The 2014 Vermont Legislature adjourned last Saturday after putting the finishing touches on a bill that will result in this year’s state education property taxes going up another $49.5 million. This latest multi-million increase will begin showing up in property tax bills local officials must distribute starting next month. The state education portion of those bills will total $1.0169 billion, up 59 percent since the $640.1 million required just ten years ago. Those figures are net of the homestead property tax adjustment provided to the majority of homeowners.
The state’s education taxing and spending plan:
“The biggest disappointment of the 2014 legislative session is the failure to answer the clarion call of Vermont property taxpayers and voters for the state to do something to reduce the incessant growth in state property taxes,” said Steven Jeffrey, Executive Director of the Vermont League of Cities and Towns. “Voters defeated 36 school budgets on March Town Meeting Day, sending a clear message about high property taxes. Instead of doing anything to reduce them, the legislature instead added to that burden by mandating new expenses to be paid by local school districts and taxpayers.” Jeffrey cited the passage of mandatory pre- kindergarten programs and payments for retired teachers’ health insurance as two examples of new costs imposed by the 2014 legislature.
“The Vermont League of Cities and Towns calls on all voters to hold their state leaders accountable during the 2014 election process,” said Jeffrey. “Voters can make reducing state education property taxes the paramount campaign issue of this election by requiring candidates for the legislature and for statewide office to publicly commit to specific steps they will take to control the growth in the state education property tax if elected.”
In what is commonly called the “Miscellaneous Tax Bill,” the legislature and administration agreed to increase state education property tax rates. The state tax rate for non-residential property (all business, open land, and second homes) is increasing to $1.515, an increase of seven and one-half cents, or 5.2 percent. Based on projected school district spending plans, the average homeowner paying without the benefit of income sensitivity through the property tax adjustment will see his or her school property tax rate go up to $1.50, an increase of nine cents or 6.4 percent.
The Vermont League of Cities and Towns is the official cooperative association providing services and representing the interests of Vermont’s 246 member cities and towns.