Current use is the generic term for taxation of land based on its forestry value rather than fair market value. States across New England have current use programs, and in Vermont it is officially known as the Use Value Appraisal Program.
The program provides financial incentives to landowners to manage, rather than develop, their forestland. Essentially, the state picks up the taxes for the difference between the fair market value assessed by the town's listers and the use value appraisal which is set by the state. This year, the Current Use Advisory Board has appraised forestland at $79 per acre.
As an example, a landowner with 100 acres which the listers have valued at $400 per acre would pay taxes on a value of $40,000. If enrolled in current use, the landowner would be taxed on $7,900 (100x$79). The state's share of the assessed value is $32,100 and they reimburse the town for the tax on that amount.
This example would hold true if the legislature were fully funding the program, which it was doing as recently as four years ago. However, with the regional economic downturn, the funding has dropped each year. Bill Snow, who administers the current use program for the Division of Property Valuation and Review, said that unless there are major last-minute shifts in the number of acres enrolled, the state will pay 59% of the expected benefit for the 1994 tax year.
This means that for the above example the state will pick up the taxes on $18,939, which is equal to 59% of its share. The landowner's share would be $21,061. Because town tax rates vary widely, landowners in towns with high tax rates will benefit more from the program than those in towns with 1ower rates.
A number of groups lobby for full funding of the current use program, including various property rights organizations as well as environmental groups. Many see current use as the only way that people can afford to hold onto undeveloped forestland.