The state education property tax is based on each municipality's grand list of properties. The Division of Property Valuation and Review (PVR) conducts an annual Equalization Study of all the municipal grand lists.
The primary purpose of the Equalization Study is to assess how close the properties on the grand lists compare to fair market value. The reference to equalization stems from the fact that most municipalities' grand lists are not at 100% of fair market value in any given year. If the grand lists were always at 100% of fair market value, there would be no reason for the state to estimate market values and determine common levels of appraisal (CLA). The CLA is used to equalize the education property tax rates throughout the state.
The commissioner is required to determine the equalized education property tax grand list and coefficient of dispersion (COD) for each municipality in the State. 32 V.S.A. § 5405.
The COD helps to ensure that property valuations within a municipality are equitable.
The results of the Equalization Study accomplish the following:
- Determine education property tax rates
- Determine whether a municipality must undergo a reappraisal
- Determine taxes municipalities pay to the county
Hartford Assessment Levels
(published by PVR December 23, 2022)
- Education Grand List (from 411): $1,405,160,000
- Equalized Education Grand List (EEGL): $1,821,300,241
- Common Level of Appraisal (CLA): 77.15% or 0.7715
- Coefficient of Dispersion (COD): 20.28%