Ways and Means Committee

The House Committee on Ways and Means considers matters relating to the revenue of the State, and which shall report the amount of taxes necessary to be raised for the support of the government and inquire what measures, if any, ought to be adopted, the better to equalize the public burdens, and otherwise improve the financial concerns of the State, including all matters relating to taxation, local or otherwise, and all matters relating to the grand list, and other similar policies.

The Ways and Means committee is focused on reckoning with the Trump Administration’s giveaways to corporations and the wealthiest few Americans. This includes continued work on property-tax reform and fair education spending, and ensuring we have the best revenue structure to support our important state programs while increasing accountability and affordability for taxpayers. 

Last year, lawmakers expanded Vermont's Earned Income Tax Credit and Child Tax Credit. If you work a low-wage job and don't have children, you may be able to get up to $400 more a year in refundable credits as cash back when you file your taxes.  If you have a child under seven, you may be able to get back up to $1,000 per child. 

You also might be eligible for a credit on your property taxes when you file your homestead declaration.

Remember, you likely don't need to pay to file your taxes. Vermont has volunteer tax preparers all over the state ready to help you. 

Go to TaxCreditsVT.org for more information about Vermont's anti-poverty tax credits and how to file for them.

The committee is working to set the annual yield (education property tax) bill while awaiting results of school budget votes to determine the full amount that must be raised. These are unstable times. Property taxes will likely remain challenging as debate over implementation of education transformation continues. The legislature is committed to doing everything possible to stabilize and lower Vermonters’ property tax bills this year while maintaining essential public services and quality public education opportunities for our children. 

As part of the work to make Vermont’s property tax system more fair, the committee is continuing work started last year on the creation of regional assessment districts (RAD) and the design of a tax on second homes. RADs will allow towns in a region to work together to ensure that the state has a consistent appraisal cycle. The goal is property taxes are spread fairly across the state with fewer swings in individual taxpayer bills from year to year. A different (and higher) property tax rate on second homes will support our public schools while reducing property taxes on homesteads, businesses, apartments, and seasonal camps.

The Reconciliation Act (H.R.1), passed by the federal government last summer, made many changes to corporate and personal income tax laws. By tradition, Vermont links up many definitions of personal and corporate taxable income to the federal definitions each year. If we choose to do that this year, many of the changes made in the Reconciliation Act would have an impact on Vermont’s state tax revenue. The legislature must make careful decisions about where Vermont might be better off decoupling from Trump administration policies so we have enough revenue to continue to provide the services Vermonters expect.