Tax Department proposes homestead exemption to reshape Vermont property tax credits

Jake Feldman, Tax Department, told a legislative committee that the administration plans to reconfigure the education portion of Vermont’s income-based property tax credit as a homestead exemption tied to household income tiers and property value limits.

Feldman said the department does not recommend adding an asset declaration to claims, calling such a requirement “very burdensome” for roughly 125,000 homestead filers and noting there is no established process to verify many asset types. Instead, the department’s proposal would apply percentage exemptions of a home’s assessed value at three income tiers (up to $47,000; $47,000–$90,000; $90,000–$125,000), with the lowest tier receiving the largest percentage (outlined in the presentation as 60% for the lowest tier) and a maximum exemption capped at $200,000. Feldman said the proposal includes an extra 10 percentage points for seniors in the lowest tier.

The presentation framed the change as a shift of benefit from higher-value…