by Matt Cota, VFDA Executive Director At 5:30 pm on Tuesday evening, the Vermont House voted in favor of doubling the current Fuel Tax on heating oil, kerosene, dyed diesel and propane. The vote on the legislation (H.439) was approved 81 to 60. How did my lawmaker vote? Click here to find out.
So what comes next? A decision on exemptions. Non-profits such as hospitals and churches are currently exempt from the tax, as are state and municipal governments. A separate piece of legislation in the House (H.541) would eliminate all exemptions from the Fuel Tax. This means customers that are currently exempt (such as non-profits like churches, schools and hospitals, as well as state and municipal governments) would have to pay the tax. This would raise approximately $850,000 in additional tax. Farmers, foresters and other users of dyed diesel are NOT exempt from the Fuel Tax.
Now the Senate will consider a similar measure (S.171) to increase the Fuel Tax and if both agree it will be sent to the governor to sign into law or to veto. The vote Tuesday confirmed that — as of now— there are not enough votes to override a veto and pass the tax into law without his signature.
Quote of the day from the debate on the floor: “We shouldn’t be taxing a necessity of life. Heating oil is a necessity of life.” Rep. Cynthia Browning, D-Arlington
VFDA is the Vermont Fuel Dealers Association.vermontfuel.com