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Vermont Education Tax Rate Could Increase by 12% in Fiscal Year 2027

Vermont's education property taxes could rise nearly 41% over five years amid declining student enrollment and rising per-pupil spending, the Tax Commissioner said.

  • William Shouldice, Vermont Commissioner of Taxes, released a Dec. 1 education tax rate letter projecting a 12% statewide property tax increase for FY2027 based on preliminary budgets covering two-thirds of districts.
  • Rising per-pupil costs and enrollment declines mean per-pupil spending climbed by nearly $1,000 last year, with Vermont schools reporting about 15,000 fewer students.
  • Gov. Phil Scott called the projection totally unacceptable, Speaker Jill Krowinski labeled it unsustainable and unaffordable, and Senate Republican Leader Scott Beck warned it outpaces inflation and fund growth but isn’t a foregone conclusion.
  • School district budget meetings begin this month, and local school districts can revise budgets before the Vermont Legislature reconvenes January 6, 2026, to consider General Fund offsets.
  • William Shouldice warned that if the landscape persists, Vermont's long-term housing and budget prospects will be at risk, with nearly 41% tax increase over five years.
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The Caledonian Record broke the news in on Monday, December 1, 2025.
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