New school revenue plan not a good response to ‘tax revolt,” GOP lawmaker says
by Guy Page
The House Ways and Means Committee voted 8-4 Wednesday, April 17 to approve a new school funding plan to plug the $200 million spending gap with cloud and short term rental taxes and a 15% property tax hike.
A proposed 20% statewide property tax has been met with widespread voter resistance at Town Meeting and subsequent revotes of failed school budget proposals.
The committee’s “yield” bill now goes to the House Appropriations Committee. It would:
- Raise the statewide property tax 15%
- Create a 1.5% tax on short term rentals, aka bnb’s, to generate $6.5 million
- Create a ‘cloud’ tax on internet services, which will raise $20 million
The bill also pledges to study a long-term alternative to funding schools with property taxes.
The vote comes a day after six school districts rejected a proposed 2024-25 budget for a second time. Two districts approved budgets rejected by voters at Town Meeting.
All four no votes were Republicans. Eep. Carolyn Branagan (R-Georgia/Fairfax) said they were disappointed it does not address school spending.
“This bill does nothing to control spending, but it does raise taxes,” she said.
Branagan predicts school boards and voters will be unhappy with the bill. She notes they’re pretty unhappy now.
“What we have here is a real taxpayer revolt. An old fashioned revolt. And we’re due for it,” Branagan said. “This has gone on for a long time. The property taxes have been too high.”
House leaders and representatives of the Vermont NEA, Superintendent’s Association, and School Board Association will tout the plan at a press conference at 2:30 PM today at the State House.