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Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 32: Taxation and Finance

Chapter 154: HOMESTEAD PROPERTY TAX CREDIT AND RENTER CREDIT

  • § 6061. Definitions

    [Introductory paragraph applicable to taxable years prior to January 1, 2021; see also introductory paragraph applicable to taxable years beginning on or after January 1, 2021 .]

    The following definitions shall apply throughout this chapter unless the context requires otherwise:

    [Introductory paragraph applicable to taxable years beginning on and after January 1, 2021; see also introductory paragraph applicable to taxable years prior to January 1, 2021 .]

    As used in this chapter unless the context requires otherwise:

    [Subdivision (1) applicable to taxable years prior to January 1, 2021; see also subdivision (1) applicable to taxable years beginning on or after January 1, 2021 .]

    (1) "Property tax credit" means a credit of the prior tax year's statewide or local share property tax liability or a homestead owner or renter credit, as authorized under section 6066 of this title, as the context requires.

    [Subdivision (1) applicable to taxable years beginning on and after January 1, 2021; see also subdivision (1) applicable to taxable years prior to January 1, 2021 .]

    (1) "Property tax credit" means a credit of the prior tax year's statewide or local share property tax liability or a homestead owner credit, as authorized under section 6066 of this title, as the context requires.

    (2) [Repealed.]

    (3) "Household" means, for any individual and for any taxable year, the individual and such other persons as resided with the individual in the principal dwelling at any time during the taxable year. A person who is not related to any member of the household and who is residing in the household under a written homesharing agreement pursuant to a nonprofit homesharing program or a person residing in a household who is hired as a bona fide employee to provide personal care to a member of the household and who is not related to the person for whom the care is provided shall not be considered to be a member of the household.

    (4)(A) "Household income" means modified adjusted gross income, but not less than zero, received in a calendar year by:

    (i) all persons of a household while members of that household; and

    (ii) the spouse of the claimant who is not a member of that household and who is not legally separated from the claimant in the taxable year as defined in subdivision (9) of this section, unless the spouse is at least 62 years of age and has moved to a nursing home or other care facility with no reasonable prospect of returning to the homestead.

    (B) "Household income" does not mean:

    (i) the modified adjusted gross income of the spouse or former spouse of the claimant, for any period that the spouse or former spouse is not a member of the household, if the claimant is legally separated or divorced from the spouse in the taxable year as defined in subdivision (9) of this section;

    (ii) the modified adjusted gross income of the spouse of the claimant, if the spouse is subject to a protection order as defined in 15 V.S.A. § 1101(5) that is in effect at the time the claimant reports household income to the Department of Taxes.

    (5) "Modified adjusted gross income" means "federal adjusted gross income":

    (A) Before the deduction of any trade or business loss from a sole proprietorship, loss from a partnership, loss from a limited liability company or "subchapter S" corporation, loss from a rental property, or capital loss, except that in the case of a business which sells a business property with respect to which it is required, under the Internal Revenue Code, to report a capital gain, a business loss incurred in the same tax year with respect to the same business may be netted against such capital gain, and except that a business loss from a sole proprietorship may be netted against a business gain from a sole proprietorship, as long as the loss and the gain are incurred in the same tax year with respect to different business.

    (B) With the addition of the following, to the extent not included in adjusted gross income: alimony, support money other than gifts, gifts received by the household in excess of a total of $6,500.00 in cash or cash-equivalents, cash public assistance and relief (not including relief granted under this subchapter), cost of living allowances paid to federal employees, allowances received by dependents of servicemen and women, the portion of Roth IRA distributions representing investment earnings and not included in adjusted gross income, railroad retirement benefits, payments received under the federal Social Security Act, all benefits under Veterans' Acts, federal pension, and annuity benefits not included in adjusted gross income; nontaxable interest received from the state or federal government or any of its instrumentalities, workers' compensation, the gross amount of "loss of time" insurance, and the amount of capital gains excluded from adjusted gross income, less the net employment and self-employment taxes withheld from or paid by the individual (exclusive of any amounts deducted to arrive at adjusted gross income or deducted on account of excess payment of employment taxes) on account of income included under this section, less any amounts paid as child support money if substantiated by receipts or other evidence that the Commissioner may require.

    (C) Without the inclusion of: any gifts from nongovernmental sources other than those described in subdivision (B) of this subdivision (5); surplus food or other relief in kind supplied by a governmental agency; or the first $6,500.00 of income earned by a full-time student who qualifies as a dependent of the claimant under the federal Internal Revenue Code; the first $6,500.00 of income received by a person who qualifies as a dependent of the claimant under the Internal Revenue Code and who is the claimant's parent or adult child with a disability; any income attributable to cancellation of debt; or payments made by the State pursuant to 33 V.S.A. chapters 49 and 55 for foster care, or payments made by the State or an agency designated in 18 V.S.A. § 8907 for adult foster care or to a family for the support of a person who is eligible and who has a developmental disability. If the Commissioner determines, upon application by the claimant, that a person resides with a claimant who has a disability or was at least 62 years of age as of the end of the year preceding the claim, for the primary purpose of providing attendant care services (as defined in 33 V.S.A. § 6321) or homemaker or companionship services, with or without compensation, which allow the claimant to remain in his or her home or avoid institutionalization, the Commissioner shall exclude that person's modified adjusted gross income from the claimant's household income. The Commissioner may require that a certificate in a form satisfactory to him or her be submitted which supports the claim.

    (D) Without the inclusion of adjustments to total income except certain business expenses of reservists, one-half of self-employment tax paid, alimony paid, deductions for tuition and fees, health insurance costs of self-employed individuals, and health savings account deductions.

    (E) With the addition of an asset adjustment of 1 x the sum of interest and dividend income included in household income above $10,000.00 for claimants under age 65, regardless of whether that dividend or interest income is included in federal adjusted gross income.

