32 V.S.A. § 6066a — Determination of property tax credit [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]

(a) Annually, the Commissioner shall determine the property tax credit amount under section 6066 of this title, related to a homestead owned by the claimant, based on the prior taxable year’s
income and crediting property taxes paid in the prior year. The Commissioner shall
notify the municipality in which the housesite is located of the amount of the property
tax credit for the claimant for homestead property tax liabilities on a monthly basis.
The tax credit of a claimant who was assessed property tax by a town that revised
the dates of its fiscal year, however, is the excess of the property tax that was
assessed in the last 12 months of the revised fiscal year, over the adjusted property
tax of the claimant for the revised fiscal year, as determined under section 6066 of this title, related to a homestead owned by the claimant.
(b) The Commissioner shall include in the total property tax credit amount determined
under subsection (a) of this section, for credit to the taxpayer for homestead property
tax liabilities, any income tax overpayment remaining after allocation under section 3112 of this title and setoff under section 5934 of this title, which the taxpayer has directed to be used for payment of property taxes.
(c) The Commissioner shall notify the municipality of any claim and refund amounts unresolved
by November 1 at the time of final resolution, including adjudication, if any; provided,
however, that towns will not be notified of any additional credit amounts after November
1 of the claim year, and such amounts shall be paid to the claimant by the Commissioner.
(d) [Repealed.]
(e) At the time of notice to the municipality, the Commissioner shall notify the taxpayer
of the property tax credit amount determined under subdivision 6066(a)(1) of this title, the amount determined under subdivision 6066(a)(3) of this title, any additional credit amounts due the homestead owner under section 6066 of this title, the amount of income tax refund, if any, allocated to payment of homestead property
tax liabilities, and any late-claim reduction amount.
(f)(1) For taxpayers and amounts stated in the notice to towns on or before July 1, municipalities
shall create and send to taxpayers a homestead property tax bill, instead of the bill
required under subdivision 5402(b)(1) of this title, providing the total amount allocated to payment of homestead education property
tax liabilities and notice of the balance due. Nothing in this subdivision, however,
shall be interpreted as altering the requirement under subdivision 5402(b)(2) of this title that the statewide education homestead tax be billed in a manner that is stated clearly
and separately from any other tax. Municipalities shall apply the amount allocated
under this chapter to current year property taxes in equal amounts to each of the
taxpayers’ property tax installments that include education taxes. Notwithstanding
section 4772 of this title, if a town issues a corrected bill as a result of the notice sent by the Commissioner
under subsection (a) of this section, issuance of the corrected new bill does not
extend the time for payment of the original bill nor relieve the taxpayer of any interest
or penalties associated with the original bill. If the corrected bill is less than
the original bill, and there are also no unpaid current year taxes, interest, or penalties,
and no past year delinquent taxes or penalties and interest charges, any overpayment
shall be reflected on the corrected tax bill and refunded to the taxpayer.
(2) For property tax credit amounts for which municipalities receive notice after November
1, municipalities shall issue a new homestead property tax bill with notice to the
taxpayer of the total amount allocated to payment of homestead property tax liabilities
and notice of the balance due.
(3) The property tax credit amount determined for the taxpayer shall be allocated first
to current year property tax on the homestead parcel, next to current-year homestead
parcel penalties and interest, next to any prior year homestead parcel penalties and
interest, and last to any prior year property tax on the homestead parcel. No credit
shall be allocated to a property tax liability for any year after the year for which
the claim or refund allocation was filed. No municipal tax-reduction incentive for
early payment of taxes shall apply to any amount allocated to the property tax bill
under this chapter.
(4) If the property tax credit amount as described in subsection (e) of this section exceeds
the property tax, penalties, and interest due for the current and all prior years,
the municipality shall refund the excess to the taxpayer, without interest, within
20 days of the first date upon which taxes become due and payable or 20 days after
notification of the credit amount by the Commissioner of Taxes, whichever is later.
(g) The Commissioner of Taxes shall pay monthly to each municipality the amount of property
tax credit of which the municipality was last notified related to municipal property
tax on homesteads within that municipality, as determined by the Commissioner of Taxes. (