By Guy Page
Democratic lieutenant governor candidate Ryan McLaren on Monday, May 18 unveiled his “Yes In My Back Yard Tax Credit” plan to provide municipalities with $25,000 in education property tax relief for every new home fully permitted this year.
Because the Legislature controls spending decisions, the plan would require its approval. YIMBY would redirect one-time state money now used for temporary property tax relief into incentives for new housing construction.
According to McLaren’s campaign statement, Vermont spent about $175 million in one-time funding between 2023 and 2025 to fill structural deficits in the Education Fund. McLaren argued the state should instead use surplus revenues to encourage housing growth that would expand the statewide grand list and increase the number of taxpayers supporting schools.
“This does not cut education. It does not ask schools to do more with less,” McLaren said. “Instead of closing schools, we should be filling them with kids. And instead of a tax shell game, we can add billions of dollars to our grand list — lowering property taxes in perpetuity.”
McLaren, a Washington County resident, is a former aide to Sen. Peter Welch. He is a candidate in a three-way Democratic primary with 2024 gubernatorial candidate Esther Charlestin and former Lt. Gov. Molly Gray. Incumbent John Rodgers, a Republican, has announced he is seeking re-election.
The YIMBY proposal would:
- Provide $25,000 in municipal education property tax relief for every new home permitted, up to 4,000 homes.
- Incentivize faster local and state permitting.
- Reserve half the program’s funding for towns with fewer than 5,000 residents.
- Offer $50,000 planning grants to underinvested and flood-impacted municipalities.
- Provide $20,000 planning grants for towns without zoning.