    (6) "Property tax" means the amount of ad valorem taxes, exclusive of special assessments, interest, penalties, and charges for service, assessed on real property in this State used as the claimant's housesite, or which would have been assessed if the homestead had been properly declared at the time of assessment.

    [Subdivision (7) applicable to taxable years prior to January 1, 2021; see also subdivision (7) applicable to taxable years beginning on and after January 1, 2021 .]

    (7) "Allocable rent" means for any housesite and for any taxable year 21 percent of the gross rent. "Gross rent" means the rent actually paid during the taxable year by the individual or other members of the household solely for the right of occupancy of the housesite during the taxable year. "Allocable rent" shall not include payments made under a written homesharing agreement pursuant to a nonprofit homesharing program, or payments for a room in a nursing home in any month for which Medicaid payments have been made on behalf of the claimant to the nursing home for room charges.

    [Subdivision (7) applicable to taxable years beginning on and after January 1, 2021; see also subdivision (7) applicable to taxable years prior to January 1, 2021 .]

    (7)(A) "Allocable rent" means for any housesite and for any taxable year 21 percent of the gross rent.

    (B) "Gross rent" means the rent actually paid during the taxable year by the claimant solely for the right of occupancy of the housesite during the taxable year.

    (C) "Fair market rent" means the monthly fair market rent for the area in which the claimant resides as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. §  1437f as of June 30 of the taxable year multiplied by 12, provided that for claimants who reside in Franklin or Grand Isle county, "fair market rent" means the average of the fair market rents for the State as determined by the U.S. Department of Housing and Urban Development.

    (8) "Annual tax levy" means the property taxes levied on property taxable on April 1, and without regard to the year in which those taxes are due or paid.

    (9) "Taxable year" means the calendar year preceding the year in which the claim is filed.

    (10) [Repealed.]

    (11) "Housesite" means that portion of a homestead, as defined under subdivision 5401(7) of this title but not under subdivision 5401(7)(G), which includes as much of the land owned by the claimant surrounding the dwelling as is reasonably necessary for use of the dwelling as a home, but in no event more than two acres per dwelling unit; and in the case of multiple dwelling units, no more than two acres per dwelling unit up to a maximum of 10 acres per parcel.

    (12) "Claim year" means the year in which a claim is filed under this chapter.

    (13) "Homestead" means a homestead as defined under subdivision 5401(7), but not under subdivision 5401(7)(G), of this title and declared on or before October 15 in accordance with section 5410 of this title.

    (14) "Statewide education tax rate" means the homestead education property tax rate multiplied by the municipality's education spending adjustment under subdivision 5402(a)(2) of this title and used to calculate taxes assessed in the municipal fiscal year which began in the taxable year.

    (15) "Adjusted property tax" means the amount of education and municipal property taxes on the homestead parcel after reduction for any property tax credit under section 6066a of this chapter.

    (16) "Unadjusted property tax" means the amount of education and municipal property taxes on the homestead parcel before any reduction for a property tax credit under section 6066a of this chapter.

    (17) "Equalized value of the housesite in the taxable year" means the value of the housesite on the grand list for April 1 of the taxable year, divided by the municipality's common level of appraisal determined by equalization of the grand list for April 1 of the year preceding the taxable year.

    [Subdivisions (18)-(20) applicable to taxable years beginning on and after January 1, 2021.]

    (18) Notwithstanding subdivisions (4) and (5) of this section, for the purposes of the renter credit, "income" means federal adjusted gross income increased by the following:

    (A) trade or business loss from a sole proprietorship, loss from a partnership, loss from a limited liability company or "subchapter S" corporation, loss from a rental property, capital loss, loss from an estate or trust, loss from a real estate mortgage investment conduit, farm rental loss, any loss associated with the sale of business property, and farm losses included in adjusted gross income;

    (B) exempt interest received or accrued during the taxable year;

    (C) 75 percent of the portion of Social Security benefits as defined under 26 U.S.C. § 86(d) that is excluded from gross income under 26 U.S.C. § 86 for the taxable year; and

    (D) to the extent excluded from federal adjusted gross income, educator expenses; certain business expenses of reservists, performing artists, and fee-basis government officials; health savings account deductions; moving expenses for members of the U.S. Armed Forces; the deductible part of self-employment tax; self-employed SEP, SIMPLE, and qualified plan deductions; self-employed health insurance deductions; the penalty for early withdrawal of savings; alimony paid; certain IRA retirement savings deductions; student loan interest deductions; and tuition and fees deductions.

    (19) "Extremely low-income limit" means the limit as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. §  1437a as of June 30 of the taxable year, provided that for claimants who reside in Franklin or Grand Isle county, "extremely low-income limit" means the average of the extremely low-income limits for the State as determined by the U.S. Department of Housing and Urban Development.

    (20) "Very low-income limit" means the limit as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. §  1437a as of June 30 of the taxable year, provided that for claimants who reside in Franklin or Grand Isle county, "very low-income limit" means the average of the very low-income limits for the State as determined by the U.S. Department of Housing and Urban Development. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 15, eff. Jan. 1, 1998; 1999, No. 49, §§ 9, 15, eff. June 2, 1999; 2001, No. 63, § 163b; 2001, No. 144 (Adj. Sess.), § 15, eff. June 21, 2002; 2003, No. 68, §§ 8, 9, eff. June 18, 2003; 2003, No. 68, § 7, eff. July 1, 2004; 2003, No. 76 (Adj. Sess.), §§ 4, 15, 16, eff. Feb. 17, 2004; 2005, No. 38, § 7, eff. Jan. 1, 2006; 2005, No. 38, § 12, eff. June 2, 2005; 2005, No. 38, § 18; 2005, No. 94 (Adj. Sess.), § 7, eff. March 8, 2006; 2005, No. 185 (Adj. Sess.), §§ 1, 7, 13; 2007, No. 33, § 9, eff. May 18, 2007; 2007, No. 37, § 3; 2007, No. 65, § 292, eff. June 4, 2007; 2009, No. 160 (Adj. Sess.), §§ 23, 24, 51; 2011, No. 45, § 13, eff. Jan. 1, 2012; 2011, No. 143 (Adj. Sess.), §§ 10, 26, 31a, eff. Jan. 1, 2013; 2013, No. 96 (Adj. Sess.), § 197; 2015, No. 134 (Adj. Sess.), § 16, eff. May 25, 2016; 2019, No. 51, §§ 23, 30; 2019, No. 160 (Adj. Sess.), § 1, eff. Jan. 1, 2021.)

