The tax rate is based upon the value of all the property in a town and the amount of money that needs to be raised to cover the budget. In VT, that is called the Grand List. So if there was $100 million in property value used to raise the budget of $1 million, the tax rate would be .01 on every dollar of assessed value. If the value of property is raised to $150 million then the tax rate to raise $1 million is lower, closer to .0067. So if your property value stayed the same, your taxes would go down. If your property value goes up minimally (and since I suck at math, I don't know what that percentage would be), your overall tax remains close to the same. If your property gains a large amount of value, it may go up. It sounds like the BTV assessor has an idea of where the break is. Of course the presumption is that the actual budget won't increase much year to year. My simple scenario also doesn't take into account different categories of property such as commercial vs. residential.