Bill > S0280

This bill establishes new property tax classifications and rates for certain residential properties, specifically those used as second homes or short-term rentals, which are referred to as "nonhomestead residential" and "nonhomestead seasonal" properties. Currently, properties are generally classified as "homestead" (primary residence) or "nonhomestead nonresidential" (businesses, vacant land, etc.). This bill introduces "nonhomestead residential" for properties that are not primary residences but are still residential in nature, and "nonhomestead seasonal" for residential properties not fit for year-round habitation. The primary purpose of these changes is to implement a higher education property tax rate for these nonhomestead residential and seasonal properties, with the additional revenue generated being directed into a newly created "School Construction Aid Special Fund" to support school construction projects. The bill also outlines the process for classifying properties, including proportional classification based on floor space if a parcel has multiple uses, and sets forth the effective dates for these changes, with the new classifications and rates taking effect on January 1, 2028.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/S.280