  • § 6062. Number and identity of claimants; apportionment

     [Subsection (a) applicable to taxable years prior to January 1, 2021; see also subsection (a) applicable to taxable years beginning on and after January 1, 2021 .]

    (a) In the case of a renter credit claim based solely on allocable rent, the claimant shall have rented property during the entire taxable year; provided, however, a claimant who owned a homestead which was sold in the taxable year prior to April 1 may file a renter credit claim. If two or more individuals of a household are able to meet the qualifications for a claimant hereunder, they may determine among them who the claimant shall be. Any disagreement under this subsection shall be referred to the Commissioner and his or her decision shall be final.

     [Subsection (a) applicable to taxable years beginning on and after January 1, 2021; see also subsection (a) applicable to taxable years prior to January 1, 2021 .]

    (a) In the case of a renter credit claim, the claimant shall have rented property for the right of occupancy during at least six calendar months, which need not be consecutive, in the taxable year to be eligible for a credit under this chapter. More than one renter credit claimant per household per year may be entitled to relief under this chapter.

     [Subsection (b) applicable to taxable years prior to January 1, 2021; see also subsection (b) applicable to taxable years beginning on and after January 1, 2021 .]

    (b) Only one claimant per household per year shall be entitled to relief under this chapter.

     [Subsection (b) applicable to taxable years beginning on and after January 1, 2021; see also subsection (b) applicable to taxable years prior to January 1, 2021 .]

    (b) Only one property tax credit claimant per household per year shall be entitled to relief under this chapter.

    (c) When a homestead is owned by two or more persons as joint tenants, tenants by the entirety, or tenants in common and one or more of these persons are not members of the claimant's household, the property tax is the same proportion of the property tax levied on that homestead as the proportion of ownership of the homestead by the claimant and members of the claimant's household; provided, however, that:

    (1) the property tax of a claimant who is 62 years of age or older is the same proportion of the property tax levied on that homestead as the proportion of ownership of the homestead by the claimant, members of the claimant's household, and the claimant's descendants; and the claimant's siblings or spouse who have moved on an indefinite basis from the homestead to a residential care or nursing home and who claim no rebate or credit for such year under this chapter.

    (2) the property tax of a claimant who is a joint tenant or tenant by the entirety with, and legally separated from, a spouse who is not a member of the household, is the tax on the housesite for which the claimant is responsible pursuant to a court-approved settlement agreement.

    (3) the property tax of a claimant who is a joint tenant with a former spouse and who has possession of the homestead pursuant to the joint owners' final divorce decree is the property tax for which the claimant is responsible under the joint owners' final divorce decree or any modifying orders.

    (4) if the homestead is a portion of a duplex, and all owners of the duplex occupy some portion of the building as their principal residence, the property tax of the claimant shall be that percentage of the total property tax equal to the ratio of the claimant's principal residence value to the total duplex building value.

    (d) Whenever a housesite is an integral part of a larger unit such as a farm, or a multi-purpose or multi-dwelling building, property taxes paid shall be that percentage of the total property tax as the value of the housesite is to the total value. Upon a claimant's request, the listers shall certify to the claimant the value of his or her homestead and housesite.

    (e) A dwelling owned by a trust is not the homestead of the beneficiary unless the claimant is the sole beneficiary of the trust, and:

    (1) the claimant or the claimant's spouse was the grantor of the trust, and the trust is revocable or became irrevocable solely by reason of the grantor's death; or

    (2) the claimant is the parent, grandparent, child, grandchild, or sibling of the grantor, the claimant is mentally disabled or severely physically disabled, and the grantor's modified adjusted gross income is included in the household income calculation. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1999, No. 49, § 14, eff. June 2, 1999; 1999, No. 159 (Adj. Sess.), § 35; 2001, No. 144 (Adj. Sess.), § 16, eff. June 21, 2002; 2003, No. 76 (Adj. Sess.), § 17, eff. Feb. 17, 2004; 2005, No. 38, § 15; 2009, No. 160 (Adj. Sess.), § 27; 2019, No. 160 (Adj. Sess.), § 2, eff. Jan. 1, 2021.)

  • § 6063. Claim as personal; credit amount at time of transfer

    (a) The right to file a claim under this chapter is personal to the claimant and shall not survive his or her death, but the right may be exercised on behalf of a claimant by his or her legal guardian or attorney-in-fact. When a claimant dies after having filed a timely claim, the property tax credit amount shall be credited to the homestead property tax liability of the claimant's estate, as provided in section 6066a of this title.

    (b) In case of sale or transfer of a residence, any property tax credit amounts related to that residence shall be allocated to the seller at closing unless the parties otherwise agree. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2003, No. 70 (Adj. Sess.), § 46, eff. March 1, 2004; 2007, No. 65, § 293, eff. June 4, 2007; 2007, No. 81, § 8; 2007, No. 190 (Adj. Sess.), § 17, eff. June 6, 2008.)

