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BILL AS INTRODUCED 2007-2008

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H.179

Introduced by Representatives Potter of Clarendon, Fallar of Tinmouth, Chen of Mendon, Clark of Vergennes, Evans of Essex, Flory of Pittsford, Gilbert of Fairfax, Johnson of Canaan, Koch of Barre Town, Malcolm of Pawlet, Martin of Wolcott, Peltz of Woodbury and Peterson of Williston

Referred to Committee on

Date:

Subject:  Education; unified union school district formation; phase‑in of new tax rates

Statement of purpose:  This bill proposes to allow the approved plan for formation of a unified union district to provide for the phase-in of new education property tax rates for the preexisting school districts.

AN ACT RELATING TO PHASING IN EDUCATION PROPERTY TAX RATES WHEN FORMING A UNIFIED UNION DISTRICT

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

Sec. 1.  16 V.S.A. § 723 is amended to read:

§ 723.  TRANSITION TO UNIFIED DISTRICT ADMINISTRATION

(a)  Except as may be provided in the approved plan for formation of the unified union district with respect to real property, on the day that its establishment becomes effective, it gains title to the assets and assumes the contractual obligations and other liabilities of the school districts within its borders.  All trust funds held or enjoyed by a pre-existing preexisting district shall be held and applied as the terms of the trust indicate.  If such trust allows, the funds may be applied for the use of the unified union district.  Within five days of the day a unified union district becomes effective, the treasurer of each pre-existing preexisting school district shall pay by check to the treasurer of the unified union district the full amount of the balance standing in his the treasurer’s school account and transfer to him or her all outstanding notes and contracts in force.  Unless otherwise specified, the school account balance shall be applied to the member towns proportional costs for the following year.  All other officers of the pre-existing preexisting school districts shall transfer to the corresponding officer of the unified union district all instruments and other documents giving evidence of the assets, liabilities, and contractual status of the district.

(b)  The approved plan for formation of the unified union district may authorize a transitional period of up to five years during which the new education property tax rate would be phased in for the preexisting school districts, with any difference absorbed in the education fund through the residential tax rate.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us