With Election Day just around the corner, the Vermont Chamber teamed up with Let's Grow Kids and the Vermont Housing Finance Agency to cohost nonpartisan governor and lieutenant governor candidate forums.
See where the candidates stand on issues that affect Vermonters by watching the recorded forums.
Candidates for governor and lieutenant governor were asked how they would approach current issues, answering questions on:
Your vote in this election will help shape Vermont’s future, including our recovery from the pandemic and our community response to fellow Vermonters’ needs. Thank you for your engagement with these important elections. Vermont Chamber Submits Testimony on Economic Relief Proposal Senate Not Supportive of Cloud Tax Proposal U.S. Removes 10 Percent Tariff on Canadian Aluminum Governor Scott Relaxes Hospitality Occupancy Restrictions House Amends Unemployment Insurance Rate Criteria Resource Roundup In Case You Missed It
Vermont Chamber Submits Testimony on Economic Relief Proposal Vermont Chamber Vice President of Tourism Amy Spear offered testimony on the economic relief proposal drafted in the House and recently amended and advanced in the Senate. Spear’s testimony called for expanding eligibility to provide resources for businesses who were left behind by the relief programs created in June. The testimony also called for ensuring a significant portion of the relief funds are dedicated to a rescue package for the hospitality industry, including lodging and restaurant entities who were most severely impacted by mandatory operating restrictions related to COVID-19. Carol Lighthall, Executive Director of the Okemo Valley Chamber of Commerce, also offered testimony on behalf of the Vermont Association of Chamber of Commerce Executives that called for relief funds to assist local and regional chambers of commerce who have played a key role in assisting businesses throughout the current economic crisis. Lighthall’s request is additionally supported by the Vermont Association of Regional Planning Commissions and the Vermont Association of Regional Development Corporations. The Senate’s economic relief proposal includes $76.7 million in economic recovery grants, $4 million to the Department of Tourism and Marketing for the Restart Vermont Marketing Program, and $2.3 million to the Vermont State Colleges in coordination with the Department of Labor to support workforce training for impacted employment groups. The most significant change from the House’s economic relief proposal is a provision that would remove $17 million from the House’s original $100 million for the purpose of providing unemployment insurance recipients with stimulus payments of up to $100 a week, for four weeks. A further breakdown of the Senate’s proposal is included below. The Vermont Chamber continues to advocate for the advancement of additional funds for existing relief programs and for a set-aside program that would serve industries most impacted by the pandemic. As the current session draws to a close, the Vermont Chamber will continue pushing for meaningful relief to address the unprecedented hardship facing Vermont’s business community. ![]()
Senate Not Supportive of Cloud Tax Proposal On Tuesday the House Committee on Ways and Means advanced a proposal that would impose a tax on vender-hosted pre-written software. Tech industry representatives have repeatedly expressed opposition to establishing a tax on software as a service (SaaS), commonly known as a cloud tax. Such a tax would disincentivize the startup and growth of SaaS businesses in Vermont and add considerable operating costs to other businesses. The Vermont Chamber recently joined dozens of advocacy organizations and business leaders in expressing our continued opposition to the implementation of this tax. On Thursday the Senate Committee on Finance heard additional testimony from industry representatives that elaborated on the negative impacts the tax will have on Vermont’s tech industry, if implemented. Ultimately, the Committee was not supportive of the provision and the full Senate did not advance the tax proposal. Chair Ann Cummings expressed specific concern about the impact a cloud tax could have on the cost of reservation services for the hospitality sector, which is already suffering because of COVID-19 operating restrictions. The Vermont Chamber will continue working to ensure that Vermont’s tech sector is not placed at a competitive disadvantage or exposed to other economic harm as a result of burdensome regulations or additional tax mandates.
U.S. Removes 10 Percent Tariff on Canadian Aluminum The Vermont Chamber joined New England states and Canada in expressing opposition to the Trump Administration’s decision to reimpose a 10 percent tariff on Canadian aluminum. The Vermont Chamber made clear in remarks offered in a joint statement shared with the Scott Administration that the majority of Canadian companies source over half of their aerospace parts from the U.S. and that tariffs create uncertainty, raise costs, lower sales revenues, and place our manufacturers at a competitive disadvantage. Responding to industry calls for stability, Vermont Governor Phil Scott joined New Hampshire Governor Christopher Sununu and Maine Governor Janet Mills last week in calling for an end to the tariff. Facing growing criticism from impacted states and industry, this week the United States removed the tariff. The action was praised by Chris Carrigan, Vermont Chamber Vice President of Business Development, in a recent interview with the Rutland Herald. Please reach out to Chris Carrigan with any questions.
