32 V.S.A. § 5402 — Education property tax liability

[Subsection (a) effective until contingency met; see also subsection (a) effective
July 1, 2028 if contingency met, set out below.]
(a) A statewide education tax is imposed on all nonhomestead and homestead property at
the following rates:
(1) The tax rate for nonhomestead property shall be $1.59 per $100.00 divided by the statewide
adjustment.
(2) The tax rate for homestead property shall be $1.00 multiplied by the education property
tax 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 that is a member of a union
or unified union school district shall be calculated as required under subsection
(e) of this section.
[Subsection (a) effective July 1, 2028 if contingency met; see also subsection (a)
effective until contingency met, set out above.]
(a) A statewide education tax is imposed on all nonhomestead and homestead property at
a rate sufficient to cover expenditures from the Education Fund other than supplemental
district spending, after accounting for forecasted non-property tax revenues and any
funds unreserved in the Education Fund following the process under 16 V.S.A. § 4032(c). It is the intention of the General Assembly that the statewide education tax rate
under this section shall be adopted for each fiscal year by act of the General Assembly.
If the General Assembly fails to adopt a statewide education tax rate for a fiscal
year, the statewide education tax rate for the fiscal year shall equal the product
of 110 percent and the statewide education tax rate for the preceding fiscal year.
The statewide education tax rate shall be adjusted for homestead property and each
general class of nonhomestead property provided under section 4152a of this title as follows:
If the tax classification
of the property subject
to taxation is:
then the statewide education
tax rate is multiplied
by a factor of:
Homestead
1.0
Nonhomestead Nonresidential
1.0
Nonhomestead Residential
1.0
[Subsection (b) effective until contingency met; see also subsection (b) effective
July 1, 2028 if contingency met, set out below.]
(b) The statewide education tax shall be calculated as follows:
(1) The Commissioner of Taxes shall determine for each municipality the education tax
rates under subsection (a) of this section divided by the number resulting from dividing
the municipality’s most recent common level of appraisal by the statewide adjustment.
The legislative body in each municipality shall then bill each property taxpayer at
the homestead or nonhomestead 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 nonhomestead property and without regard to any other tax
classification of the property. Statewide education property tax bills shall show
the tax due and the calculation of the rate determined under subsection (a) of this
section, divided by the number resulting from dividing the municipality’s most recent
common level of appraisal by the statewide adjustment, multiplied by the current grand
list value of the property to be taxed. Statewide education property tax bills shall
also include language provided by the Commissioner pursuant to subsection 5405(g) of this title.
(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 nonhomestead property; provided, however, that the tax levied
under this chapter shall be billed to each taxpayer by the municipality in a manner
that clearly indicates the tax is separate from any other tax assessed and collected
under chapter 133, including an itemization of the separate taxes due. The bill may
be on a single sheet of paper with the statewide education tax and other taxes presented
separately and side by side.
(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 number resulting from dividing the municipality’s most recent common
level of appraisal by the statewide adjustment, but without regard to any spending
adjustment under subdivision 5401(13) of this title. 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 (1) of this subsection.
[Subsection (b) effective July 1, 2028 if contingency met; see also subsection (b)
effective until contingency met, set out above.]
(b) The statewide education tax shall be calculated as follows:
(1) The Commissioner of Taxes shall determine for each municipality the education tax
rates under subsection (a) of this section divided by the number resulting from dividing
the municipality’s most recent common level of appraisal by the statewide adjustment.
The legislative body in each municipality shall then bill each property taxpayer at
the applicable 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 nonhomestead property and without regard to any other tax classification
of the property not authorized under this chapter. Statewide education property tax
bills shall show the tax due and the calculation of the rate determined under subsection
(a) of this section, divided by the number resulting from dividing the municipality’s
most recent common level of appraisal by the statewide adjustment, multiplied by the
current grand list value of the property to be taxed. Statewide education property
tax bills shall also include language provided by the Commissioner pursuant to subsection 5405(g) of this title.
