Vermont House Bill H0491

Vermont 2025-2026 Regular Session

• Introduced: 3/25/25
• Engrossed: 3/28/25
• Refer: 4/2/25
• Report Pass: 5/2/25
• Report Pass: 5/6/25
• Enrolled: 5/13/25
• Passed: 5/20/25

Caption

An act relating to setting the homestead property tax yields and the nonhomestead property tax rate

Summary

H.491 sets Vermont’s education property tax parameters for fiscal year 2026. It establishes the property dollar equivalent yield at $8,596.00 and the income dollar equivalent yield at $12,172.00, which are the figures used to calculate homestead education property tax obligations and income-based adjustments for homeowners. The bill also sets the nonhomestead property tax rate at $1.703 per $100 of equalized education property value, overriding the general statutory formula for that fiscal year only. The bill makes a targeted amendment to the definition of “equalized value of the housesite in the taxable year” in 32 V.S.A. § 6061, refining how housesite value is calculated for property tax purposes by referencing the municipality’s common level of appraisal and the statewide adjustment. The act is temporary in its rate-setting provisions, applying only to fiscal year 2026, and it takes effect on July 1, 2025.

Impact

H.491 directly affects Vermont’s education property tax system by updating the annual yield figures and the nonhomestead rate used to determine tax bills for homestead and nonhomestead property owners. Because these values feed into the statewide education funding formula, the bill influences how much property owners pay and how education taxes are distributed across municipalities. The statutory amendment to 32 V.S.A. § 6061 also affects valuation methodology for housesites, which can influence assessments and tax calculations under the homestead tax framework.

Sentiment

The bill appears to have been broadly supported, as reflected by its 26-2 passage in the Senate on third reading and concurrence. The strong vote suggests general agreement on the need to set annual property tax parameters in time for the upcoming fiscal year. No committee transcript is available, but the voting margin indicates little controversy overall.

Contention

The main point of potential contention is the level at which the homestead yields and nonhomestead rate are set, since these figures determine the tax burden on homeowners and nonhomestead property owners and can affect school tax bills statewide. Any disagreement would likely center on whether the chosen rates adequately balance education funding needs with taxpayer affordability. However, the recorded vote shows only limited opposition, with just two senators voting no.