  • § 6064. Claim applied against outstanding liabilities

    The amount of any property tax credit amount resulting under this chapter may be applied by the Commissioner, beginning July 1 of the calendar year in which the claim is filed, against any State tax liability outstanding against the claimant. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2005, No. 185 (Adj. Sess.), § 22.)

  • § 6065. Forms; tables; notices

    (a) In administering this chapter, the Commissioner shall provide suitable claim forms with tables of allowable claims, instructions, and worksheets for claiming a homestead property tax credit.

    (b) Prior to June 1, the Commissioner shall also prepare and supply to each town in the State notices describing the homestead property tax credit, for inclusion in property tax bills. A town shall include such notice in each tax bill and notice of delinquent taxes which it mails to taxpayers who own in that town a homestead as defined in subdivision 5401(7) of this title.

    (c) Notwithstanding the provisions of subsection (b) of this section, towns which use envelopes or mailers not able to accommodate notices describing the homestead tax credit may distribute such notices in an alternative manner. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 77, eff. January 1, 1999; 1999, No. 1, § 60f, eff. March 31, 1999.)

  • § 6066. Computation of property tax credit

    (a) An eligible claimant who owned the homestead on April 1 of the year in which the claim is filed shall be entitled to a credit for the prior year's homestead property tax liability amount determined as follows:

    (1)(A) For a claimant with household income of $90,000.00 or more:

    (i) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year;

    (ii) minus (if less) the sum of:

    (I) the income percentage of household income for the taxable year; plus

    (II) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $225,000.00.

    (B) For a claimant with household income of less than $90,000.00 but more than $47,000.00, the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year, minus (if less) the sum of:

    (i) the income percentage of household income for the taxable year; plus

    (ii) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $400,000.00.

    (C) For a claimant whose household income does not exceed $47,000.00, the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year, minus the lesser of:

    (i) the sum of the income percentage of household income for the taxable year plus the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $400,000.00; or

    (ii) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year reduced by $15,000.00.

    (2) "Income percentage" in this section means two percent, multiplied by the education income tax spending adjustment under subdivision 5401(13)(B) of this title for the property tax year which begins in the claim year for the municipality in which the homestead residence is located.

    (3) A claimant whose household income does not exceed $47,000.00 shall also be entitled to an additional credit amount from the claimant's municipal taxes for the upcoming fiscal year that is equal to the amount by which the municipal property taxes for the municipal fiscal year that began in the taxable year upon the claimant's housesite exceeds a percentage of the claimant's household income for the taxable year as follows:

     

    If household income (rounded to               then the taxpayer is entitled to

    the nearest dollar) is:                          credit for the reduced property tax in

                                                                excess of this percent of that income:

                       $   0 - 9,999.00                                                     1.50

          $10,000.00 - 47,000.00                                                     3.00

     

    (4) A claimant whose household income does not exceed $47,000.00 shall also be entitled to an additional credit amount from the claimant's statewide education tax for the upcoming fiscal year that is equal to the amount by which the education property tax for the municipal fiscal year that began in the taxable year upon the claimant's housesite, reduced by the credit amount determined under subdivisions (1) and (2) of this subsection, exceeds a percentage of the claimant's household income for the taxable year as follows:

     

      

    If household income (rounded to               then the taxpayer is entitled to

    the nearest dollar) is:                          credit for the reduced property tax in

                                                                excess of this percent of that income:

                       $   0 - 9,999.00                                                     0.5

            $10,000.00 - 24,999.00                                                   1.5

            $25,000.00 - 47,000.00                                                   2.0

     

     (5) In no event shall the credit provided for in subdivision (3) or (4) of this subsection exceed the amount of the reduced property tax. The credits under subdivision (4) of this subsection shall be calculated considering only the tax due on the first $400,000.00 in equalized housesite value.

     [Subsection (b) applicable to taxable years prior to January 1, 2021; see also subsection (b) applicable to taxable years beginning on and after January 1, 2021 .]

    (b) An eligible claimant who rented the homestead, whose household income does not exceed $47,000.00, and who submits a certificate of allocable rent shall be entitled to a credit against the claimant's tax liability under chapter 151 of this title equal to the amount by which the allocable rent upon the claimant's housesite exceeds a percentage of the claimant's household income for the taxable year as follows:

     

      

    If household income (rounded to               then the taxpayer is entitled to

    the nearest dollar) is:                                 credit for allocable rent paid in

                                                                       excess of this percent of that income:

                       $   0 - 9,999.00                                                     2.0

            $10,000.00 - 24,999.00                                                   4.5

            $25,000.00 - 47,000.00                                                   5.0

     

    In no event shall the credit exceed the amount of the allocable rent.

     

    [Subsection (b) applicable to taxable years beginning on and after January 1, 2021; see also subsection (b) applicable to taxable years prior to January 1, 2021 .]

    (b)(1) An eligible claimant who rented the homestead shall be entitled to a credit for the taxable year in an amount not to exceed $2,500.00, to be calculated as follows:

    (A) If the claimant's income is less than or equal to the extremely low-income limit, the claimant shall be entitled to a credit in the amount of 10 percent of fair market rent.

    (B) If the claimant's income is greater than the extremely low-income limit but less than or equal to the very low-income limit, the claimant shall be entitled to a percentage of the credit that is proportional to the claimant's income that is less than the very low-income limit, determined by:

    (i) subtracting the claimant's income from the very low-income limit;

    (ii) dividing the value under subdivision (i) of this subdivision (1)(B) by the difference between the extremely low-income limit and the very low-income limit; and

    (iii) multiplying the value under subdivision (ii) of this subdivision (1)(B) by 10 percent of fair market rent.

    (C) If the claimant's income is greater than the very low-income limit, the claimant shall not be entitled to a renter credit.

