Reappraisal & Tax Billing Q & A

How will a reappraisal impact on what I pay in property taxes?

Property taxes are based on property values. Without periodic reappraisals, some property owners would pay relatively more while others would pay relatively less. Reappraisal resets property values to their current market value so that the property tax burden is equalized for all taxpayers. Reappraisal assures every property owner they are only paying their fair share. However, appraisal and taxation are separate issues. The Assessor determines the market value, and the municipality and State tax rates have no impact on the valuation process. Each taxing authority establishes its own tax rate. Municipal Tax Rates are set based on the need to raise money for municipality highway and general fund expenses. The municipal rate is levied against the municipal grand list. The Education Tax Rates are based on a homestead education tax rate and a non-homestead education tax rate which are set annually by the commissioner of taxes. The Education Tax Rates are levied against all homestead and non-homestead parcels on the education grand list.

Even if your assessment doubled that does not mean your taxes would double. Remember the total grand list has changed as well. The tax rate will adjust because of the reappraisal. 

Do I have to submit a Homestead Declaration every year to the State of VT Tax Department if I do not qualify for the property tax credit?

One might think that if you do not qualify for the homestead property tax credit, then you do not have to declare homestead. This is incorrect. If you do not submit HS-122, then your tax bill will be based on the non-homestead tax rate, which is typically a higher tax rate than the homestead tax rate. The Form HS-122, required for submittal annually, by or on April 15th to the State of Vermont Tax Department, declares your primary residence. If the property owner qualifies, then Form HS-144, submitted along with HS-122, will provide the property owner with a property tax credit. There are income limits that the state’s tax department changes annually pertaining to the calculations for property tax credits. You can have the HS-122 without HS-144, but not vice versa. 

How does the property tax credit affect my property tax bill during a reappraisal?

During the upcoming reappraisal in the town and city (completed in May 2026), your property tax credit will not be calculated based on your new property valuation. The 2026–2027 tax year credit is based on your previous tax data and 2025 income. The full effect of the reappraisal on your tax credit will not be seen until the following tax year, 2027–2028. This is because the property tax credit system uses a "lookback" period for its calculations.  A tax bill that is based on the homestead tax rate will have a box at the top right-hand corner. That box breaks down what the property owner paid for municipal house site tax and education house site tax for that fiscal year taxes. These figures are what determine a property owner’s property tax credit, if qualified, for the following year’s fiscal taxes.

If I notice a discrepancy on my tax bill, what are some things that I need to look for?

When tax bills are mailed out, we know that questions will arise. An effective way to understand the bill is to first compare it to last year’s bill. If you notice a discrepancy while comparing, it may be due to one or more of the following: 

  • The tax rates changed.
  • There was a change in your total real value due to a permit issued, data correction, new construction, boundary line adjustment or subdivision, etc. If this was the case, you would have received a Change of Assessment Value letter this past June from the Assessing Department.
  • The State of VT issued property tax credit, which is based on income, may have decreased due to the State’s income limit decreasing from last year. If you qualified for a property tax credit, you would have received a letter in June/July 2025 from the State of VT Department of Taxes indicating what the amount of credit will be. 
  • Check to see if the tax rate is based on homestead or non-homestead. These two rates are different. You must declare homestead annually if the property is your primary residence. The Homestead Declaration, titled Form HS-122, is filed with the State of VT Tax Department. Additionally, if you qualify for the property tax credit, Form is HI-144 is required. The Homestead Declaration form is typically filed at the same time income taxes are submitted to the state. Once the state has processed your taxes, they send your Homestead Declaration details to the Assessing Department. This information determines how your property's assessed value is allocated towards the homestead tax rate portion of your tax bill. If a Homestead Declaration is not filed, the entire assessed value is taxed at the non-homestead rate. If any portion of the property is used for rental or business purposes and declared on the Homestead Declaration, that specific percentage is categorized as non-homestead, and the remaining value is assessed at the homestead rate.

How often is a reappraisal done in the Town/City, and why are we doing one now?

A span between reappraisals creates more opportunity for inequities to grow and usually leads to much larger and unpredictable changes to property values. As inequities increase, the tax burden on individual property owners becomes unfair. 

Remember that the tax value used for 2025 is the appraised value from the last reappraisal in 2007, or based on any changes since 2007 due to permits, grievances, etc. Over the past 18 years, some property values have gone up or down significantly.

What is the definition of market value?

Market value is the most probable price a property would bring in an open and competitive market. The Assessor does not create market value; rather, it analyzes the patterns and trends of the local real estate market and uses that information to estimate market values for all properties. Assessors spend a substantial amount of time qualifying all sales used to develop fair market values for property. Automated valuation models, or 'AVMs' such as those used by sites like Zillow or Trulia, do not research sales to determine if they meet requirements for qualification. These sites also do not have knowledge of local market variations.

I have not made any improvements to my house; how can the value go up or down? 

That is because the market has changed since the last reappraisal. The last reappraisal was completed in 2007. At that time the assessment base was established and has not been changed since that time. The purpose of the reappraisal is to bring the values established several years ago to current market values and to establish equity across parcels.

Remember that the tax value used for 2025 is the appraised value from the last reappraisal in 2007, or based on any changes since 2007 due to permits, grievances, etc. Over the past 18 years, some property values have gone up or down significantly.