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Introduced by   Senator Condos of Chittenden District, Senator Lyons of Chittenden District, Senator Sears of Bennington District, Senator Ayer of Addison District, Senator Campbell of Windsor District, Senator Cummings of Washington District, Senator Doyle of Washington District, Senator Flanagan of Chittenden District, Senator Giard of Addison District, Senator Leddy of Chittenden District, Senator Miller of Chittenden District and Senator Snelling of Chittenden District

Referred to Committee on


Subject:  Taxation; sales tax; local option; extension to all municipalities

Statement of purpose:  This bill proposes to extend the option for a local sales tax to all municipalities with no sunset.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  24 V.S.A. § 138(a) is amended to read:

(a)  Local option taxes are authorized under this section for the purpose of affording municipalities an alternative method of raising municipal revenues. to facilitate the transition and reduce the dislocations in those municipalities that may be caused by reforms to the method of financing public education under the Equal Educational Opportunity Act of 1997. Accordingly:

(1)  the local option taxes authorized under this section may be imposed by a municipality only during calendar years 1999 through 2008;

(2)  a municipality opting to impose a local option tax may do so prior to July 1, 1998 to be effective beginning January 1, 1999, and anytime after December 1, 1998 a local option tax shall be effective beginning on the next tax quarter following 30 days' notice to the department of taxes of the imposition; and all authority to opt to impose a local option tax under this section shall terminate September 1, 2007, and all authority to impose a local option tax shall terminate on December 31, 2008; and

(3)  a local option tax may only be adopted by a municipality in which:

(A)  the education property tax rate in 1997 was less than $1.10 per $100.00 of equalized education property value; or

(B)  the equalized grand list value of personal property, business machinery, inventory, and equipment is at least ten percent of the equalized education grand list as reported in the 1998 Annual Report of the Division of Property Valuation and Review; or

(C)  the combined education tax rate of the municipality will increase by 20 percent or more in fiscal year 1999 or in fiscal year 2000 over the rate of the combined education property tax in the previous fiscal year For any municipality which imposes a local option tax under this section, the tax shall be effective beginning with the next tax quarter following 90 days’ notice to the department of taxes of the imposition.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont