The bill H.774 proposes a three-year freeze on education property tax rates in Vermont, capping them at the levels established for fiscal year 2026. Specifically, it aims to maintain these rates for the fiscal years 2027 through 2029. To address any potential deficits in the Education Fund resulting from this freeze, the bill includes provisions to offset these deficits with funds from the General Fund, ensuring that statewide education spending remains fully funded during this period.

Additionally, the bill stipulates that for the fiscal years 2027 through 2029, property taxpayers will be billed at the lower of either the homestead or nonhomestead rate determined for their municipality in fiscal year 2026 or the rate applicable for the current fiscal year. The act is set to take effect on July 1, 2026.