Vermont Budget Bill Increases Nonresidential Property Tax Rate

Vermont increases its nonresidential property tax rate. The rate will increase from $1.535 per $100 in fiscal year 2018 to $1.58 per $100 in fiscal year 2019. This change takes effect July 1, 2018, and applies to fiscal years 2019 and later.

Other property tax changes include:

– changes to the property dollar equivalent yield;

– changes to the income dollar equivalent yield; and

– changes to the computation of the homestead income sensitivity adjustment.

Property Dollar Equivalent Yield

Vermont increases its property dollar equivalent yield. The yield will increase from $10,160 in fiscal year 2018 to $10,220 in fiscal year 2019. This change takes effect July 1, 2018, and applies to fiscal years 2019 and later.

Income Dollar Equivalent Yield

Vermont increases its income dollar equivalent yield. The yield will increase from $11,990 in fiscal year 2018 to $$12,380 in fiscal year 2019. This change takes effect July 1, 2018, and applies to fiscal years 2019 and later.

Homestead Income Sensitivity Adjustment

Vermont changes the computation of the homestead income sensitivity adjustment by altering the subtraction part of the equation. Claimants can subtract the following amounts from the tax rate multiplied by the equalized housesite value in the taxable year.

Claimants with $90,000 or more of household income. Multiply the income percentage of household income plus the tax rate by the equalized housesite value in excess of $225,000. Previously, the $225,000 amount was $250,000.

Claimants with household income less than $90,000 and more than $47,000. Multiply the income percentage of household income plus the tax rate by the equalized housesite value in excess of $400,000. Previously, the $400,000 amount was $500,000.

Claimants with household income not exceeding $47,000. Multiply the income percentage of household income plus the tax rate by the equalized housesite value in excess of $400,000. Previously, the $400,000 amount was $500,000. Alternatively, these claimants can subtract the tax rate multiplied by the equalized housesite value reduced by $15,000.

The bill text is available on the Vermont Legislature’s website at https://legislature.vermont.gov/bill/status/2018.1/H.16.

H.B. 16, 2018 Special Session, Laws 2018, effective July 2, 2018, except as noted; applicable as noted

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