Answers to your Frequently Asked Questions about Property Taxes:
Guilford property taxes are calculated in two parts: Municipal Taxes (approximately 30% total) and Education (approximately 70% of total). This overview addresses the municipal portion of taxes.
To build a Town budget and ultimately calculate taxes, each Town department submits a proposed budget to the Selectboard in the fall. The Selectboard reviews each budget, meeting with Department heads to determine cost savings where possible. The Selecboard finalizes the proposed Town budget normally in January, following a series of public workshops. Budget figures are then put into the Town Report (along with reports from each Town department), which is sent to all residents for review. During Town Meeting in March, the budget is voted on. Once voted, an approved budget is set for the following fiscal year, and the overall budget cannot be adjusted. The budget for this current fiscal year was again level funded.
2024 Guilford Municipal Tax Rate Calculation
Each Spring, the Listers are responsible for valuing every property in town as it stands on April 1. After the valuations have been completed, the total value of all properties (minus tax-exempt, Current Use, and Veteran credits) is the figure used to calculate the tax rate. There are a few other components that go into determining the tax rate, such as contributions from the State for a variety of programs, but for the sake of simplicity, the Total Town Budget is divided by the Total Value of all Town Properties to determine how much of the budget is to be supported by each dollar of property valued.
As property values throughout town rise, the municipal tax rate must go down, because the Town is raising nothing from tax dollars beyond the citizen-approved budget.
The Vermont Tax Department assigns a “Common Level Appraisal” (CLA) number to every community in Vermont. The CLA represents a percentage of difference between the appraised value of town property and the sale price of property that has recently changed hands. Vermont mandates that towns reappraise if the CLA is below 85% or over 115%. Guilford was required to do a town-wide reappraisal in 2023.
The lower the CLA, the higher the Education Tax rate for each town in the school district. In order to calculate the tax rate, divide the district education tax rate by the CLA. The CLA is used so that all public-school students are offered an equal opportunity in our public education system regardless of the Grand List value of each town. This system is predicated on the idea that regardless of variability of wealth of towns all students are presented with a similar education opportunity. The higher our assigned CLA number, the lower our tax rate will be. If the assessed value of properties is increased, a lower education tax rate will be the result of a higher education CLA number.
Another very important consideration is the Vermont income sensitivity program. If a household income is below $135,000 per year, a portion of the household’s education tax will be paid by the state directly to the town in the household name to pay a portion of the education tax. In Vermont 80% of households receive some degree of help on education tax due to the income sensitivity program. The funds available for this help are derived from many different sources such as rooms and meals tax, lottery, and other additions to the general state fund.
After the tax rate is established in late July, tax bills are created, reviewed and mailing them out begins in early August. If you do not receive your tax bill by the end of August, please contact the Town Treasurer.
Your property tax payment is due annually on or before October 15th by 5:00 pm. Post-dated checks are not accepted and mailed envelopes postmarked October 15 but received at a later date will be considered late. So, plan ahead and give yourself ample time to pay on time.
The State of Vermont supports disabled veterans by providing a property tax reduction. State law mandates a minimum $10,000 exemption, although towns are given the option of increasing the exemption to a maximum of $40,000. The exemption reduces the appraised value of the home prior to the assessment of taxes. In 2009 Guilford voters increased the exemption to the maximum. Initially, 6 veterans in Guilford qualified for the program. In 2023 there are 10. The $30,000 voted additional exemptions per veteran are distributed throughout the Grand List, and your share is shown as “Hold Harmless” on your tax bill.
No, not automatically. Your property tax bill will only be sent to your bank that holds your escrow account if they request it.
Because you are ultimately responsible for your payment, it is advisable to assure that your bank has made the proper payment from your escrow account.
You will receive separate bills for properties that are not adjacent to each other. For properties that are adjacent to each other, you will likely receive one bill.
If you still own your property, but have a new mailing address, be sure to contact the Town Clerk by email (townclerk@guilfordvt.gov), mail (236 School Road, Guilford, VT 05301), or by phone (802.254.6857 x 101).
No. The Town of Guilford sends Property Tax Bills to one and only one address. If you are sharing the payment with others, it is your responsibility to make the necessary arrangements.
- You will be charged a one-time penalty payment of 8% of the total bill.
- You will incur an interest payment of 1% or a portion thereof per month thereafter.
You can pay your Property Tax Bill in person by check (payable to the Town of Guilford), money order, or cash (exact amount only). Please be sure to include your remittance stub with your payment.
You can visit our website at www.guilfordvt.gov and click on Pay Bills at the top right of the page. Follow the instructions for paying your bill online. You can pay with a credit or debit card (service fee of 2.75%, or a minimum fee of $3.00) or with an online E-check (flat fee of $1.50)
Payments must be made by 5:00 pm on or before the due date in order to have the payment considered on time. You may make a partial payment of your tax bill at any time, including prior to receiving your bill.
