A tax on sugar sweetened beverages has run into
trouble in the House Ways and Means
committee. But the panel is seriously considering a plan to impose the state
sales tax on soda and candy.
Brattleboro will decide this week whether to approve a proposed one
percent local option sales tax, which town officials say will generate funds to improve fire and
police stations.
Gov. Peter Shumlin says he
will sign legislation that imposes the state sales tax on cloud computing
software beginning in the summer of 2013, but he says he will try to persuade
lawmakers next year to drop this tax before it goes into effect.
The
new revenue is supposed to ease the burden on local property taxpayers in Montpelier and help
repair the city’s crumbling streets and sidewalks. But the tax proposal has outraged many businesses in
the Capital City.
On Town Meeting Day, voters in Montpelier will consider proposed tax changes designed to raise revenue. Montpelier’s City Council wants to implement a 1 percent local sales
tax as well as a 1 percent local rooms, meals and alcohol tax.
The
House Ways and Means committee is taking a serious look at ways
to collect the state sales tax from large Internet companies. It’s estimated that Vermont is losing between $30-40 million a year in
revenue because most online purchases are tax free.
A special commission is looking at making some dramatic changes to Vermont’s sales tax.
Under
the plan, the sales tax would be applied to a variety of consumer services that
are now exempt. But in return, the sales tax rate would be reduced.
A
growing coalition of Vermonters says it’s time online stores like
Amazon.com had to charge their customers the state sales tax. Many
local businesses argue it’s a matter of fairness.