As the Legislature continues work on education finance reform, the Vermont Chamber is sounding the alarm on a House proposal that would create a new tax classification targeting Vermont businesses. Though the conference committee on H.454 has not reached final agreement, the House’s current position includes separating commercial and industrial properties into their own tax category—a move that could severely harm the state’s employer base.

During a recent conference committee meeting, House Ways and Means Chair Emilie Kornheiser made the intent behind the classification change clear:

“If we want to keep property taxes stable for homeowners and, um, landlords, we can only do that if we create other sort of valves to turn on and off, and so that is why this is in here as an intrinsic part of this proposal.”

In this context, those “valves” include businesses.

This approach sends the wrong message. Vermont businesses are not tools to balance the tax code, they are the backbone of our economy. They provide jobs, generate innovation, support community institutions, and are owned and operated by Vermonters who are deeply invested in our state’s future.

The House proposal seeks to solve what is fundamentally a spending problem by creating a new nonhomestead tax class that could be used to shift the burden onto businesses in future years. This sets a dangerous precedent that risks further economic strain on the very employers we rely on for growth and prosperity.

The Vermont Chamber urges lawmakers to reject this approach. Education finance reform should share responsibility fairly, lower the property tax burden across the board, and recognize that businesses are essential partners in building a stronger, more affordable Vermont.

What’s Next

The H.454 conference committee is scheduled to reconvene on June 10, with the full Legislature returning to Montpelier on June 16 to debate and pass a final education finance reform bill that will then go to the Governor’s desk.

In the meantime, lawmakers are no longer meeting in the State House—they are back in their districts, back among the constituents and communities they were elected to serve. This includes you, Vermont’s employers, who are not just job creators, but neighbors, civic leaders, and core members of the local economy.

Now is the time to act to ensure they fully understand the consequences of the current proposal.

Employers should:

• Call or email your local legislators
• Invite them to tour your business
• Share your concerns about the proposed tax changes

Your direct outreach can shape the debate before lawmakers return to the State House. Let’s ensure they understand the real-world impact their decisions will have on the employers who power Vermont’s economy.