Stowe officials tell committee a 2% charter-authorized local-option tax would fund infrastructure, housing needs
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Summary
Town officials and Rep. Jed Lipsky urged the Government Operations & Military Affairs committee to approve a charter amendment allowing Stowe to impose a 2% local-option tax on sales, rooms, meals and alcoholic beverages, saying the measure would help pay for infrastructure and ease property-tax pressure; counsel said voters approved the amendment on March 3, 2026 and the committee will seek additional turnout and tally data.
Representative Jed Lipsky and Stowe officials told the Legislature’s Government Operations & Military Affairs committee on April 8 that a charter amendment authorizing a 2% local-option tax would give the tourist town new capacity to maintain roads, utilities and housing programs without shifting further burden to property taxpayers.
Legislative counsel summarized the bill to the panel as an act approving an amendment to the Town of Stowe charter that would "authorize the select board to impose a 2% local option tax on sales, rooms, meals and alcoholic beverages," and noted that "the voters of the town approved the proposals of amendment on 03/03/2026." Counsel also cited the statutory framework identified in the bill text as "24 BSA 138."
The sponsor, Rep. Jed Lipsky, framed the proposal as a locally driven response to unusually heavy seasonal traffic and demands on town services in a popular resort community. "Local option taxes do not reduce the fiscal capacity of the state," Lipsky said, arguing that the town can invest in infrastructure that also increases the state tax base.
Joe Sable Courtney, a member of the Stowe Select Board, described personal and community costs from rising housing and said the measure is a "modest, locally approved tool to help address those impacts." Select Board Chair Ethan Carlson presented town data and said about 49% of Stowe residents currently pay over 30% of their income toward housing, calling that an affordability threshold driving his support for additional local revenue.
Carlson detailed municipal needs, including a roughly 7-mile sewer system that serves uphill areas, aging roads, culverts and bridges, and public-safety services such as a paid fire department and mountain rescue. He said revenue from the proposed local-option tax could be directed by the select board to general municipal needs, property-tax relief, housing projects or other local priorities.
Carlson and other witnesses emphasized that the state would continue to receive a share of revenue under the local-option structure: "Under the existing local option tax structure, the state retains 25% of the revenue generated," one witness said.
Committee members pressed witnesses for exact vote tallies and turnout numbers from the March town meeting. Witnesses described strong support for the rooms/meals question and solid support for the sales-and-other questions but committed to provide precise figures and turnout breakdowns to staff for follow-up. "We can get you those," one witness told the committee.
There was no committee vote during the hearing. Chair concluded that the panel "plans on poking at this a little bit more," and staff and witnesses agreed to circulate the requested voter-count and budget-comparison data before the committee resumes consideration.
The committee accepted testimony and indicated it will follow up with additional questions and any technical drafting concerns before any further action.
