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Bennington board funds outreach on 1% local option tax after wide-ranging debate
Summary
After a lengthy presentation, the Bennington Select Board voted to allocate $2,000 for staff-led outreach and public forums to gather input on a proposed 1% local option tax that town staff estimate could net roughly $1.8 million annually for local projects if adopted.
The Bennington Select Board voted June 22 to approve up to $2,000 from its contingency fund to finance outreach and informational materials about a proposed 1% local option tax (LOT). The funding will cover an informational video, print materials and advertising to encourage public forums and gather community input.
Staff and the Economic Development Committee emphasized that the LOT is only one tool to diversify municipal revenue, not a substitute for careful budgeting. Communications Coordinator Jonas Bivak and staff member Shannon Barsotti said new data show roughly 41% of Bennington’s workforce lives outside town and that more than half of downtown spending originates from non-residents — findings the presenters said make a LOT a viable way for non-resident users of town services to contribute to local costs.
"This additional 1% tax is assessed at the register after the purchasing decision," Bivak explained, adding that under state rules 75% of the local 1% return to the town and 25% is remitted to Montpelier. Staff presented a three-year average estimate of net revenue of about $1.8 million for a 1% LOT, and noted the state currently takes $6.95 per business remittance for administration.
Board members aired competing views on fairness and local impacts. Several members argued the LOT would help diversify revenue to support infrastructure, downtown marketing, housing incentives and other targeted investments. Select Board member Nancy White and some small-business owners expressed concern about the regressive effect of sales taxes on lower-income residents and on customer prices.
After discussion about ballot timing (November referendum vs. March town meeting), the board directed staff to continue public outreach and approved the $2,000 allocation to produce a short informational video, printed one-pagers and promotional outreach to bring residents to public forums. Staff will present a draft outreach plan and proposed ballot timing in future meetings.
What’s next: Staff will develop outreach materials, schedule public forums (including a BBC-hosted forum at the Bennington Theatre), collect public feedback to help define LOT spending priorities, and return to the Select Board with recommended ballot placement and ballot language.
