By Michael Bielawski
A new study by WalltHub.com has Vermont at the third highest state tax burden in the nation and not much separates it from #1 New York State.
A breakdown of the numbers is Vermont is at 11.12%, New York is at 12.02% and Hawaii ranks second at 11.80%. The study can be read here.
Vermont’s property tax burden is 4.85%, the second highest in the nation. That figure is likely to increase with the estimated 13.8% statewide property tax resulting from the school funding bill passed by the Legislature last week. The individual income tax burden is 3.09% ranking 11th in the nation. The total sales & excise tax burden is 3.18% which is 27th nationally.
On the other side of the scale of the tax burden, Alaska has the lowest overall nationally at 4.93%. One of Vermont’s neighbors, New Hampshire, has the second lowest in the nation at 5.63%. And Florida which shares many multi-homeowners with Vermont has the fourth lowest at 6.05%.
The tax burden has ignited public criticism at levels unseen in recent years from the public which was told earlier this year that they may face about 20% in new property taxes.
The event with hundreds of distraught Vermonters gathering in the halls and rooms of the Statehouse – for the second time this session – largely culminated with a speech by former State Senator and gubernatorial candidate John Rodgers.
“The legislature wasted time on an Act 250 bill which makes it easier for wealthy developers to develop in downtowns that are dumping raw sewage into our waterways,” Rodgers said in a press conference.
He continued, “While making it harder to develop and subdivide in rural communities where most young Vermonters want to be.”
He also criticized that the energy policies are being largely dictated by and benefiting large green energy companies rather than being driven by helping Vermonters.
Gov. Phil Scott has also been publicly critical of efforts by the legislature to remix how school taxes are collected but not require tangible efforts to reduce spending.
“The yield bill being considered today in the house, and the huge property tax increase it will bring, I don’t believe is something most Vermonters can accept,” Scott said on Wednesday.
He added, “And from what I’ve heard I don’t think the Senate will either. Vermonters simply cannot afford a historic double-digit increase in their property taxes.”
Rep. Casey Toof, R- St. Albans, was one of numerous lawmakers to sound off critical of H. 887 which intends to redistribute tax burden but does little to reduce it.
He said, “[H.887] is not going to fix the structural problems with our education system, this is putting a band aid on this issue… my grandmother is in her 90s and spends $20 per week on groceries and this 13% increase that is going to affect her.”
Friday, Toof tweeted on X that “the VT House just voted 93-44 on Yield bill that will set property tax bills w/ an average increase of 13.8% across the state. I voted no because it’s irresponsible for us to ask Vters to pay historic double digit property tax increases w/o any structural changes to the Ed Fund.”
Gregory Thayer recently announced candidacy to run again for the GOP ticket for lieutenant governor. In his announcement he warned non-homeowner Vermonters that they too should be concerned about rising property taxes.
“Renters, I know you don’t pay property tax. They charge your landlords an extra 25%, and believe me, your landlord will increase your rent up to take care of the payment. State government is regulating Vermonters into the poorhouse, with inflation up 18% in three years.”