A couple hours before the Vermont House began final debate on a bill that sets property tax rates, Governor Phil Scott focused his weekly briefing today on the potential implications of its provisions. Scott says the current text of the legislation will lead to substantial increases that residents cannot afford.
The House voted Wednesday 101 to 39 to pass H.887, also known as the yield bill, and move it to the Senate for further action.
During the governor’s briefing several hours before the vote, Vermont Tax Commissioner Craig Bolio said under the current version of the bill it is projected there will be a 15 percent property tax increase for homestead taxpayers and an 18 percent average increase for non-homestead taxpayers.
“For clarity, homestead properties are all owner-occupied properties and non-homestead are all properties that are not declared as a homestead. Non-homestead properties are not simply second homes. That category includes commercial and business properties, rental properties including long-term rentals, farms and more.”
Bolio highlighted how the increases would affect property taxes in communities across the state if the bill is passed as currently written.
“For a property in Ripton with a listed value of $250,000 that owner would expect to pay 34 percent more in property taxes in fiscal year ’25. A mobile home owner in Craftsbury with a value of $60,000 would expect to pay an additional 30 percent. In Brattleboro a homeowner with a listed value of $140,000 would pay an additional 15 percent in property taxes. Each of these cases present an affordability challenge particularly for Vermonters on a fixed income and in the lower income brackets. I would also note that each of the examples is factoring in the 15 percent property tax credit increase that’s contemplated in the yield bill today.”
Governor Phil Scott says Vermonters continue to make it clear that the state is unaffordable and criticized House action on the yield bill.
“Vermonters simply cannot afford an historic double digit increase in their property taxes or a substantial hike in their rents which will also be impacted because landlords have no choice but to pass those increases on. This is especially true after a 20 percent hike in DMV fees, a new payroll tax coming July 1, inflation and the hike to home heating costs we know is coming as a result of the Clean Heat Standard they passed and I vetoed last year and they overrode. As the yield bill moves out of the House and to the Senate, I’m hoping the Senate will work with us to prevent this enormous tax increase.”
The Senate Education Committee held a confirmation hearing on the governor’s controversial appointment for Secretary of Education Zoie Saunders. Scott said he was impressed with her testimony. Coming from a position in Florida, she has faced opposition from critics who say she is unqualified for the role and “demonstrates a propensity for policies” that undermine public schools.
“I thought Zoie did a wonderful job. I’m very proud of her testimony and I think it laid out why she is the person that we need in this position. She’s open to suggestions, wanting to work together in a collaborative way and I believe that came through.”
A Green Mountain State poll released Tuesday by the University of New Hampshire States of Opinion Project found that 58 percent of Vermonters want Scott to run for a fifth two-year term. The Republican typically remains mum on his plans until after the legislative session and when asked about his plans Wednesday he continued that tradition.
“How are you feeling about your reelection plans, yea, nay," asks a reporter. "I know you...”
“Nice try," replies Scott, "but we’ll get through the legislative process and then I’ll make an announcement.”
