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South Burlington council sets FY26 municipal tax rate at 0.5187, schedules three installments
Summary
At a June 30 special meeting the South Burlington City Council set the FY26 municipal operations tax rate at 0.5187 (total municipal tax rate 0.5392), approved installment due dates and reviewed changes in the 2025 grand list that affected the final rate.
The South Burlington City Council on June 30 voted unanimously to set the fiscal year 2026 municipal operations tax rate at 0.5187, for a total municipal tax rate of 0.5392, and to set property tax installment due dates on Aug. 18, 2025; Nov. 17, 2025; and March 16, 2026.
City Finance Director Martha Michar told the council that the citywide grand list grew 1.9% as of June 24, slightly below the 2% increase the budget assumed, while the TIF (tax-increment financing) grand list grew 36.4%, above the 20% projection used in the budget. Those differences narrowed the tax rate from the budget’s projected 0.571 to the 0.5392 the council adopted.
Michar said the TIF increase helped the general fund because 25% of the TIF increment is used for general fund purposes, but she cautioned that the TIF base is small relative to the citywide grand list so large percentage swings in the TIF portion translate to much smaller absolute dollar changes citywide. Council members and staff discussed the sensitivity of the tax rate to small shifts in grand-list growth and noted the city is working to modernize permitting data to improve projections.
A councilor moved the tax-rate motion and it was seconded; the roll call was a unanimous aye vote (five in favor, including the remote vote by Councilor Mike Scanlon). The council also confirmed the three installment dates at the same meeting.
The approved installment dates move the August payment to Aug. 18 because Aug. 15 falls on a weekend and the November payment to Nov. 17 because Nov. 15 is a Saturday. The March installment is set for March 16, 2026.
What the council approved is only the municipal operations tax rate. Michar and staff provided updated education numbers from the school district that were circulated to councilors earlier in the day and displayed during the meeting; those education numbers affect the combined tax bills but were not altered by the municipal-rate vote.
The council’s action followed a staff presentation that compared budget assumptions with actual grand-list performance and answered council questions about commercial versus residential growth, permit activity, and forecasting methods. Councilors praised staff for narrowly missing their projection and emphasized the work ahead to tighten forecasts.
The motion to set the tax rate and due dates passed unanimously.
