by Guy Page
The House on Tuesday, April 2 approved H.829, allocating $100 million/year for 10 years to improve housing. The revenue comes from higher income taxes for the wealthy and an increase in the property transfer tax for properties of $750K or more.
The bill pays for selected housing improvements by raising the income tax 34% for incomes $500K or more – from the current 8.75% to 11.75%. It’s expected to raise about $74 million/year.
Also, a 3.65% added transfer tax on properties worth $750K will raise $21 million. An PPT reduction on some lower-end properties will cost the state $3.65 million in revenue, resulting in a combined $17 million in new revenue from all PPT changes in the bill.
Key provisions of the bill include retaining and enhancing programs such as the Vermont Housing Improvement Program (VHIP), which has already rehabilitated over 500 units, and increasing investments in mobile and manufactured home parks.
A Progressive caucus amendment to require ‘just cause’ eviction was rejected 13-119.
“When you are in crisis you need to act. This bill is action to move us out of crisis,” Rep. Robin Chesnut-Tangerman (D/P Middletown Springs) said. “Voting no is not a solution.”
Minority Leader Rep. Patti McCoy (R-Poultney) disagreed and explained why:
“Raising taxes and fees, instead of funding these programs through our budget, is something I cannot support. Increasing the property transfer tax as well as the personal income tax to support these programs is something that I cannot support. My vote is no.”