2013 Vermont Statutes
Title 32 Taxation and Finance
Chapter 135 EDUCATION PROPERTY TAX
§ 5402b Statewide education tax rate adjustments

5402b. Statewide education tax rate adjustments

(a) Annually, by December 1, the Commissioner of Taxes shall recommend to the General Assembly, after consultation with the Agency of Education, the Secretary of Administration and the Joint Fiscal Office, the following adjustments in the statewide education tax rates under subdivisions 5402(a)(1) and (2) of this title:

(1) If there is a projected balance in the Education Fund Budget Stabilization Reserve in excess of the five percent level authorized under 16 V.S.A. 4026, the Commissioner shall recommend a reduction, for the following fiscal year only, in the statewide education tax rates which will retain the projected Education Fund Budget Stabilization Reserve at the five percent maximum level authorized and raise at least 34 percent of projected education spending from the tax on nonresidential property; and

(2) If there is a projected balance in the Education Fund Budget Stabilization Reserve of less than the three and one-half percent level required under 16 V.S.A. 4026, the Commissioner shall recommend an increase, for the following fiscal year only, in the statewide education tax rates which will retain the projected Education Fund Budget Stabilization Reserve at no less than the three and one-half percent minimum level authorized under 16 V.S.A. 4026, and raise at least 34 percent of projected education spending from the tax rate on nonresidential property.

(3) In any year following a year in which the nonresidential rate produced an amount of revenues insufficient to support 34 percent of education fund spending in the previous fiscal year, the Commissioner shall determine and recommend an adjustment in the nonresidential rate sufficient to raise at least 34 percent of projected education spending from the tax rate on nonresidential property.

(4) If in any year in which the nonresidential rate is less than the statewide average homestead rate, the Commissioner of Taxes shall determine the factors contributing to the deviation in the proportionality of the nonresidential and homestead rates and make a recommendation for adjusting statewide education tax rates accordingly.

(b) If the Commissioner makes a recommendation to the General Assembly to adjust the education tax rates under section 5402 of this title, the Commissioner shall also recommend a proportional adjustment to the applicable percentage base for homestead income based adjustments under section 6066 of this title, but the applicable percentage base shall not be adjusted below 1.8 percent.

(c) [Repealed.] (Added 2003, No. 68, 5, eff. June 18, 2003; amended 2005, No. 185 (Adj. Sess.), 10; 2009, No. 160 (Adj. Sess.), 50, 51, eff. June 4, 2010.)