Vermont establishes brownfields fund and allows municipal short-term rental tax

A new legislative proposal, House Bill 479, introduced in Vermont on March 14, 2025, aims to address pressing environmental and housing issues within the state. The bill encompasses two significant components: the establishment of a contingency fund for brownfield site cleanup and the introduction of a municipal tax on short-term rentals.

The primary focus of House Bill 479 is to create a contingency fund under the Brownfields Reuse and Environmental Liability Limitation Act. This fund will be dedicated to the assessment and cleanup of brownfield sites—properties that may be contaminated and require remediation before they can be reused. By facilitating the cleanup of these sites, the bill seeks to revitalize underutilized areas, potentially leading to economic development and improved public health outcomes in affected communities.

In addition to environmental concerns, the bill introduces a provision allowing municipalities to impose a one percent tax on short-term rentals, such as those listed on platforms like Airbnb. This tax can be enacted if a majority of the local legislative body recommends it and the voters approve it at an annual or special meeting. This measure aims to generate additional revenue for municipalities, which can be used to address local needs, including housing and infrastructure improvements.

However, the bill has sparked debates among lawmakers and community members. Proponents argue that the short-term rental tax is a necessary step to ensure that these properties contribute fairly to local economies, while critics express concerns about the potential impact on tourism and the rental market. Additionally, the bill's environmental provisions have garnered support from environmental advocates who emphasize the importance of cleaning up brownfields to enhance community safety and promote sustainable development.

The implications of House Bill 479 are significant. If passed, it could lead to increased funding for environmental remediation efforts, ultimately improving public health and safety in Vermont. Furthermore, the short-term rental tax could provide municipalities with much-needed resources to tackle local challenges, although it may also lead to pushback from property owners and the tourism sector.

As the legislative process unfolds, stakeholders will be closely monitoring the discussions surrounding House Bill 479, which has the potential to reshape both environmental policy and local taxation in Vermont. The outcomes of this bill could set a precedent for how municipalities manage short-term rentals and address environmental concerns in the future.