This bill establishes financial parameters for the fiscal year 2027, including a property dollar equivalent yield of $9,401.00, an income dollar equivalent yield of $12,960.00, and a nonhomestead property tax rate of $1.643 per $100.00 of equalized education property value. It amends the definition of education spending to exclude certain funding sources and modifies how voter-approved bond payments are treated in excess spending calculations. A new uniform base amount for census grants is introduced at $2,350.00, with adjustments for inflation starting in fiscal year 2028. The bill also outlines a transition plan for the excess spending threshold, which will decrease from 115.5% in fiscal year 2028 to 112.5% by fiscal year 2032, and expands renter credits by increasing the maximum credit from $2,500.00 to $3,250.00 while adjusting income thresholds for various credits.

Additionally, the bill amends sections of Vermont's tax code, particularly regarding renter and property tax credits. It establishes that eligible claimants can receive a renter credit of 10% of gross rent paid, reduced from 12.5%, and lowers the maximum renter credit from $3,250 to $2,500. However, it increases the property tax credit limit from $2,400 to $2,600 and raises the cumulative credit limit from $5,600 to $6,000, while also adjusting income thresholds for eligibility from $47,000 to $50,000. The bill includes a provision to limit tuition increases for public or approved independent schools from fiscal years 2028 to 2032, capping them at the percentage change in statewide education spending. Most provisions are set to take effect on July 1, 2026, with some adjustments applying to fiscal years 2028 and beyond, and it repeals certain definitions related to excess spending thresholds to streamline the tax code.

Statutes affected:
As Introduced: 32-6061, 16-2961
As Passed By the House -- Official: 32-6061, 16-2961
As Passed By the House -- Unofficial: 32-6061, 16-2961
As Passed by Both House and Senate -- Official: 16-4001(6), 16-4001, 32-6061, 16-2961, 32-5401, 32-6066(b), 32-6066, 32-6067, 32-6067(c)
As Passed by Both House and Senate -- Unofficial: 16-4001(6), 16-4001, 32-6061, 16-2961, 32-5401, 32-6066(b), 32-6066, 32-6067, 32-6067(c)
As Enacted: 16-4001(6), 16-4001, 32-6061, 16-2961, 32-5401, 32-6066(b), 32-6066, 32-6067, 32-6067(c)