§ 5402 - Education property tax liability - Vermont Statutes

§ 5402. Education property tax liability

(a) A statewide education tax is imposed on all nonresidential and homestead property at the following rates:

(1) the tax rate for nonresidential property shall be $1.59 per $100.00; and

(2) the tax rate for homestead property shall be $1.10 multiplied by the district spending adjustment for the municipality, per $100.00, of equalized education property value as most recently determined under section 5405 of this title. The homestead property tax rate for each municipality which is a member of a union or unified union school district shall be calculated as required under subsection (e) of this section.

(b) Calculation of education tax

(1) The commissioner of taxes shall determine for each municipality the education tax rates under subsection (a) of this section, divided by the municipality's most recent common level of appraisal. The legislative body in each municipality shall then bill each property taxpayer at the homestead or nonresidential rate determined by the commissioner under this subdivision, multiplied by the education property tax grand list value of the property, properly classified as homestead or nonresidential property and without regard to any other tax classification of the property. Tax bills shall show the tax due and the calculation of the rate determined under subsection (a) of this section, divided by the municipality's most recent common level of appraisal, multiplied by the current grand list value of the property to be taxed.

(2) Taxes assessed under this section shall be assessed and collected in the same manner as taxes assessed under chapter 133 of this title with no tax classification other than as homestead or nonresidential property.

(3) If a district has not voted a budget by June 30, an interim homestead education tax shall be imposed at the base rate determined under subdivision (a)(2) of this section, divided by the municipality's most recent common level of appraisal, but without regard to any district spending adjustment. Within 30 days after a budget is adopted and the deadline for reconsideration has passed, the commissioner shall determine the municipality's homestead tax rate as required under subdivision (b)(1) of this subsection.

(c) The treasurer of each municipality shall by December 1 of the year in which the tax is levied and on June 1 of the following year pay to the state treasurer for deposit in the education fund one half of the municipality's statewide nonresidential tax and one half of the municipality's homestead education tax, as determined under subdivision (b)(1) of this section. The commissioner of education shall determine the municipality's net nonresidential education tax payment and its net homestead education tax payment to the state based on grand list information received by the commissioner no later than the March 15 prior to the June 1 net payment. Payment shall be accompanied by a return prescribed by the commissioner of education. The municipality may retain 0.225 of one percent of the total education tax collected, only upon timely remittance of net payment to the state treasurer. The municipality may also retain $15.00 for each late property tax adjustment claim filed after April 15 and before September 2, as notified by the department, for the cost of issuing a new property tax bill.

(d) A municipality which has upon its grand list an operating electric generating plant subject to the tax under section 5402a of this chapter shall be subject to the nonresidential education property tax at three-quarters of the rate provided in subdivision (a)(1) of this section, as adjusted under section 5402b of this chapter; and shall be subject to the homestead education property tax at three-quarters of the base rate provided in subdivision (a)(2) of this section, as adjusted under section 5402b of this chapter, and multiplied by its district spending adjustment.

(e) The commissioner of taxes shall determine a homestead education tax rate for each municipality which is a member of a union or unified union school district as follows:

(1) For a municipality which is a member of a unified union school district, use the base rate determined under subdivision (a)(2) of this section and a district spending adjustment based upon the education spending per equalized pupil of the unified union.

(2) For a municipality which is a member of a union school district:

(A) determine the municipal district homestead tax rate using the base rate determined under subdivision (a)(2) of this section and a district spending adjustment based on the education spending per total equalized pupil in the municipality who attends a school other than the union school;

(B) determine the union district homestead tax rate using the base rate determined under subdivision (a)(2) of this section and a district spending adjustment based on the education spending per equalized pupil of the union school district; and

(C) determine a combined homestead tax rate by calculating the weighted average of the rates determined under subdivisions (A) and (B) of this subdivision (2), with weighting based upon the ratio of union school equalized pupils from the member municipality to total equalized pupils of the member municipality; and the ratio of equalized pupils attending a school other than the union school to total equalized pupils of the member municipality. Total equalized pupils of the member municipality is based on the number of pupils who are legal residents of the municipality and attending school at public expense. If necessary, the commissioner may adopt a rule to clarify and facilitate implementation of this subsection. (Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 8, eff. Jan. 1, 1998; No. 71 (Adj. Sess.), § 53; No. 71 (Adj. Sess.), § 73, eff. January 1, 1999; 1999, No. 1, § 60e, eff. March 31, 1999; No. 49, § 30, eff. June 2, 1999; 2001, No. 63, § 276, eff. June 16, 2001; 2001, No. 144 (Adj. Sess.), § 21, eff. June 21, 2002; 2003, No. 68, § 76, eff. June 18, 2003; No. 68, § 4, eff. for fiscal years 2005 and after; 2003, No. 76 (Adj. Sess.), § 6; 2003, No. 80 (Adj. Sess.), §§ 49a, 49c, eff. March 8, 2004; 2003, No. 130 (Adj. Sess.), § 13; 2005, No. 182 (Adj. Sess.), §§ 11, 12; 2007, No. 33, § 11, eff. May 18, 2007; No. 65, § 289; No. 82, § 12; 2007, No. 190 (Adj. Sess.), §§ 10, 11; 2009, No. 1 (Sp. Sess.), § H.23, eff. June 2, 2009.)