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Monday, March 31, 2025

Vermont lawmakers tackle energy mandates, taxes, and labor reforms in legislative discussions

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Matthew Merritt | LinkedIn

Matthew Merritt | LinkedIn

The legislative activity in Vermont's capital, Montpelier, intensified as lawmakers introduced numerous bills addressing significant state issues. February saw the progression of discussions, with Governor Phil Scott urging changes in expensive energy mandates, school funding reforms, and property tax moderations.

Lawmakers are currently in recess for Town Meeting Week and will resume to meet impending deadlines: March 14 for policy bills and March 21 for non-major finance bills. Major finance bills, including the budget, will follow.

Multiple progressive energy, tax, and labor proposals have emerged, with some reaching committee discussions. However, initiatives to alleviate costs for businesses and individuals in Vermont remain sluggish.

The National Federation of Independent Business Vermont (NFIB VT) highlights several bills, offering assistance and feedback via John Reynolds, State Director.

A significant proposal, H.177, suggests the elimination of homestead property taxes, instead introducing a new income tax potentially doubling current rates, impacting small businesses significantly.

A retail delivery fee under S.75, led by Sen. Rebecca White, suggests a 30-cent fee per delivery to support vehicle electrification programs.

Rep. Kate McCann introduced H.77, with a new income tax tier of 12.75% for high-income earners, ranking second highest nationally.

On the energy front, H.216 and H.224 forge ahead with the Clean Heat Act, proposing taxes on heating fuel despite concerns on economic impact. Meanwhile, Republican-backed bills S.67, H.16, attempt to repeal the Act.

Other bills include S.101 and H.65, aiming to nullify Vermont's adoption of California's vehicle emissions standards.

In labor, proposals suggest raising the minimum wage to $18.60 or $20, and redefining the 32-hour workweek, posing potential challenges for small businesses struggling with labor shortages. H.263 proposes employees' right to disconnect after work hours, while H.295 mandates the payout of unused vacation time, gaining bipartisan support. H.338 and H.344 focus on unemployment for striking workers and restrictions on termination for good cause, respectively. H.33 broadens family definitions for unpaid time off.

These legislative discussions and proposals bring both opportunities and challenges for Vermont's businesses and residents. Collaboration and feedback are essential as lawmakers navigate these complex issues.

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