School Homestead Tax Rate: How can this be fair?
Some homestead owners pay more than commercial property owners. Other homesteaders pay less.
The Vermont state school tax makes a distinction between homestead property and nonresidential property. In Norwich, that is not good for homeowners. Homestead owners pay a HIGHER education tax rate ($1.8122) in FY 2018 than all other property owners in Town ($1.5461).
Norwich is not alone; homesteaders in about 140 other towns are net ‘losers’ compared to the rate paid by nonresidential property.
BUT, in about 115 towns, homestead property owners pay a LESSER tax rate, than nonresidential property owners. There, homestead owners are ‘winners’. How can this be fair?
"Boston Tea Party": W.D. Cooper.
A homestead in Vermont is a principal dwelling owned and occupied by a resident individual. In general, all other property is nonresidential, including businesses, rentals and vacant land. Nonresidential property is taxed at a rate fixed by statute; homestead rates, determined by a statutory formula, vary from to to town depending on the school district per pupil spending.