Taxes

The effort of some Democrats to raise taxes on Vermont's wealthiest was unsuccessful this year.

The House Committee on Ways and Means has spent the last three weeks crafting proposals that would raise income taxes on households that earn more than $586,000 a year. Though the legislation has no chance of becoming law this year, some Democrats hope the debate will resonate with voters heading into the midterm elections.

The House Committee on Ways and Means has agreed to vote on legislation this year that would increase state income taxes by 3% on household income over $500,000 a year, and by an additional 2% on income over $1 million.

This year's December 1st letter says property taxes could rise an average of 11.9%.

Bill Shouldice breaks down where our tax dollars come from, where they end up, and how those calculations might change.

Some of the reasons: rising costs amid climate and health care crises, a desire to reduce property taxes, plus an easier approval process.

People with incomes under $50,000 and couples with incomes under $65,000 do not pay state taxes on their benefits. A bipartisan effort at the Statehouse wants to raise those income exemption levels.

A forecast published this week by the Vermont Department of Taxes projects a 5.9% jump in property taxes next year, but Republican Gov. Phil Scott said he is seeking to put forward a proposal that would keep tax bills flat in 2025.

As Vermont towns begin to put together their fiscal year 2026 budgets, health insurance rates, inflation and a drop-off in federal COVID aid will cause a spike in spending, leading to higher taxes.

Senate Democrats, who will maintain a slim majority in the chamber next year despite losing six seats on Election Day, say the first week of the 2025 legislative session will be devoted to plans for property tax relief from the administration of Republican Gov. Phil Scott.