Setting the Education Property Tax yield, Act 178 (H.737)
Referred to as the “Yield Bill,” this Act sets the property dollar and income dollar equivalent yields for the purpose of setting the homestead property tax rates and the nonhomestead property tax rate. It also sets aside funds intended to make Vermont schools environmentally safer for students via removal of polychlorinated biphenyls (PCBs).
- This Act uses $20,000,000 the Fiscal Year 2022 Education Fund surplus to reduce property tax rates.
- Secs. 2-3 reserve $22,000,000 for PCB testing, assessment, and mitigation in schools.
Exempting property owned by Vermont-recognized native American tribes from property tax, Act 90 (H.556)
Act 90 exempts all property owned by Vermont-recognized Native American tribes or owned by a nonprofit organization that is organized for the benefit of and controlled by the tribes from the statewide education property tax and the municipal property tax. To be eligible for the exemption, the property must be used for purposes of the tribe and may not be leased or rented for profit.
- Tribes must be recognized pursuant to 1 V.S.A. chapter 23.
- Effective July 1, 2022.
Excluding the income of asylum seekers and refugees from household income, Act 96 (H.461)
Households in Vermont may volunteer to host families or individuals who are refugees, asylum seekers, or asylees on a temporary basis, and from whom they often receive little or no remuneration. This bill amends the definition of household for the purposes of the homestead Property Tax Credit, for which a taxpayer is required to complete the Household Income Form HI-144, excluding the income of such individuals from the calculation of income that the household is required to report.
- Effective January 1, 2021, and applicable to household members in residence on or after January 1, 2022.
Improving student equity by adjusting the school funding formula, Act 127 (S.287)
Act 127 makes changes to Vermont’s education financing system by adjusting and/or adding differing pupil weights for grade levels, students from economically-deprived backgrounds, English learners, low population density districts, and small schools. It also establishes categorical aid of $25,000 each for school districts with one to five English Learning (EL) students enrolled, and categorical aid of $50,000 for school districts with six to 25 EL students enrolled. Changes to these weights are made effective for FY 2025. Because these updated weights will impact schools’ tax rates differently, there is a transition provision that limits a district’s tax rate annual increase to five percent over a maximum of five years.
- Updates pupil weights and limits, the degree to which homestead property tax rates can increase over fiscal years 2025–2029.
- Suspends the excess spending penalty during fiscal years 2024–2029, and the hold harmless provision and ballot language requirements during fiscal years 2025–2029.
- Requires the Agency of Education to implement the universal income declaration form for the 2023–24 school year.
- Sets out required English learner services to be offered by school districts and provides categorical aid for English learner services to districts with 25 or fewer English learners.
- Creates new positions at the Agency of Education.
- Amends the education quality standards.
- Requires an evaluation of the act in achieving the act’s goals.
- Requires the Joint Fiscal Office to contract for services to review Career and Technical Education (CTE) funding and governance structures.
- Requires the Department of Taxes to make recommendations regarding the implementation of an income-based education tax system to replace the homestead property tax system. (See Reports, below)