Governor Scott Relaxes Hospitality Occupancy Restrictions Governor Scott today announced needed changes to business operation guidelines for the hospitality sector. The Vermont Chamber’s four-person lobbying team has been working on behalf of the hospitality industry to secure these changes. Certain lodging occupancy restrictions have been lifted. Read more. Restaurants, catering, food service, and bars can allow 50 percent of fire safety occupancy or one person per 100 square feet, with a maximum of 75 people indoors and 150 people outdoors or their maximum licensed seating capacity, whichever is less. Read more. Bar seating is now permitted with seating that allows for physical distancing of six feet between dining parties and a physical barrier between patrons and bartenders. Read more. Beginning next week the Cross State Travel Information will be updated each Tuesday instead of Friday. The Agency of Commerce and Community Development’s restart guidance page has also been updated with detailed information. As the impacts and challenges of COVID-19 continue, the Vermont Chamber will continue to advocate for operational and financial relief for the hospitality industry.
House Amends Unemployment Insurance Rate Criteria The House Committee on Commerce and Economic Development established criteria that would enable the unemployment insurance (UI) tax rate schedule, which employers pay into, to adjust necessarily to ensure the UI trust fund remains solvent in the event of a prolonged or abrupt draw down as a result of high future rates of unemployment. The changes were supported by the Department of Labor and business advocates present. While a major increase to the UI tax rate schedule, if triggered, would add costs for employers, if the UI trust fund is drawn down to zero and the state is forced to borrow from the federal government, the economic impact on employers could be more significant. The Vermont Chamber expressed support for the change during brief testimony.
Resource Roundup
Want great exposure for your business? Sponsoring the weekly newsletter is an affordable and effective way to reach your target customers. Email Megan Bullard for pricing and more information. Senate Reviews House Economic Relief Proposal Vermont Chamber Testifies on Unemployment Insurance Fund Vermont Chamber Urges Changes to Act 250 Proposal Senate Approves Additional Hazard Pay Bill New England Governors Oppose Tariff on Canadian Aluminum Committee Continues Discussion of Possible “Cloud Tax” Resource Roundup In Case You Missed It
Senate Reviews House Economic Relief Proposal The Senate Committee on Economic Development, Housing and General Affairs heard testimony from the Scott Administration and Representative Charlie Kimbell, Ranking Member of the House Committee on Commerce and Economic Development. The Committee specifically reviewed the House’s economic relief proposal. If advanced as passed by the House, the current relief proposal would provide $100 million in additional economic relief for businesses impacted by COVID-19. The Committee has not yet indicated what major changes they will make to the House proposal, if any, but the members of the Committee indicated they would like to reintroduce some funding for a consumer stimulus program. The Vermont Chamber has pushed for advancement of additional funds for existing relief programs and for a set-aside program that would serve industries most impacted by the pandemic. As the current session unfolds, the Vermont Chamber will continue advocating for meaningful relief to address the unprecedented hardship facing Vermont’s business community.
Vermont Chamber Testifies on Unemployment Insurance Fund ![]() Charles Martin, Vermont Chamber Government Affairs Director, testified in the House Committee on Commerce and Economic Development on the future of Vermont’s Unemployment Insurance (UI) trust fund. Since the onset of the pandemic, the state’s UI fund has been drawn down from a previous high of $500 million to a current level of $300 million. Pandemic related layoffs are expected to regularly occur for the foreseeable future, which will continue to impact the fund. Legislators on the Committee heard from state economists and others about replenishing the fund and impacts replenishment and the associated tax increases could have on employers. Martin’s testimony included cautioning a significant UI schedule jump, which would result in higher unemployment insurance taxes for employers, most of whom continue to suffer as a result of the current economic turmoil. The Committee did not specify what immediate actions they would take to replenish the fund and instead indicated additional questions related to acceptable solvency in the UI fund need to be answered before major decisions about the fund’s future can be made. While the Vermont Chamber recognizes the essential nature of maintaining a strong UI fund, employers are ill equipped to withstand significant tax increases at this time and our engagement with the Legislature will continue to reflect this reality.
