Newspaper Article

Affordability and Adequacy; Property Tax Burden in Vermont Tops Agenda

Gregg, John P

2006

Overview

[Jim Douglas] has previously thwarted efforts to raise the state income tax -- perhaps the most obvious source of revenue to supplant the property tax. But Douglas and [Scudder Parker] seem to agree on one thing -- neither are currently calling for an outright repeal of Act 68, the current education funding system. Vermont's split tax rate for residential and nonresidential property under Act 68 ensures that wealthy, out-of-state property owners, who aren't subject to the income tax in Vermont, do shoulder some education costs. Parker and [Gaye Symington] also said Montpelier needs to do much more to address Vermont's energy costs, especially with major power contracts with HydroQuebec and Vermont Yankee slated to expire in less than a decade. [Arthur Woolf], the UVM economist, said Douglas' focus on the cost of living has merit, but pointed out that other states also struggle with such issues. And taxes in Vermont, thanks in part to the progressive nature of the state income tax and the income sensitivity rebates built into Act 68 property taxes, often fall most heavily on wealthy Vermonters, he said.

• Publisher: Valley News
• Subject: Anderson, Jack / Douglas, Jim / Parker, Scudder / Symington, Gaye / Woolf, Arthur