Tax Fairness Ad Hoc Committee

City Council - Tax Fairness Ad Hoc Committee Thursday, April 30, 2026, 11:30 AM, Remotely via Zoom Zoom Info: https://zoom.us/j/96774800261 Meeting ID: 967 7480 0261 1. Call to Order 2. Agenda 2.1. Motion to amend/adopt agenda 3. Public Forum Subject 3.1. PUBLIC FORUM - Verbal Comments Meeting April 30, 2026 - Tax Fairness Ad Hoc Committee - Thursday, April 30, 2026, 11:30 AM, Remotely via Zoom Category 3. Public Forum Department Type Action Procedural Recommended Action Open public forum. Close public forum. 4. Consent Agenda Subject 4.1. Tax Fairness Memo - Proposal Modeling Meeting April 30, 2026 - Tax Fairness Ad Hoc Committee - Thursday, April 30, 2026, 11:30 AM, Remotely via Zoom Category 4. Consent Agenda Department Department of Finance and Administration Type Action (Consent) Recommended Action Page 1 of 6 5. Continued Discussion on Committee Priorities Subject 5.1. Scope of Tax Exemption Meeting April 30, 2026 - Tax Fairness Ad Hoc Committee - Thursday, April 30, 2026, 11:30 AM, Remotely via Zoom Category 5. Continued Discussion on Committee Priorities Department Department of Finance and Administration Type Discussion Recommended Action Subject 5.2. Additional Tax Classifications Meeting April 30, 2026 - Tax Fairness Ad Hoc Committee - Thursday, April 30, 2026, 11:30 AM, Remotely via Zoom Category 5. Continued Discussion on Committee Priorities Department Department of Finance and Administration Type Discussion Recommended Action Subject 5.3. Review of any other items Meeting April 30, 2026 - Tax Fairness Ad Hoc Committee - Thursday, April 30, 2026, 11:30 AM, Remotely via Zoom Category 5. Continued Discussion on Committee Priorities Department Department of Finance and Administration Type Discussion Recommended Action 6. Scheduling Subject 6.1. Scheduling for future meetings Meeting April 30, 2026 - Tax Fairness Ad Hoc Committee - Thursday, April 30, 2026, 11:30 AM, Remotely via Zoom Category 6. Scheduling Department Department of Finance and Administration Type Discussion Recommended Action Page 2 of 6 7. Adjournment Subject 7.1. Motion to adjourn Meeting April 30, 2026 - Tax Fairness Ad Hoc Committee - Thursday, April 30, 2026, 11:30 AM, Remotely via Zoom Category 7. Adjournment Department Council and Board Type Action Procedural Recommended Action Motion to adjourn. Page 3 of 6 TO: Tax Fairness Ad Hoc Committee FROM: Nancy Stetson, Senior Policy and Data Analyst DATE: April 28, 2026 RE: Tax Fairness Proposal Dashboard Overview At the April 14th meeting of the City Council Tax Fairness Committee, two proposals for property tax reform were raised: limiting the previously proposed Homestead Exemption to properties valued below a specified threshold and increasing the tax rate on second homes. The dashboard linked below was built to help the Committee understand the effect of these proposals on both overall tax revenue and individual properties. Link to Dashboard The dashboard has three pages, which can be accessed via the buttons under the main headings or the arrow buttons at the bottom. It is best viewed in a full browser window on a desktop or laptop. Page 1: Status Quo The first page provides an overview of how property tax burden is currently distributed across property types in fiscal year 2026. While the majority of individual parcels are homesteads, the total value of non-homestead properties is larger. Homesteads are primarily single-family homes and condos, though some multifamily properties qualify as partial homesteads. For reference, this page also includes the FY 2026 grand list, tax rate, and total property tax revenue. Page 1 of 3 Page 4 of 6 Page 2: Homestead Exemption with Cap This page explores a homestead exemption limited to properties below a certain value threshold. Users can customize the model by setting two parameters: the threshold above which the exemption no longer applies, and the size of the exemption itself. The defaults are $400,000 and $30,000, respectively. Raising the threshold makes more homesteads eligible for the exemption, which reduces the taxable value of the grand list. As the grand list shrinks, the tax rate must rise to keep revenues level. Similarly, increasing the exemption amount enlarges the discount for eligible properties, reducing the taxable grand list and pushing the tax rate up. The table at the bottom of the page lists actual Burlington properties with their assessed values and calculated municipal tax, showing how each is affected by changes to the exemption structure. The table can be filtered on the left by property category and value. Page 3: Second Homes and Underused Residential The final page presents a preliminary analysis of an additional tax rate on second homes and other underused residential properties. Because the City does not have a direct marker for second homes, the category was constructed by combining multiple City datasets. Using the rental registry, the analysis separates residential property into rentals, homesteads, and "other residential" (i.e. second homes). Residential property here is defined by land use code and includes single-family homes and condos, multifamily up to four units, seasonal homes, and vacant residential land. This page allows users to explore how much revenue the City could raise by imposing an additional tax rate on the "Other Residential" category, adjustable via the "second home rate" input. Page 2 of 3 Page 5 of 6 Revenue estimates here are likely somewhat higher than what such a rate would actually generate, because the underlying data probably undercounts both homesteads and rentals. This analysis models the policy as an additional rate, but the Committee has also suggested instead increasing the assessed value of these properties, as is currently done for commercial properties. A 20% increase to the assessed value would result in the same bill as an approximately 0.17 increase to the overall municipal tax rate. The difference lies in how the resulting revenue is distributed across splinter rates. Page 3 of 3 Page 6 of 6