Education Property Tax Adjustment

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

Footnotes

The application including Homestead Declaration and Adjustment Claim (form HS-122) and Household Income (form HI-144) are due by April 17th but may be filed as late as October 15th.

Sources

Vt. Stat. Ann. tit. 32 § 6066 ~ § 6067 (in effect for 2017)
Homestead Declaration and Property Tax Adjustment Claim, Department of Taxes [http://tax.vermont.gov/sites/tax/files/documents/2017-HS-122.pdf accessed 06/27/2018] View Archived Source
Property Tax Adjustment Claim, Department of Taxes [http://tax.vermont.gov/property-owners/property-tax-adjustment-claim accessed 06/27/2018] View Archived Source

Join Our Mailing List

Back to top