Ways & Means backs amendment to H.397 to align four municipal charters with 75/25 local-option tax split

The Ways & Means Committee voted 11-0 to find an amendment to H.397 favorable that would bring four municipal charters into conformity with a proposed 75/25 split for the state local-option tax. The amendment ties charter language to 24 V.S.A. §138 so those municipalities would receive 75 percent of the municipal share under the statute rather than a fixed 70 percent spelled out in their charters.

The amendment’s purpose, as explained by legislative counsel Tucker Anderson, is “to bring the charters of 4 municipalities into conformity with the new pilot 75 25 split.” Anderson told the committee his review of the charter text in the LexisNexis database identified Burlington, Montpelier, Middlebury and Williston as specifically referencing a 70 percent allocation and that, without the amendment, those charters would control over the new general-law percentage.

The change matters because charter language is special law that applies to the named municipality; where charter text explicitly prescribes a percentage it can override later changes in general statute unless the legislature acts to make the charter language operate in tandem with the new law. Anderson noted a downside to tying charter language to the general statute: if the Legislature lowers the statewide allocation in the future, those municipalities would also receive the lower amount unless they pursue separate charter amendments.

Committee members asked whether other municipal taxing authorities or non-state-collected local option taxes (for example, downtown or municipal taxes) were affected; Anderson said the amendment applies to the state local-option sales tax allocation covered by 24 V.S.A. §138 and offered to follow up offline on other local taxing authorities or marketplace taxes that cities may adopt.

The committee recorded the motion finding the amendment favorable by roll call; the clerk reported 11 yes, 0 no. The motion text on the record identified the amendment as the committee substitute language to H.397 offered by Representatives noted in committee materials. The committee noted that separate related amendments (including ones addressing the pilot special fund surplus and other pilot program changes) remain under discussion and could be addressed in later floor negotiation.

The committee referred members to the bill text and the posted amendment on the committee page for final floor preparation. The amendment ties charter provisions explicitly to 24 V.S.A. §138 so that Burlington, Montpelier, Middlebury and Williston would receive the allocation set in that statute going forward.

Votes at a glance: The committee found the amendment to H.397 favorable by roll call, 11-0.