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Bill

H 774

An act relating to a three-year education property tax freeze

2025-2026 Regular Session Introduced by Dave Bosch and 20 co-sponsors

A three-year freeze halts increases in education property taxes, keeping tax bills at current levels for the period to provide predictability for property owners.

Read first time and referred to the Committee on Ways and Means
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Bill Summary · H 774

Summary of Bill H 774 (Session 2025-2026) – Vermont

Purpose and intent

  • The bill is titled An act relating to a three-year education property tax freeze.
  • Its central aim is to implement a temporary freeze on education property taxes for a period of three years.
  • The measure is designed to limit the rate at which education property taxes can increase, providing predictability for property owners and taxpayers during the defined period.

Key provisions and changes

  • Three-year freeze: Establishes a concrete three-year window during which education property tax rates or assessment-based charges would be frozen at current levels, preventing increases in the education property tax bill within that period.
  • Scope of freeze: The provision applies to the education property tax component; other local taxes or state funding mechanisms are not necessarily altered by this bill unless explicitly stated.
  • Administrative implementation: The bill would require appropriate state or local authorities (likely the Department of Taxes and/or relevant Vermont education finance bodies) to implement and enforce the freeze, including any necessary adjustments to tax billing, assessment procedures, or timing.
  • Exceptions or adjustments: The bill may specify certain carve-outs (e.g., for reappraisals, significant changes in property value due to renovations, or voter-approved overrides) or specify how new property classifications or exemptions interact with the freeze. The exact language would determine whether normal reassessment cycles or levy changes can still occur in year-to-year timing within the three-year window.
  • Duration and terms: Clear start and end dates for the three-year period, and any provisions for renewal, extension, or automatic expiration if specified in the text.

Who and what would be affected

  • Property taxpayers in Vermont who pay education property taxes would experience capped or stabilized tax bills for the duration of the freeze.
  • Local school districts and education finance administrators would need to administer the freeze, adjust budgeting, and manage any resultant shifts in funding streams or levy authority.
  • State education finance system stakeholders, including the Department of Taxes, Department of Education, school board associations, and municipal treasurers, would implement and monitor compliance with the freeze.

Procedural and timeline aspects

  • Status: Read first time and referred to the Committee on Ways and Means (as of 2026-01-23).
  • Next steps typically include:
    • Committee review, possible amendments, and public hearings.
    • Committee vote and potential passage to the full chamber.
    • Consideration by the other legislative chamber and potential gubernatorial action.
  • If enacted, the freeze would take effect per the bill’s specified start date and conclude after three years, unless further legislative action is taken to modify or extend it.

Potential impacts and considerations

  • Taxpayers: Reduced or stabilized education property tax bills during the three-year period, providing financial relief or predictability.
  • School funding: Possible implications for local budgeting and funding adequacy if revenues are constrained by the freeze; may prompt adjustments in state aid, levy limits, or funding formulas.
  • Local governments: Municipalities may need to adjust tax billing processes and communicate changes to residents.
  • Economic/household effects: Short- to medium-term relief for property owners, with potential trade-offs in budgeting flexibility for education funding after the freeze ends.

Note: This summary reflects the bill’s stated aim and typical mechanics of a multi-year tax freeze. For precise language, definitions (e.g., what constitutes “education property tax” in this context), specific exemptions, effective dates, and any fiscal notes, the bill’s text and accompanying fiscal impact statements should be reviewed.

Compiled from official sources — confirm details with the bill’s official record.

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