Montpelier, Vermont - March 23, 2006

Property owners can expect changes when they pay their property tax bills. The Vermont House wants to do away with rebate and prebate checks.

"There will no longer be any checks. That whatever property tax adjustments you will receive will be going directly to the town," says Rep. Johannah Leddy Donovan, D-Burlington.

Under the new plan, towns will deduct your rebate or pre-bate from your property tax bill. That part of the bill was not controversial.

But there was disagreement on whether to drop property tax rates or reduce provisions connected to income sensitivity.

Some are worried second homeowners and businesses are carrying too much of the load when it comes to paying for education.

"That will affect all Vermonters many of whom are income sensitizing, the guys who are banging the nails, the guys who are plowing the driveways and guys who are cutting the grass because we won't be building second homes," says Rep. Michael Kainen, R-Harford.

But others thought it was better to lower income sensitivity rates--thus helping more low income Vermonters.

"We developed a system where folks pay for their education taxes based on their income," says Rep. Johannah Leddy Donovan, D-Burlington.

And some are still pushing a whole new way to pay for education. Some believe the income tax is more fair--especially when incomes are not keeping pace with the price of property.

"As time has gone by and prices of real estate have continued to escalate, we get further, and further away from a true indication of the property owner to pay," says Rep. Bud Otterman, R-Topsham.

The larger debate of how to pay for education will have to come later.

Some around here believe the current system may have about run its course and lawmakers will need to address Act 68 soon.

Anson Tebbetts - Channel 3 News