VermontVermont sets school tax rates and adjusts renter and property tax credits
The law sets Vermont's fiscal year 2027 education tax rates and provides for a Barre refund, while also setting credit rules and education spending limits.
What it does
For fiscal year 2027, the law sets homestead yield amounts of $9,401 and $12,960, and a nonhomestead rate of $1.643 per $100 of equalized education property value.
The law sets aside Education Fund money to refund the City of Barre for overpayments from its tax increment financing district.
The law sets a fiscal year 2027 base amount for special education census grants and adds an ongoing inflation increase. It also exempts qualifying voter-approved bond payments and lowers the excess spending limit over time.
For claim year 2027, the renter credit cap is $3,250 and its maximum calculation factor is 12.5 percent of fair market rent. Starting in fiscal year 2028, the income limit for two property tax credit programs is $50,000.
For fiscal years 2028 through 2032, tuition paid to public or approved independent receiving schools cannot grow faster than statewide education spending.
Argument forEligible renters could qualify for a larger credit for 2027, which may help them cover housing costs.
Argument againstThe tuition limit could leave public and approved independent schools with less room to cover costs that rise faster than statewide education spending.
More detail
The law sets homestead yield amounts and a nonhomestead property tax rate for fiscal year 2027. The amounts and rate apply when setting Vermont education property taxes for fiscal year 2027. These amounts and rate apply in fiscal year 2027.
The law provides Education Fund money to refund the City of Barre for overpayments from its tax increment financing district. The refund is for overpayments from the City of Barre's tax increment financing district.
The law sets a base amount for special education census grants and changes excess spending rules. The grant amount and spending rules concern Vermont education funding. The exemption from the excess spending penalty applies to voter-approved bond payments for bonds approved before July 1, 2026. The lower excess spending limit begins in fiscal year 2028, falls each year, and reaches 112.5 percent of the base in fiscal year 2032.
The law states renter and property tax credit limits and corrects how a statewide adjustment applies to property tax credits. The renter credit rules apply to eligible renters; the higher income limit applies to both statewide and municipal property tax credit programs. The higher renter credit limits apply only for claim year 2027. The renter credit limits apply for claim year 2027. The higher property tax credit income limit begins in fiscal year 2028.
The law limits tuition increases for public and approved independent receiving schools. The limit covers tuition paid to public or approved independent receiving schools. The tuition growth limit applies in fiscal years 2028 through 2032.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 29House message: Governor approved bill on June 18, 2026Latest
- Vote recorded Which was agreed to on a Roll Call Passed -- Needed 67 of 134 to Pass -- Yeas = 111, Nays = 23. Result: pass.Lower
- May 29Signed by Governor Phil Scott on June 18, 2026Became Law
- May 29Delivered to Governor on June 12, 2026To Governor
- May 29House message: House adopted Conference Committee report
- May 29Rep. McCoy of Poultney moved to deliver the bill to the Governor forthwith, which was agreed to
- May 29Which was agreed to on a Roll Call Passed -- Needed 67 of 134 to Pass -- Yeas = 111, Nays = 23
- May 29Committee of Conference report adopted (House bill)Major
- May 29Rep. Burkhardt of South Burlington demanded yeas and nays
- May 29Rules suspended and taken up for immediate consideration, pending entry on Notice Calendar, as moved by Rep. McCoy of Poultney
- May 29Senate Message: Report of Committee of Conference adopted
- May 29Rules suspended & messaged to House forthwith, on motion of Senator Lyons
- May 29Committee of Conference report adopted
- May 29Committee of Conference report submitted by Senator Cummings for Committee, text
- May 29Rules suspended & taken up for immediate consideration, on motion of Senator Lyons
- May 29Committee of Conference report
