All homeowners need to complete a Homestead Declaration to go along with their Vermont Income Taxes. If someone else does your taxes you need to confirm that they are filing this for you. Be sure to file this on-time even if you are filing the rest of your income taxes at a later date. Failure to file this form can mean paying significantly higher property taxes!
Consider completing part B of the Homestead Declaration; the Property Tax Adjustment Claim. This is the form that the State of Vermont uses to calculate whether your household qualifies for a reduction of property taxes based on income. Again, if someone else files your taxes for you, be clear on whether or not they are filing these forms.
Single family homeowners usually pay the land portion of their property taxes through CHT. If this applies to you, CHT will provide you with a statement by the end of January showing the amount of property taxes you paid through CHT. You’ll need this statement to file both your federal and state income taxes. Be sure to provide these documents to anyone doing your income taxes.
Condo homeowners do not pay any of their property taxes through CHT and will not receive any statements from CHT.
When looking for the SPAN to file your state income taxes, use the property tax bill that comes in your name. CHT files the SPAN for the land (on the bill that comes in Champlain Housing Trust’s name) where there are two separate tax bills (single family homeowners only).
If you brought a home into the Shared Equity Program using the Buyer Driven Program, there may be another form you need to complete this first year. Contact Janet Mallie at 861-7339 or via email at [email protected].
Vermont Property Tax Benefit for Shared Equity Homeowners
The Vermont legislature passed Act 174 this past session for the tax year 2015-2016. The law requires assessing officials to list owner-occupied housing that is subject to a housing subsidy covenant (that means YOUR home) at 60–70% of what the fair market value would be if the property was not subject to a housing subsidy covenant.
Here is a link to the statue online: (relevant language is on pages 41, 42, and 53 of the pdf).
Since you own a resale-restricted home through CHT, you will now only be taxed on between 60-70% of the market value of the home instead of 100%. You can’t ever access the full market value of your home due to the agreements you made with CHT to share your appreciation at resale, so it makes sense that you shouldn’t be taxed on that value. Each municipality will need to reduce the tax bills for shared equity homeowners. The Tax Department is responsible for informing local assessors of this change and will advise them on implementation.