by Sam Douglass

Information for In Committee news reports are sourced from GoldenDomeVt.com and the General Assembly website. Generative AI has not been used in the writing of this story. 

With an estimated 12 percent increase to property tax rates looming and school budget votes knocking on our doors, a Vermont House committee briefly discussed a bill to freeze property taxes. 

On Friday last week, the Vermont House Committee on Ways and Means received an introduction of a bill that aims to freeze property tax rates for the next three years. H.774, introduced in the committee by Representative Gina Galfetti (R-Washington Orange), was presented as a “straightforward bill” to be used as a blank slate for the committee to build out policies for property tax relief. However, the response from the committee did not signal optimism for the bill’s future. 

“The idea is for it to go through the committee process and figure out a way to make it the best bill that it could be. That was the intent of the bill, and hopefully you guys will be able to take some testimony on it and come up with something that can deliver tax relief this year for Vermonters, like we were sent here to do,” said Galfetti. By using her bill as a starting point, she envisions that the committee could expand the language to cover specific demographics or areas in tax reform that need targeted property tax relief. 

The bill had been a work-in-progress since it was initially announced in January, which arrived on the heels of the announcement of a nearly 12 percent increase in property taxes statewide in 2026. In her announcement, Galfetti explained that the concept behind the bill came from her disillusionment over what she viewed as a refusal to act by the Act 73 education map committee during the summer break. 

“Governor Scott proposed a sweeping education reform bill, and many of us went out on a limb to give it a shot. What has happened thus far is that the special committee comprised [sic] of a mix of legislators and non-legislators that was tasked with drawing new districts over the summer refused to do their assigned task, with Democrat members that are in the majority refusing to do it,” said Galfetti in her announcement. 

When presenting her bill on Friday in Ways and Means, Galfetti received pushback from committee members over its potential pitfalls. When asked about the pushback she received, she said her reception in the committee was “not well at all” and described it as “confrontational” and dismissive about the need to make cuts to spending. 

The Chair of Ways and Means, Representative Emily Kornheiser (D-Windham 7), was dubious about the bill and expressed some of her concerns to the committee of how the bill could actually

hurt Vermonters more than current property tax pressure. “…what happens when we freeze property tax rates and then values are different all over the state isn’t a reduction in spending. It’s just an increase in people’s bills in a way that’s even less fair than what might be happening right now.” 

A recent memo from the non-partisan Joint Fiscal Office to the Speaker of the House, Rep. Jill Krowinski, detailed the cost to curtail the tax rate of our education system over the next three years. For fiscal years, 2027, 2028, and 2029, JFO estimates it will cost approximately $480 million to keep property tax rate growth at five percent each year. It’s unclear whether this memo was issued as a result of Galfetti’s bill. 

When asked about this estimate from JFO, Galfetti wasn’t concerned. “We’re already buying down the rates, which obviously isn’t a solution, but it gives taxpayers a break while we make changes to how we’re funding education.” 

In her bill, overages in funding would ideally be drawn directly from the general fund, which she admits would likely require some significant cuts. “My idea is painful,” said Galfetti regarding the cuts. “but if we can’t fix Ed spending, then it’s our job to make cuts so this growth doesn’t fall on taxpayers. If taxpayers are making hard choices then we [legislators] should be too” 

Governor Phil Scott’s FY2027 budget recommendation for the overall state budget totals $9.4 billion and demonstrates an increase of roughly 4.5 percent over his FY2026 recommendation. 

According to the tax department, Vermont now leads the nation in education spending. In the annual “December 1” letter to the legislature that announced the expected 2026 rate increase, Tax Department Commissioner William Shouldice explained the impact that our tax policies may have on Vermonters. “If we allow this landscape to persist, we cannot seriously expect young and growing families to buy homes and settle in Vermont; local voters to approve budgets; or seniors on fixed incomes to retire comfortably in Vermont,” said Shouldice. 

Ahead of Tuesday’s school budget votes, Governor Phil Scott has indicated that he plans to vote against his local district school budget and many Vermonters across social media are alarmed about rates rising once again.