Douglas Proposes $15.6 Million in Property Tax Reductions

Governor Douglas Proposes $15.6 Million in Property Tax Reductions
Two Year Savings from Act 68 Would Exceed $41 Million
Montpelier, Vt. -- Governor Jim Douglas today proposed to reduce Vermont's
statewide property tax rates for education by 8 cents, an additional 3
cents below the reduction achieved last year.
"Under Act 68, the property tax reduction bill of 2003, the Legislature
established statewide homestead and non-residential property tax rates of
$1.10 and $1.59 respectively," Governor Douglas said. "In fiscal year
2005, based on projected surpluses in the education fund I proposed, and
the legislature approved, lowering rates by 5 cents to $1.05 and $1.54.
For fiscal year 2006, I will recommend statewide property tax rates are
reduced a total of 8 cents to $1.02 and $1.51 respectively."
This would be the lowest statewide property tax rate since the tax was
created by Act 60.
Governor Douglas said the additional rate reduction would save property
tax payers an additional $15.6 million on top of the $25.9 million saved
last year. Bringing the total property tax savings achieved by Act 68 to
more than $41 million dollars over a two year period.
Without lowered tax rates, the education fund would be collecting more
than is necessary from taxpayers, even while the demand for education
spending is being constrained by a lowered school population, the Governor
added.
Although this would be the lowest statewide property tax rate since it was
created with the passage of Act 60, Governor Douglas noted "there is more
work to do to alleviate the tax burden on Vermonters," and pledged to
propose further improvements to the state's education funding formula and
to restrain growth in the state budget.