Taxes Archives - Vermont Chamber of Commerce

Beyond Tax Brackets: How Proposed Tax Changes Impact Vermont’s Businesses, Workforce, and Economy

April 30, 2026April 29, 2026

Beyond Tax Brackets: How Proposed Tax Changes Impact Vermont’s Businesses, Workforce, and Economy

Analysis led by Amy Spear, President, in partnership with the Vermont Futures Project

Overview

The Vermont Chamber of Commerce advances the Vermont economy through advocacy, community, and resources. As part of that work, we analyze how policy decisions intersect with Vermont’s unique economic structure.

A proposal currently under consideration would introduce new tax provisions, including a high-income surtax, an investment proceeds tax, and a minimum tax based on adjusted gross income. While often framed as a tax on wealth, the structure of this proposal means its effects extend well beyond passive income. In Vermont, where the economy is largely driven by locally owned, pass-through businesses, the practical impact reaches into active business operations, workforce competitiveness, and long-term economic growth.

Why This Matters for Vermont

Vermont’s economy is distinct. Most businesses are not large corporations. They are small and mid-sized employers structured as:

LLCs
S corporations
Partnerships
Sole proprietorships

In these models, business income flows through to personal tax returns. That means what appears as individual income is often active business income used to operate and grow a company. Understanding this structure is essential to evaluating how tax policy functions in practice.

A Look at Vermont’s Current Tax Structure

Vermont already has one of the most progressive tax systems in the country.

Vermont ranks near the top nationally in tax progressivity
Higher income earners already contribute a disproportionate share of total income tax revenue
Effective tax rates increase steadily across income brackets

This context is important. The conversation is not about whether Vermont has a progressive system. It already does. The question is how additional structural changes interact with Vermont’s economic realities.

What the Proposal Does

The proposal introduces three major changes:

New surcharge layers on higher income taxpayers
A new tax on certain investment-related gains
A minimum tax requiring taxpayers above a threshold to pay a percentage of adjusted gross income

Unlike traditional tax structures based on taxable income, this approach introduces a minimum tax floor tied to gross income, regardless of deductions, reinvestment, or business expenses. This distinction is critical for Vermont businesses.

The Pass-Through Effect: When Business Income Is Personal Income

For many Vermont employers, income reported on a personal tax return is not discretionary income. It may already be committed to:

Payroll
Equipment and capital investment
Insurance and operating costs
Debt service

For example, a business owner may report strong income in a given year, but much of that income is reinvested into the business to sustain operations and growth. Policies that do not distinguish between passive income and active business income can create outcomes that do not align with how businesses actually function.

Reinvestment and Growth Implications

Business growth in Vermont often depends on retained earnings. When after-tax resources are reduced, businesses may face harder decisions around:

Hiring
Wage increases
Expansion
Innovation

In a state working to grow its economy and address workforce shortages, reinvestment capacity is a key driver of long-term success.

Business Succession and Local Ownership

One of the most significant considerations is the impact on business succession.

When a Vermont business owner retires or sells a company, the transaction often generates capital gains. These are not abstract financial events. They represent years, often decades, of investment and risk.

Changes to how these transactions are taxed can influence outcomes such as:

Whether businesses are transferred locally or sold to outside buyers
The viability of employee or family ownership transitions
The long-term presence of locally rooted businesses

Across industries, from engineering firms to healthcare practices to hospitality businesses, there is increasing pressure from external buyers, including private equity.

When local ownership becomes more difficult to sustain, it can gradually reshape the structure of Vermont’s economy.

Workforce Competitiveness

Vermont is already facing workforce shortages in critical fields, including:

Healthcare
Engineering
Technology

Many of these professions fall within income ranges affected by the proposal. In a competitive regional landscape, policy decisions influence where professionals choose to live and work. Even incremental differences in tax structure can affect recruitment and retention over time.

Economic Stability and Revenue Considerations

A tax system that relies heavily on a small group of high-income filers can introduce:

Revenue volatility
Greater sensitivity to economic cycles
Increased exposure to changes in taxpayer behavior

In a small state, these dynamics can have outsized effects. Long-term fiscal stability is strengthened by broad-based growth that expands the tax base over time.

Affordability and Structural Challenges

Affordability is a central concern for Vermonters. However, it is important to distinguish between redistribution and structural change.

Addressing affordability at its core requires:

Expanding housing supply
Strengthening workforce participation
Managing healthcare costs
Improving economic productivity

These are the drivers that reduce costs over time and support sustainable growth.

Alignment with Vermont’s Economic Strategy

Vermont’s long-term strategy, as outlined in the Economic Action Plan, focuses on:

Growing the workforce
Expanding housing
Increasing business investment
Strengthening competitiveness

Policies that support these goals help build a larger, more resilient economic base. Policies that constrain reinvestment, complicate succession, or reduce competitiveness can move the state in the opposite direction.

