Homestead Declarations and
Property Tax Adjustments

GENERAL INFORMATION
The State of Vermont funds public education through a statewide property ax. Vermont offers property tax relief to eligible homeowners based on a percentage of their household income.

School Property Tax Rates  Vermont towns classify property on their grand lists as either homestead or nonresidential. A different school property tax rate applies to homestead and nonresidential properties.

Homestead Property is owned and occupied by a VT resident as his or her principal home on April 1, and declared as a homestead on Form HS-122, Section A, and filed with the VT Department of Taxes.

Nonresidential Property is (1) property used for commercial purposes, or as a camp, second home or summer cottage, (2) property not declared as a homestead by the due date, or (3) property not used as a homestead on April 1.

VT Homestead Declaration All VT resident homeowners who own
and occupy property as their principal home on April 1 must
declare the property as a homestead each year by filing
Form HS-122 with the VT Department of Taxes. The Declaration
must be filed even if you are late, are not required to file an income tax return, or do not claim a property tax adjustment.

Property Tax Adjustment The property tax adjustment assists VT
residents to pay property taxes over an established percentage of their household income. The State pays the property tax adjustment directly to the town and the town issues the homeowner a property tax bill for the balance due. The property tax adjustment calculation uses 2007 household income and 2007 property taxes.

Selling or Buying Property before April 1   If you sell your home before April 1 and filed a declaration and/or property tax adjustment claim, you must withdraw the filing. Use Form HS-122W. If you buy new property that you will own and occupy as your principal residence by April 1, you need to file a new declaration and/or property tax adjustment claim by the due date.