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Not really my area, but I'll give it a shot.

The property tax adjustment credit uses household income.  If an individual receives interest and dividends (money earned on investments, savings, etc.) of, say $15,000, a total of $20,000 would be counted in household income-the first $10,000 plus the amount over $10,000 times 2.


Mary Jane Grace, Program Technician
Property Valuation and Review Division
Vermont Dept. of Taxes
802-828-5863




From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]] On Behalf Of Susan Ann
Sent: Thursday, August 12, 2010 10:47 AM
To: [log in to unmask]
Subject: Re: Education Rebates

Mary Grace - could you explain with example the first section of the first change listed?  Thank You Sue Ann Orwell

At 09:51 AM 8/12/2010 -0400, you wrote:


Wendy,



There were a few changes to the property tax adjustment law in the last session.  The following is from the 2010 Legislative Highlights<http://www.state.vt.us/tax/pdf.word.excel/legal/legislation/2010%20Tax%20Legislation%20Highlights.pdf> document on the Tax Dept. site.







Property Tax Adjustments Claims made for 2010, 2011 and 2012: Interest and dividends greater than $10,000.00 will be included twice in household income (all interest and dividends are included once in household income). Act 160, secs. 23, 51. 32 V.S.A.  6061(5).



 No adjustment is available for equalized housesite value over $500,000.00; education property tax at the homestead rate (adjusted for local spending and the common level of appraisal) is due on that portion of equalized value. Act 160, secs. 25, 51. 32 V.S.A.  6066(a)(1)(B).



Claims made for 2010 and after: The additional acreage adjustment ($10.00 per acre, up to a maximum of 5 acres, for each additional acre of homestead property in excess of the 2-acre housesite) is repealed.



Claims made for 2011 and after: Household income will not be reduced by adjustments to total income that are enumerated on Federal Form 1040 except certain business expenses of reservists, one-half of self-employment tax paid, alimony paid and deductions for tuition and fees. Current law allows all the adjustments between total income and adjusted gross income to reduce household income. Act 160, sec. 24. 32 V.S.A.  6061(5).7



The limitation that modified adjusted gross income cannot go below zero applies individually to household members as well as to total household income. Act 160, sec. 24. 32 V.S.A.  6061(4).





Mary Jane Grace, Program Technician

Property Valuation and Review Division

Vermont Dept. of Taxes

802-828-5863





From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]] On Behalf Of Wendy W
Sent: Thursday, August 12, 2010 9:41 AM
To: [log in to unmask]
Subject: Re: Education Rebates



The state payment tax code, especially for high end properties where the owner shows low income , produces the results you describe--which is unfair taxation.  The legislature can t bring themselves to change this, however.  I wonder why&



Wendy Wilton

Rutland City Treasurer
________________________________
From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]] On Behalf Of St. Albans Town Assistant Clerk
Sent: Thursday, August 12, 2010 9:25 AM
To: [log in to unmask]
Subject: Re: Education Rebates



Also, mobile home owners who own the home but rent the land, get a renters rebate on top of the tax rebate, often getting more rebate than owed. these don't bother me so much as the general rule is that they are elderly on fixed incomes and need every break they can get. the example below must be they have no reportable income which makes the rebate much higher.



i feel this whole program/system is broken. i'm seeing very well off people with $500,000 homes, who own prominent businesses, getting taxed for $8000.00 to $10,000.00 and the state rebates all but 1-2 thousand of it. so the people who only bought a $160,000.00 house, with obviously less income.... being mindful of the high taxes a more expensive house is going to have, gets about 700.00 rebated.  so the person being the most financially responsible loses out, and ends up paying more taxes to the town than the one that owns the mansion!!  go figure.



Lisa  Assistant Town Clerk
 [log in to unmask]<mailto:[log in to unmask]>
----- Original Message -----
From: Grace, Mary Jane<mailto:[log in to unmask]>
To: [log in to unmask]<mailto:[log in to unmask]>
Sent: Thursday, August 12, 2010 07:51
Subject: Re: Education Rebates

There can be a few reasons. Perhaps the individual included some income tax refund money.  Maybe the relative assessed value of the property changed considerably from the previous year.  Was the town reappraised this year.  It s possible the parcel was over-assessed previously relative to other properties in town.  Maybe the effective tax rate changed considerably from the previous year.  The income sensitivity payment is a look-back.   It uses the previous year s income, assessment and taxes.  You have to look at all those pieces.

Hope this helps.


Mary Jane Grace, Program Technician
Property Valuation and Review Division
Vermont Dept. of Taxes
802-828-5863


From: Vermont Municipal Government Discussion Network [mailto:[log in to unmask]] On Behalf Of Town Clerk
Sent: Wednesday, August 11, 2010 3:54 PM
To: [log in to unmask]
Subject: Education Rebates

Hi All!
            I know this question has been asked before, but for the life of me I can t recall any of the answers that have been given.
Here s the situation:  a property owner has a non taxable income, files an HS122 and gets an income sensitivity refund greater than his actual property tax, so, we send him a check for the difference.
            How is it possible for someone to get a refund greater than what they owe?  Does it seem right that some tax payers are not only supplementing the entire property tax of others, but also giving them extra?

Susan Ann Arnebold
Orwell Town Clerk
PO Box 32
Orwell, Vermont 05760
[log in to unmask]
802-948-2032