Vermont Property Tax Changes: Impact on Homeowners


Recent amendments to Vermont’s property tax laws could significantly affect homeowners. In this article, we’ll delve into the changes made to § 5404a and § 6068 of Vermont’s statutes and explore the potential benefits and drawbacks for homeowners.

Amendment to § 5404a – Qualified Rental Units:

The amendment to § 5404a introduces alterations relating to property tax valuation for qualified rental units. A qualified rental unit refers to a residential rental unit subject to rent restrictions under State or federal law, excluding specific programs such as Section 8 moderate rehabilitation, Section 8 housing choice vouchers, or Section 236 or Section 515 rural development rental housing. Here’s a closer look at the amendment’s implications:

Pros for Homeowners:

Homeowners who possess a qualified rental unit parcel may be eligible for an exemption on their education property tax grand list. This exemption is calculated based on the ratio of square footage of improvements used for residential rental purposes to the total square footage of all improvements. Additionally, the ratio of qualified rental units to total residential rental units on the parcel influences the exemption calculation. By presenting a certificate of education grand list value exemption obtained from the Vermont Housing Finance Agency (VHFA), homeowners can claim this exemption. The exemption could help lower their property tax burden.

Cons for Homeowners:

While the exemption provides potential tax relief, there are limitations. The certificate of exemption expires under specific conditions: upon property transfer, expiration of rent restrictions, or after 10 years. This could result in the loss of tax benefits if the property changes ownership or the rent restrictions expire.

Amendment to § 6068 – Property Tax Credit:

The amendment to § 6068 relates to property tax credit claims and associated filing deadlines. Let’s delve into the changes:

Pros for Homeowners:

Homeowners seeking property tax credit or allocation of an income tax refund for homestead property tax payments have set filing deadlines to ensure their claims are processed on time. Filing promptly can lead to receiving the full property tax credit amount without reductions.

Cons for Homeowners:

Missing the initial filing deadline could result in reduced benefits. If a homeowner files a claim after the initial deadline but before a later deadline, there may be a reduction in the credit amount. Additionally, certain circumstances could lead to the issuance of an adjusted homestead property tax bill.


The amendments to Vermont’s property tax laws bring both potential benefits and limitations for homeowners. The exemption for qualified rental unit parcels provides a chance for property tax relief, but homeowners must be aware of the expiration conditions of the exemption certificate. Moreover, understanding the revised filing deadlines for property tax credits is crucial to ensure homeowners maximize their benefits and avoid any potential reductions.

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