(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 those required by this section; provided, however, that the tax levied under
this chapter shall be billed to each taxpayer by the municipality in a manner that
clearly indicates the tax is separate from any other tax assessed and collected under
chapter 133, including an itemization of the separate taxes due. The bill may be on
a single sheet of paper with the statewide education tax and other taxes presented
separately and side by side.
(3) [Repealed.]
[Subsection (c) effective until contingency met; see also subsection (c) effective
July 1, 2028 if contingency met, set out below.]
(c)(1) 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 nonhomestead tax and
one-half of the municipality’s homestead education tax, as determined under subdivision
(b)(1) of this section.
(2) The Secretary of Education shall determine each municipality’s net nonhomestead education
tax payment and its net homestead education tax payment to the State based on grand
list information received by the Secretary not later than the March 15 prior to the
June 1 net payment. Payment shall be accompanied by a return prescribed by the Secretary
of Education. Each 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 or
to the applicable school district or districts.
[Subsection (c) effective July 1, 2028 if contingency met; see also subsection (c)
effective until contingency met, set out above.]
(c)(1) 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 education tax, as determined
under subdivision (b)(1) of this section.
(2) The Secretary of Education shall determine each municipality’s net education tax payment
to the State based on grand list information received by the Secretary not later than
the March 15 prior to the June 1 net payment. Payment shall be accompanied by a return
prescribed by the Secretary of Education. Each 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 or to the applicable school district or districts.
(d) [Repealed.]
[Subsection (e) repealed July 1, 2028 if contingency met.]
(e) The Commissioner of Taxes shall determine a homestead education tax rate for each
municipality that is a member of a union or unified union school district as follows:
(1) For a municipality that is a member of a unified union school district, use the base
rate determined under subdivision (a)(2) of this section and a spending adjustment
under subdivision 5401(13) of this title based upon the per pupil education spending of the unified union.
(2) For a municipality that 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 spending adjustment under subdivision 5401(13) of this title based on the per pupil education spending 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 spending adjustment under subdivision 5401(13) of this title based on the per pupil education spending of the union school district.
(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 long-term membership, as defined in 16 V.S.A. § 4001(7), from the member municipality to total long-term membership of the member municipality;
and the ratio of long-term membership attending a school other than the union school
to total long-term membership of the member municipality. Total long-term membership
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 (e).
[Subsection (f) effective July 1, 2028 if contingency met.]
(f)(1) A supplemental district spending tax is imposed on all homestead and nonhomestead
property in each member municipality of a school district that approves spending pursuant
to a budget presented to the voters of a school district under 16 V.S.A. § 563. The Commissioner of Taxes shall determine the supplemental district spending tax
rate for each school district by dividing the school district’s per pupil supplemental
district spending as certified by the Secretary of Education by the supplemental district
spending yield. The legislative body in each member municipality shall then bill each
property taxpayer at the rate determined by the Commissioner under this subsection,
divided by the number resulting from dividing the municipality’s most recent common
level of appraisal by the statewide adjustment and multiplied by the current grand
list value of the property to be taxed. The bill shall show the tax due and the calculation
of the rate.
(2) The supplemental district spending tax assessed under this subsection 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 nonhomestead property; provided,
however, that the tax levied under this chapter shall be billed to each taxpayer by
the municipality in a manner that clearly indicates the tax is separate from any other
tax assessed and collected under chapter 133 of this title and the statewide education
property tax under this section, including an itemization of the separate taxes due.
The bill may be on a single sheet of paper with the supplemental district spending
tax, the statewide education tax, and other taxes presented separately and side by
side.
(3) The treasurer of each municipality shall on or before December 1 of the year in which
the tax is levied and on or before June 1 of the following year pay to the State Treasurer
for deposit in the Education Fund one-half of the municipality’s supplemental district
spending tax as determined under subdivision (1) of this subsection.
(4) The Secretary of Education shall determine each municipality’s net supplemental district
spending tax payment to the State based on grand list information received by the
Secretary not later than the March 15 prior to the June 1 net payment. Payment shall
be accompanied by a return prescribed by the Secretary of Education. Each municipality
may retain 0.225 of one percent of the total supplemental district spending tax collected,
only upon timely remittance of net payment to the State Treasurer or to the applicable
school district. (