Budget & Taxes

This bill sets specific property tax rates and funding levels for Vermont's 2027 fiscal year, including a nonhomestead property tax rate of $1.698 per $100 of value and specific dollar yields for homestead and income calculations. It also reserves $52.45 million in the Education Fund to help offset potential property tax rate increases in 2028, while correcting a definition related to statewide education tax calculations. The legislation refunds $150,576 to the City of Barre for overpaid education taxes from 2021-2024 and adjusts special education funding grants for inflation starting in 2027. Additionally, it updates how special education census grants are calculated to account for inflation over time.

This bill adopts Vermont's Fiscal Year 2027 Transportation Program and makes various updates to state transportation laws. It directly affects the Agency of Transportation, local municipalities, contractors, and transportation project stakeholders. Key provisions include defining project categories for budgeting purposes, repealing old rules for a municipal equipment loan fund, updating highway design standards, requiring contractors to post performance bonds, and making adjustments to funding authorizations for transportation projects. The legislation also addresses electric vehicle infrastructure, public transit advisory councils, and specific infrastructure improvements across the state.

H.790 adjusts specific line items in Vermont's fiscal year 2026 budget, primarily modifying existing funding allocations rather than creating new programs. It increases renter rebate funding from $9.5 million to $11 million (a $1.5 million increase) and decreases homeowner rebate funding from $19 million to $17.5 million (a $1.5 million reduction). The bill also raises legislative counsel funding by $720,000 (from $4.88 million to $5.60 million) and makes minor adjustments to other state agency budgets. These changes directly affect renters and homeowners through rebate program funding levels, while state government operations are impacted through revised budget allocations.

Vermont's S.51 creates a $1,000-per-child refundable tax credit for residents with children under age 6, regardless of whether they or their children have a federal tax ID number. It also expands the state's earned income tax credit to cover individuals who qualify federally but lack required tax IDs, and adjusts exclusions for Social Security and Civil Service retirement income based on income thresholds (e.g., full exclusion for single filers earning ≤$55,000 or married couples ≤$70,000). The bill directly affects low-to-moderate-income families, retirees, and individuals with limited access to federal tax IDs. Signed into law by Governor on June 25, 2025, it modifies Vermont's tax code to broaden eligibility for existing federal credit programs.