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PROPERTY SALES AND DECLARATION OF VERMONT HOMESTEAD

The new education funding law classifies property as either homestead or nonresidential.

These property classes are subject to the education tax at different rates. To be taxed at the

homestead rate, the property owner must file a Homestead Declaration with the Vermont

Department of Taxes declaring that he or she is a Vermont resident who owns and occupies

the property as his or her principal dwelling as of April 1. The Declaration is due each year on

or before April 15. To ensure that property buyers pay the correct education tax rate and

avoid penalty for late-filed Homestead Declarations, the following actions should be taken:

SALES OCCURRING ON OR BEFORE APRIL 1

• If the purchased property is the buyer’s homestead on April 1, buyer must file a

Homestead Declaration (HS-131) on or before April 15. Note that if the dwelling is newly

constructed, the buyer may need to obtain a School Property Account Number (SPAN)

from the town listers to include on the Homestead Declaration.

• If the purchased property is not the buyer’s homestead on April 1, buyer should not file a

declaration.

• If the sold property was not the seller’s homestead and seller has not filed a Homestead

Declaration, no action needs to be taken by the seller.

• If the sold property was seller’s homestead and seller filed a Homestead Declaration, the

seller must notify the Department. SEE NOTICE BELOW.

SALES OCCURRING AFTER APRIL 1

• If the property was seller's homestead on April 1 and seller filed a Homestead Declaration

by April 15, no further action is needed. To confirm that seller has filed a Homestead

Declaration, seller can call 1-866-828-2865 (toll-free in State) or 802-828-2865 (local or

out-of-state) for this information.

• If the property was seller's homestead on April 1 and seller did not file a Homestead

Declaration by April 15, seller is still required to file. The late payment penalty should be

settled at closing. Filing prior to December 1, may result in a lower tax bill.

• If the property was not the seller’s homestead on April 1, and seller did not file a

Homestead Declaration, no action should be taken.

• If the property was not the seller’s homestead on April 1, but seller filed a Homestead

Declaration, seller must notify the Department and rescind the Declaration. SEE NOTICE

BELOW. The penalty should be settled at closing. The town will issue a corrected tax bill

based on the nonresidential tax rate.

Vt. Dept. of Taxes

HS-131 - withdraw

Notice Regarding Withdrawal Of Homestead Declaration Form 2004 - Vermont Department Of Taxes