    (D) A claimant who is eligible for a renter credit, including pursuant to this subsection (b), and who receives a rental subsidy shall be entitled to a credit in the amount of 10 percent of gross rent paid.

    (E) A renter credit shall be prorated by the number of calendar months in the taxable year during which the claimant rented the homestead, except for a credit based on gross rent paid under subdivision (D) of this subsection (b)(1), and by the portion of the principal dwelling used for business purposes if the portion used for business purposes includes more than 25 percent of the floor space of the dwelling.

    (2) The Commissioner shall calculate the credit under subdivision (1) of this subsection (b) using the fair market rent corresponding to a number of bedrooms equal to the number of personal exemptions allowed under subdivision 5811(21)(C) of this title for the taxable year, provided that for claimants who resided with any person who was neither the claimant's dependent nor jointly filing spouse at any time during the taxable year, the Commissioner shall reduce the credit by 50 percent.

    (c) To be eligible for an adjustment or credit under this chapter, the claimant:

    (1) must have been domiciled in this State during the entire taxable year;

    (2) may not be a person claimed as a dependent by any taxpayer under the federal Internal Revenue Code during the taxable year; and

     [Subdivision (c)(3) applicable to taxable years prior to January 1, 2021; see also subdivision (c)(3) applicable to taxable years beginning on and after January 1, 2021 .]

    (3) in the case of a renter, shall have rented property during the entire taxable year.

     

    [Subdivision (c)(3) applicable to taxable years beginning on and after January 1, 2021; see also subdivision (c)(3) applicable to taxable years prior to January 1, 2021.]

    (3) in the case of a renter, shall have rented property for at least six calendar months, which need not be consecutive, during the taxable year.

     [Subsection (d) applicable to taxable years prior to January 1, 2021; see also subsection (d) applicable to taxable years beginning on and after January 1, 2021 .]

    (d) The owner of a mobile home which is sited on a lot not owned by the homeowner may include an amount determined under subdivision 6061(7) of this title as allocable rent paid on the lot with the amount of property taxes paid by the homeowner on the home for the purpose of computation of credits under subdivision (a)(3) of this section, unless the homeowner has included in the claim an amount of property tax on common land under the provisions of subsection (e) of this section.

     [Subsection (d) applicable to taxable years beginning on and after January 1, 2021; see also subsection (d) applicable to taxable years prior to January 1, 2021 .]

    (d) The owner of a mobile home that is sited on a lot not owned by the homeowner may include an amount determined under subdivision 6061(7) of this title as allocable rent paid on the lot with the amount of property taxes paid by the homeowner on the home for the purpose of computation of credits under subdivision (a)(3) of this section, unless the homeowner has included in the claim an amount of property tax on common land under the provisions of subsection (e) of this section.

    (e) Property taxes paid by a cooperative, not including a mobile home park cooperative, allocable to property used as a homestead, shall be attributable to the co-op member for the purpose of computing the property tax liability credit of the co-op member under this section. Property owned by a cooperative declared as a homestead may only include the homestead and a pro rata share of any common land owned or leased by the cooperative, not to exceed the two-acre housesite limitation. The share of the cooperative's assessed value attributable to the housesite shall be determined by the cooperative and specified annually in a notice to the co-op member. Property taxes paid by a mobile home park cooperative, allocable to property used as a housesite, shall be attributed to the owner of the housesite for the purpose of computing the property tax liability credit of the housesite owner under this section. Property owned by the mobile home park cooperative and declared as a housesite may only include common property of the cooperative contiguous with at least one mobile home lot in the park, not to exceed the two-acre housesite limitation. The share attributable to any mobile home lot shall be determined by the cooperative and specified in the cooperative agreement.

    (f) [Repealed.]

    (g) Notwithstanding subsection (d) of this section, if the land surrounding a homestead is owned by a nonprofit corporation or community land trust with tax exempt status under 26 U.S.C. § 501(c)(3), the homeowner may include an allocated amount as property tax paid on the land with the amount of property taxes paid by the homeowner on the home for the purposes of computation of the credit under this section. The allocated amount shall be determined by the nonprofit corporation or community land trust on a proportional basis. The nonprofit corporation or community land trust shall provide to that homeowner, by January 31, a certificate specifying the allocated amount. The certificate shall indicate the proportion of total property tax on the parcel that was assessed for municipal property tax, for local share property tax, and for statewide property tax.

    (h) State property tax reduction incentive. A homestead owner shall be entitled to an additional property tax credit amount equal to one percent of the amount of income tax refund which the claimant elects to allocate to payment of homestead property tax under subdivision 6068 of this title.

    (i) Adjustments under subsection (a) of this section shall be calculated without regard to any exemption under section 3802(11) of this title. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 16, eff. Jan. 1, 1998; 1999, No. 49, § 11, eff. June 2, 1999; 2001, No. 63, § 163c; 2001, No. 144 (Adj. Sess.), §§ 17, 22, eff. June 21, 2002; 2003, No. 68, § 10, eff. July 1, 2004; 2003, No. 70 (Adj. Sess.), §§ 47, 48; 2005, No. 38, §§ 25, 26; 2005, No. 185 (Adj. Sess.), §§ 2, 2a, eff. January 1, 2007; 2005, No. 185 (Adj. Sess.), § 12; 2007, No. 33, § 10, eff. May 18, 2007; 2007, No. 190 (Adj. Sess.), § 18, eff. Jan. 1, 2008; 2009, No. 160 (Adj. Sess.), §§ 25, 27; 2011, No. 45, § 13b, eff. Jan. 1, 2012;  2011, No. 143 (Adj. Sess.), § 31; 2013, No. 73, § 40, eff. June 5, 2013; 2013, No. 174 (Adj. Sess.), § 64, eff. Jan. 1, 2016; 2015, No. 46, §§ 29, 30; 2018, No. 11 (Sp. Sess.), § H.11, eff. Jan. 1, 2017; 2018, No. 11 (Sp. Sess.), § H.12, eff. July 1, 2019; 2019, No. 6, § 86, eff. April 22, 2019; 2019, No. 51, § 31, eff. June 10, 2019; 2019, No. 51, § 27a, eff. July 2, 2019; 2019, No. 160 (Adj. Sess.), § 3, eff. Jan. 1, 2021.)

