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 exempts Social Security benefits from Vermont's state income tax for most recipients, based on income levels. It fully excludes benefits for single filers earning under $55,000 or married couples filing jointly earning under $70,000 annually, with partial exemptions for higher earners up to $65,000 (single) or $80,000 (married). Additionally, it caps annual property tax increases at 1% for all homeowners. The policy directly affects Vermont residents receiving Social Security benefits and homeowners, aiming to reduce tax burdens for low- to moderate-income seniors and households.
S.269 would amend Vermont's tax code to exclude Supplemental Security Income (SSI) payments from the definition of "household income" when calculating two specific tax credits: the homestead property tax credit and the renter credit. This change directly affects Vermont residents who receive SSI and apply for these credits, as their SSI payments would no longer count toward their household income for eligibility purposes. The bill modifies the statutory definition of "household income" to explicitly exclude SSI payments, ensuring they are not considered when determining credit amounts. This adjustment would likely increase the tax credit amount for SSI recipients by reducing the income figure used in the calculation.
H.732 establishes two new income tax brackets for higher earners in Vermont. Individuals would pay an additional 1% tax on income between $200,000-$400,000 and above $400,000, while married couples filing jointly would pay the extra rate on income between $400,000-$800,000 and above $800,000. The revenue generated would fund an expanded property tax credit specifically for Vermont households with annual income below $115,000. This directly affects high-income taxpayers through new tax rates and low-to-moderate-income households via increased credit support.
S 315 would exempt Vermont residents aged 65 or older who have lived in the state continuously for 10 years from the homestead property tax. The exemption phases in over four years: 75% reduction in 2027, 50% in 2028, 25% in 2029, and full exemption beginning fiscal year 2030. It applies only to the education property tax portion of homestead taxes. The bill takes effect July 1, 2026.
H.678 creates a pilot program to finance 250 new housing units in Washington and Lamoille Counties using municipal debt. The program would be funded by dedicating 100% of property tax increments from municipal or education properties within those counties. This aims to lower rental costs or make homeownership more affordable for new developments. The bill directly affects residents and developers in these two counties by providing a new funding mechanism for housing projects.
This bill creates a Vermont family caregiver tax credit for residents who provide care to family members with long-term care needs. It allows eligible taxpayers to claim a refundable credit equal to 30% of qualified care expenses, up to $2,500 annually (adjusted for inflation after 2027), for expenses like respite care, adult daycare, and lost wages. To qualify, the care recipient must be a related family member aged 14+ with a medical condition that prevents them from performing two daily activities without help, and they cannot live in a licensed care facility. The credit is reduced for taxpayers with adjusted gross income over $125,000 and excludes expenses already claimed for child/dependent care. Households with eligible caregivers will also see their property tax credit eligibility expanded.
This bill repeals most provisions of 2025 Acts and Resolves No. 73, which was a major education and tax reform package. It specifically retains changes to tuition eligibility for approved independent schools, State Board of Education appointment rules, and the creation of regional assessment districts. The bill also creates new property tax classifications: a higher rate for second homes/short-term rentals and a separate classification for seasonal residential properties taxed like nonhomestead nonresidential properties. These changes directly affect Vermont school districts, property taxpayers, and the administration of education funding. The repeal does not alter the foundation formula or other core education finance mechanisms established by the 2025 law.
H.774 would freeze Vermont's education property tax rates at 2026 levels for the next three years (2027-2029), directly affecting all homeowners and property owners who pay these taxes. The bill requires tax rates to remain at 2026 levels regardless of local budget needs during this period. To ensure education funding stays fully supported, the bill mandates that any shortfall from the frozen rates be covered by redirecting money from the state's General Fund. This policy change provides immediate tax stability for property owners while guaranteeing continued education spending.
This bill creates an annual fee for properties deemed uninhabitable by municipal officials under existing Vermont law (24 V.S.A. § 2291(24)). The fee equals the greater of 1% of a property’s appraised value or $5,000, due when regular property taxes are collected. It applies only to properties determined uninhabitable (e.g., abandoned, boarded-up, or unsafe) that remain unrepaired for 30 days after the determination. Property owners may request a pro-rata fee abatement once repairs are completed, as outlined in Section 1539 of the bill.
