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Use tax has the same rate of 6%, rules, and exemptions as sales tax. Vermont Sales and Use Tax is destination-based. One of the following must happen for the purchased item to be subject to sales and use tax: The buyer takes possession of the item in Vermont.
Current Use was designed as property tax break to relieve economic pressures on farmers and forest owners who enrolled in the program. The tax break helps eligible landowners stay economically viable by lowering the amount of property tax they have to pay each year.
The Use Value Appraisal Program (UVA), or more commonly called Current Use, was implemented in 1978 by the Legislature and enables farm and forest landowners who practice long-term management to have land appraised for its use value rather than at fair market value.
Vermonts UVA Program enables eligible private landowners who practice long-term forestry or agriculture to have their land appraised based on the propertys value of production of wood or food rather than its residential or commercial development value.
Current use is the means for encouraging the preservation of open space and conserving the land, water, forest, agricultural, and wildlife resources. Property owners with 10 or more acres of land, which are left in their natural state may apply.
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The policy behind Current Use taxation, the common name for the Use Value Appraisal policy, is that farmland and forests should not be taxed at the same rate as developed land. This policy creates a property tax based on the lands use value and not its market value.
The land use change tax is calculated as 10% of the fair market value of the developed parcel or portion of a parcel.

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