Vt. education fund surplus could mean lower property taxes

MONTPELIER, Vt. (WCAX) - Vermont’s Education Fund is seeing a $90 million windfall and state officials want to use it to help lower property taxes.

Officials say the surplus comes from several places including better than expected sales and meals and rooms taxes, as well as property tax credits costing less than expected, and a surplus from last year. A lot of that has been driven by an influx of federal stimulus funding through the pandemic.

The annual education tax rate letter helps decision-makers get a better sense of the economic picture heading into the budgeting season. It previews the education tax yields for homeowners and the non-homestead tax rate.

This year, the tax department is reporting a $90 million surplus in the ed fund. The Scott administration wants to split it two ways -- $45 million would be returned to property taxpayers and the other half would be invested into workforce training and improvements in public schools.

Copyright 2021 WCAX. All rights reserved.