VLCT urges Legislature to act on municipal tax relief, elections clarity and firearms ban in town buildings

Samantha Shannon, municipal policy and advocacy specialist for the Vermont League of Cities and Towns (VLCT), told the House Government Operations & Military Affairs Committee that VLCT will press for legislation this session to lower municipal property taxes, clarify election procedure for town officers and allow municipalities to ban firearms in municipal buildings with an opt-out provision.

In an overview to the committee, Shannon said VLCT represents all 247 Vermont municipalities and provides services ranging from legal guidance to an insurance pool and a new municipal operations support team funded by a U.S. Department of Agriculture Rural Development grant. "VLCT, the Vermont League of Cities and Towns is a nonprofit nonpartisan organization that represents and serves all 247 municipalities in Vermont," she said. She added that the new operations team is "funded by a $1,000,000 USDA RD grant" and assists towns with fiscal management, grant readiness and ARPA reporting.

The memo Shannon presented lists priorities VLCT expects to press in the 2025 legislative session. On municipal property taxes, Shannon described two linked requests: return surplus funds now held in a state special fund that receives 30% of local-option tax (LOT) revenue, and modernize the LOT formula so a greater share remains with the municipality. VLCT told the committee the special fund is carrying a significant surplus; the presentation referenced both a roughly $10 million cumulative surplus and about $3 million per fiscal year. Shannon said returning those funds to towns could meaningfully reduce municipal property tax burdens in some communities.

VLCT also proposed reimbursing municipalities for state property-tax amounts they must pay upfront when local taxpayers are delinquent, and ensuring no property owner pays less than $0 after income-sensitive reductions. Shannon said such reimbursements matter most in small towns with few large tax bases, where a handful of delinquencies can shift costs onto other taxpayers.

Shannon identified additional municipal requests: authority for all municipalities to create unassigned fund balances; relief from impact fees and compliance deadlines when state funding is not available; technical corrections to the state open meeting law to enable compliance; and clarification of statutory language governing appointments such as assistant treasurer so towns are not left unable to perform duties if an elected treasurer becomes immediately unavailable.

On elections, Shannon urged prompt legislative action to clarify whether towns may elect some officers by Australian ballot while electing others at the floor meeting. She said the issue has produced local confusion and that VLCT has worked with the secretary of state's office on draft language. "We would request that you prioritize action on that for this session," she told committee members, adding she expected draft bill language to be available the following week.

Shannon described other niche concerns that have surfaced repeatedly in municipal practice, including statutory irregularities involving constables and vacancy rules for elected officers. She told the committee municipal clerks and VLCT attorneys regularly seek guidance when statutes conflict or are unclear.

VLCT's annual membership vote this year also produced a change in the organization's firearms policy. Shannon said members unanimously supported a position that would permit a statewide ban on firearms in municipal buildings with an ability for municipalities to opt out for specific properties or uses (for example remote salt sheds, gravel pits or municipal forests where hunting is allowed). "We support a statewide ban on firearms in municipal buildings with the ability to opt out," she said, adding that most town halls serve as polling places for part of the year and that a clearer, consistent approach would reduce confusion.

Committee members and staff present discussed timing. Shannon said she had briefed the secretary of state's office and that VLCT planned to circulate draft statutory language quickly to meet town warning timelines if possible. No formal motions or votes were taken during the presentation.

Shannon closed by reiterating VLCT's role as a technical resource for municipalities and inviting committee members to consult VLCT's municipal attorneys on statutory questions.