1/6/25

The New Year is upon us with cold and wind, but it is beautiful with that latest blanket of white. I was away when the snow came. I truly have the most wonderful neighbors who kept my bird feeder full, removed snow and turned up the heat the day I returned!

I don’t have much news since I only returned on Saturday. I did learn, however, that the Select Board meeting initially scheduled for Mon, 1/6 has been postponed until the 13th. I do not see an agenda, but I imagine it will be posted shortly. Also, please note that the Tyson Ladies Aid meeting normally the first Thursday of the month, has been postponed until 1/16.

Coming up this week is the book discussion at Fletcher Memorial Library at 10 AM on 1/9. This is the first time it will be held during the day, so hopefully more people will be able to attend. We will be exploring The Beantown Girls by Jane Healey, an interesting book about the Red Cross ladies who volunteered to bring coffee, donuts and good cheer to front lines US troops during WWII. All are welcome.

I am copying a letter from Elliot Rubin explaining the financial issues for Plymouth regarding the Mountain View School District. The links are particular important to help understand the situation

Why Plymouth School Tax Rates Are Going Up

The simple explanation is two-fold: 1- The individual town school tax rates referred to in the VT Digger article https://vtdigger.org/2024/12/19/mountain-views-school-board-restores-budget-for-arts-positions/ and The Mountain Times https://mountaintimes.info/2024/12/18/mvsu-keep-ua/ are dictated by their own Common Level Appraisals (CLA’s), and 2- town school tax rates are not the same as your tax bill. A more detailed explanation follows.

The process of determining Vermont school taxes is very complex and has many moving pieces. Vermont has a summary https://tax.vermont.gov/property/education-property-tax-rates/faqs. To explain in more detail, let’s walk through the process as it relates to our school district. It may help to refer to the charts in the Mountain Times article referenced above.

Let’s start with the Equalized Tax Rate and how that is derived: The State of Vermont, in a letter on December 1, 2024, projected an increase in average education property tax bill of 5.9% next year (compared a 14% increase in the past year). Next a per pupil spend (the amount of money a district spends on education per student weighted by different types of students in a fiscal year) is divided by the property yield (which is a factor generated by the State of Vermont) to come up with and equalized tax rate (EqTaxRate). That equalized tax rate is applied to the seven towns in our district (Barnard, Bridgewater, Killington, Plymouth, Pomfret, Reading and Woodstock). The EqTaxRate for Fiscal Year ’26 (FY26) is increased compared to last year.

Next let’s see how individual town tax rates are derived using the CLA:What happens next, to get each town’s rate, it is necessary to divide that equalized tax rate by each town’s Common Level Appraisal or CLA. The CLA is a way of equalizing home values across the State by comparing them to market value. If a town on average is more than 15% under or over the fair market value (or if CLA in less that .85 or over 1.15) it must do a town wide re-appraisal. Towns of Barnard, Bridgewater, Pomfret and Reading have done that recently. Woodstock, Killington and Plymouth have not done theirs yet. Plymouth should be doing theirs in the next year or so. This year Vermont passed Act 183 which updates the educational funding formula by applying an adjustment factor to the CLA statewide, beginning on July 1, 2025.

For example, as houses in Plymouth are selling for more than the value that appears on our tax bills, the CLA is under 1. Our CLA for FY25 is approximately .6225 and is projected to be .68 for FY26 after the statewide adjustment . So, the tax rate for Plymouth FY26 is projected to be the EqTaxRate divided by the CLA and for us that means an increased tax rate percentage, mostly because the EqTaxRate went up and the CLA did not change very much. The reason Woodstock has a projected town tax rate decrease is because their CLA with the statewide adjustment went from about .63 in FY25 to .79 projected in FY26, enough to compensate for the increased EqTaxRate. As mentioned, our Plymouth CLA improved a bit over last year, but not enough to have our town tax rate go down.

Some towns have already done their appraisals and have lower tax rates:To get the full picture, now consider those towns mentioned above (Barnard, Bridgewater, Pomfret and Reading) who have had their appraisals done recently. After reappraisal, notice that their CLA’s are all close to 1 which essentially means their homes are valued at close to market value. This year’s statewide adjustment has brought them over 1 so their homes are valued more than market value. They are projected to have lower tax rates, but that does not tell the whole story. The individual tax bills will now show the new tax rate multiplied by the new home appraisal value on it.

The following chart link https://drive.google.com/file/d/1ZcY7_yFvwOPa_tlAwsCA9pZTQSeHhIL-/view?usp=share_link depicts the CLA’s of the district’s 7 towns since 2019 and when the townwide appraisals were done. It is informative to spot trends in the real estate market and to put the current values of our district’s towns in context.

So, in a nutshell this is why individual towns have different school tax rate and percentage changes, and it is not that straightforward to compare across towns. All of the above referenced charts are instrumental to get an overview for a district, but it is important to recognize that town specific tax rate percent changes follow each town’s appraisal history and CLA’s. It is that information which ultimately determines each town’s school tax rates and the final tax bill that taxpayers receive in their mailboxes. I hope this is helpful. It is very complex. I’m happy to answer any questions, and can be reached at elliot.rubin@mtnviews.org

Elliot Rubin, MD, FAAP Plymouth Representative School Board MVSU