Vermont S 104: An act relating to designating August 31 as Overdose Awareness Day

Bill Text

BILL AS INTRODUCED S.104
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VT LEG #381212 v.3
S.104 1
Introduced by Senator Vyhovsky 2
Referred to Committee on 3
Date: 4
Subject: Education; State funding of public education; taxation and finance; 5
education property tax; education income tax; education finance 6
Statement of purpose of bill as introduced: This bill proposes to transition 7
from an education property tax to an education income tax in fiscal year 2027. 8
This bill would create an education tax that is based on the income of Vermont 9
homeowners with a rate determined by locally voted budgets. This bill 10
proposes to impose the education tax on the income of all Vermont residents 11
(both homeowners and renters) in fiscal year 2030. This bill would eliminate 12
the homestead education property tax and levy the nonhomestead education 13
property tax on all property except residential dwellings and the two-acre 14
parcel surrounding the dwellings. This bill would continue to provide the 15
existing renter credit and create a new renter credit against the education 16
income tax. This bill also proposes to update the property tax credit income 17
sensitivity measures to provide relief to a broader class of Vermont taxpayers 18
in fiscal year 2026. This bill also proposes to address revenue lost due to the 19
expansion of the income sensitivity measures by creating a one-year new top 20
marginal tax rate on income. 21

BILL AS INTRODUCED S.104
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VT LEG #381212 v.3
An act relating to income-based education funding 1
It is hereby enacted by the General Assembly of the State of Vermont: 2
* * * Income Sensitivity and New Income Tax Bracket * * * 3
Sec. 1. 32 V.S.A. § 6066 is amended to read: 4
§ 6066. COMPUTATION OF PROPERTY TAX CREDIT AND RENTER 5
CREDIT 6
(a) An eligible claimant who owned the homestead on April 1 of the year in 7
which the claim is filed shall be entitled to a credit for the prior year’s 8
homestead property tax liability amount determined as follows: 9
(1)(A) For a claimant with household income of $90,000.00 10
$130,000.00 or more: 11
(i) the statewide education tax rate, multiplied by the equalized 12
value of the housesite in the taxable year; 13
(ii) minus (if less) the sum of: 14
(I) the income percentage of household income for the taxable 15
year; plus 16
(II) the statewide education tax rate, multiplied by the 17
equalized value of the housesite in the taxable year in excess of $225,000.00 18
$400,000.00. 19
(B) For a claimant with household income of less than $90,000.00 20
but more than $47,000.00 $60,000.00, the statewide education tax rate, 21

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VT LEG #381212 v.3
multiplied by the equalized value of the housesite in the taxable year, minus (if 1
less) the sum of: 2
(i) the income percentage of household income for the taxable 3
year; plus 4
(ii) the statewide education tax rate, multiplied by the equalized 5
value of the housesite in the taxable year in excess of $400,000.00 6
$1,000,000.00. 7
(C) For a claimant whose household income does not exceed 8
$47,000.00 $60,000.00, the statewide education tax rate, multiplied by the 9
equalized value of the housesite in the taxable year, minus the lesser of: 10
(i) the sum of the income percentage of household income for the 11
taxable year plus the statewide education tax rate, multiplied by the equalized 12
value of the housesite in the taxable year in excess of $400,000.00 13
$1,000,000.00; or 14
(ii) the statewide education tax rate, multiplied by the equalized 15
value of the housesite in the taxable year reduced by $15,000.00. 16
* * * 17
(3) A claimant whose household income does not exceed $47,000.00 18
shall also be entitled to an additional credit amount from the claimant’s 19
municipal taxes for the upcoming fiscal year that is equal to the amount by 20
which the municipal property taxes for the municipal fiscal year that began in 21

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VT LEG #381212 v.3
the taxable year upon the claimant’s housesite exceeds a percentage of the 1
claimant’s household income for the taxable year as follows: 2
If household income (rounded then the taxpayer is entitled to 3
to the nearest dollar) is: credit for the reduced property tax in 4
excess of this percent of that income 5
$0.00 — 9,999.00 1.50 6
$10,000.00 — 47,000.00 3.00 7
(4) A claimant whose household income does not exceed $47,000.00 8
$60,000.00 shall also be entitled to an additional credit amount from the 9
claimant’s statewide education tax for the upcoming fiscal year that is equal to 10
the amount by which the education property tax for the municipal fiscal year 11
that began in the taxable year upon the claimant’s housesite, reduced by the 12
credit amount determined under subdivisions (1) and (2) of this subsection, 13
exceeds a percentage of the claimant’s household income for the taxable year 14
as follows: 15
If household income (rounded then the taxpayer is entitled to 16
to the neares