Property tax foreclosure in Vermont

The property tax process in Vermont, step by step

1. Taxes become overdue

   After your town's due date

   Each town sets its own due dates. If your town voted to charge interest, it can be up to 1 percent a month for the first three months and up to 1.5 percent a month after that, and a part of a month counts as a full month. The collector can also add a fee of up to 8 percent.

   32 V.S.A. §§ 5136(a), 5258(b)

2. You must be offered a repayment plan

   Before any tax sale can start

   The town must try to consult with you and offer a written, reasonable repayment plan based on your income, payment history and reasons for falling behind. A sale can start only if you turn it down, do not respond within 30 days, or miss a plan payment. Answer the letter and keep paying.

   32 V.S.A. § 5252(c)

3. Levy and notice of tax sale

   At least 30 days before the sale

   The collector records a levy, advertises the sale for three weeks in a local newspaper, posts it in town, and sends you notice by certified mail at least 30 days before. If the certified letter comes back, the collector must resend it, email you if possible, and post it on your front door.

   32 V.S.A. § 5252(a)

4. The tax sale

   On the advertised sale date

   If the taxes, costs and fees are not paid before the sale day, the property is sold at public auction. You can ask in writing at least 24 hours before the sale that only a portion be sold, but you must include certifications that the portion can be subdivided. The collector records a report of the sale within 30 days.

   32 V.S.A. §§ 5254, 5255

5. One year to redeem

   Within one year from the day of sale

   You, or your mortgage lender, can redeem by paying the collector the sale price plus interest of 1 percent a month or part of a month. The collector must send you a warning by certified mail 90 to 120 days before the year ends, stating the exact amount due. If the town holds your surplus in escrow, it can be applied to the redemption price.

   32 V.S.A. § 5260

6. Collector's deed

   After the redemption year ends

   If the property is not redeemed, the collector gives the buyer a deed that conveys title against you. Within 30 days the collector records a list of lands not redeemed.

   32 V.S.A. §§ 5261, 5262

7. Your right to the surplus

   Paid after you redeem or after the deed

   Vermont's tax sale statutes do not spell out a surplus claim process, but the Vermont Supreme Court has held that money bid above the taxes and costs belongs to the delinquent owner, and towns may hold it in escrow during the redemption year. Ask the collector in writing for an accounting and payment of the surplus once the year ends.

   Ran-Mar, Inc. v. Town of Berlin, 181 Vt. 26 (2006)

Common questions in Vermont