Vermont H0878 modifies income and education property taxes, exempting Social Security benefits and capping property tax increases.

Vermont H0878 amends income and education property taxes by exempting Social Security benefits from taxable income and limiting annual property tax increases to one percent. It introduces a proportional exclusion of Social Security benefits based on federal adjusted gross income, with full exclusion for incomes below $55,000 and partial exclusion for incomes between $55,000 and $65,000. For incomes over $65,000, no benefits are excluded. The bill also specifies that taxpayers can only elect one exclusion, whether it be Social Security benefits, military retirement, or survivor benefits.

Vermont H0878 modifies income and education property taxes, exempting Social Security benefits and capping property tax increases.

Vermont H0878 amends income and education property taxes by exempting Social Security benefits from taxable income and limiting annual property tax increases to one percent. It introduces a proportional exclusion of Social Security benefits based on federal adjusted gross income, with full exclusion for incomes below $55,000 and partial exclusion for incomes between $55,000 and $65,000. For incomes over $65,000, no benefits are excluded. The bill also specifies that taxpayers can only elect one exclusion, whether it be Social Security benefits, military retirement, or survivor benefits.