The task of the Ways & Means Committee is to raise revenue to support the functions of state government. An important goal of Ways & Means Committee is to ensure that taxes are set appropriately.  This is best accomplished by creating an overall system that taxes individuals with few resources at a lower rate than individuals with more resources — a principle known as progressivity.  Vermont’s tax system is one of the most progressive in the nation.


Taxation as a Reflection of Our Values

The Ways and Means committee relies on values that help us serve all Vermonters through an equitable and evolving tax system. These values are:

Progressivity: Tax policies that ensure Vermonters contribute a fair share of their resources to support the important functions of government.

Adequacy: Policies that raise enough revenue to fund the public structures that create opportunity for all Vermonters.

Equity: At times, policy has fostered inequitable outcomes for protected classes of citizens. Our tax policies advance economic opportunity for all Vermonters.

Viability: Tax policy has a viable path towards enactment in the legislature and is defendable to taxpayers.

With these values in mind, the Ways and Means Committee is working to fully fund school budgets, which have been considered and approved by local voters, in a way that reduces impacts on Vermont property taxpayers. The committee also worked to modernize and bring equity to our property tax system by updating our appraisal system, abating properties impacted by flooding, modernizing decades-old telecom taxes, and planning for climate resilience in a way that draws down federal dollars.

Our primary purpose is to meet Vermont’s revenue needs in a fiscally responsible way. That includes making sure that our revenues are strong and sustainable and that all Vermonters are contributing their fair share. Our tax structure is the bedrock of a strong state. 

If you are interested in learning more on Vermont’s budgeting process and how state revenue is generated, the legislature’s Joint Fiscal Office prepared a very informative slide set for our legislative briefing back in December.  It answers questions such as:

Where does the money come from? 

Where does the money go? 

What does the money buy? 

Here is the link:

The State Budget and Federal Funding 


Tax Resources for Vermonters

This year, the Ways & Means Committee has had a theme of helping Vermonters understand the options available to help reduce their tax burden and how to navigate challenges they may have with the tax system in Vermont.

Why file? Even if your income is below the threshold to file a return, you still should. There are credits and incentives available that can save a lot of money. First, if you are a homeowner you should file a homestead declaration. Two thirds of Vermonters are eligible for income-based property tax relief and filing the homestead declaration is the way to receive that discount.

Also, you may be eligible for some tax credits. There are dozens of credits, but two of our largest are the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). The EITC is meant to offset taxes paid by low-wage earners and the CTC offers a per-child amount to families.

Need help filing taxes to receive these important benefits? Taxpayers can find free tax preparation help near them with a simple search: https://irs.treasury.gov/freetaxprep/. Both AARP and Vermont Income Tax Assistance are two additional free resources for tax preparation.

Finally, Vermont’s Taxpayer Advocate is employed to help Vermonters navigate their tax challenges; reach out at (802) 828-6848 or tax.taxpayeradvocate@vermont.gov.