The question remains, how will the $230 million education fund deficit that is slated to increase property taxes by 18% be addressed? The House has already passed $125 million in tax increases, in addition to the $100 million payroll tax passed last year, but none are set to alleviate the property tax burden and will only further limit the taxing capacity of Vermonters and businesses.

The House Ways and Means Committee is considering a $20 million “cloud tax” on internet-based services and a potential 3% short-term rental surcharge related to the yield bill, which determines Vermont’s statewide property tax rate. The bill’s original scope has been scaled back, however, an increase in the non-homestead rate to 18.57% seems likely to remain. This shift would burden non-homestead payers, including businesses, with an additional $25 million in taxes to subsidize the property tax credit for homeowners.