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
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Vermont Chamber Cohosting Candidate Forums Next Week
With Election Day in Vermont just around the corner, the Vermont Chamber has teamed up with Let's Grow Kids and the Vermont Housing Finance Agency to cohost nonpartisan governor and lieutenant governor candidate forums next week.
- Candidates will be asked how they would approach current issues, answering questions on:
- Inadequate access to high-quality, affordable child care
- Access to affordable housing in Vermont
- The growing need for consistent broadband connectivity
- Investment in rural economic development
- Register for next Thursday's Lt. Governor Forum at this link.
- Register for next Friday's Governor Forum at this link.
- Candidates will be asked how they would approach current issues, answering questions on:
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National Restaurant Association Wants to Hear Your Restaurant Story
The National Restaurant Association is asking restaurant owners and supporters to record their experiences managing a restaurant during the pandemic. The videos will be used to further advocacy efforts on Capitol Hill. Tell Congress that restaurants need additional relief now. Record your video here.
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