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Font ResizeBRATTLEBORO -- A bipartisan group of lawmakers have outlined a measure to provide tax breaks to Vermonters still reeling from Tropical Storm Irene.
The legislation was introduced Thursday by Senate President Pro Tem John Campbell, D-Quechee, along with a number of GOP senators with support from Lt. Gov. Phil Scott, a first-term Republican, to declare a statewide tax holiday this summer to assist with the recovery from Irene, which hammered Vermont last Aug. 28.
Senate Bill No. 250, known as the Irene Economic Stimulus Bill, directs tax relief and incentives both to Vermont consumers and to those disproportionately affected by the storm. According to the legislation, Vermont's 6-percent sales tax
"We have had some successful sales tax holidays in the past and I thought what better way to honor Vermonters that have sacrificed so much and also recognize the Yankee ingenuity and common sense that was shown throughout the ordeal and the recovery," said Scott, who conceived the legislation. "Vermont's recovery from Irene is an ongoing process and this proposal offers several paths forward. It provides a savings on the materials needed for home repairs and an incentive for property owners to make their homes more energy-efficient."
Democratic Gov. Peter Shumlin issued a statement on the
"I have a long history of opposing the sales tax in Vermont, leading the effort to remove the tax from clothes and shoes. We need to balance our desire to reduce the sales tax with our need to balance the budget, so one critical issue is how the state will pay for this $1.5-million package," Shumlin said. "But I like the idea and look forward to learning more about this proposal."
In addition to declaring the Aug. 28 sales tax holiday around the state, the measure offers a week-long tax-free incentive for weatherization products bought between Aug. 26 and Sept. 1 and on mobile homes purchased between Aug. 28 and June 30, 2012 to replace units damaged by Irene.
The proposal would waive or refund sales tax or property transfer tax, either of which can be applicable to mobile home purchases.
Scott pushed for the relief provision for mobile home purchases after helping to organize a team last fall to assist owners dismantle and dispose of their flood-damaged units.
"I'd been traveling with groups all over the state seeing some of the devastation and my first thoughts were in terms of the mobile homes and the folks that lost their homes as a result of Irene. And then I found out when they bought a new home to replace it, they would have to pay a tax on that, either an income tax or direct sales tax," he said. "I didn't think it was fair that these folks had to pay taxes on a purchase they wouldn't otherwise have made, had they not lost their homes -- and most of their possessions -- in the flood."
In a press statement, Campbell said having a "tax-free home improvement day" was one of the recommendations offered in the final report of the Post-Irene Property Law Task Force
"Irene hit us hard at a time when many Vermonters were already hard-hit by the recession," Campbell said in the release. "My task force highlighted the fact that a lot of Vermont homeowners faced unexpected repair costs after the storm. This bill will help ease some of those burdens."
Swanton Lumber owner Gordon Winters joined legislators during the morning announcement, saying his customers appreciate the sales tax holidays.
"This bill means a lot to Vermont homeowners, particularly those facing large-scale home repairs to address flood damage. It also means a lot to small business owners like me, who hope to see a bump in sales from this initiative," he said.
After its introduction on the Senate floor Thursday, the measure was referred to the Senate Finance Committee for consideration.
County economic plan reviewed
Putney Democrat Mike Mrowicki, chairman of the county legislative delegation, assisted this week in organizing a meeting with the Southeastern Vermont Economic Development Strategy (SeVEDS) to discuss the future of growth in the region.
The organization was established several years ago to provide guidance for future economic development in the county. SeVEDs serves as an arm of the private nonprofit Brattleboro Credit Development Corp.
"This group is organizing efforts that recognize the economic decline in our county since 2000, the changing demographics and how best to promote long term sustainable growth that can positively impact the quality of life for Windham County residents," Mrowicki said.
He said the goals, as described early this week, are to end Vermont's population decline by increasing the size and quality of the workforce, create an entrepreneurial environment with those incoming jobs and plan for a post-Vermont Yankee nuclear power plant economy in Windham County.
These goals come at a time when the county lacks about 20 percent behind the national average in income.
"Local legislators are clear that more planning for a vibrant future are needed and we support these efforts by SeVEDS in doing so," Mrowicki added.
VPIRG applauds fracking ban
The Vermont Public Interest Research Group (VPIRG) praised legislation that puts the brakes on hydro-fracking, a controversial method for extracting natural gas from deep in the ground.
The House Fish, Wildlife and Water Resources Committee passed a bill establishing a three-year moratorium on hydraulic fracturing in Vermont. Opponents said fracking injects a dangerous mix of chemicals into the soil.
VPRIG Executive Director Paul Burns said the process is a threat to public health, as well as Vermont's air, land and water.
"Fracking is bad for Vermont. This is the appropriate time to just say no," he said.
Group calls for business climate change
The Vermont director of the National Federation of Independent Business is urging for a change in how business is conducted after the conservative-leaning nonprofit Tax Foundation ranked the Green Mountain State near the bottom.
The report, which cites Vermont's high corporate and property taxes as big impediments to business, released this week is "not the way that we want to be distinguished," said Shawn Shouldice, NFIB's state director. "What's more disappointing is that we are the only New England state except Rhode Island to be ranked in the bottom 10."
Vermont ranks in the bottom 10 in three of the five categories analyzed by the report, Shouldice continued. "Business owners are paying attention to that report. The question is whether anyone in Montpelier is paying attention."
During his state of the state address, Shumlin praised the state's business environment by pointing to Vermont's low unemployment rate (5.3 percent) and new employment opportunities in Chittenden County
"My administration and I commit ourselves every day to attracting entrepreneurs and growing jobs, one job at a time, as we slowly but surely grow our way out of the most painful recession in our nation's history," he said on Jan. 5.
But Shouldice said the state cannot afford any more damage to our reputation among business owners.
"The governor and legislators should take this report very seriously and consider its implications in every legislative initiative they consider," she added.
Chris Garofolo is the political reporter for the Reformer. He can be reached at cgarofolo@reformer.com or 802-254-2311 ext. 275.
