MONTPELIER, Vt. (WCAX) – New projections from Vermont school districts show property taxes are now expected to hit an alarming 20%, an increase from already pricey projections made earlier this fall.
State lawmakers Wednesday began investigating ways to pay for education and mitigate the tax spike caused by increases in health care spending, aging school infrastructure, new ed funding reforms, and the disappearance of pandemic cash.
Legislative economists testified before the House Ways and Means Committee about several possible taxes lawmakers could enact to try to “buy down” the hike. They include a potential excise tax on candy and sweetened beverages, certain clothing, or on business software.
Committee Chair Rep. Emilie Kornheiser, D-Brattleboro, described the situation as a balance between raising revenues on items that will affect certain groups of Vermonters versus a big hike in the property tax which affects every homeowner and renter. “I would encourage us — when we’re thinking through these things — to not think about whether we want more taxes or less taxes, but whether is this better or worse than an increase in the property tax,” she said.
Lawmakers have also floated the possibility of a three percent tax floated on the state’s top earners.
They could also modify last year’s education reforms aimed at equity. The five percent cap on property taxes was designed to blunt the economic effect on more affluent districts that are slated to pay more. But Lawmakers are worried the measure encouraged some districts to spend more this year before the reforms kick in.
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