharge, while 30 percent is deposited into the state's General Fund. The bill takes effect on July 1, 2024, giving towns the option to implement this measure at their annual town meetings.