Vermont considers income tax surcharge to help fund schools
MONTPELIER, Vt. (AP) — A proposed overhaul of Vermont’s tax system would create an income tax surcharge to help fund schools and would aim to keep education costs down by linking them more closely with property taxes.
The House Committee on Ways and Means has approved a bill that would offset a $60 million cut to property taxes with a surcharge on income.
The state’s finance commissioner tells Vermont Public Radio that Republican Gov. Phil Scott wants to avoid property tax increases, but that shifting the source of the revenue misses the point.
The bill also includes a proposal floated by Republican Rep. Scott Beck to alter the property tax formula. He says the change would tie local tax rates more directly to school spending.
The House education committee is considering the bill.