Vermont Business Magazine Governor Phil Scott today said the forecasted average increase of almost 20% in property tax bills is “not acceptable” and issued the following statement (see tables below):
“Vermont’s tax burden is already, unfortunately, among the highest in the country, and families are bearing an incredible burden with increased costs of living across the board, including new and higher taxes and fees imposed by the Legislature. Put simply, a nearly 20% property tax increase would hurt Vermonters and our economy, and we cannot let it happen.
“At a time when housing costs and interest rates are elevated, higher property taxes will make our housing and workforce crises worse, and I sincerely hope the Legislature agrees.
“For years, I have warned that Vermont is unaffordable for too many families and small businesses. This is why for seven years I focused on holding the line on higher taxes and fees, while offering solutions to reduce the tax burden on Vermonters. And for six out of the seven years, we were successful in preventing new taxes and fees.
“We should all agree it is time for us to take our affordability crisis seriously.
“We have proven when we work together, we can make historic and impactful investments that produce positive results for our communities, without adding more financial burdens on residents. We can do that again, but it will require more than better budgeting in Montpelier. School boards, who already have a difficult job, will need to do all they can to contain spending to a rate that taxpayers can afford.
“Together, we can, and must, prevent this untenable tax increase, or anything close to it, from coming to pass.”
Commissioner of Taxes, Craig Bolio, has released the December 1 education tax rate letter which forecasts the education tax yields for resident homeowners and the non-homestead tax rate for the upcoming fiscal year (FY) 2025. This letter is based on specific calculations outlined in State law and is a result of collaboration by the Department of Taxes, Agency of Education, Department of Finance and Management, and Joint Fiscal Office.
This year’s letter projects property tax bills to increase by an average of 18.5 percent next fiscal year, driven largely by a forecasted 12 percent increase in year-over-year education spending. In addition, many districts are seeing changes in pupil counts due to implementation of the new pupil weights from Act 127 of 2022. Changes in pupil counts affect education tax rates, which are based on per pupil spending.
“I understand that this will not be welcome news for Vermonters,” said Commissioner Bolio, “This forecast predicts an unprecedented property tax increase next year, with very real financial impacts at a time Vermonters are already struggling to pay for housing."
Additional resources for understanding education tax rates are available on the department’s website at https://tax.vermont.gov/property/education-property-tax-rates/faqs
More information about pupil weights and Act 127 is available in an issue brief from the Joint Fiscal Office: https://ljfo.vermont.gov/assets/Subjects/Issue-Briefs-Related-to-Education-Finance/3987b24bbf/GENERAL-371568-v3-Understanding_Pupil_Weights.pdf
Source: 11.30.2023. Berlin, Vt. - Governor www.vermont.gov
