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Board discusses new 1% option sales tax and other town revenue ideas
Summary
Selectboard members reviewed a recent state change allowing towns to adopt a 1% option sales tax by local vote and discussed whether such a tax, Airbnb collections, or taxing utility right‑of‑way use might expand town revenue; members asked staff to find the statute for review.
Board members discussed a change in state law that permits towns to adopt a 1% option sales tax by a local vote without rewriting a charter. A member summarized the change: "You no longer have to rewrite your charter to do a 1% sales tax. You just have to have the town vote." The discussion covered which sales would be taxable locally, potential revenue sources (retail sales, short‑term rentals/Airbnb, and home‑based businesses), and enforcement challenges given the town's small commercial base.
Participants noted state property and institutional exemptions could limit revenue capture and that enforcement of sales‑tax collection for home businesses or Airbnb hosts could be administratively difficult. Board members suggested staff locate the statute so the board can evaluate revenue potential and distribution (for example, 0.75 of receipts returned as flexible funds and 0.25 directed to a pilot fund under one description discussed). No decision was made; members asked staff to research the statute and provide more detail.
The board also discussed other revenue options (encouraging business attraction, fees for utility right‑of‑way use) but agreed these would require longer‑term planning and legal review.
