Education Property Tax

The overall tax rate is comprised of the Municipal Tax Rate (approximately 1/3 of the tax bill) and the Education Tax Rate (approximately 2/3 of the tax bill). Prior to 2004, both tax rates were set at the local level, and based on budgets and the amount of taxable property in town. With the passage of Act 68 in 2003,  the calculation of the school tax rate shifted to the State. It also created two tax rates. One is the Homestead property rate, applied to property owned and occupied by a Vermont resident; the other is a Non-Resident rate, applied to all other property, including commercial, land and those properties owned by non-residents. Thus, while two properties may have the same assessment, the tax bills may differ. In the Town of Hartford, the Homestead tax rate has historically been less than the non-Resident rate. For the 2008-2009 tax bills, this difference is approximately  $ .12 per hundred dollars of assessed value.   

Each May, our office receives a list of those taxpayers who have filed Homestead Declarations (HS-122 in Income Tax booklet). We classify these properties as "Homestead" and the Finance Department applies the Homestead tax rate to the assessment. We cannot classify a property as Homestead unless the State reports to us that the appropriate form has been filed. It is therefore important to file this form on time if you are a resident. For 2008, if it is filed after April 15, but prior to September 2, you will be taxed at the Homestead Rate, however, a penalty will be applied. If you file after September 2, you will not receive the Homestead tax rate, but will be charged the penalty. Note that if you rent out a part of your property, or use over 25% of the structure for business, this should be reported on the Homestead Declaration form so that the Non-Resident rate can be applied to that percentage of the property.