A Path Forward

As Vermont continues to evaluate its policy choices, there is an opportunity to align tax policy with long-term economic goals by:

Distinguishing between passive wealth and active business income
Supporting business succession and local ownership
Preserving reinvestment capacity
Evaluating workforce competitiveness impacts

The Bottom Line

In Vermont’s economy, tax policy does not operate in isolation. Because of the state’s reliance on pass-through businesses and locally owned enterprises, changes to personal tax structures can have broad and sometimes unintended effects.

A strong and sustainable Vermont economy depends on policies that:

Encourage growth
Support local businesses
Attract and retain workforce
Expand opportunity over time

THE DATA BEHIND THE ANALYSIS

House Commerce Reviews New Draft of Data Privacy Bill

April 24, 2026

House Commerce Reviews New Draft of Data Privacy Bill

The House Commerce and Economic Development Committee has begun taking up S.71, Vermont’s comprehensive data privacy bill, signaling the issue will be a central focus in the final weeks of the legislative session. The committee walked through a newly proposed draft, providing the first substantive look at how the House may approach the legislation this year.

S.71 was passed unanimously by the Senate early last year, reflecting a careful approach that aimed to balance strong consumer data protection with the operational realities facing Vermont businesses. When the bill was last taken up in the House at the end of the previous session, a proposal was introduced to strike all of the bill’s language and replace it with a significantly more expansive framework, but no further action followed.

The newly discussed draft continues to include provisions that go beyond what is currently in place in other states, raising significant concerns about regional compatibility, compliance burden, and the potential impact on Vermont’s business competitiveness. These issues are central to the viability of the bill and are expected to require substantial discussion and refinement in the weeks ahead.

The stakes remain high for the business community. Data privacy policy continues to evolve rapidly across states, and the structure of Vermont’s approach will have direct implications for competitiveness, compliance costs, and the ability of businesses to effectively operate in a digital economy. The broader policy context also remains relevant.

Two years ago, a more expansive data privacy proposal was vetoed by Governor Phil Scott due to concerns about its impact on businesses and the state’s economic climate. There has been no indication that the Administration’s position has shifted, underscoring the importance of a pragmatic and durable approach as the House considers next steps.

Importantly, committee leadership has indicated a clear intent to work collaboratively with Vermont stakeholders to refine the bill. That approach comes at a critical point in the session, where timing and policy complexity will require focused engagement to reach a workable outcome.

As deliberations continue, the coming weeks will be critical in determining whether S.71 can take shape in a way that aligns consumer protection with economic realities. The Vermont Chamber and its members have been consistently engaged on this issue and looks forward to continued engagement with the House Commerce and Economic Development Committee to support a balanced path forward that works for both Vermonters and Vermont employers.

April 24, 2026

CONNECT WITH OUR DATA PRIVACY EXPERT

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April 29, 2026

Omnibus Economic Development Bill Advances Through Key Committees

April 24, 2026

Omnibus Economic Development Bill Advances Through Key Committees

April 24, 2026

Omnibus Economic Development Bill Advances Through Key Committees

S.327, a comprehensive economic development and workforce bill, was voted unanimously out of both the House Commerce and Economic Development Committee and the House Ways and Means Committee and is expected to be voted on the House floor next week. With the session entering its final stretch, S.327 is emerging as the primary vehicle for economic development policy this year and will return to the Senate following House action.

The legislation reflects a mix of progress and gaps, when measured against priorities identified through the Vermont Chamber’s policy retreats with manufacturers, tourism leaders, and legislators, as well as the data driven recommendations developed from the Vermont Futures Project’s Economic Action Plan and Competitiveness Dashboard.

Key sections of the bill include:

Business Resources and Growth
- Directs the Department of Economic Development to inventory public and private resources available to businesses identify gaps and improve how those tools are communicated to businesses
- Aligns with the Vermont Chamber’s priority to improve outreach and coordination of existing programs, addressing a consistent challenge identified by employers.
Convention Center Task Force
- Extends the timeline and expands membership of the task force studying a statewide convention center and performance venue.
- Continues broader tourism infrastructure discussions, though remains exploratory.
Vermont Employment Growth Incentive (VEGI) Revisions
- Repeals the program sunset but reduces annual allocation cap on incentives from $10 million to $5 million.
- While it provides long-term certainty for VEGI, it reduces a key tool for attracting and retaining business investment without adding a program aligned with current needs.
Culinary and Hospitality Education Study
- Requires a study on rebuilding Vermont’s hospitality workforce pipeline following the closure of the New England Culinary Institute.
- Directly reflects priorities identified through engagement with the tourism industry.
Hospitality and Culinary Apprenticeship Pilot
- Establishes a two-year, multi-employer apprenticeship pilot for the accommodation and food services sector.
- Strong alignment with employer driven solutions to strengthen workforce pathways in a critical sector.
Rural Industry Development Grant Program
- Codifies the program in statute to support business expansion, relocation, and redevelopment.
- Advances broader goals of supporting regional economic growth.
Nickel Rounding for Cash Transactions
- Allows businesses to round cash transactions to the nearest five cents with required notice.
- A technical change providing operational flexibility.
Commercial Property Assessed Clean Energy (C-PACE)
- Establishes a framework for municipalities to create C-PACE districts, enabling access to private financing for energy efficiency and resiliency projects
- Supports business investment in infrastructure and long-term cost management.

