VT S0104

Transitions Vermont from an education property tax to an education income tax for homeowners beginning in fiscal year 2027, with rates determined by locally voted school budgets and adjusted based on each district's per-pupil education spending relative to the statewide average

Eliminates the homestead education property tax while maintaining the nonhomestead education property tax on commercial and non-residential properties, excluding residential dwellings and their surrounding two acres

Expands property tax credit income sensitivity thresholds in fiscal year 2026, raising the household income cap from $90,000 to $130,000 for the highest tier and the housesite value cap from $225,000 to $400,000

Creates a temporary new top marginal income tax rate of 10% on income above $275,000-$310,000 (depending on filing status) for one year to offset Education Fund revenue losses from expanded income sensitivity measures

Extends the education income tax to renters beginning in fiscal year 2030, with a 21% nonrefundable credit against education income tax liability for gross rent paid during the taxable year