Vermont residents who own & occupy a VT dwelling as a principal residence must file a Declaration of Vermont Homestead,
Form HS-131. The requirement to file this form annually was repealed in 2011.
However, if you sell your homestead or change its use (for example you move out of your home and rent it to someone else),
you must file a Homestead Withdrawal form HS-132 with the Vermont Dept. of Taxes.
The Education Funding law, Act 68, passed in 2003 and revised by Act 185 in 2006 requires VT homeowners to file this declaration.
Homes and commercial properties have different education property tax rates. Filing the declaration
identifies your property as a homestead and designates the property to be taxed at the homestead rate, which in most
towns is lower than the commercial rate.
Please note that this declaration is required even if you do not file a VT income tax
return or do not participate in the property tax payment ("prebate") or rebate programs.
If you are late, you must still file a declaration and you will have to pay a 1% penalty. If you file your declaration after
Sept. 1, you will be taxed at the commercial rate for that year (or the residential rate if higher) and you will not be eligible to receive a property tax
payment ("prebate") from the state for that year.
In order to receive a property tax adjustment credit you must file Form HS-145 each year by Sept 1. If you file this form after April 15,
you will be charged a $15 late fee. Note that beginning in 2007, property tax payments are sent directly to your town to be used as a credit on your property tax bill.
Checks are no longer sent to taxpayers.
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