Download this document in MS Word format

AutoFill Template


Introduced by   Representatives Donovan of Burlington, Aswad of Burlington, Keogh of Burlington, Kiss of Burlington, Larson of Burlington, Lorber of Burlington, Tracy of Burlington, Wright of Burlington and Zuckerman of Burlington

Referred to Committee on


Subject:  Taxation; education property tax; rate for multi-family rental housing; renter rebates; expansion of renter rebate eligibility and benefit

Statement of purpose:  This bill proposes to allow an owner of multi-family rental housing to choose the lower of the nonresidential or homestead rates; and to increase the income-eligibility level for renter rebates.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 5402(a) is amended to read:

(a)  A statewide education tax is imposed on all nonresidential and homestead property at the following rates:

(1)  the tax rate for nonresidential property shall be $1.59 per $100.00; and

(2)  the tax rate for homestead property shall be $1.10 multiplied by the district spending adjustment for the municipality, per $100.00, of equalized education property value as most recently determined under section 5405 of this title.  The homestead property tax rate for each municipality which is a member of a union or unified union school district shall be calculated as required under subsection (e) of this section; and

(3)  Notwithstanding subdivision (1) of this section, the tax rate for multi-family rental housing shall be the lower of the two rates under subdivisions (1) and (2) for the municipality in which the housing is located.

Sec. 2.  32 V.S.A. § 6061(7) is amended to read:

(7)  “Rent constituting property taxes” means for any homestead and for any taxable year, at the claimant’s option, (A) 21 25 percent of the gross rent or (B) that portion of the gross rent which equals the property tax assessed for payment in the calendar year allocable to the claimant’s rental unit for the period rented by the claimant.  “Gross rent” means the rent actually paid during the taxable year by the individual or other members of the household solely for the right of occupancy of the homestead during the taxable year.  If a claimant’s rent is government-subsidized, the property tax allocable to the claimant’s rental unit shall be reduced in the same proportion as the rent is reduced by the subsidy.  “Rent constituting property taxes” shall not include payments made under a written homesharing agreement pursuant to a nonprofit homesharing program, or payments for a room in a nursing home in any month for which Medicaid payments have been made on behalf of the claimant to the nursing home for room charges.

Sec. 3.  32 V.S.A. § 6066(b) is amended to read:

(b)  An eligible claimant who rented the homestead on the last day of the taxable year, whose household income does not exceed $47,000.00 $60,000.00, and who submits a certificate of rent constituting property taxes shall be entitled to a credit against the claimant’s tax liability under chapter 151 of this title equal to the amount by which the rent constituting property taxes upon the claimant’s housesite exceeds a percentage of the claimant’s household income for the taxable year as follows:

* * *


This act shall apply to education property taxes and to renter rebate claims related to property taxes for fiscal years 2007 and after.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont