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 2010-2011 tax bills, this difference was approximately  $ .05 per hundred dollars of assessed value.   

Up until this tax year, residents had to file a Homestead Declaration form annually in order to have the Homestead tax rate applied to their assessment. Beginning this year (2011), it is only necessary to file if (1) you buy or sell a residential property (2) the Homestead status of the property has changed, i.e. you previously lived in the house and are no longer doing so; or the opposite, i.e. you have not lived there and are now using it as your residence. (3) if you are now renting out a portion of your homestead property or using more than 25% for business. If you have declared either of these uses in prior years, and the percentage has changed, you also need to re-file.

For 2011, if you did not file the Homestead form and should have, there is a late fee for filing after April 18th. However, if you still file no later than September 1, you will receive the Homestead rate and penalty. The advantage of the Homestead tax rate will more than offset the penalty. If you file after September 1, you will not receive the Homestead tax rate, but will be charged the penalty. Note that if you qualify for the Homestead tax rate and do not file, you will not be eligible for an Income Sensitivity Adjustment in 2012 (State Tax Credit).