Vermont: Tax Commissioner corrects statewide property rate

By Anne Galloway vtdigger.org:

The statewide property tax could go up 7 cents — not 5 cents — next year as originally reported by the tax commissioner, Mary Peterson.

In her letter to lawmakers in November, Peterson recommended that the rate increase by 5 cents per $100 of assessed property value. In a memo sent on Friday, she issued a correction: There was an error in the original calculation that could push the rate to 7 cents. The state’s consultant “erroneously reported” the State and Local Government Price Index in several calculations that skewed the formula.
Last year, the rate went up 5 cents for homestead (residential) property and 6 cents for non-residential (commercial and second home) property owners, according to a spreadsheet from the Joint Fiscal Office. The statewide base property tax rate increased by 7 cents from fiscal year 2009 to fiscal year 2014.

If the Legislature, as expected, approves another 5 cent increase in fiscal year 2015, the rates will be 99 cents for homestead and $1.49 for non-residential.

That increase will be painful for many taxpayers.

Under a possible 7-cent scenario, rates would go up to $1.01 for homestead and $1.51 for non-residential property owners.

For the full article please visit: http://vermontbiz.com/news/december/tax-commissioner-corrects-statewide-property-rate-could-go-additional-2-cents-top-5-ce?utm_source=VBM+Mailing+List&utm_campaign=a6eab67a5b-Enews_12_17_201312_16_2013&utm_medium=email&utm_term=0_85838110bc-a6eab67a5b-286301905