The expanding use of local option taxes reflects mounting affordability concerns across Vermont, with voters in nearly 40 communities now using some combination of such fees to generate revenue while shifting some of the tax burden to visitors and businesses.
Nearly 20 Vermont communities will seek voter approval this March for local option taxes on sales, meals, rooms and alcohol, expanding a strategy that municipalities across the state have adopted to shore up budgets without raising property taxes.
Local Tax Strategies
According to a Vermont Digger survey, voters in Bolton, Bristol, Castleton, Chester, Hardwick, Londonderry, Mendon, Milton, Morristown, Pittsfield, Pomfret, Roxbury, Swanton, Vergennes, Waitsfield, Westmore and West Windsor will be asked to authorize new 1% local charges. The move follows nearly 40 communities that already levy some combination of such fees.
Vermont’s state taxes run 6% on sales, 9% on rooms and meals, and 10% on alcohol. Municipalities adding 1% local surcharges earned more than $50 million collectively last year, according to state figures, with receipts rising as communities recognize that the local charges apply to short-term rentals and online shopping.
“The only revenue authority for some places is the local property tax rate, which they’ve been holding down as long as possible,” said Samantha Sheehan, municipal policy and advocacy specialist with the Vermont League of Cities and Towns. “Even communities without big commercial centers are realizing they have an opportunity with local option taxes.”
Stowe is considering a larger increase, moving from 1% to 2%, a change that would require a local charter amendment and state legislative approval.
“A primary goal of the Stowe Selectboard is to maintain fiscal stability and deliver vital public services without disproportionately burdening property owners,” the selectboard wrote in a resolution. “A significant portion of the revenue from the local option tax is generated by visitors and non-residents, allowing the town to fund initiatives that benefit the entire community, including public infrastructure and safety, while shifting some of the tax burden.”
Capital Projects and Infrastructure
Affordability concerns are reducing municipal appetite for infrastructure spending. Vermont’s 29 largest municipalities reported an 84% drop in capital improvement requests, according to the Vermont Digger survey. Smaller communities have similarly reduced their requests.
The largest single bond proposal statewide comes from the Mountain Views School District, where voters in Bridgewater, Barnard, Plymouth, Killington, Reading, Pomfret and Woodstock will decide whether to build a new $111 million Woodstock Union High and Middle School. The district rejected a similar proposal in 2024 before revising plans with the stipulation that the project would secure at least 25% of funding from federal, state or private sources.
Woodstock will also vote on a $35 million upgrade of its main wastewater treatment facility.
Other communities are seeking smaller but significant investments. Berlin wants $6.8 million to replace its town garage and $2.6 million for sewage pump station reconstruction. Windsor is asking for $1.5 million for dam repair and highway work, plus $500,000 for a ladder truck. Williamstown seeks $1 million for road rehabilitation, while Plainfield will consider $700,000 for water line replacement and $250,000 to repave Main Street.
Several communities are also requesting more money for public safety. Bradford wants $250,000 to add two police officers. Alburgh will consider returning to a 44-hour weekly county sheriff’s contract after reducing it to 30 hours. Leicester is seeking an additional $20,000 for traffic enforcement.
Governance and Ballot Measures
More than a dozen communities are voting on nonbinding advisory petitions submitted by residents.
At least eight towns—Brandon, Bristol, Cornwall, Middlebury, Putney, Ripton, Salisbury and Weybridge—will consider whether to urge the Vermont Legislature to vote on House Bill 433, which would launch incremental implementation of a state universal health care plan.
An “apartheid-free community” pledge will be weighed in Hartford, Montpelier, Richmond and Underhill.
Westminster has placed an advisory item on its agenda seeking the removal of President Donald Trump and Vice President JD Vance “for crimes against the United States Constitution.” Putney will be asked to support the Vermont Secretary of State for refusing a Trump administration request to turn over information on registered voters, “thus following Vermont law and protecting the privacy of our residents.”
Royalton will decide whether to impose a five-year moratorium on the local siting and construction of data centers for artificial intelligence or cryptocurrency, even though none have been proposed.
Municipal officials across Vermont have struggled for years to recruit residents willing to serve in elected positions. Several communities are responding by shifting to appointed professionals.
Chittenden, Granville and Ryegate want to move from elected citizen auditors to hired public accountants. Shaftsbury and Vernon will ask voters to authorize switching from elected to appointed treasurers. Cornwall wants to hire a delinquent tax collector rather than elect one. Berkshire and Ferrisburgh are seeking to move from citizen listers to professional assessors.
“We do have amazing listers, but they all recognized that it was time for a change,” said Jessica James, Ferrisburgh town clerk. “Modern property assessment requires more specialized training than the traditional part-time lister role.”
Granville town clerk Cheryl Sargeant explained the broader challenge: “It has become difficult to find interested people capable of performing the task.”
Some municipalities are expanding their elected bodies instead. Coventry will vote on increasing its selectboard from three to five members. Braintree will decide whether to raise its cemetery commission from three to five members.
Other Town Matters
Castleton will vote on selling 18 acres of town land to a developer planning a four-story, 99-unit senior housing complex. Wolcott will consider purchasing a third acre on Route 15 for a municipal parking lot.
Marlboro residents will decide whether to close their elementary school, where student enrollment is projected to drop below 50 by fall, and pay tuition to other towns.
Waterford will ask employees to begin contributing to health insurance costs starting in 2027.
Killington will decide whether to authorize an independent forensic audit of its past three years of financial records, estimated at $200,000.
Several communities including Benson, Charlotte and Lincoln will vote on moving from simultaneous voting at Town Meetings to all-day balloting at polling places.
Lincoln will test electronic voting devices with “yes” and “no” buttons for its traditional meeting this year. “We are hoping this will speed up the process,” said Sally Ober, Lincoln town clerk. “As far as I am aware, we might be the first town in Vermont to be using this.”
Editorial Disclosures
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