We cannot accept payment by phone.
In order to be eligible to receive a Property Tax Credit, you must file a Homestead Declaration (section A & B of VT Dept of Taxes Form HS-122) and Schedule HI-144, re: Household Income. The due date for submitting these forms on time is April 15th annually. Submission after April 15th will incur late fees.
Eligibility is also income dependent. In 2024, the Maximum Household Income allowed in order to receive property tax credit was $115,000. The maximum credit a taxpayer could receive was $5,600 for the State Education tax portion and $2,400 for the Municipal property tax portion.
If the VT Dept of Taxes determines you are eligible for a tax credit, If you received a notice from them stating the amount of credit awarded that will appear on your tax bill, thus reducing the amount of tax you will pay owe. If you filed by April 15th, you will see the credit on your tax bill in early August. If you filed your Homestead forms late, and you have already received your original bill, you will receive a revised bill. This revised bill will include the late filing fee and possibly a change to your education rate. You will not receive a check from the State.
This web link, https://tax.vermont.gov/property-owners, provides access to the Vermont Department of Taxes home page. Once there, click on the PROPERTY TAX CREDIT box for more information, tax forms, and instructions.
When the calculation of the education tax rate shifted to the State in 2003, two tax rates were established:
- The Homestead property rate is applied to property owned and occupied by a Vermont resident.
- The Non-Homestead rate is applied to all other property, including commercial, land and those properties not occupied by the owner as a primary residence.
The Education Tax rates are set by the State of Vermont. Please reference Chapter IV. “Tax Rate Calculations and Revenue Sources” of the ”Budget Report or the WSESD, Independent Budget Review Committee”, pg 8, for more information about how the education tax rates are set. Here is the link to that document: https://drive.google.com/file/d/17xINTisgodvTVlZEE_3uFZCXE1PzI9T6/view
You can find additional education tax rate information at: https://tax.vermont.gov/property, and click of “Education Property Tax Rates”.
On your tax bill the education tax rate is tied to your annual Homestead Declaration status. If your property is your primary residence, you will be charged the Homestead Education Rate. If you do not declare your property as your primary residence, you will be charged the Non-residential Education Rate. You may have both rates on your bill if a portion of your property is a rented or perhaps used as a business.
The web link below provides access to both the Vermont Homestead Declaration form as well as the Vermont Property Tax Adjustment Claim form.
https://tax.vermont.gov/property-owners
The assessment on your property is an estimate of its “fair market value” as of April 1. In Vermont, municipalities are required to conduct periodic town-wide eappraisals to estimate the fair market value of properties.
The Internal Revenue Service defines fair market value as “…the price that a property would sell for on the open market. It is the price that would be agreed upon between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.”
If the municipality has just completed a reappraisal, the assessment should be an estimate of the price a property would most probably sell for under current real estate market conditions. If the municipality reappraised in some prior year, the assessment should reflect the fair market value relative to the real estate market in that year. Guilford’s most recent town wide reappraisal was completed in 2023. The previous reappraisal took place in 2017.
This was a statistical reappraisal, meaning homes were reappraised based on a calculation rather than an individual inspection, but different factors go into each properties’ calculation.
Assessments are based on local market values. Not all properties’ values increase by the same percentage because of variations in factors like location, property condition, home improvements, and market demand. For example, a house in a highly sought-after location might see its value increase more than a similar house in a less popular location. Changes in the local real estate market, such as increased demand for certain types of properties, can also affect individual assessments.
You are welcome to contact the Board of Listers at any time with questions about your property assessment.
The process of formally appealing your property assessment begins with the grievance hearing, which is held with the Board of Listers. Grievance hearings usually start in June, about 2 weeks after notices of new values are mailed to property owners. Since only property owners with assessment changes receive these notices, other taxpayers who wish to appeal should contact the Listers office before May 1 to request notification of the exact date the hearings will begin and to obtain any necessary paperwork for filing a grievance. You may grieve in one of three ways: in person, by representation (with the written permission of the owner), or by mail.
Notices of Grievance Results will be mailed within two weeks after the hearings are closed. This notice will contain information regarding the procedure for appealing the decision of the Listers to the Board of Civil Authority. Appeals beyond the local level go to either the Vermont Superior Court or to the Director of Property Valuation and Review. Each level of appeal must be completed before the next can be scheduled.
You can find out about Vermont’s Current Use Program on line at: https://tax.vermont.gov/property-owners
You can find out about Vermont’s Military Personnel – Property Tax Exemption for Disabled Veterans at:
Or
https://veterans.vermont.gov/benefits-and-services/veteran-benefits/tax-exemptions-veterans
Or see the following pdfs
“Property Tax Assistance for Veterans”
“Property Tax Exemption for Eligible Veterans and their Survivors”
You can access announcements and publications from the State Property Tax Administration at: https://tax.vermont.gov/property-owners