I always send refunds to the homeowner, and let them sort things out with
their escrow company.
-Bobbi in Marshfield
At 12:33 PM 4/10/2007, you wrote:
This makes it clear that over-payments
received by the municipality from the State shall be refunded to the
taxpayer. What about escrow companies and the myriad
oddities? Do we have some direction from the state or are towns
developing their own policies for refunds or credits?
Mary Ann - Morristown
From: Vermont Municipal Government
mailto:[log in to unmask]] On Behalf Of Grace, Mary
Sent: Tuesday, April 10, 2007 8:10 AM
To: [log in to unmask]
Subject: FW: Q and A regarding HS-122 stuff during Nemrc
Forwarding note about HS-122 payment.
Mary Jane, PVR
From: Hardaker, Rhonda
mailto:[log in to unmask]]
Sent: Friday, April 06, 2007 3:06 PM
To: [log in to unmask]
Subject: Q and A regarding HS-122 stuff during Nemrc Seminar
Monday 4/3/07 at the Montpelier Grandlist seminar Tanya
Perry was asked a question that she said she would review with other Tax
Department employees to double check her answer. After doing so- here’s
The question that was asked:
Taxpayer anticipates a tax bill of $500.00. Although taxes
are not due until November, the taxpayer makes a payment to the town of
$250.00 in July. The State also sends the town a payment of $500.00 in
July which creates an overpayment on the taxpayer’s account of $250.00.
Does the town mail the property owner a refund 60 days from the date of
the overpayment or 60 days from the due date of the tax bill?
Answer: If the town receives an amount from the state on July 1
that exceeds current and prior year(s) liabilities, the town must refund
the over-payment, without interest, to the taxpayer within 60 days of
July 1. Otherwise, the town keeps the money and simply applies it -
regardless of whether they bill annually or quarterly.
Here is the law as it reads:
Sec. 3. 32 V.S.A. § 6066a (f)(3)
(3) The payment received by the municipality from the state for credit to
the taxpayer shall be credited first to current-year property tax on the
homestead parcel, next to current‑year homestead parcel penalties and
interest, next to any prior year homestead parcel penalties and interest,
and last to any prior year property tax on the homestead parcel. No
payment shall be allocated to a property tax liability for any year after
the year for which the claim or refund allocation was filed. If the
payment received by the municipality exceeds the amount allocated under
this subsection, the municipality shall refund the excess to the
taxpayer, without interest, within 60 days of receipt by the
municipality. No municipal tax-reduction incentive for early payment of
taxes shall apply to any payment made to a municipality by the state
under this chapter.
Information provided by-
Tax Internal Audit Lead Examiner
Division of Taxpayer Services
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