Vermont Chamber Urges Changes to Act 250 Proposal The Vermont Chamber joined the Lake Champlain Chamber and the Regional Development Corporations of Vermont in recommending changes to a housing bill that, if implemented, would serve to reintroduce Act 250 provisions related to areas of enhanced designation that were removed from the Act 250 proposal recently advanced by the Senate. Last week the Senate made major changes to Act 250 reform legislation that struck sections related to development in areas of enhanced designation. The Vermont Chamber and others in the economic development community were supportive of previously included provisions that would have removed designated downtowns from Act 250 jurisdiction in some instances. If implemented, these provisions would encourage sustainable economic growth and contribute to creating more affordable housing. The Vermont Chamber will continue pushing for the reintroduction of designated downtown exemptions as the current legislative session unfolds.
Senate Approves Additional Hazard Pay Bill The Senate advanced changes to Vermont’s hazard pay program. S.352 was passed by the Senate and includes an additional $2.5 million in funding for the program as well as an amendment that would direct $12 million for childcare workforce stabilization. S.353, also passed by the Senate, would enable grocery and retail workers to be eligible for hazard back pay while adding $19.5 million to the program. The changes now require approval in the House.
New England Governors Oppose Tariff on Canadian Aluminum The Vermont Chamber recently joined New England states and Canada in expressing opposition to the Trump Administration’s decision to reimpose a 10 percent tariff on Canadian aluminum. Chris Carrigan, Vermont Chamber Vice President of Business Development, made clear in remarks offered in a joint statement shared with the Scott Administration that the majority of Canadian companies source over half of their aerospace parts from the U.S. Carrigan also pointed out that the tariff on aluminum will add injury to an already impacted aerospace manufacturing industry suffering demand shock from a drastic decline in passenger traffic for commercial aviation due to the pandemic. Responding to industry calls for stability, Vermont Governor Phil Scott joined New Hampshire Governor Christopher Sununu and Maine Governor Janet Mills this week in calling for an end to the tariff. If you have any questions or would like to express how this tariff is impacting your business, please contact Chris Carrigan.
Committee Continues Discussion of Possible “Cloud Tax” The House Ways and Means Committee continued discussion of possibly implementing a tax on prewritten software. Early in 2020 tech industry representatives descended on the State House to express opposition to establishing a tax on software as a service (SaaS), commonly known as a cloud tax. Such a tax could disincentivize the startup and growth of SaaS businesses in Vermont and add considerable operating costs to other businesses. Prewritten software purchased on storage media or downloaded to a computer is currently taxable, while prewritten software accessed remotely via the internet is not. The Committee is again considering implementing a cloud tax as a possible means to raise an estimated $6.5 million in revenue to address shortfalls in the education fund. Considering the overall costs to the business community and the unprecedented economic uncertainty facing Vermont, the Vermont Chamber opposes the implementation of a SaaS tax, especially given the current limited ability for stakeholders to engage the Legislature. If you have questions or concerns about a SaaS tax, please contact Charles Martin.
Resource Roundup
Want great exposure for your business? Sponsoring the weekly newsletter is an affordable and effective way to reach your target customers. Email Megan Bullard for pricing and more information. Additional Economic Relief Legislation Advances Senate Implements Major Changes to Act 250 Proposal Tax Options During Economic Downturn Reviewed Legislation Would Authorize “To Go” Liquor Sales Through 2022 Vermont Chamber Joins New England States and Canada in Opposing Aluminum Tariff Stormwater General Permit (GP) 3-9050 Issued Resource Roundup In Case You Missed It
Additional Economic Relief Legislation Advances The House Committee on Commerce and Economic Development advanced draft legislation that would make available an additional $100 million in economic relief grants for businesses impacted by COVID-19. If passed into law the legislation would provide $88 million to the Agency of Commerce and Community Development (ACCD) for additional grants to be applied across several industries and $12 million through ACCD to address industry specific issues. Within the $12 million, $5 million would go to Vermont ski area businesses to make necessary improvements to facilities to mitigate public health risks, $4 million to the Department of Tourism and Marketing for the Restart Vermont Marketing Program, and $3 million to be divided equally between the Community College of Vermont and the Vermont Technical Center to serve around 1,000 Vermonters impacted by the pandemic. The legislation also expands eligibility for accessing ACCD economic relief grant funds by removing a specific qualifying loss threshold. Additionally, the legislation would raise the overall cap on grant funds a business can receive to $300,000, or higher, if approved by the Joint Fiscal Committee. The Vermont Chamber has pushed for advancement of additional funds for existing relief programs and for a set-aside program that would serve industries most impacted by the pandemic. As the current session unfolds, the Vermont Chamber will continue advocating for meaningful relief to address the unprecedented hardship facing Vermont’s business community.
