Senate concurs with House amendment to H.887 on homestead yields; sends action to House

The Senate on a late-night session agreed to concur with the House proposal amendment to H.887 — a bill addressing homestead property tax yields, nonhomestead rates and changes to education finance and taxation — and sent the action to the House.

Senator from Chittenden Central moved that the chamber take up H.887 for immediate consideration. The presiding officer suspended rules to allow consideration and the Senate proceeded to debate the measure and the House proposal amendment.

Senator from Washington, who outlined the bill’s recent history, said the measure incorporates the Senate’s education finance concept into a larger, multi-member commission that will include a finance subcommittee. “We would raise that to 3.8 percent and that would allow us to increase the tax credit by 13%,” the senator said, describing how an adjusted statewide yield would let the state expand an income-based property tax credit intended to protect lower-income homeowners. The senator also warned that the state’s "super circuit breaker," set at $47,000, and a one-year lag in relief meant many of the most financially vulnerable could still face higher out-of-pocket bills this year.

Senator from Orange, speaking in favor but with reservations, framed the bill within Vermont’s long-running debate over education costs and outcomes: "Vermont spends more money per pupil than almost every 1 of the other 49 states," the senator said, adding that Vermont students perform highly and urging the upcoming commission to study whether program changes are warranted.

After debate the presiding officer ordered a roll call. The clerk read names and senators responded yes or no; the presiding officer announced the result as 18 ayes and 8 nays and declared the Senate had concurred with the House proposal amendment to the Senate proposal amendment on H.887. The Senate then voted to suspend its rules and message the action to the House forthwith.

The official next step is transmittal of the Senate’s action to the House; senators also voted to recess until 12:30 a.m. on May 11. No further bills were taken up before the recess.

The debate focused on two practical issues: how the commission and subcommittee will shape future policy and the near-term mechanics of relief — a revised yield and an increased income-based tax credit — intended to blunt the immediate impact of a larger, earlier property tax increase on lower-income households. Several quantitative elements were discussed during debate: an estimate that prior changes would reduce a projected statewide property tax increase to about 12.5%; a proposed average yield of 3.8%; a roughly 13% increase in the income-based tax credit; and an adjustment of an excess-spending cap from an earlier 120% down to 118% in the negotiated language.

The Senate’s concurrence and messaging to the House complete the chamber’s action on H.887 for now; the bill will proceed in the legislative process once the House receives the message.