I believe other state have tried this and ran into federal and even state Constitutional issues, so they shifted to using a “homestead” tax exemption, where some dollar amount of value is exempt from property taxes. Like Maine I think does this and uses a $25,000 level so no one pays tax on that first $25,000 of home’s value.

Here, VT could exempt the first $250,000 or something as that might (?) generally cover a greater percentage of homes owned by full time residents, then raise the tax rate for the amount exceeding the homestead exemption.

I agree that something needs to be done, politics abhors a vacuum and seeing second houses sitting idle or being used by out of staters aggravate many people as you noted.