Marion was not sure how it applied to her and, like many
people, she mistakenly tucked it away in a file of papers
she planned to pass on to her tax preparer. She didn't realize
it needed to be filled out and mailed off as soon as possible
to the Department of Taxes.
The one-sided form is simple to complete, yet it represents
many months of legislative work on Act 68, which changes
the way education is funded statewide. For Marion that means
school property tax relief. According to Tax Commissioner
Tom Pelham, "Most homeowners will see their property
tax go down."
In simple terms, Act 68 classifies all properties on the
education grand list as either residential or nonresidential.
Both classes are subject to an education tax, but the tax
is imposed at different rates on the two kinds of properties.
You must file the Declaration of Vermont Homestead form
if your homestead is your principal dwelling, including
its contiguous land and other buildings on it. You must
be a Vermont resident and own and occupy that homestead
as your principal home as of April 1, 2004. If your living
situation doesn't fit those criteria your property will
be considered nonresidential, subject to a different tax
rate, and you will not be required to file form HS-131.
And how do the two different tax rates compare? Homesteads
are taxed at a base rate of $1.10 per $100 of property value
to fund Vermont per-pupil education costs. Your actual tax
rate will differ according to increases for local spending
and your town's assessment level. Nonresidential properties
are taxed at the higher rate of $1.59 per $100 property
value, also subject to adjustment for local appraisal levels.
Because the largest chunk of local tax money goes toward
funding education, school property tax relief is welcome,
especially for Vermont seniors living on fixed incomes.
But in order to qualify it is essential that homeowners
fill out the form to ensure the proper taxation level. File
it as soon as possible and no later than April 15. If you
are late you will be subject to a penalty and interest.
It does not have to be part of your income tax filing and
can be mailed separately.
The one paper you will need in order to fill out Form HS-131
is your property tax bill issued by your town. The bill
contains the two important numbers you need to write on
HS-131: the three-digit school district code and the eleven-digit
SPAN number (School Property Account Number). If you cannot
find your property tax bill, your Town Clerk can provide
those two non-confidential numbers to you.
If you haven't received your HS-131 form call 1-866-828-2865
(toll-free in Vermont) or 802-828-2515. You can pick
one up yourself at your Town Clerk office or Post Office.
For help in filling it out call the toll-free number above
or email schooltax@tax.state.vt.us.
For the internet savvy, the form and instructions can be
downloaded at www.state.vt.us/tax.
Better yet, complete the form online at www.vermont.gov/app/tax/homestead/homestead.pcgi.
Fortunately Marion learned at her local senior center that
her Declaration of Vermont Homestead Form should be sent
off separately from her income tax. She retrieved it from
her tax papers and sent HS-131 on its way right after Christmas,
thus avoiding any penalty and gaining measurable property
tax relief.
RESOURCES
Senior Help-Line (1-800-642-5119) can provide information
about the Declaration of a Vermont Homestead Form and other
concerns of area seniors.
