Veteran's exemption

You can find the statute relating to the veteran’s property tax exemption located in at 32 VSA 3802(11) in Vermont state law. The exemption is for a veteran or immediate family member who own a house, if any of them are receiving from the military or Veterans' Administration any of the following:
- disability compensation for at least 50 percent disability,
- death compensation,
- dependence and indemnity compensation, or
- pension for disability

The statutory exemption is for the first $10,000 of grand list value of the residence, excluding any part used for business or rental. A town may vote an additional exemption of up to $40,000 by a majority vote at any town meeting or special meeting. A voted increase takes effect in the tax year for which it was voted and remains in effect until amended or repealed by a similar vote.

Because the first $10,000 exemption is by state law, and not by vote of the town, it creates an exemption from both the municipal and the education property tax. If a town votes to increase that amount, then any additional exemption over the first $10,000 creates an exemption only from the municipal tax. Other taxpayers in the town pick up the difference on the municipal tax simply by having to pay more in their own municipal taxes to make up the budgeted amount. But since there is no education property tax exemption related to that extra voted amount, there is no education tax shortfall that the other taxpayers in town have to pick up.

Like Fairfax, several other towns in the state have taken advantage of the law and have voted to raise the amount of exemption. Voters tell me they feel it is a small way they can say thanks for the sacrifice veterans have made in order to keep our nation free.

Rep. Carolyn Branagan
Franklin-1, Fairfax/Georgia
Vermont House of Representatives