Property Taxes and Education Spending in Vermont
Issue Overview: Since FY 2005, property taxes have risen 19 percent; in FY 2007, the statewide property tax will raise a total of $869.6 million. While residential rates are projected to increase 3.7 percent, the non-residential (commercial and second home) rates are projected to increase by 7.2 percent, a disproportional rate that the business community can not continue to shoulder.
For FY 2007 commercial, non-residential (second home owners) and non-income sensitized property owners will pay almost 87 percent of this tax increase.
Vermont spends $1.345 billion to educate Vermont students. Since FY 2002, more than 300 teachers were added to the educational system, while student enrollment has dropped by more than 3,300 students during that same period of time.
NFIB Position: NFIB/Vermont opposes additional tax burden being placed on the commercial, non-residential sector of our economy particularly at disproportionate levels to the residential sector.
Issue Status: There is no specific proposal under consideration at this time. However, proponents for the repeal of Act 60 and Act 68 are expected to introduce a bill for consideration. Check back for updates.
