An act relating to income-based education funding

H 177 proposes replacing Vermont’s education property tax with a new education income tax starting in fiscal year 2027. It would tax all Vermont residents’ income (both homeowners and renters) using progressive rates based on income brackets, with rates adjusted per school district according to local education spending. The bill eliminates the homestead property tax benefit for homeowners while continuing the renter credit and updating property tax credits to provide broader relief for taxpayers by 2026. This directly affects all Vermont residents through their state income tax filings, shifting the funding mechanism for public education from property-based to income-based.