According to the 2010 U.S. census, 62 souls live in the town Northeast Kingdom town of Victory.
The town has no schools and just a handful of children yet education costs are causing a dramatic increase in property taxes.
Victory resident Carol Easter says she was stunned when she opened her property tax bill. In a single year her taxes more than doubled to $3,400.
“I was flabbergasted,” Easter says. “I have no idea where I'm going to get that kind of money."
"I have no idea where I'm going to get that kind of money" - Carol Easter
Easter isn’t alone.
Walt Mitchell of the Victory select board says, “Anybody that’s got a residence, they all jumped about the same, almost 2 ½ times what they were.”
A number of factors came together to cause the increase, all involving the statewide education tax.
The costs of educating school aged children from Victory – and there are fewer than 10 of them – more than doubled. Walt Mitchell says that’s because of higher special education costs and students transitioning to higher tuition schools.
The town sends all students to a number of area schools and Victory taxpayers have no voice in what they charge for tuition. That rankles Easter, who is a retired teacher.
“We have no say as to what that tuition is going to be,” she says. We get a bill from the town that they go to school in and that’s it. You’ve got to pay it.”
Easter places the blame for her skyrocketing tax bill on the way the state funds education.
Brad James, education finance manager with the Vermont Agency of Education says Victory’s school costs went up by 240%, the largest increase in the state.
James says Victory's increase is primarily due to three factors: A jump in tuition costs, an increase in special education expenses and the fact that last year Victory used a $40,000 budget surplus to offset education taxes. James says the increase would have been less if the surplus had been spread out over more than one year. A five cent increase in the statewide education tax rate had only a small impact on the education property taxes for Victory resident, James says.
James says spikes like that can happen in towns with so few students.
“The homestead tax rate is based on spending per pupil, and if they don’t have a lot of kids one child is a pretty big percentage of your population. That leads to volatility. It can swing the other way as well,” James explains.
Victory residents say their overall tax burden is further increased by the fact the state owns 2/3 of the land in the town.
Victory receives a state Payment In Lieu of Taxes but it’s calculated at a rate lower than that paid by taxpayers, and the money can’t be used to help pay for education costs.
There is an income sensitivity provision to the education tax and residents who qualify can apply for relief next year when they file their income taxes. According to the state, most households in Victory have qualified for relief. But they’re still going to have shoulder this year’s increase. Walt Mitchell of the select board says that will be a hardship for many.
“Up on the hill here where I live I think there are nine families that are all retired. I don’t know how they can do it,” says Mitchell.
Some Victory residents want the town to halt construction of a new municipal office and use the money instead to reduce taxes.
The select board has called a special meeting for next month for voters to decide the issue.
