Douglas Proposes $15.6 Million in Property Tax Reductions

first_imgGovernor Douglas Proposes $15.6 Million in Property Tax ReductionsTwo Year Savings from Act 68 Would Exceed $41 MillionMontpelier, Vt. — Governor Jim Douglas today proposed to reduce Vermont’sstatewide property tax rates for education by 8 cents, an additional 3cents below the reduction achieved last year.”Under Act 68, the property tax reduction bill of 2003, the Legislatureestablished statewide homestead and non-residential property tax rates of$1.10 and $1.59 respectively,” Governor Douglas said. “In fiscal year2005, based on projected surpluses in the education fund I proposed, andthe legislature approved, lowering rates by 5 cents to $1.05 and $1.54.For fiscal year 2006, I will recommend statewide property tax rates arereduced a total of 8 cents to $1.02 and $1.51 respectively.”This would be the lowest statewide property tax rate since the tax wascreated by Act 60.Governor Douglas said the additional rate reduction would save propertytax payers an additional $15.6 million on top of the $25.9 million savedlast year. Bringing the total property tax savings achieved by Act 68 tomore than $41 million dollars over a two year period.Without lowered tax rates, the education fund would be collecting morethan is necessary from taxpayers, even while the demand for educationspending is being constrained by a lowered school population, the Governoradded.Although this would be the lowest statewide property tax rate since it wascreated with the passage of Act 60, Governor Douglas noted “there is morework to do to alleviate the tax burden on Vermonters,” and pledged topropose further improvements to the state’s education funding formula andto restrain growth in the state budget.last_img

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