  • § 6066a. Determination of property tax credit

    (a) Annually, the Commissioner shall determine the property tax credit amount under section 6066 of this title, related to a homestead owned by the claimant, based on the prior taxable year's income and crediting property taxes paid in the prior year. The Commissioner shall notify the municipality in which the housesite is located of the amount of the property tax credit for the claimant for homestead property tax liabilities on a monthly basis. The tax credit of a claimant who was assessed property tax by a town that revised the dates of its fiscal year, however, is the excess of the property tax that was assessed in the last 12 months of the revised fiscal year, over the adjusted property tax of the claimant for the revised fiscal year as determined under section 6066 of this title, related to a homestead owned by the claimant.

    (b) The Commissioner shall include in the total property tax credit amount determined under subsection (a) of this section, for credit to the taxpayer for homestead property tax liabilities, any income tax overpayment remaining after allocation under section 3112 of this title and setoff under section 5934 of this title, which the taxpayer has directed to be used for payment of property taxes.

    (c) The Commissioner shall notify the municipality of any claim and refund amounts unresolved by November 1 at the time of final resolution, including adjudication if any; provided, however, that towns will not be notified of any additional credit amounts after November 1 of the claim year, and such amounts shall be paid to the claimant by the Commissioner.

    (d) For late claims filed after April 15, the property tax credit amount shall be reduced by $15.00.

    (e) At the time of notice to the municipality, the Commissioner shall notify the taxpayer of the property tax credit amount determined under subdivision 6066(a)(1) of this title; the amount determined under subdivision 6066(a)(3) of this title; any additional credit amounts due the homestead owner under section 6066 of this title; the amount of income tax refund, if any, allocated to payment of homestead property tax liabilities; and any late-claim reduction amount.

    (f)(1) For taxpayers and amounts stated in the notice to towns on or before July 1, municipalities shall create and send to taxpayers a homestead property tax bill, instead of the bill required under subdivision 5402(b)(1) of this title, providing the total amount allocated to payment of homestead education property tax liabilities and notice of the balance due. Municipalities shall apply the amount allocated under this chapter to current year property taxes in equal amounts to each of the taxpayers' property tax installments that include education taxes. Notwithstanding section 4772 of this title, if a town issues a corrected bill as a result of the notice sent by the Commissioner under subsection (a) of this section, issuance of the corrected new bill does not extend the time for payment of the original bill nor relieve the taxpayer of any interest or penalties associated with the original bill. If the corrected bill is less than the original bill, and there are also no unpaid current year taxes, interest, or penalties and no past year delinquent taxes or penalties and interest charges, any overpayment shall be reflected on the corrected tax bill and refunded to the taxpayer.

    (2) For property tax credit amounts for which municipalities receive notice after November 1, municipalities shall issue a new homestead property tax bill with notice to the taxpayer of the total amount allocated to payment of homestead property tax liabilities and notice of the balance due.

    (3) The property tax credit amount determined for the taxpayer shall be allocated first to current year property tax on the homestead parcel, next to current-year homestead parcel penalties and interest, next to any prior year homestead parcel penalties and interest, and last to any prior year property tax on the homestead parcel. No credit shall be allocated to a property tax liability for any year after the year for which the claim or refund allocation was filed. No municipal tax-reduction incentive for early payment of taxes shall apply to any amount allocated to the property tax bill under this chapter.

    (4) If the property tax credit amount as described in subsection (e) of this section exceeds the property tax, penalties, and interest due for the current and all prior years, the municipality shall refund the excess to the taxpayer, without interest, within 20 days of the first date upon which taxes become due and payable or 20 days after notification of the credit amount by the Commissioner of Taxes, whichever is later.

    (g) The Commissioner of Taxes shall pay monthly to each municipality the amount of property tax credit of which the municipality was last notified related to municipal property tax on homesteads within that municipality, as determined by the Commissioner of Taxes. (Added 1999, No. 49, § 37, eff. Jan. 1, 2000, § 37a, eff. Jan. 1, 2001; amended 2001, No. 63, § 163d; 2001, No. 144 (Adj. Sess.), § 18, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 49, eff. March 1, 2004; 2005, No. 185 (Adj. Sess.), § 3; eff. Jan. 1, 2007; 2007, No. 65, § 50b; 2007, No. 65, § 291, eff. June 4, 2007; 2007, No. 190 (Adj. Sess.), §§ 14-16, eff. June 6, 2008; 2009, No. 1 (Sp. Sess.), § H.29; 2009, No. 160 (Adj. Sess.), § 15, eff. June 4, 2010; 2011, No. 143 (Adj. Sess.), § 11, eff. May 15, 2012; 2011, No. 143 (Adj. Sess.), § 27, eff. Jan. 1, 2013; 2013, No. 174 (Adj. Sess.), § 19; 2018, No. 11 (Sp. Sess.), § H.15, eff. July 1, 2019; 2019, No. 14, § 81, eff. April 30, 2019; 2019, No. 51, §§ 28, 32.)

  •  [Section 6067 applicable to taxable years prior to January 1, 2021; see also section 6067 applicable to taxable years beginning on and after January 1, 2021 .]

