Vermont Business Magazine The Senate Finance committee voted 5-1-1 Thursday to add a $2 fee on top of the 9 percent "rooms" tax to raise $7.2 million for affordable housing and for other vulnerable Vermontes, such as victims of abuse. Governor Phill Scott on Friday issued a statement saying this new fee would be a detriment to the tourism industry, while jeopardizing broadly-supported affordable housing efforts. The Finance committee is responsible for tax policy.
Governor Scott’s Communications Director Rebecca Kelley issued the following statement:
“The Senate Finance Committee voted Thursday, 5-1-1, to create a $7.2 million tax on overnight accommodations through a new $2-per-night occupancy fee. The revenue this fee generates would primarily be used to fund initiatives the Governor’s budget already funds with existing revenue, including clean water and his housing bond.
“This tax will unnecessarily increase the cost of hotel and motel stays, straining our tourism sector, which contributes $2.5 billion to our economy annually. Family-owned inns are struggling to keep their doors open as they fight against new trends in tourism, like Air BNB, unpredictable weather, and cumbersome permitting processes. Vermonters would share the actual burden of this tax increase as it will impact the cost of weddings, special events, overnight stays, and more.
“Worse yet, Senate majority members are playing politics at the expense of Vermonters by inserting this new fee into a bill that will promote affordable and sustainable housing for all (S. 100) and jumpstart development projects to grow the economy (S. 99). This legislation had tripartisan support, with broad recognition of the need to make housing more affordable across the entire housing continuum.
“Governor Scott has made absolutely clear he will not support new taxes and fees that make Vermont less affordable, and was elected by a strong majority of Vermonters to uphold that commitment. It is unfortunate for Vermonters that Legislators are playing political games by adding a fee they know the Governor will not support to bills that had broad support and momentum.
“Governor Scott is committed to initiatives and policy that spur economic growth and make Vermont more affordable to create greater opportunities for all Vermonters. Making Vermont a less attractive place to visit and stay, and jeopardizing affordable housing and development initiatives will not achieve those goals.”
Bill As Introduced (in part, click HERE for entire bill):
1 S.81
2 Introduced by Senators Pearson, Ayer, Clarkson, Ingram, Lyons, MacDonald,
3 and Pollina
4 Referred to Committee on
5 Date:
6 Subject: Taxation; rooms and meals; occupancy charge
7 Statement of purpose of bill as introduced: This bill proposes to impose an
8 additional $2.00 per night on each occupancy in the State and allocate the
9 receipts to the Workforce and Supportive Housing Fund for affordable and
10 workforce housing projects.
11 An act relating to an occupancy fee
12 It is hereby enacted by the General Assembly of the State of Vermont:
13 Sec. 1. 32 V.S.A. § 9241 is amended to read:
14 § 9241. IMPOSITION OF TAX
15 (a) An operator shall collect a tax of nine percent of the rent of each
16 occupancy plus a $2.00 charge for each night of the occupancy.
PAGE 2
1 Sec. 2. 10 V.S.A. chapter 22B is added to read:
2 CHAPTER 22B. WORKFORCE AND SUPPORTIVE HOUSING
3 § 547. WORKFORCE AND SUPPORTIVE HOUSING FUND
4 (a) The Workforce and Supportive Housing Fund is established, to be
5 managed in accordance with 32 V.S.A. chapter 7, subchapter 5 and 6 administered by the Vermont Housing and Conservation Board.
7 (b) The Board shall use the Fund for the following purposes:
8 (1) to create and preserve permanently affordable housing, including
9 workforce housing and supportive housing for the homeless, seniors, victims
10 of domestic or sexual violence, and other vulnerable populations;
11 (2) to fund infrastructure in support of affordable and workforce
12 housing;
13 (3) to provide rental assistance and other forms of housing-related
14 financial assistance for the homeless, seniors, victims of domestic or sexual
15 violence, and other vulnerable populations; and
16 (4) to provide housing-related supportive services for the homeless,
17 seniors, victims of domestic or sexual violence, and other vulnerable
18 populations.