Day: February 11, 2026

Retail Delivery Fee: The House Transportation committee introduced H.863, a bill that would impose a fee of $0.30 on all retail deliveries. The proposal would raise burdensome and costly new administrative and compliance requirements on Vermont businesses that operate direct-to- consumer services.

Local Option Gas Tax: The Senate Transportation Committee reviewed language allowing municipalities to impose an additional 1 percent local option tax on sales, meals and rooms, or alcohol, with much of the revenue retained by the state for the Transportation Fund. While a long term transportation funding solution is needed, this approach could raise costs for businesses in the visitor economy without resolving the underlying structural challenges.

Tax Credit Opt Out: The House Ways and Means committee discussed opting out of a $1,700 federal tax credit for contributions to scholarship organizations that help pay education expenses for elementary and secondary students. Choosing to forgo this no-cost federal incentive could shut the door on an additional funding mechanism for Vermont’s education system

Income Tax Brackets: The House Ways and Means committee introduced H.732, a bill that would add new income tax brackets at the $200,000 and $400,000 income levels to generate additional revenue for the education fund. Reliance on additional and volatile income taxes to address structural spending problems will not address the underlying affordability crisis facing Vermont, the third most taxed state in the nation.

Tax Classifications: The House Ways and Means Committee continued work on expanding property tax classifications from two to three categories, including discussion of defining employer-provided housing as a nonmonetary employment benefit and limiting property attestation forms to properties with fewer than five dwellings. The committee chair signaled that additional testimony will be taken next week as lawmakers continue to evaluate the structure and potential impacts of the proposal.

Budget Adjustment: The Senate advanced H.790, the budget adjustment bill that makes midyear changes to the FY ’26 state budget. The committee largely concurred with the House proposal to carry surplus funds into the FY ’27 budget for potential use in a property tax buydown once the broader budget outlook takes shape. The bill now moves to the House Floor for further consideration.

Cannabis Event Permitting: The Senate Economic Development, Housing, and General Affairs committee reviewed S.278, a bill that would authorize general event permits for cannabis sales, with limited hours, access-controlled spaces, licensed entity applications, and municipal approval requirements similar to alcohol event permits. With significant implications for venues statewide, careful consideration will be needed before advancing this broad expansion of cannabis use.

Public Safety: The House and Senate Judiciary Committees held a joint hearing on the Chittenden County Accessibility Court pilot, launched in response to record case backlogs. The pilot has resolved over 700 pending cases and will continue at a scaled-back level, with testimony also noting that long-term success in reducing court volume will depend in part on addressing underlying housing instability.

Economic Development: The Senate Economic Development, Housing, and General Affairs committee continued review of S.327, emphasizing the need to improve communication of business resources and clarify Vermont’s branding initiatives. As discussion continues around requiring an administrative report before establishing a Business Development Task Force, it remains important to consider the strong impact a task force working in tandem with this report could have on creating accessible and competitive economic environments.

Alcohol: The House Government Operations and Military Affairs committee continued testimony on an omnibus alcohol bill, hearing overwhelming support from the alcohol industry on improvements the bill would make to distribution allowances, services in farmers markets, consumption levels permitted in tasting rooms and retail shops, and permitting and hours of service for off-site tasting events.

Health Care Recruitment: The Senate Health and Welfare committee reviewed S.142, a bill creating a pathway to licensure for internationally trained medical professionals. With strong stakeholder support, the proposal would help address workforce shortages and strengthen Vermont’s ability to attract and retain skilled healthcare providers.

Health Care: The Senate Health and Welfare committee continued work on S.190, a bill that would put outsourced hospital services under the Green Mountain Care Board’s budget-setting authority and require hospitals to compare their posted pricing to Medicare in preparation of reference-based pricing. These changes aim to continue momentum of cost containment efforts.

Vermont Housing Improvement Program (VHIP): The House General and Housing committee reviewed the VHIP program, which helps property owners bring vacant or code-deficient housing back online in an affordable manner. Without a base funding allocation as requested by the Administration, the future of one of the state’s most effective housing development programs remains uncertain

Agency of Commerce and Community Development (ACCD) Budget: The House Commerce and Economic Development and House Appropriations committees heard testimony on ACCD’s budget proposal, including much-needed funding for the Manufactured Home Improvement Program, International Business Development Office, and a request for base funding to VHIP. No additional funding was requested by the Department of Tourism and Marketing or for economic development programs though investments in both of these areas have returns that help grow the economy.

Net Metering: The House Energy and Digital Infrastructure committee reviewed H.717, a bill that would cap or eliminate the negative adjustor for net-metered energy. If enacted, the proposal could shift additional costs onto non-net-metered ratepayers and disrupt the Public Utility Commission’s established process for regularly updating adjustors based on competitive market prices.

Plastics Prohibitions: The Senate Natural Resources and Energy committee continued testimony on S.247, a bill that would prohibit advanced recycling and chemical conversion technologies and restrict certain materials used in medical equipment. These provisions could add cost pressures to an already strained healthcare system and place the state out of alignment with others pursuing innovative waste management solutions.

Noncompete: The House Commerce and Economic Development continued work on H.205, bill that would ban non-competes and restricts an employer’s use of retention incentive agreements. The bill continues to take shape into a more workable proposal, with legislators including flexibility, reflecting testimony from impacted employers, and continuing work to remove any unintended consequences.