Taxes

Note: This tax information is provided as a general overview and should not be your sole source of information. For up-to-date details and deadline information, contact the Town Clerk’s office.

Vermont cities and towns use money raised from property taxes to pay for municipal services and for education. Here are some of the system's key elements:

The town's Grand List is compiled each year by the town listers. It lists a description, the owner, and assessed value of each taxable property as of April 1. In other words, it is a once-a-year snapshot of town property values and ownership.

The municipal tax rate is determined by dividing municipal expenses by the Grand List total (the sum of all real property values in the town).

The education tax rate is computed through a complicated procedure by the State, and provided to the towns. It is derived from a town's education expenses, state-determined common level of appraisal (CLA), equalization studies that compare property values with other towns, and other adjustments.

The Grand list contains two categories of properties: residential (or homestead) and non-residential. These categories are taxed differently. A homestead property is the owner's principal, year-round residence. The homestead definition is established by filing a Homestead Declaration (HS-131) on or before April 15, usually with your state income tax return. All other properties are considered as non-residential. The homestead tax rate is determined via the education tax, the CLA, and the municipal tax rate. The nonresidential tax rate is determined the before the Board of Listers. If this doesn't settle the concern, the Listers' decision can be appealed to the town Board of Civil Authority (BCA). The BCA is comprised of the Selectboard and the Justices of the Peace. If the taxpayer continues to be unsatisfied, appeal can then be made to either the State Board of Appraisers or to the Orleans County Superior Court. The second choice will usually take longer and legal advice is recommended.  This paragraph is missing information, 

Property owners can appeal their assessment even if there's been no change. Check with the Town Clerk in early May to find out the grievance timetable for that year.

Property owners of 25 acres or more, or over 27 acres plus a dwelling, are eligible for significant tax reductions through enrollment in the Vermont Current Use Program. Deadline for enrollment is September 1 of each year. Check with the Listers for more information on this program.  (not sure ask listers) same way, but without the equalization and the education adjustments.

Vermont listers are required to list all taxable property on the Grand List at its fair market value. However, the listed values usually do not reflect fair market value. This is because real estate markets constantly change, and townwide reappraisals are not conducted annually. A town's CLA is determined by the state, based on the relation between the assessed values and actual sale prices of properties in town. Ideally the listed values would be the same as the fair market value, and the CLA would be 1.0. If the CLA falls below 0.8, a town is required to reappraise. The last townwide reappraisal in Craftsbury occurred in 2018. Since then, real estate values have been rising, resulting in a falling CLA. If this trend continues, another reappraisal will be required in the near future.

Tax rates are usually set at the end of June and the tax bills mailed the first week in July. Taxes are due in full usually by a November 15 deadline. Payments of taxes after the deadline are charged an 8% penalty and a 1%/month penalty for the first 3 months, and 1 ½ % afterwards. 

If You Feel Your Property Taxes Are Too High ...
Property owners must be notified of any change in their town assessment via a Change of Appraisal Notice. The taxpayer then has the option of appealing the new assessment through a procedure described in the Notice. This is called a tax grievance, and the first step is a hearing.