For years, a multitude of factors beyond the control of school districts have been impacting school budgets and tax rates: demographic shifts, pandemic disruptions, the end of federal funding, and
Unemployment insurance bill will increase tax burden for Vermont businesses
Without legislative intervention, Vermont businesses will experience an enormous increase in the unemployment insurance tax rate as a result of COVID-19-related claims. A Senate committee has passed a bill to delay that increase, but at the same time also voted to add significant new benefits that will further increase costs to employers.
The Unemployment Trust Fund is paid through a UI tax on business owners. Pre-COVID, the fund had a robust $500 million balance. The tax is calculated in five schedule rates, with Schedule 1 the lowest. Higher rates kick in if the trust fund balance decreases, which it has by more than 50% due to pandemic-related business shutdowns and resulting increases in unemployment. Without legislative intervention, the resulting UI tax rate jump to Schedule 5 would cost a majority of businesses $186.00 per employee, more than tripling the current contribution of $58.00 per employee.
Thu, 02/04/2021 - 11:41am meganj
By:
Peter Conlon
There is a small bill making its way through the Legislature this week that brings good financial news for all Vermonters. Called the Yield Bill, it sets a number that will be used to calculate statewide education property tax rates, and that number is far better than legislators, economists and school officials had imagined when the pandemic began or even a couple of months ago.
The result will be education property tax rates that should ultimately be lower than predicted, even as recently as mid-January when schools were approving budgets and tax rates for residents to vote on Town Meeting Day. It represents a far rosier picture of people’s spending during the pandemic, and the impact of billions of federal dollars pumped into the Vermont economy since the spring.