Posted By Anne on June 23, 2011
Pre-dating Act 60 and the enactment of income sensitivity, the State of Vermont granted disabled Veterans a $10,000 reduction on the grand list of their home for the purpose of property taxes. This credit was continued when income sensitivity became law in 1997. The State later permitted towns to expand the credit to $40,000. This created a situation where towns who granted this additional tax credit were required to make the state education fund whole. Many of the disabled veterans in their communities did not get the additional help with their taxes because they were better off utilizing the provisions of income sensitivity.
The bill that passed this year will calculate the tax benefit as if the veteran did not use income sensitivity and give an additional tax reduction on top of any tax advantage gained by using income sensitivity to disabled veterans owning households in Vermont.