Introduced by Representatives Rusten of Halifax, Chen of Mendon, Errecart of Shelburne, Hube of Londonderry, Komline of Dorset, Marron of Stowe and Nitka of Ludlow
Subject: Education finance
Statement of purpose: This bill proposes to allow towns to opt out of the current education funding law as follows:
(a) By a majority vote, using Australian balloting, a town may opt out of most provisions of current education funding law. For any town which votes to opt out:
(1) The town must maintain all education quality standards and other components of current education law not related to education funding.
(2) The town would not be subject to the statewide education property taxes on nonresidential and homestead property and would instead raise sufficient money on its entire grand list to fund its schools.
(3) The town would revert to a single grand list.
(4) The schools would receive no revenue from the state education fund except state aid for approved school capital construction (prior to Act 60,
non-Foundation towns received aid for school capital construction).
(5) Taxpayers in the town would no longer be eligible for prebates, but would remain eligible for rebates.
(6) The town would make its own decisions as to grand list maintenance, but reappraisal would be mandatory as under current law (if the coefficient of dispersion exceeds 20 or the common level of appraisal drops below 80 percent).
(7) All revenues currently going into the education fund, minus those that would have come from education taxes in towns that opt out, would continue to go into the fund.
(8) Towns must give the state six months’ notice prior to the next fiscal year in order to opt out of the system and must opt out for a minimum of three years.
(b) For those towns that do not opt out, the Act 68 funding system would continue as is.
AN ACT RELATING TO OPTION FOR LOCAL EDUCATION PROPERTY TAX
It is hereby enacted by the General Assembly of the State of Vermont:
(TEXT OMITTED IN SHORT-FORM BILLS)
The Vermont General Assembly
115 State Street