Vermont property owners are expected to see an average 12% increase in statewide education property taxes next year, according to a December 1 letter from the Vermont Department of Taxes. The actual rate changes will depend on local spending decisions and property values across municipalities, but the overall hike adds to existing tax burdens for homeowners and small businesses. Over the past four years, there has been a cumulative 29% increase in statewide education taxes.
Governor Phil Scott responded by urging lawmakers to pursue reforms in school governance aimed at reducing education costs and easing the property tax load. “Governor Scott renewed his call for lawmaker to embrace meaningful school governance reform that would reduce the cost of education and provide property tax relief,” according to a statement.
Efforts to redraw boundaries for larger school districts have stalled after a panel declined in November to recommend new redistricting maps to the legislature, leaving potential reforms unresolved.
Legislative leaders also criticized the proposed increase. Tax Commissioner Bill Shouldice noted in his letter that while public school enrollment has dropped by more than 15,000 students over two decades, school spending has increased by nearly $1 billion during that period.
The upcoming budget year is already projected to be challenging for lawmakers. In May, state officials used $120 million from surplus taxpayer funds to limit this year’s education property tax increase from an anticipated 6% down to just 1%. Reducing next year’s projected hike would require even greater expenditures.
Governor Scott plans another push for educational governance reform as a way to address rising taxes, though it remains uncertain if legislators will support such measures.
Vermonters can share their opinions on state taxation and spending policies through feedback initiatives organized by business groups such as the National Federation of Independent Business – Vermont at https://www.nfib.com/content/news/vermont/vermont-wants-your-feedback-on-taxes-and-spending-nfib/.
