Act No. 183 Page 1 of 2
2024
This act summary is provided for the convenience of the public and members of the General Assembly. It
is intended to provide a general summary of the act and may not be exhaustive. It has been prepared by the
staff of the Office of Legislative Counsel without input from members of the General Assembly. It is not
intended to aid in the interpretation of legislation or to serve as a source of legislative intent.
Act No. 183 (H.887). An act relating to homestead property tax yields, nonhomestead
rates, and policy changes to education finance and taxation
Subjects: Taxation; education property tax; sales tax; education finance; property
valuation; education policy; district quality standards; property tax yields
Sec. 1 of this act creates the Commission on the Future of Public Education in
Vermont to study the provision of education in Vermont and make recommendations for
a statewide vision for Vermont’s public education system and the policy changes
necessary to make the vision a reality. The Commission is tasked with making
recommendations, at a minimum, regarding the topics of 1) governance, resources, and
administration; 2) the physical size and footprint of the education system; 3) the role of
public schools; and 4) the education finance system. A report with the Commission’s
preliminary findings and recommendations is due on or before December 15, 2024. A
report with the Commission’s final findings and recommendations is due on or before
December 1, 2025, and proposed legislation to advance any recommendations for the
education funding system is due on or before December 15, 2025.
Sec. 1a of this act provides the funding source for the Commission created in Sec. 1 by
allowing the Agency of Education to use the remainder of a General Fund appropriation
it received in fiscal year 2024 to support the work of the Commission.
Sec. 2 sets the property dollar equivalent yield, income dollar equivalent yield, and
nonhomestead property tax rate for fiscal year 2025.
Secs. 3 and 4 make prewritten software accessed remotely subject to sales tax in
Vermont.
Secs. 5 and 6 impose a three percent surcharge on the rent of each occupancy of a
short-term rental and directs the revenue to be deposited into the Education Fund.
Sec. 7 of this act requires the Agency of Education to update the District Quality
Standards rule series to include recommended reserve fund account standards.
Sec. 8 contains legislative intent language regarding the creation of a position within
the Agency of Education to enable the Agency to provide a wider range of accessible and
transparent data related to school budgets and education spending.
Sec. 9 amends the school district budget ballot language requirement in 16 V.S.A.
§ 563.
Sec. 10 lifts the suspension of the requirement that school districts use the budget
ballot language contained in 16 V.S.A. § 563, thus requiring school districts to begin
using this language again for fiscal year 2026 budget votes.
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2024
Sec. 11 creates the Education Fund Advisory Committee as standing committee to
monitor Vermont’s education financing system and make certain recommendations to the
General Assembly.
Sec. 12 contains a prospective repeal, or sunset, of the Education Fund Advisory
Committee created in Section 11, effective on July 1, 2034.
Secs. 13 through 16 apply a statewide adjustment to the formula used when factoring
the common level of appraisal into school district tax rates. The statewide adjustment is
intended to help districts more easily predict the impact of the common level of appraisal
on local education property tax rates.
Sec. 17 amends Act 84 of 2024 to account for district mergers, withdrawals, and
dissolutions.
Secs. 18 through 20 reactivate excess spending penalties for districts that spend more
than 118 percent of the statewide average district per pupil education spending each year.
The sections also remove the statutory exemptions for excess spending but creates a new
exemption for payments toward bonds that were approved prior to July 1, 2024.
Sec. 21 requires the Department of Taxes to report on potential improvements to
property tax credit claims.
Secs. 22 through 24 contain amendments to sections in 16 V.S.A. chapter 133 that
replace the term “adjusted education payment” with the term “education spending
payment” to be consistent with the same change in terminology made in 2022 Acts and
Resolves No. 127.
Sec. 24a contains 11 separate transfers from the Education Fund to 11 separate towns
as compensation for education tax overpayments in fiscal year 2024 due to erroneous
accounting of certain students in average daily membership calculations. All towns are
part of either the NEK Choice School District or the Canaan School District.
Multiple effective dates, beginning on June 17, 2024
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Statutes affected:
As Introduced: 32-9701(7), 32-9701, 16-4025, 16-563, 32-5401, 32-5402, 32-5402b, 32-5401(12), 16-4001(6)(B), 16-4001, 16-4001(6), 16-4016, 16-4026, 16-4028
As Passed By the House -- Official: 32-9701(7), 32-9701, 16-4025, 16-563, 32-5401, 32-5402, 32-5402b, 32-5401(12), 16-4001(6)(B), 16-4001, 16-4001(6), 16-4016, 16-4026, 16-4028
As Passed By the House -- Unofficial: 32-9701(7), 32-9701, 16-4025, 16-563, 32-5401, 32-5402, 32-5402b, 32-5401(12), 16-4001(6)(B), 16-4001, 16-4001(6), 16-4016, 16-4026, 16-4028
As Passed by Both House and Senate -- Official: 32-9701(7), 32-9701, 16-4025, 16-563, 32-5401, 32-5402, 32-5402b, 32-5401(12), 16-4001(6)(B), 16-4001, 16-4001(6), 16-4016, 16-4026, 16-4028
As Passed by Both House and Senate -- Unofficial: 32-9701(7), 32-9701, 16-4025, 16-563, 32-5401, 32-5402, 32-5402b, 32-5401(12), 16-4001(6)(B), 16-4001, 16-4001(6), 16-4016, 16-4026, 16-4028
As Enacted: 32-9701(7), 32-9701, 16-4025, 16-563, 32-5401, 32-5402, 32-5402b, 32-5401(12), 16-4001(6)(B), 16-4001, 16-4001(6), 16-4016, 16-4026, 16-4028
House proposal of amendment to Senate proposal of amendment Official: 32-9701(7), 32-9701, 16-4025, 16-563, 32-5401, 32-5402, 32-5402b, 32-5401(12), 16-4001(6)(B), 16-4001, 16-4001(6), 16-4016, 16-4026, 16-4028
House proposal of amendment to Senate proposal of amendment Unofficial: 32-9701(7), 32-9701, 16-4025, 16-563, 32-5401, 32-5402, 32-5402b, 32-5401(12), 16-4001(6)(B), 16-4001, 16-4001(6), 16-4016, 16-4026, 16-4028