Homestead Declarations and
Property Tax Adjustments
A Homestead Declaration and Property Tax Adjustment Claim filed after the due date of the income return, without extension. The law allows homeowners to file up to October 15th and still declare a homestead and claim a property tax adjustment.
Filing between the due date and October 15th means:
• The property will be classified as a homestead on the town grand
list and taxed at the homestead school property tax rate
• Late filing penalties will be charged
• Eligible homeowners will receive a credit on their
property tax on November 1.
• Depending on when your town sends property tax bills, you may
receive a revised property tax bill in September
Filing after October 15th of the current year means:
• The property will remain classified as nonresidential on the town
grand list and taxed at the higher of the school property tax rates
• No property tax adjustment claim may be made
• Late filing penalties will be charged on the Homestead Declaration
LATE FILING PENALTIES
• 3% of the education property tax on the property if the nonresidential rate is higher than the homestead rate; or in any other case the penalty is an amount equal to 8% of the education property tax on the property.
Property Tax Adjustment
• A $15 reduction in the property tax adjustment amount
APPEALING THE LATE FILING PENALTY
The late filing penalty is billed and collected by the town. Appeals of the penalty must be appealed to the town. The law provides for a hardship appeal.
Hardship is defined as:
(1) full-time active military duty outside of VT;
(2) serious illness or disability of the homestead owner; or
(3) serious illness, disability or death of an immediate family member of the homestead owner.