Charter Committee hits pause on ‘tax fairness’ measures, ponders advisory vote
By Guy Page
The City of Burlington will go slow on a plan to increase the property tax exemption and shift the burden to higher-value properties.
The City Charter Change Committee had planned to move forward Monday night with discussions on a new homestead property value exemption of up to the first $50,000 of real estate value. The exemption – backed by Mayor Emma Mulvaney Stanak – would benefit lower-value homes the most, but would increase the taxes of commercial properties (including rental properties) and higher-value first and second homes within the city limits.
Had the Charter Change Committee referred the proposal to the City Council, and had they voted to approve, it would have then gone to voters. Had voters given it their okay – likely at the City Meeting in March – the plan would then have required approval by the Legislature.
However, city officials Monday night instead opted to study the issue further and said it might be presented to voters as an advisory question.
As proposed, owners of homes and commercial properties valued at $800,000 or more would see their tax bills rise by an average of 4 to 6 percent, according to reporting by WCAX.
Burlington Business Association executive director Kelly Devine said higher taxes could push businesses off Church Street, where operating costs are already steep. “It’s not so much that these small businesses will fail, but they may decide to manage their costs better by abandoning Church Street because rents are already high,” Devine said. “The cost of doing business is high. The cost of parking is high.”
Both measures were presented as ways to address inequities in the city’s tax system and close longstanding structural budget gaps. The committee met at 6 p.m. Monday, Nov. 10, in the Bushor Conference Room and via Zoom. A “General Fund Tax Fairness Discussion” topped the agenda.
Borrowing more without voter approval
At present, the City Council can direct city officials to borrow up to $2 million to meet expenses, without needing voter approval by referendum. A proposed change would allow the City to borrow up to $5 million without referendum in 2028, and $10 million in 2031.
City officials announced last week that Burlington’s bond rating had improved dramatically as a result of financial management under longtime Mayor Miro Weinberger. Increasing bonding authority could (but not necessarily would) impact the city’s bond rating and therefore the interest required to repay borrowed money.
The charter change would allow five percent of the voters to contest the bonding via referendum.
Next steps
The Charter Change Committee is expected to recommend further study of both proposals before any formal action is taken.