Senate Implements Major Changes to Act 250 Proposal The Senate Committee on Natural Resources stripped their Act 250 proposal of virtually any substantive changes other than provisions related to trail construction and forest fragmentation. The Committee’s proposal advances no changes to criteria governing development in designated downtowns. The Vermont Chamber and others in the economic development community were supportive of previously included provisions that would have removed designated downtowns from Act 250 jurisdiction in some instances. House committees are concurrently working on other legislation that could also end up serving as a vehicle for Act 250 reform. The Vermont Chamber will continue advocating on this issue, including by pushing for the reintroduction of designated downtown exemptions.
Tax Options During Economic Downturn Reviewed The House Ways and Means Committee discussed taxation during economic downturns. The Committee considered new tax options, including taxation of software as a service. Witness Kim Rueben, Director of the State and Local Finance Initiative, Urban Institute, recommended the Committee consider imposing new taxes on services that replace products that were previously physically purchased but are now sourced through internet services. The Committee’s Chair indicated they would continue to consider such options this session and during the 2021 Legislative Session. Rueben also recommended the Committee consider increasing top marginal tax rates on income tax and expanding Vermont’s sales tax base. A representative from Moody’s Analytics also presented options for budgeting in the age of COVID-19. View the full conversation here.
Legislation Would Authorize “To Go” Liquor Sales Through 2022 The Department of Liquor and Lottery proposed legislation that would permit the Board of Liquor and Lottery to authorize alcoholic drinks for “to go” sales through December of 2022. Gary Kessler, Deputy Commissioner of the Department, offered the legislation during testimony delivered to the Senate Committee on Economic Development, Housing and General Affairs. The Vermont Chamber has advocated for an extension of alcohol to go sales to help restaurants generate reliable revenue while COVID-19 related operating restrictions remain in place. If you have questions about alcohol policy, please contact Vermont Chamber Vice President of Tourism Amy Spear.
Vermont Chamber Joins New England States and Canada in Opposing Aluminum Tariff The Vermont Chamber joined New England states and Canada in expressing opposition to the Trump Administration’s recent decision to reimpose a 10 percent tariff on Canadian aluminum. Chris Carrigan, Vermont Chamber Vice President of Business Development, made clear in remarks offered in a joint statement that the majority of Canadian companies source over half of their aerospace parts from the U.S. Carrigan also pointed out that the tariff on aluminum will add injury to an already impacted aerospace manufacturing industry suffering demand shock from a drastic decline in passenger traffic for commercial aviation due to the pandemic. If you have any questions or would like to express how this tariff will impact your business, please contact Chris Carrigan.
Stormwater General Permit (GP) 3-9050 Issued A new general permit will go into effect on December 1, 2020. The permit requires that landowners with more than three acres of impervious surfaces, including roofs, driveways, and parking lots, undertake projects to treat water runoff. In 2019 the Vermont Chamber provided public comment on the draft permit, expressing concern over the originally proposed timetable and the financial burden compliance will place on small businesses. The Department of Environmental Conservation’s (DEC) formal response to those concerns are available on the Department’s response summary page. The Department plans to offer technical and financial assistance to landowners to support engineering design and installation of stormwater projects by utilizing resources from the Clean Water Fund and the State Revolving Fund to offer cost-share to landowners. Businesses that provided public comment or signed up under the Environmental Notices Bulletin (ENB) should receive a notice of issuance of the GP through the ENB. Applications for new development and permit renewal should continue to use GP 3-9015 and GP 3-9010 until December 1, 2020. DEC will update their website soon to include a “summary of changes” in the final GP 3-9050 relative to the draft GP and will develop a table of the schedule for submitting the required permit applications for “three-acre sites.” DEC will also provide outreach letters to “three-acre sites” over the next few weeks. Technical questions related to applicability of GP 3-9050 to particular projects can be directed to the Stormwater Program staff. Please contact Vermont Chamber Government Affairs Director Charles Martin with other questions or concerns related to the permit.
Resource Roundup
Want great exposure for your business? Sponsoring the weekly newsletter is an affordable and effective way to reach your target customers. Email Megan Bullard for pricing and more information. |
Archives
March 2021
Categories |