Issue Position: Property Taxes

Issue Position

Since my first days in the House I have been part of several tri-partisan coalitions that want to shift school taxes to an income tax. Most people agree this would be a better option and make the process more straightforward. In January 2016 I was the lead sponsor of a bill that takes a small twist on this long-standing goal. H.656 has over 30 sponsors and extends "income-sensitivity" to all Vermont homeowners.

This change would mean everyone would pay based on income. Income-sensitivity limits the school tax bill for the great majority of Vermonters to about 3% of income. Under our current system, wealthier families pay as little as 0.6% of their income for the school tax. When we extend income-sensitivity to all homeowners we raise money from those who can best afford it. That allows us to reduce property taxes for households earning less than $200,000. In January 2017 the Vermont Department of Taxes, working with legislative fiscal staff, will bring the legislature modeling for this proposal. With any luck this will result in a smaller tax bill for the vast majority of Vermonters.

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