MONTPELIER, Vt. (WCAX) – The Vermont House Wednesday gave the green light to the yield bill, setting in motion double-digit property tax increases.
Lawmakers over the past few weeks added new taxes to the measure in an attempt to contain property taxes to a 15% increase. Commercial properties and second homes would increase by 18%. The measure also creates a new commission to plan for the future of what public education should look like.
Governor Phil Scott on Wednesday again said the bill doesn’t go far enough to provide immediate relief to taxpayers. He has pushed for a plan to loan school districts state reserves, despite a risk to the state’s credit rating. He says not acting on relief this year could have consequences.
“Rating agencies have warned us about this for a long time. The affordability of the state of Vermont is always a question they have and they bring it to our attention. This is going to exacerbate the situation. Doing nothing might reduce our bond rating as well,” Scott said.
The bill now heads to the Senate.