- May 29Entered on Notice Calendar
- May 8Senate Message: Committee of Conference members appointed
- May 8Committee of Conference appointed: Senators Cummings, Chittenden, and Beck
- May 8House message: House refused to concur in Senate proposal of amendment & requested Conference Committee; House Conference Committee members appointedMinor
- May 6Speaker appointed Reps. Kornheiser of Brattleboro, Kimbell of Woodstock, and Feltus of Lyndon as members of the Committee of Conference on the part of the House
- May 6Senate proposal of amendment not concurred in and Committee of Conference requested upon motion of Rep. Kornheiser of BrattleboroMinor
- May 6Action Calendar: Senate Proposal of AmendmentMinor
- May 5Notice Calendar: Senate Proposal of AmendmentMinor
- May 1Senate Message: Passed in concurrence with proposal of amendmentMinor
- Apr 30Read 3rd time & passed in concurrence with proposal of amendmentPassed 2nd Chamber
- Apr 30Pending third reading, Senator Vyhovsky proposal of amendment, disagreed toMinor
- Apr 30Proposal of amendment by Senator(s) Vyhovsky; textMinor
- Apr 30Proposal of amendment to be offered by Senator(s) VyhovskyMinor
- Apr 30New Business/Third ReadingMinor
- Apr 29Roll Call, Requested by Sen. Baruth
- Vote recorded 3rd reading ordered on roll call Passed -- Needed 15 of 30 to Pass -- Yeas = 28, Nays = 2. Result: pass.Upper
- Apr 293rd reading ordered on roll call Passed -- Needed 15 of 30 to Pass -- Yeas = 28, Nays = 2
- Apr 29Proposal of amendment by Committee on Finance, as amended, agreed toMinor
- Apr 29Proposal of amendment by Committee on Finance amended as moved by Senator(s) CummingsMinor
- Apr 29Reported favorably by Senator Baruth for Committee on AppropriationsMinor
- Apr 29Read 2nd time, reported favorably with proposal of amendment by Senator Cummings for Committee on FinanceMinor
- Apr 29Proposal of amendment to be offered by Senator(s) CummingsMinor
- Apr 29Favorable report by Committee on AppropriationsMinor
- Apr 29Favorable report with proposal of amendment by Committee on FinanceMinor
- Apr 29Unfinished Business/Second ReadingMinor
- Apr 28Favorable report by Committee on AppropriationsMinor
- Apr 28Favorable report with proposal of amendment by Committee on FinanceMinor
- Apr 28Second ReadingMinor
- Apr 24Favorable report by Committee on AppropriationsMinor
- Apr 24Favorable report with proposal of amendment by Committee on FinanceMinor
- Apr 24Second ReadingMinor
- Apr 24Entered on Notice Calendar
- Apr 21Referred to Committee on Appropriations per Senate Rule 31
- Apr 21Favorable report with proposal of amendment by Committee on FinanceMinor
- Apr 21Second ReadingMinor
- Apr 21Entered on Notice Calendar
- Apr 8Committee on Education relieved; bill committed to Committee on Finance on motion of Senator Bongartz
- Mar 31Read 1st time & referred to Committee on EducationMinor
- Mar 26Read third time and passedPassed 1st Chamber
- Mar 26Rep. Logan of Burlington asked and was granted leave to withdraw amendment
- Mar 26Rep. Logan of Burlington, Cina of Burlington, and Tomlinson of Winooski moved to amend the bill
- Mar 26Action Calendar: Third ReadingMinor
- Mar 25Which was agreed to on a Roll Call Passed -- Needed 70 of 139 to Pass -- Yeas = 78, Nays = 61
- Vote recorded Which was disagreed to on a Roll Call Failed -- Needed 70 of 140 to Pass -- Yeas = 56, Nays = 84. Result: fail.Lower
- Vote recorded Which was agreed to on a Roll Call Passed -- Needed 70 of 139 to Pass -- Yeas = 78, Nays = 61. Result: pass.Lower
- Mar 25Third Reading orderedMinor
- Mar 25Rep. McCoy of Poultney demanded yeas and nays
- Mar 25Which was disagreed to on a Roll Call Failed -- Needed 70 of 140 to Pass -- Yeas = 56, Nays = 84
- Mar 25Rep. McCoy of Poultney demanded yeas and nays
- Mar 25Rep. McCoy of Poultney moved to amend the bill
- Mar 25Rep. Kornheiser of Brattleboro moved to amend the bill, which was agreed to
- Mar 25Rep. Nigro of Bennington recommended for the Committee on Appropriations
- Mar 25Rep. Kornheiser of Brattleboro spoke for the Committee on Ways and Means
- Mar 25Read second timeMinor
- Mar 25Action Calendar: Favorable
- Mar 24Notice Calendar: Favorable
- Mar 20Committee bill read first time and referred to Committee on Appropriations per Rule 35(a)Introduced
- May 29House message: Governor approved bill on June 18, 2026Latest
Taxes & BudgetEducationHousing