Don’t forget to file your Homestead Declaration!
Beginning with the 2024 Property Tax bill, the Town of Guilford will be reinstating the penalty for late filers of the Homestead Declaration. In 2018, the Town stopped assessing this penalty. In the 5 years since, the number of non-filers and late-filers has been increasing annually. So, what does this mean to the taxpayers of Guilford?
- By Vermont law (Statute 5410 – Declaration of Homestead), property owners whose homes meet the definition of a Vermont homestead must file a Homestead Declaration annually by the April 15th filing deadline. If eligible, it is important that you file so that you are correctly assessed the homestead tax rate on your property. In Vermont, all property is subject to education property tax to pay for the state’s schools. For this purpose, property is categorized as either nonhomestead or homestead. A homestead is the principal dwelling and parcel of land surrounding the dwelling, owned and occupied by the resident as the person’s domicile.
- All property is considered nonhomestead, unless it is declared as a homestead. The education property tax rate levied on nonhomestead property differs from the rate levied on homestead property. Currently, in Guilford, the homestead education tax rate is higher than the nonhomestead education tax rate. It is your responsibility as the property owner to claim the property as a homestead if you meet, or expect to meet, the following requirements:
- You are a Vermont resident
- You own and occupy a homestead as your domicile as of April 1 of the current tax year
- Property is considered nonhomestead if one of the following applies:
- Your property is leased for more than 182 days out of the calendar year.
- The property is used exclusively for commercial, including rental purposes.
- The property is used for a second home, camp, vacation, or summer cottage.
- One significant benefit to the taxpayer as a result of filing the Homestead Declaration is the potential for State Credit towards their tax bill. Calculation of this credit is done by the State, and the funds are transferred directly to the Town on the taxpayer’s behalf. This credit is income sensitive, and uses property information from the previous year. Form HI-144 Property Tax Credit Claim is required for this assistance.
- Late filing occurs when a taxpayer files the Homestead Declaration after the April Vermont income tax filing deadline. As a result of late filing, the taxpayer will incur a penalty which will be 8% of the education tax liability on the property, as per State Statute.
- October 15 is the final date for late filing. If the owner of a Homestead fails to declare the homestead, the law dictates a revised bill be issued with the correct education tax. The 8% penalty will be included on the new tax bill.
- If the Commissioner determines that the failure to declare was with fraudulent intent, then the municipality shall assess the taxpayer a penalty in an amount equal to 100% of the education tax on the property, plus any interest and late- payment fee or commission that may be due
Methods for Filing:
- Online via myVTax.vermont.gov
- Paper Returns – Form HS-122, the Homestead Declaration and Property Tax Credit Claim. Many people file their Homestead Declarations at the same time they file their Vermont income tax returns. However, if you apply to extend the time to file your income tax return, the Homestead Declaration must still be filed by the April filing deadline. Even if a person is not required to file a Vermont Income Tax Return, the declaration must be filed by the deadline. If one is filing to receive a State tax credit, they must also submit form HI-144, Property Tax Adjustment Claim.
- Accountant – Please be aware if your accountant is from out-of-state, they may be unaware of this requirement. You may wish to communicate and be certain the Homestead Declaration (HS-122) is completed and on time.