Senate Finance resumes debate on replacing homestead property rate with an education income tax

The Senate Finance Committee on Feb. 27 continued a staff-led review of proposals that would replace the homestead property tax rate with an education income tax, a discussion framed around revenue stability, equity and how the change would affect school and municipal funding.

Patrick Turchin, a presenter, opened the session by noting the purpose of the briefing: “nothing I’m about to say is either, you know, cheerleading for or denigrating this idea.” He told members the presentation compared the two tax types against “the six pillars of a high-quality tax system” to help inform the committee’s conversation rather than to recommend a specific rate or design.

The presentation emphasized predictability and sustainability as a central distinction. Turchin and other staff said property-tax revenue is more stable because towns maintain a grand list and reappraisals and the Common Level of Appraisal (CLA) produce a known tax base by the time rates are set. By contrast, staff noted personal income tax receipts are more volatile: withholding generates roughly 70% of income-tax receipts…