MONTPELIER, Vt. (WCAX) – Vermont Governor Phil Scott says state lawmakers should push forward his plan to provide property tax relief this year despite concerns over possible impacts to the state’s bond rating.
The Scott administration last week floated a plan to borrow money from reserves and loan it out to school districts with the expectation that lawmakers would work on education funding reform.
But Vermont Treasurer Mike Pieciak said the plan could negatively affect the state’s credit rating.
The governor says he isn’t convinced and maintains that credit agencies could view Vermont favorably by having a short-term plan for property tax relief that is paired with systemic education finance reform.
“I don’t know what the plan B would be. If they’re not willing to do anything right now, then they are part of the problem and are accepting this 20% increase — which I’m not accepting,” Scott said Wednesday.
The Vermont House this week is expected to take up the yield bill that sets the statewide property tax rate. This year it includes new taxes — a cloud tax on business software and short-term rentals — to try to buy down the property tax increase. It also funds another commission to study tax reform over the next year and a half.