The Vermont State Treasurer announced the creation of a statewide borrowing program for municipalities that will help towns meet their property tax obligations amid the Covid-19 crisis.
The Legislature and Gov. Phil Scott have given towns the flexibility to delay property tax deadlines for residents during the pandemic.
But towns are still required to make full property tax payments to the statewide education fund, even if they don’t receive everything they are owed from local taxpayers.
The new program, which was established in legislation signed by the governor, will help towns cover the cost of interest in the event they need to borrow to pay the state’s education fund.
“The rapid launch of the Municipal Emergency Statewide Education Property Tax Borrowing Program will help municipalities reduce borrowing expenses as they manage COVID-19 disruptions, like potential education property tax deferrals or delays in revenues,” Vermont Treasurer Beth Pearce said in a statement.
— Xander Landen