Commissioner of Taxes, Craig Bolio, has released the December 1 education tax rate letter which forecasts the education tax yields for resident homeowners and the non-homestead tax rate for the upcoming fiscal year (FY) 2025. This letter is based on specific calculations outlined in State law and is a result of collaboration by the Department of Taxes, Agency of Education, Department of Finance and Management, and Joint Fiscal Office.
This year’s letter projects property tax bills to increase by an average of 18.5 percent next fiscal year, driven largely by a forecasted 12 percent increase in year-over-year education spending. In addition, many districts are seeing changes in pupil counts due to implementation of the new pupil weights from Act 127 of 2022. Changes in pupil counts affect education tax rates, which are based on per pupil spending.
“I understand that this will not be welcome news for Vermonters,” said Commissioner Bolio, “This forecast predicts an unprecedented property tax increase next year, with very real financial impacts at a time Vermonters are already struggling to pay for housing."
Additional resources for understanding education tax rates are available on the department’s website at https://tax.vermont.gov/property/education-property-tax-rates/faqs
More information about pupil weights and Act 127 is available in an issue brief from the Joint Fiscal Office: https://ljfo.vermont.gov/assets/Subjects/Issue-Briefs-Related-to-Education-Finance/3987b24bbf/GENERAL-371568-v3-Understanding_Pupil_Weights.pdf