Please see below for more information from Representative Burrows regarding the Vermont Property Tax Credit:
Greetings, All--
Recently I realized that not a whole lot of people are getting their property taxes reduced to the fullest extent possible. Thousands of dollars are being overpaid by residents whose combined household income is $128,000 or less!
The homestead declaration is only one step. It does bring one reduction, but there's a LOT more of a reduction through the income sensitivity program. Following is most of the information I have compiled on it. I want you to get all of the property tax reduction you are entitled to, so if you have ANY questions about this, please contact me or John Bartholomew.
The "Household Income credit/pre-bate" is a program that a household must apply for in a step beyond the homestead declaration form.
Information about the income sensitivity program, in bullet points and links:
- Basic description of the program, as of 2023/2024
- The deadline for filing for income sensitivity was April 15th, BUT the ultimate deadline is October 15th (same day property taxes are due). The late fee for filing is $15—well worth it for savings of thousands of dollars.
- According to a 2018 study from the Vermont Tax Department linked here only 20% of Vermonters (contrasted with the nearly 70% eligible) took part in the income sensitivity property tax pre-bate (i.e., discount/s taken before filing, not rebated afterwards).
- Where does this benefit come from? The income sensitivity pre-bate is budgeted into the Ed Fund. It is one of the costs factored into statewide education expenses. The money is transferred from the General Fund to the Education/Ed Fund; the State reimburses the town for the municipal portion of the pre-bate. I just copied that almost verbatim from the above link, p.6.
- Income sensitivity also applies to people on fixed incomes.
- By the way, property tax adjustment amounts are confidential.
- Click here for more info from VT Legal Aid on all available tax credits (including for renters).
Vermont State Government docs/links:
I hope this helps to move some of our homesteaders to pay only the amount of property tax they need to, and not a dime more! I will continue to compile your questions with the answers I can collect, and John and I can put out more information as we accumulate it. If you have further suggestions as to what might be helpful, please let us know.
All my best,
Elizabeth/Rep. Elizabeth Burrows (she/her)
Windsor-1 (Hartland, West Windsor, Windsor)
eburrows@leg.state.vt.us
John Bartholomew's e-mail: jbartholomew@leg.state.vt.us
