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Hardwick voters reject 1% local-option meals/rooms/alcohol tax after wide public debate
Summary
After extended public discussion about regressivity, business impact and projected revenue, the town voted down a proposed 1% local-option tax on meals, rooms and alcoholic beverages (24 VSA §138b); the moderator declared the nays had it.
Hardwick residents debated and then rejected a proposed 1% local-option tax on meals, rooms and alcoholic beverages during the town meeting.
Article 6 would have authorized a one-percent local option tax (citing 24 VSA §138b) on meals, alcoholic beverages and rooms, with the selectboard proposing to use an estimated $50,000 in annual receipts to offset property taxes. Officials explained that the state administers collection and returns 75% of the additional 1% to the town.
Business owners and other residents urged caution. Concerns included the tax's regressive effect, uncertain benefits for a community with relatively few taxed outlets, and potential harm to local restaurants and seasonal businesses. One attendee urged more outreach to affected businesses before adopting a new levy. Supporters noted revenues could shift pressure off property taxes and be rescinded in later years if the town chose.
After public comment and floor questions, the moderator put the article to a voice vote and announced, "The nays have it." The article therefore failed and the town will not implement the 1% local option tax at this time.
What it means: The town budget stands without the estimated $50,000 of supplemental revenue; if the selectboard or voters revisit the idea in the future they would need to return it to a subsequent town meeting or ballot.
Speakers quoted or cited in this article are taken from the meeting transcript and are attributed to their first references in the record.
