Finance

VLCT recently received this information from Doug Kalinowski of the U.S. Department of Labor's Directorate of Cooperative and State Programs (by way of Dan A. Whipple, OHST, VOSHA Program Manager for the Vermont Department of Labor). 

For context and explanations of how the proposed federal rules would affect local governments, see VLCT's April 23 posting OSHA Proposes Updates to Emergency Response Regulation. 

The Occupational Safety and Health Administration (OSHA) has extended the comment period on its proposed rule to provide expanded safety and health protections for emergency responders, including firefighters, emergency medical service providers and technical search and rescue workers. Interested parties now have until Monday, July 22, 2024, to submit comments electronically at regulations.gov, which is the Federal eRulemaking portal. All submissions must include the agency's name and docket number for this rulemaking (Docket No. OSHA-2007-0073). For more information, please see the Federal Register notice or visit osha.gov/emergency-response/rulemaking.

Montpelier, VT – Agency of Natural Resources Secretary Julie Moore and the Vermont Outdoor Recreation Economic Collaborative (VOREC) today announced 51 new recipients of the VOREC Community Grant Program. These projects mark an investment of over $6 million into Vermont’s outdoor recreation economy. 

"These grants are an investment in Vermont," said Secretary Moore. "They will help communities revitalize their outdoor recreation assets, create jobs, improve access to nature for Vermonters and visitors alike, and build stronger, more resilient communities for years to come."

Projects awarded in this year’s announcement fall into one of four tracks – Implementation, Project Development, Outdoor Equity, and Flood Recovery. Awarded projects will enhance recreation economies in rural, mid-size, and urban communities, lay the groundwork for future community-based projects, expand access to outdoor recreation for all people, and help communities and trail organizations recover from the flooding of summer 2023.

“We are pleased to support so many amazing projects across Vermont,” said Becca Washburn, Chair of the VOREC Steering Committee and Director of Lands Administration and Recreation for the Department of Forests, Parks, and Recreation. “The interest in the program, as well as the strength of the applications demonstrates the opportunity communities from Grand Isle to Brattleboro see in investing in the connection between outdoor recreation and economic benefits.”

Awarded projects will support communities in 13 of Vermont’s counties, along with eight statewide projects. Notable projects include: 

• Vermont Association of Snow Travelers (VAST) for opening almost the entire VAST system after suffering damage during the 2023 flooding. 
• A coalition of partners led by the Vermont Trails and Greenways Council will be building an accessibility hub for trail users and managers.
• Cochran’s Ski Area in Richmond for engineering and design for a new surface lift.
• Franklin County Trails Alliance to plan connections from the Lamoille Valley Rail Trail to the St. Albans region.

For the first time, the grant program also encouraged projects focused on outdoor equity to apply to a dedicated funding track. Grant recipient, Arwen Turner, Executive Director of Come Alive Outside, said: 

“Come Alive Outside is thrilled to receive funding through the VOREC Community Grant Program’s Outdoor Equity track. This funding supports the continued work of Come Alive Outside’s Outdoors For All Initiative, a collective of organizations, businesses, and advisors with lived experience representing underserved and underrepresented populations in outdoor recreation. This funding will boost the collective’s ability to develop both simple and highly innovative solutions that make accessing the health, wellness, and joy benefits of outdoor activities in Rutland more equitable.”  

Governor Scott established the VOREC Steering Committee by executive order in June 2017 to bring together a broad set of outdoor recreation stakeholders to promote stewardship of state recreation assets and market Vermont’s outdoor recreation values and attributes to effectively foster responsible and sustainable economic growth. The VOREC Community Grant Program became one of the first and highest priorities of the committee. This grant round is the program’s fourth and most significant investment in communities across the state.

Learn more about the VOREC Community Grant Program and watch for future funding opportunities. 

List of 2023 VOREC Community Grant Recipients

The 13 municipalities that received a grant are highlighted

ADDISON COUNTY

BENNINGTON COUNTY

CALEDONIA COUNTY

CHITTENDEN COUNTY

FRANKLIN COUNTY

GRAND ISLE COUNTY

LAMOILLE COUNTY

ORANGE COUNTY

ORLEANS COUNTY

RUTLAND COUNTY

WASHINGTON COUNTY

WINDHAM COUNTY

WINDSOR COUNTY

STATEWIDE OR MULTIPLE LOCATIONS

Jackie Dagger, VOREC Program Manager
Department of Forests, Parks, and Recreation
jackie.dagger@vermont.gov, 802-636-7410  

Testimony of the Vermont League of Cities and Towns 
Ted Brady, Executive Director 
House Ways and Means Committee 
Regarding H.546 (Local Option Tax) 
May 2, 2024 

The Vermont League of Cities and Towns enthusiastically supports inclusion of Section 20 of the Senate Proposal of Amendment to H. 546 – authorizing voters of all Vermont municipalities to enact a local option tax at an annual or special meeting by majority vote.  

More than a third of Vermont municipalities – VLCT estimates 92 in total – already have this authority, and I encourage the committee to include this provision in an attempt to provide equity to all of Vermont’s municipalities. 

