BURLINGTON, Vt. (WCAX) – Homeowners in Burlington could be getting a break on their taxes. The Burlington City Council is discussing putting a new property tax exemption up for a vote on Town Meeting Day.
The charter change would subtract $30,000-$50,000 from the assessed value of a home. The home would then be taxed at a rate set by the city, adjusted annually based on inflation. Other property owners would pay higher taxes to make up the difference.
The Tax Fairness Working Group’s calculations estimate the measure would save the median Burlington homeowner at least $112. They say they’re proposing this change to address overvalued lower-priced homes.
“This proposal benefits people who have low-value homestead properties, and is fairly neutral to other homestead properties,” said data analyst Nancy Stetson.
The mayor’s office and eight out of 10 members of the working group think it’s a good idea, but Charter Committee members were skeptical on Monday night.
“The potential for unintended consequences is very high,” said City Councilor Becca Brown McKnight, D-Ward 6.
Only 38% of Burlington housing units are owner-occupied. Commercial and rental properties would pay higher taxes to cover homeowner savings.
A reduced tax base means a higher tax rate, and landlords often pass on costs. Charter Committee members wondered if this would affect worker salaries, the cost of goods, or rent.
“We have no ability to forbid a landlord based on state law from not passing those costs onto their tenants,” said City Councilor Evan Litwin, D-Ward 7.
“We shouldn’t necessarily assume that a small affordability tax effort is necessarily going to dramatically impact rental units in this city,” said Jen Monroe Zakaras, the mayor’s deputy chief.
The Charter Committee is hoping to get comments on the plan from Burlington residents. They’ll be discussing the charter change with the Board of Finance.
The mayor is expected to put the final proposal on the ballot for Town Meeting Day on March 3rd, 2026.
Any final approval of the charter change would also need the consent of the Legislature and the governor.
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