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.

New Hampshire Gov. John Lynch has signed a bill intending to protect retailers from becoming tax collectors for other states.