    § 6067. Credit limitations

    Only one individual per household per taxable year shall be entitled to a benefit under this chapter. An individual who received a homestead exemption or credit with respect to property taxes assessed by another state for the taxable year shall not be entitled to receive a credit under this chapter. No taxpayer shall receive a credit under subsection 6066(b) of this title in excess of $3,000.00. No taxpayer shall receive a credit under subdivision 6066(a)(3) of this title greater than $2,400.00 or cumulative credit under subdivisions 6066(a)(1)-(2) and (4) of this title greater than $5,600.00. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1999, No. 49, § 10, eff. June 2, 1999; 2005, No. 185 (Adj. Sess.), § 9; 2007, No. 82, § 2, eff. July 1, 2008; 2011, No. 143 (Adj. Sess.), § 30, eff. Jan. 1, 2013; 2018, No. 11 (Sp. Sess.), § H.13, eff. July 1, 2019.)

  •  [Section 6067 applicable to taxable years beginning on and after January 1, 2021; see also section 6067 applicable to taxable years prior to January 1, 2021 .]

    § 6067. Credit limitations

    Only one individual per household per taxable year shall be entitled to a property tax credit under this chapter. An individual who received a homestead exemption or credit with respect to property taxes assessed by another state for the taxable year shall not be entitled to receive a credit under this chapter. No taxpayer shall receive a renter credit under subsection 6066(b) of this title in excess of $2,500.00. No taxpayer shall receive a property tax credit under subdivision 6066(a)(3) of this title greater than $2,400.00 or cumulative credit under subdivisions 6066(a)(1)-(2) and (4) of this title greater than $5,600.00. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1999, No. 49, § 10, eff. June 2, 1999; 2005, No. 185 (Adj. Sess.), § 9; 2007, No. 82, § 2, eff. July 1, 2008; 2011, No. 143 (Adj. Sess.), § 30, eff. Jan. 1, 2013; 2018, No. 11 (Sp. Sess.), § H.13, eff. July 1, 2019; 2019, No. 160 (Adj. Sess.), § 5, eff. Jan. 1, 2021.)

  • § 6068. Application and time for filing

     [Subsection (a) applicable to taxable years prior to January 1, 2021; see also subsection (a) applicable to taxable years beginning on and after January 1, 2021 .]

    (a) A tax credit claim or request for allocation of an income tax refund to homestead property tax payment shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension, and shall describe the school district in which the homestead property is located and shall particularly describe the homestead property for which the credit or allocation is sought, including the school parcel account number prescribed in subsection 5404(b) of this title. A renter rebate claim shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension.

     [Subsection (a) applicable to taxable years beginning on and after January 1, 2021; see also subsection (a) applicable to taxable years prior to January 1, 2021 .]

    (a) A tax credit claim or request for allocation of an income tax refund to homestead property tax payment shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension, and shall describe the school district in which the homestead property is located and shall particularly describe the homestead property for which the credit or allocation is sought, including the school parcel account number prescribed in subsection 5404(b) of this title. A renter credit claim shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension.

    (b) If the claimant fails to file a timely claim, the amount of the property tax credit under this chapter shall be reduced by $15.00, but not below $0.00, which shall be paid to the municipality for the cost of issuing an adjusted homestead property tax bill. No benefit shall be allowed in the calendar year unless the claim is filed with the Commissioner on or before October 15.

     [Subsection (c) applicable to taxable years prior to January 1, 2021; see also subsection (c) applicable to taxable years beginning on and after January 1, 2021 .]

    (c) No request for allocation of an income tax refund or for a renter rebate claim may be made after October 15.

     [Subsection (c) applicable to taxable years beginning on and after January 1, 2021; see also subsection (c) applicable to taxable years prior to January 1, 2021 .]

    (c) No request for allocation of an income tax refund or for a renter credit claim may be made after October 15. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 17, eff. Jan. 1, 1998; 2001, No. 144 (Adj. Sess.), § 19, eff. June 21, 2002; 2005, No. 185 (Adj. Sess.), § 5; 2007, No. 33, § 5, eff. May 18, 2007; 2011, No. 143 (Adj. Sess.), § 29, eff. Jan. 1, 2013; 2019, No. 131 (Adj. Sess.), § 295; 2019, No. 160 (Adj. Sess.), § 6, eff. Jan. 1, 2021.)

  • § 6069. Landlord certificate

    (a) On or before January 31 of each year, the owner of land rented as a portion of a homestead in the prior calendar year shall furnish a certificate of rent to the Department of Taxes and to each claimant who owned a portion of the homestead and rented that land as a portion of a homestead in the prior calendar year. The certificate shall indicate the proportion of total property tax on that parcel which was assessed for municipal property tax, for local share property tax, and for statewide property tax.

     [Subsection (b) applicable to taxable years prior to January 1, 2021; see also subsection (b) taxable years beginning on and after January 1, 2021 .]

    (b) The owner of each rental property consisting of more than one rented homestead shall, on or before January 31 of each year, furnish a certificate of rent to the Department of Taxes and to each person who rented a homestead from the owner at any time during the preceding calendar year. All other owners of rented homestead units shall furnish such certificate upon request of the renter. If a renter moves prior to December 31, the owner may either provide the certificate to the renter at the time of moving or mail the certificate to the forwarding address if one has been provided by the renter or in the absence of a forwarding address, to the last known address.

     [Subsection (b) taxable years beginning on and after January 1, 2021; see also subsection (b) applicable to taxable years prior to January 1, 2021 .]

    (b) The owner of each rental property shall, on or before January 31 of each year, furnish a certificate of rent to the Department of Taxes.

     [Subsection (c) applicable to taxable years prior to January 1, 2021; see also subsection (c) applicable to taxable years beginning on and after January 1, 2021 .]

