House passes yield bill to buy down property taxes over two years after heated floor debate
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Summary
The Vermont House passed H.949 to set school tax yields and use one‑time funds to reduce property tax increases over two years; floor amendments proposing a larger single‑year buydown failed and the final third reading passed by roll call 78–61.
Representative Kornheiser (Member from Brattleboro) presented H.949, the annual yield bill that sets homestead and non‑homestead tax rates and prescribes one‑time transfers to reduce property tax increases for fiscal year 2027. The bill uses a mix of one‑time general funds and education fund balances to limit next year’s tax growth, and places $52.55 million in one‑time general funds toward this purpose along with an education fund reserve intended to offset future rates.
Floor debate focused on trade‑offs between immediate relief and fiscal prudence. One amendment offered by the member from Pulteney would have applied the governor’s full $105 million surplus to this year’s buydown; supporters called it urgent relief for struggling taxpayers, while opponents argued it was fiscally imprudent and would create a larger cliff next year. The amendment failed on a roll call (56‑85). Supporters of the committee plan said splitting the available funds across two years cushions taxpayers now while preserving a reserve to blunt next year’s projected shortfall.
Members also discussed mechanics: the bill sets a property dollar equivalent yield and income yield (the floor cited specific numbers), increases certain transfers to the transportation fund while keeping the education fund whole via revenue shifts elsewhere, and includes other technical corrections and tax law updates. Committee reports and the joint fiscal office fiscal note were referenced throughout.
After a prolonged series of floor speeches and a roll call, the House recorded 78 votes in favor and 61 opposed on third reading and ordered the bill read a third time. Proponents argued the bill ensures school budgets are funded and prevents chaos for local tax rates; opponents warned it delays needed structural education finance reform and risks repeating reliance on one‑time funds.
Ending: With third reading ordered and passage on the House floor, H.949 will proceed through the legislative process with a mix of one‑time tax relief and an eye toward ongoing education finance reforms.
