Green Mountain Times

The Vermont legislative session in Montpelier has seen an uptick in activity as lawmakers introduced numerous bills addressing various issues, including energy mandates, school funding reforms, and property tax increases. Governor Phil Scott is advocating for changes in these areas.

State legislators are taking a break for Town Meeting Week but will resume work with upcoming deadlines for policy and finance bills on March 14 and March 21, respectively. Progressive energy, tax, and labor bills have been proposed, though action to alleviate financial burdens on residents and businesses has been slow.

Among the proposals is H.317 by Casey, which seeks to prohibit credit card fees on sales tax or tips to reduce costs for small businesses. Another bill, H.308 by Bartley, proposes a sales tax exemption on building materials purchases over $1 million within three years to boost construction.

H.177 by Rep. Bram Kleppner suggests replacing homestead property taxes with an education income tax that could double current rates. Critics argue this would impose double taxation on small businesses while detaching local school funding from revenue sources.

Senator Rebecca White's S.75 introduces a 30-cent retail delivery fee aimed at funding vehicle electrification programs but faces criticism for being regressive and burdensome to administer.

A new income tax tier of 12.75% is proposed under H.77 by Rep. Kate McCann for high-income earners, potentially becoming the second highest rate in the U.S., following California.

Energy-related bills include H.216 and H.224 by Rep. Michael Mrowicki which propose implementing taxes related to the Clean Heat Act despite concerns about their efficacy and cost implications.

Efforts are underway to repeal certain regulations like the Clean Heat Act through S.67 by Sen. Terry Williams and H.16 by Rep. Jim Harrison; however, attempts have stalled due to party-line votes.

Proposals also address labor mandates such as minimum wage hikes (S.67 by Sen. Alison Clarkson), a 32-hour workweek (H.261 by Rep. Monique Priestley), and unemployment insurance for striking workers (H.338 by Rep. Kate Logan).

Other labor-related proposals include restrictions on good cause termination (H.344) and expansion of unpaid time off allowances (H.33). These measures face scrutiny over potential impacts on employers' operational flexibility.

NFIB VT State Director John Reynolds invites feedback or questions regarding these legislative developments at john.reynolds@nfib.org or 802-992-0751.