Bill H.949 proposes several changes to the education property tax system in Vermont, specifically focusing on the setting of homestead property tax rates and the nonhomestead property tax rate for fiscal year 2027. The bill establishes a property dollar equivalent yield of $9,170.00 and an income dollar equivalent yield of $12,576.00. Additionally, it sets the nonhomestead property tax rate at $1.698 per $100.00 of equalized education property value. To mitigate potential property tax rate increases in fiscal year 2028, the bill reserves $52,450,000.00 within the Education Fund. Furthermore, it includes a provision to refund the City of Barre $150,576.00 for overpayments of education property taxes due to miscalculations related to its tax increment financing district.

The bill also makes technical corrections to the special education census grant, adjusting the uniform base amount to $2,350.00, which will be adjusted for inflation starting in fiscal year 2028. It modifies the definitions related to the statewide education tax rate and the equalized value of housesites, ensuring that the calculations reflect the necessary adjustments. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 32-6061, 16-2961