State
Vermont
Year
2017
Variations in Receipt of Benefit
Benefit Varies with Income
Benefit Varies with Property Value
Minimum Tax Amount Must be Paid
Other Variation in Receipt of Benefits
Benefit Type
Circuit Breaker
Benefit
The benefit is a credit on the property tax bill for school taxes. The credit is the amount that the local school taxes exceed the applicable percentage threshold. The maximum total adjustment for homeowners for both education and municipal taxes is $8,000. The applicable percentage of income for education taxes is the statewide threshold of 2% of the applicant's school district’s spending above the state per pupil amount. For homeowners with income of $90,000 or more up to $141,000, the value of the benefit is the education tax rate, multiplied by the value of the property, minus the sum of the applicable percentage of income and the amount of education tax on property exceeding first $250,000 of valuation. For homeowners with income of $47,000 to $90,000, the value of the benefit is the education tax rate, multiplied by the value of the property, minus the sum of the applicable percentage of income and the amount of education tax on property exceeding first $500,000 of valuation. For homeowners with income of $47,000 or less, the tax liability is limited to the education tax rate, multiplied by the equalized value of the property, minus the lesser of 1) the applicable percentage plus the education tax rate, multiplied by the equalized value of the property in excess of $500,000 or 2) the education tax rate, multiplied by the equalized value of the property reduced by $15,000.
How is Benefit Disbursed
Credit to the property tax bill
Eligible Property Type
Residential
Characteristics of Eligible Property
Eligibility is limited to the applicant's residence and 2 acres associated with the residence. A mobile homeowner who does not own the lot on which they reside can still receive the benefit. Rent constituting property tax can be used to calculate the benefit Up to 25% of the property can be used for business purposes and the property will be considered 100% residential. The residential portion will be reduced by the business portion if it accounts for more than 25%.
Eligibility Criteria
Homeowner
Income Ceiling
Principal Residence
Description of Eligibility Criteria
The homeowner must own the property on April 1st of the year that the benefit is claimed and lived in Vermont for the entire previous year. Household income cannot exceed $141,000.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
State reimburses all of the local government tax loss
Description of State Funding for Tax Loss
State disburses benefits directly to claimants as credit on their property tax bill.
Record ID
VT102_RR17