Non-residential residents

Tax rate questions have been coming in recently, specifically around special situations that larger landowners or those who own multiple lots may face.

The Vermont Legislature defines three tax rates each year for Education Taxes:

1. Homestead
2. Income Sensitivity
3. Non-residential

We usually comment that most residents pay a combination of the above rates.  This can include the Non-residential rate in certain circumstances.  Here are some of the most commonly overlooked cases:

• Income Sensitivity rates (households that make less than $90k per year) apply only to your primary housesite.  A housesite is defined as your house plus (up to) two acres of land.   Additional acreage on the same lot are taxed at the Homestead rate.
• If you own a lot adjacent to your primary house lot, it will be taxed at the Homestead rate only if its ownership is identical to that of your primary house lot.  If the name on both deeds is not identical, then the abutting lot is taxed at the Non-residential rate.  
• Additional non-adjacent lots are taxed at the Non-residential rate.

 It is possible that Westford residents are affected by two or three of the above rates.  It is important to review your property tax bill to understand which situations apply to you.