Langrock v. Department of Taxes

This appeal involves the proper method for assessing the Vermont land gains tax. 32 V.S.A. § 10003. Appellant sold approximately four acres of land he had held between four and five years. Interpreting the tax rates as if they were marginal rates, appellant filed a return of $567.00. The Department of Taxes, using flat rates, found a deficiency of $190.71. The Commissioner of Taxes upheld the deficiency assessment. From an Addison Superior Court decision affirming the Commissioner, taxpayer appeals. We reverse.

The land gains tax is a graduated tax designed to deter short-term, high-profit…