    (c) A certificate under this section shall be in a form prescribed by the Commissioner and shall include the name of the renter, the address and any property tax parcel identification number of the homestead, notice of the requirements for eligibility for the property tax credit provided by this chapter, and any additional information that the Commissioner determines is appropriate.

     [Subsection (c) applicable to taxable years beginning on and after January 1, 2021; see also subsection (c) applicable to taxable years prior to January 1, 2021 .]

    (c) A certificate under this section shall be in a form prescribed by the Commissioner and shall include the name of the renter, the address and any property tax parcel identification number of the homestead, the information required under subsection (f) of this section, and any additional information that the Commissioner determines is appropriate.

     [Subsection (d) applicable to taxable years prior to January 1, 2021; see also subsection (d) applicable to taxable years beginning on and after January 1, 2021 .]

    (d)(1) An owner who knowingly fails to furnish a certificate to the Department or a renter as required by this section shall be liable to the Commissioner for a penalty of $200.00 for each failure to act. An owner shall be liable to the Commissioner for a penalty equal to the greater of $200.00 or the excess amount reported who:

    (A) willfully furnishes a certificate that reports total allocable rent in excess of the actual amount paid; or

    (B) reports a total amount of allocable rent that exceeds by 10 percent or more the actual amount paid.

    (2) Penalties under this subsection shall be assessed and collected in the manner provided in chapter 151 for the assessment and collection of the income tax.

     [Subsection (d) applicable to taxable years beginning on and after January 1, 2021; see also subsection (d) applicable to taxable years prior to January 1, 2021 .]

    (d) An owner who knowingly fails to furnish a certificate to the Department as required by this section shall be liable to the Commissioner for a penalty of $200.00 for each failure to act. Penalties under this subsection shall be assessed and collected in the manner provided in chapter 151 for the assessment and collection of the income tax.

     [Subsection (e) applicable to taxable years prior to January 1, 2021; see also subsection (e) applicable to taxable years beginning on and after January 1, 2021 .]

    (e) Failure to receive a rent certificate shall not disqualify a renter from the benefits provided by this chapter.

     [Subsection (e) applicable to taxable years beginning on and after January 1, 2021; see also subsection (e) applicable to taxable years prior to January 1, 2021 .]

    (e) [Repealed.]

    (f) Annually, on or before October 31, the Department shall prepare and make available to a member of the public upon request a database in the form of a sortable spreadsheet that contains the following information for each rental unit for which the Department received a certificate pursuant to this section:

    (1) name of owner or landlord;

    (2) mailing address of landlord;

    (3) location of rental unit;

    (4) type of rental unit;

    (5) number of units in building; and

    (6) School Property Account Number. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2009, No. 160 (Adj. Sess.), § 26; 2015, No. 134 (Adj. Sess.), § 17, eff. May 25, 2016; 2017, No. 188 (Adj. Sess.), § 6, eff. July 1, 2019; 2019, No. 160 (Adj. Sess.), § 4, eff. Jan. 1, 2021.)

  • § 6070. Disallowed claims

    A claim shall be disallowed if the claimant received title to his or her homestead primarily for the purpose of receiving benefits under this chapter. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998.)

  • § 6071. Excessive and fraudulent claims

    (a) In any case in which it is determined under the provisions of this title that a claim is or was excessive and was filed with fraudulent intent, the claim shall be disallowed in full, and the Commissioner may impose a penalty equal to the amount claimed. A disallowed claim may be recovered by assessment as income taxes are assessed. The assessment, including assessment of penalty, shall bear interest from the date the claim was credited against property tax or income tax or paid by the state until repaid by the claimant, at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. The claimant in that case, and any person who assisted in the preparation of filing of such excessive claim or supplied information upon which the excessive claim was prepared, with fraudulent intent, shall be fined not more than $1,000.00 or be imprisoned not more than one year, or both.

    (b) In any case in which it is determined that a claim is or was excessive, the Commissioner may impose a 10 percent penalty on such excess and if the claim has been paid or credited against property tax or income tax otherwise payable, the credit shall be reduced or canceled, and the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed and such assessment shall bear interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title from the date of payment or, in the case of credit of a property tax bill under section 6066a of this title, from December 1 of the year in which the claim is filed until refunded or paid.

    (c) In any case in which a homestead is rented by a person from another person under circumstances deemed by the Commissioner to be not at arms-length, the Commissioner may determine the rent constituting property tax for purposes of this chapter. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2007, No. 190 (Adj. Sess.), § 45.)

  • § 6072. Appeals

    Any person aggrieved by the denial, in whole or in part, of relief claimed under this chapter, except when the denial is based upon late filing of claim for relief, may appeal to the Commissioner by filing a petition of appeal within 60 days after the denial. This appeal shall be a person's exclusive remedy for denial of a benefit claimed under this chapter. The Commissioner's determination may be further appealed in the manner described in subsection 5885(b) of this title. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2003, No. 70 (Adj. Sess.), § 50, eff. March 1, 2004.)

  • § 6073. Regulations of the Commissioner

    The Commissioner may, from time to time, issue, amend and withdraw regulations interpreting and implementing this chapter. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998.)

  • § 6074. Amendment of certain claims

    At any time within three years after the date for filing claims under subsection 6068(a) of this chapter, a claimant who filed a claim by October 15 may file to amend that claim to correct the amount of household income reported on that claim. (Added 2001, No. 144 (Adj. Sess.), § 20, eff. June 21, 2002; amended 2007, No. 81, § 4; 2011, No. 143 (Adj. Sess.), § 28, eff. Jan. 1, 2013.)

  • § 6075. Repealed. 2013, No. 179 (Adj. Sess.), § D.105(b), eff. July 1, 2017.

  • § 6075a. Repealed. 2019, No. 72, § E.500.