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BILL AS INTRODUCED 2007-2008

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H.726

Introduced by Representative Milkey of Brattleboro

Referred to Committee on

Date:

Subject:  Taxation; property tax; expansion of rebates

Statement of purpose:  This bill proposes to expand the rebate benefit for low income claimants.

AN ACT RELATING TO EXPANSION OF REBATE FOR LOW INCOME CLAIMANTS

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

Sec. 1.  32 V.S.A. § 6066(a)(1)(B) and (C), (a)(3), and (b) are amended to read:

(B)  For a claimant with household income of less than $90,000.00 but more than $47,000.00 $55,000.00, the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year, minus the applicable percentage of household income for the taxable year.

(C)  For a claimant whose household income does not exceed $47,000.00 $55,000.00, the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year, minus the lesser of:

(i)  the applicable percentage of household income for the taxable year; or

(ii)  the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year reduced by $15,000.00.

(3)  a claimant whose household income does not exceed $47,000.00 $55,000.00 shall also be entitled to an additional adjustment amount equal to the amount by which the property taxes for the municipal fiscal year which began in the taxable year upon the claimant's housesite, reduced by the adjustment amount determined under subdivisions (1) and (2) of this subsection, exceeds a percentage of the claimant's household income for the taxable year as follows:

If household income (rounded to                       then the taxpayer is

the nearest dollar) is:                                         entitled to credit for the                                                                         reduced property tax in

                                                                                    excess of this percent of                                                                                    that income:

            $0 - 9,999.00 Below FPG                                      0.0

            $0 - $4,999.00 above FPG                                    2.0

            $10,000.00 – 24,999.00 $5,000.00 - $9,999.00 above FPG     3.0                 $10,000.00 - $24,999.00 above FPG                       4.5

            $25,000.00 – 47,000.00 $25,000.00 or more above FPG, but not to exceed a total household income of $55,000.00           5.0

In no event shall the credit exceed the amount of the reduced property tax.

In this subsection, “FPG” means household Federal Poverty Income Guidelines for the taxable year.

(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 $55,000.00, 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:

If household income (rounded to                       then the taxpayer is                   the nearest dollar) is:                                         entitled to credit for rent                                                                                    constituting property

                                                                                    tax paid in excess of this                                                                                    percent of that income:

                   $0 - 9,999.00 Below FPG                               0.0

            $0 - $4,999.00 above FPG                                                2.0

            $10,000.00 – 24,999.00 $5,000.00 - $9,999.00 above FPG     3.0                 $10,000.00 - $24,999.00 above FPG                                  4.5

            $25,000.00 – 47,000.00 $25,000.00 or more above FPG, but not to exceed a total household income of $55,000.00                        5.0

In no event shall the credit exceed the amount of the rent constituting property tax.  In this subsection, “FPG” means household Federal Poverty Income Guidelines for the taxable year.

Sec. 2.   EFFECTIVE DATE

This act shall apply to claims filed in 2008 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us