McCoy urges using $105 million to lower property taxes now; committee raises 'tax cliff' and reserve concerns

Representative Patty McCoy told the Ways & Means Committee she seeks immediate property-tax relief by amending H949 to apply a $105 million draw directly to the yield, removing a reserve holdback in the underlying bill.

"Vermonters need more property tax relief now," McCoy said, noting average property-tax increases of about 7% projected for the upcoming year and recounting prior one-time infusions the Legislature has used in recent years. McCoy said the proposal would lower property taxes this year by more than $50 million compared with the underlying bill and described the funding as a bridge while the Legislature pursues longer-term education-transformation work.

Several members sympathized with McCoy's goals but warned using one-time money now could leave the state with a sharp fiscal cliff next year. Representative Woody and other members pointed to the need for construction or transition funds to support school consolidation and said holding some money in reserve could protect next year's budgets from severe cuts. McCoy said districts would plan knowing a reserve exists and argued districts repeatedly spend available one-time funds when they see them.

The committee conducted a straw poll to decline the amendment; the transcript records the committee-level result as not finding the amendment favorable. Members emphasized the tradeoff between immediate relief and fiscal sustainability.

Why it matters: Property-tax relief directly affects homeowners across Vermont and is politically salient; the tradeoff between near-term relief and longer-term fiscal stability was a central point of committee debate.

What comes next: The amendment was declined by a committee straw poll at this hearing; advocates may pursue changes in other vehicles or on the floor with additional assurances about next-year funding.