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Category: Vermont

Vermont Homestead Declaration and Property Tax Adjustment Claim

Homestead Declaration - Form HS-122

The Vermont Homestead Declaration filed in 2011 or 2012 remains on record until the property is sold or the use is changed. A Homestead Declaration must be filed when you:

  • Purchase a Property to be used as your Homestead - The declaration can be filed at the time of closing. Otherwise, it should be filed by the April due date of the applicable grand list year. For instance, you buy your home in October 2013. You can file at the time of the closing or wait until April 2014 due date. Note: The property tax adjustment remains with the property. The allocation of the seller's property tax adjustment is determined at the closing.
  • Change the use of the Property on the Previously Filed Declaration - If the business or rental use of the property increases or decreases, file a new declaration. The declaration with the change can be filed as soon as you make the change and the Department will hold the new declaration for the appropriate grand list year. Otherwise, you need to file the new declaration by the April 15 date.

When a portion of the property is the homestead and a portion is used for business purposes or rented, the following rules apply for reporting the use on Form HS-122, Homestead Declaration:

  • Business Use: If no part of the homestead is used for business or the business use is 25% or less of the homestead, the entire property is taxed at the homestead education property tax rate. More than 25% business use of the homestead - enter the appropriate percentage. The business use is the same as reported on your Federal income tax return.
  • Rental Use: The portion of your home that you rent to another person is not part of your home and is taxed at the nonresidential education rate. All rental use must be reported. There is no 25% allowance for rentals. The rental use percentage is the same as reported on your Federal income tax return.

Notice to Withdraw Vermont Homestead Declaration - Form HS-122W

Withdrawal of the Homestead Declaration should be filed when:

  • Property is Sold - The seller must withdraw the declaration when transferring the title of the homestead to another owner. Note: The property tax adjustment remains with the property. The allocation of the seller's property tax adjustment is determined at the closing.
  • Property is No Longer a Homestead
  • Property is Owned by Estate - If the property is the descendant's homestead at the time of death, the property now owned by an estate may retain homestead classification on the grand list until the following April 1 provided the property is not rented.
  • Declaration Submitted in Error

Property Tax Adjustment Claim - Form HS-122W

Eligibility - A homeowner eligible for an adjustment is one who:

  1. owned and occupied property as his or her principal home on April 1, 2014;
  2. was a VT resident all of the calendar year;
  3. was not claimed as a dependent by another taxpayer for tax year 2013; and
  4. has household income of $105,000 or less.

Due Dates

  • On or before April 15, 2014 is a timely filed Form HS-122.
  • Between April 16 and October 15, 2014 is a late filed Form HS-122. A $15 late filing penalty is deducted.
  • After October 15, 2014 the filing of Form HS-122 cannot be accepted.

Note: There is no extension of time to file Form HS-122

For additional information pertaining to either the Homestead Declaration (Form HS-122) or Property Tax Adjustment Claim (HS-122W), please click here.