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Vermont General Assembly advances new property tax classification system for 2028

June 13, 2025 | Education, SENATE, Committees, Legislative , Vermont


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Vermont General Assembly advances new property tax classification system for 2028
In a pivotal government meeting held in Vermont, lawmakers discussed significant changes to the property tax classification system, a reform that promises to impact residents across the state. The proposed legislation, encapsulated in sections 60 through 61 of H.454, aims to streamline tax classifications and introduce new categories that reflect the evolving landscape of property ownership.

The meeting revealed that the new system will replace the existing two classifications—homestead and nonhomestead—with four distinct categories: homestead, nonhomestead, nonresidential, and nonhomestead residential. This change is designed to better accommodate various property types, including short-term rentals and other residential properties not classified as homesteads. The adjustments are set to take effect in 2028, aligning with broader reforms discussed in previous sessions.

A notable aspect of the proposed changes is the introduction of tax rate multipliers for the new nonhomestead residential classification. The Department of Taxes is tasked with reporting back on potential multipliers that could help fund the homestead exemption and mitigate any anticipated tax increases for homestead property taxpayers. This proactive approach aims to ensure that the new classifications do not disproportionately burden any group of taxpayers.

Additionally, the meeting highlighted the intent of the General Assembly to reevaluate the entire tax classification system in conjunction with future amendments to tax rate multipliers. This reflects a commitment to ongoing assessment and adjustment, ensuring that the system remains fair and effective as it evolves.

As the discussion wrapped up, lawmakers acknowledged the significance of these reforms, emphasizing their potential to positively affect the lives of Vermonters. The meeting underscored a collaborative effort to refine the tax system, with practical considerations and future reporting from the Department of Taxes playing a crucial role in the process. With these changes on the horizon, Vermont is poised to reshape its property tax landscape, aiming for a more equitable approach that resonates with the needs of its residents.

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