In 2015, VLCT looked at data from the Department of Taxes and JFO and estimated that 76 communities were given this authority with Act 60 – in recognition that increased education property tax pressure would negatively impact the municipalities’ revenues. One of the qualifiers was if “the combined education tax rate of the municipality will increase by 20 percent or more...” then the community qualified to adopt a local option tax.  Given many Vermont municipalities will experience a similar education property tax increase this year – it seems appropriate that the State recognize the pressure this puts on municipal budgets, and authorize local option taxes to offset those pressures. I’ve included a list of those 76 municipalities with my testimony. Sixteen of these communities have implemented some sort of local option tax. 

Another 16 cities and towns have implemented a local option tax through charters. Meaning 32 of the 92 communities authorized to have a local option tax have implemented one.    

While VLCT appreciates that the Legislature has never voted down a charter change with a local option tax provision, we find the charter process to be a cumbersome and inequitable way to treat the 155 municipalities that could only implement a local option tax by creating or amending a charter. Only 63 cities and towns have charters (another 21 villages are also chartered). It seems unnecessary to require a town to adopt a charter only to implement a local option tax that is almost sure to pass in this building and which more than a third of Vermont communities already have the authority to do. Creating a charter costs money and time that most municipalities don’t have.  

This is a particularly important time to enable municipalities to implement local option taxes because more cities and towns can benefit from them than ever before. Prior to the Wayfair decision, local option sales tax didn’t apply to online purchases. Now they do. Prior to the state taxing short term rentals, local option taxes didn’t apply.  Now they do. Short term rentals pose a particularly compelling argument to allow more towns to adopt local option taxes, as they are present in almost every city and town in Vermont and generate quite a bit of controversy and work for municipalities.  While previously only market towns could benefit from local option taxes, today, any town can. 

I also understand the Legislature and Tax Department may be concerned that making it easier to adopt a local option tax could result in a surge of adoption. I believe history quells this concern. Of the 76 communities authorized to adopt local option taxes in Act 60, only 16 have done so in a quarter century. While there may be a modest increase from the one to three municipalities adopting local option taxes a year as a result of this authorization, I do not believe there will be a significant increase in adoptions. 

Finally, this committee received testimony on the local option tax from the Department of Taxes at the beginning of the biennium. On January 11, 2023, the Department outlined the complexities associated with collecting local options taxes and how they are overcoming them.  During that testimony, the Department shared that the implementation and collection of local jurisdiction taxes is very common across the country, and state governments and businesses have found ways to comply. The Department also shared that a new tool created by VCGI – the Local Option Tax Finder – was helping businesses and customers comply. And they shared that they share information with the Streamlined Sales Tax Alliance that is used by many firms across the country to overcome those complexities. I understand many third-party vendors have also created solutions that overcome the complexities. 

I hope you’ll agree that now is the right time to give parity to the 155 municipalities that do not currently have the authority to implement local option taxes.  Thank you for your time. 

VERMONT CITIES AND TOWNS CURRENTLY ELIGIBLE TO ENACT LOCAL OPTION
TAXES UNDER ACT 60

Title 24 VSA 138(a)(3) provides the following: 

“ a local option tax may only be adopted by a municipality in which: 

(A) the education property tax rate in 1997 was less than $1.10 per $100.00 of equalized education property value; or 

(B) the equalized grand list value of personal property, business machinery, inventory, and equipment is at least ten percent of the equalized education grand list as reported in the 1998 Annual Report of the Division of Property Valuation and Review; or 

(C) the combined education tax rate of the municipality will increase by 20 percent or more in fiscal year 1999 or in fiscal year 2000 over the rate of the combined education property tax in the previous fiscal year.” 

The towns above are listed based on computations done by VLCT based on data from the Vermont Division of Property Valuation and Review. Each listed meets one or more the tests set forth in 24 VSA 318 above.

32 Cities and Towns with some form of adopted local option tax. 
Compiled by VLCT using information from Local Option Tax | Department of Taxes (vermont.gov).

To: Municipal Applicants for FEMA Public Assistance under DR4720 ("severe storms and flooding, July 7-21, 2023").

From: Canarecci, Kim <Kim.Canarecci@vermont.gov>

Date: Friday, February 9, 2024 7:15 AM

President Biden has approved 100% federal reimbursement for DR-4720 for Category A: Debris and Category B: Emergency Protective Measures projects for a 30-day window to be selected by Governor Scott. Governor Scott has selected the following dates:

Cat A – July 9 through August 7

Cat B –July 13 through August 11

Vermont appreciates the partnership and support from the Federal Emergency Management Agency in our response and recovery from the historic flooding of DR-4720. This additional level of assistance will certainly help Vermont applicants recover and allow us to focus more resources on investing in long-term recovery and resilience.

If you have a DR4720 CAT A or CAT B project that has already been obligated at 75% federal share and paid, our finance team will adjust your subgrant agreements as FEMA reobligates them for the additional 25% federal share.  For all other projects, they will need to be formulated with your FEMA PDMG through the documentation process and will be paid from our finance team in the order of obligation.

 If you have any questions, please reach out.

 Thank you,

 Kimberly Canarecci

Vermont State Public Assistance Officer

802-585-4209

Kim.Canarecci@vermont.gov