Homestead and Renter Property Tax Rebate (Circuit Breaker)

State

Vermont

Year

2018

Variations in Receipt of Benefit

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Benefit Type

Circuit Breaker

Benefit

For homeowners and renters with income less than $47,000, the benefit for homeowners is relief of property taxes for municipal purposes. For renters, the 2019 benefit based on 2018 income and calculated rent of allocated rent which is equal to 21% of rent. For those with income below $10,000, the benefit is the excess of allocated rent above 2% of income; for those with income between $10,000 and $24,999 is 4.5%, and for those with income between $25,000 and $47,000, the benefit is allocated rent in excess of 5%. The maximum rebate is $3,000. For homeowners, the credit is the amount of taxes on the first $400,000 that are in excess of a certain percentage of a claimant's income. For homeowners, there are 2 thresholds based on income. For incomes between $0-9,9999, the credit is municipal taxes in excess of 1.5% of income. For incomes between $10,000-47,000, the credit is taxes in excess of 3.0% of income. An additional adjustment for the statewide education tax is available to the extent that the statewide education tax after both the education and municipal adjustments exceeds the threshold levels, based on income. For household income less than $10,000 the credit is the reduced taxes in excess of 0.5%. The threshold is 1.5% for those with income $10,000 but less than $25,000 and 2.0% for those with income between $25,000 and $47,000. The maximum rebate for municipal taxes is $2,400 and the maximum rebate is $5,600 for adjustments for education and municipal purpose taxes and the additional adjustment for statewide education tax. The total combined credit for the property tax rebate and education property tax adjustment is $8000. Note that the credit is calculated after the education property tax adjustment has been applied. For renters with income less than $10,000 the credit is allocated rent in excess of 2% of income. For renters with income $10,000 but less than $25,000, the credit is allocated rent in excess of 4.5% of income and for those with income between $25,000 and $47,000, the credit is allocated rent in excess of 5% of income. The maximum rebate for renters is $3,000.

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.

Eligibility Criteria

Homeowner

Income Ceiling

Principal Residence

Renter

Description of Eligibility Criteria

Household income cannot exceed $47,000. Claimants must live or rent in Vermont for the entire calendar year.

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 municipality for credit to claimants property tax bill.

Record ID

VT103_RR18

Footnotes

Effective for taxable year 2017, the 2018 appropriations, Act 11 § H.16 passed during the 2018 Special Session, the threshold levels were reduced to 2 from 3 and the percent of taxes relative to income were reduced for all levels of income. An additional adjustment was added for education taxes for those with income not in excess of $47,000. The maximum adjustment for homeowners for both the education and municipal adjustment was reduced to $5,600 from $8,000. Homeowners are entitled to additional adjustment for education property taxes. The application for homeowners includes Homestead Declaration and Adjustment Claim (form HS-122) and Household Income (form HI-144) and is due by April 17th but may be filed as late as October 15th. Renters file Renter Rebate Claim (form PR-141) and Landlord's Certificate (LC-142).

Sources

Vt. Stat. Ann. tit. 32, § 6066; Vt. Stat. Ann. tit. 32, § 6067 (in effect for 2018)
Vermont Department of Taxes, Renter Rebate Claim Form PR-141, (2018)
[https://tax.vermont.gov/sites/tax/files/documents/PR-141.pdf Accessed 02/07/2019] View Archived Source

Vermont Department of Taxes, Renter Rebate Claim Form PR-141, (2017)
[http://tax.vermont.gov/sites/tax/files/documents/PR-141.pdf Accessed 10/16/2018]
View Archived Source

Vermont Department of Taxes, Landlord's Certificate (2018)
[https://tax.vermont.gov/sites/tax/files/documents/LC-142.pdf accessed 10/16/18]
View Archived Source
Vermont Department of Taxes, Homestead Declaration and Property Tax Adjustment Claim (Form HS-122) and Household Income - Form HI-144
Vermont Department of Taxes, Income Tax 2018 Form IN_111 Instructions [https://tax.vermont.gov/sites/tax/files/documents/IN-111%20Instr.pdf Accessed 02/07/2019]

Vermont Department of Taxes, Homestead Declaration and Property Tax Adjustment Claim (Form HS-122) and Household Income - Form HI-144, (2018)
[https://tax.vermont.gov/sites/tax/files/documents/HS-122.pdf accessed 10/16/2018]
View Archived Source

2018 VT. Special Session Act No.11 § H.16 ("Big Bill -Fiscal Year 2019")

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