Vermont H 949: An act relating to homestead property tax yields, the nonhomestead property tax rate, and technical changes to education finance

Bill Text

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VT LEG #390262 v.1
No. 169. An act relating to homestead property tax yields, the
nonhomestead property tax rate, and technical changes to education
finance.
(H.949)
It is hereby enacted by the General Assembly of the State of Vermont:
* * * Yields * * *
Sec. 1. PROPERTY DOLLAR EQUIVALENT YIELD, INCOME
DOLLAR EQUIVALENT YIELD, AND NONHOMESTEAD
PROPERTY TAX RATE FOR FISCAL YEAR 2027
For fiscal year 2027 only:
(1) Pursuant to 32 V.S.A. § 5402b(b), the property dollar equivalent
yield shall be $9,401.00.
(2) Pursuant to 32 V.S.A. § 5402b(b), the income dollar equivalent yield
shall be $12,960.00.
(3) Notwithstanding 32 V.S.A. § 5402(a)(1) and any other provision of
law to the contrary, the nonhomestead property tax rate shall be $1.643 per
$100.00 of equalized education property value.
* * * Excess Spending Exemption * * *
Sec. 2. 16 V.S.A. § 4001(6) is amended to read:
(6) “Education spending” means the amount of the school district
budget, any assessment for a joint contract school, career technical center
payments made on behalf of the district under subsection 1561(b) of this title,
and any amount added to pay a deficit pursuant to 24 V.S.A. § 1523(b) that is

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paid for by the school district, but excluding any portion of the school budget
paid for from any other sources such as endowments, parental fundraising,
federal funds, nongovernmental grants, or other State funds such as special
education funds paid under chapter 101 of this title.
(A) [Repealed.]
(B) For all bonds approved by voters prior to July 1, 2024 2026,
voter-approved bond payments toward principal and interest shall not be
included in “education spending” for purposes of calculating excess spending
pursuant to 32 V.S.A. § 5401(12).
* * * Technical Changes * * *
Sec. 3. 32 V.S.A. § 6061 is amended to read:
§ 6061. DEFINITIONS
As used in this chapter unless the context requires otherwise:
* * *
(14) “Statewide education tax rate” means the homestead education
property tax rate multiplied by the municipality’s education spending
adjustment under subdivision 5402(a)(2) of this title and the statewide
adjustment of the taxable year as defined in subdivision 5401(17) of this title
and used to calculate taxes assessed in the municipal fiscal year that began in
the taxable year.
* * *

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(17) “Equalized value of the housesite in the taxable year” means the
value of the housesite on the grand list for April 1 of the taxable year, divided
by the number resulting from dividing the municipality’s common level of
appraisal of the taxable year by the statewide adjustment of the taxable year as
defined in subdivision 5401(17) of this title.
* * *
Sec. 4. EDUCATION FUND REFUND; CITY OF BARRE TIF DISTRICT;
TAX INCREMENT; FY 2021–FY 2024
Notwithstanding 16 V.S.A. § 4025, the sum of $150,576.00 is appropriated
from the Education Fund to the Department of Taxes in fiscal year 2027 for a
payment to the City of Barre to compensate the City for overpayments of
education property taxes in fiscal years 2021–2024 due to insufficient retention
of tax increment from the City’s tax increment financing district fund.
Sec. 5. 16 V.S.A. § 2961 is amended to read:
§ 2961. CENSUS GRANT
(a) As used in this section:
(1) “Average daily membership” shall have has the same meaning as in
subdivision 4001(1) of this title, except it shall exclude excludes State-placed
students.
(2) “Average daily membership of a supervisory union” means the
aggregate average daily membership of the school districts that are members of

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the supervisory union or, for a supervisory district, the average daily
membership of the supervisory district.
(3) “Long-term membership” of a supervisory union in any school year
means the average of the supervisory union’s average daily membership over
the most recent three school years for which data are available.
(4) “Uniform base amount” means an amount determined by:
(A) dividing an amount:
(i) equal to the average State appropriation for fiscal years 2018,
2019, and 2020 for special education under sections 2961 (standard
mainstream block grants), 2963 (special education expenditures
reimbursement), and 2963a (exceptional circumstances) of this title; and
(ii) increased by:
(I) for each of fiscal years 2021, 2022, and 2023, the annual
change in the National Income and Product Accounts (NIPA) Implicit Price
Deflator for State and Local Government Consumption Expenditures and
Gross Investment as reported by the U.S. Department of Commerce, Bureau of
Economic Analysis (inflation factor); and
(II) for each of fiscal years 2024, 2025, and 2026, the average
inflation factor for fiscal years 2021, 2022, and 2023; by
(B) the statewide long-term membership $2,350.00, as adjusted for
inflation. The uniform base amount shall be adjusted for inflation each fiscal
year beginning in fiscal year 2028 by adjustin