S.327 advances several priorities shaped by direct employer engagement, particularly in hospitality workforce development and improving access to business resources. These elements reflect ongoing efforts to better align state programs with employer needs and workforce realities.

The bill also leaves key priorities unaddressed. It does not include reforms to improve permitting and regulatory coordination, which remain among the most frequently cited barriers to business investment. In addition, it does not advance policies to support automation and productivity, both of which are critical in a constrained labor market.

The most significant concern is the direction of the VEGI changes. While the program remains in place, reducing its scale without introducing a modernized alternative limits Vermont’s competitiveness at a time when the state continues to lag behind peer states in economic momentum.

As the bill moves to the House floor next week, attention will focus on final House action before negotiations with the Senate. S.327 represents a meaningful step on several workforce and development priorities, but also highlights the continued need for a more comprehensive approach to economic competitiveness in Vermont.

April 24, 2026

CONNECT WITH OUR ECONOMIC DEVELOPMENT EXPERT

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Issue Updates from the State House | Week of April 20, 2026

April 24, 2026

Issue Updates from the State House

Week of April 20, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community.

Housing: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.775, continuing discussions on the off-site construction pilot program, report timelines, and balancing funding with permitting priorities. It remains uncertain which of the two housing bills advanced this session will move forward as the vehicle to incorporate shared provisions.
Bottle Bill: The Senate Natural Resources and Energy Committee reviewed amendments to H.915, establishing a temporary funding mechanism for moving towards a Producer Responsibility Organization and increasing handling fees on beverage distributors The short-term funding is expected to fall short of the costs required for implementation, while higher handling fees could increase operational burdens across the system.
Act 250: The House Environment Committee began work on amendments to S.325, repealing the road rule and tier 3 from Act 181. The bill will add a study on protecting natural resources and create a new oversight committee to deal with increasingly problematic regulatory processes.
Education: The Senate Education and Senate Finance Committees began reviewing H.955, addressing both policy and funding components of the bill. With limited cost savings in the House-passed version and three weeks remaining, the bill falls to the Senate to ensure meaningful education finance reform.
Mileage Based User Fee: Legislative Committees reviewed changes to H.944, the omnibus transportation bill that would advance a phased-in mileage-based user fee beginning at 1.4 cents per mile for electric vehicles in 2027, with potential expansion to most vehicles by 2031. While ensuring sustainable transportation funding is critical, broader discussions around new fees highlight the need to also address underlying statewide spending challenges.
Vocational Rehabilitation: The House Commerce and Economic Development Committee advanced S.173, which includes additional education for injured employees and a working group to evaluate potential improvements. This approach maintains program stability while laying groundwork for future enhancements. The bill now moves to the House Floor.
Water Connections: The House Environment Committee continued work on S.212, adding streamlined general permits for subdivision of empty land and boundary adjustments. These changes could help reduce delays and costs associated with permitting processes, making development more efficient.
Career Technical Education (CTE): The House Commerce and Economic Development Committee advanced S.313, adding additional considerations for student access and transportation. While making few structural changes, the bill queues up alignment with broader reform and moves toward aligning workforce training with industry needs. The bill now moves to the House Education Committee.
Sister State: The Senate Economic Development, Housing, and General Affairs Committee advanced H.674, concurring with the House-passed bill. The bill now moves to the Senate floor.
Alcohol: The Senate Economic Development, Housing, and General Affairs Committee advanced H.921, adding a requirement that malt beverage manufacturers maintain records of distribution and sales under expanded self-distribution allowances. The bill now moves to the Senate floor.
Yield Bill: The Senate Appropriations Committee advanced H.949, allocating $100.9 million in one-time funding for a significant property tax buydown and bringing the average increase to 3.8%. While this approach lowers short-term property tax increases, it relies on anticipated education cost savings that have yet to be realized. The bill now moves to the Senate Floor
Tax Conformity: The Senate Appropriations advanced H.933, preserving the language used by the Senate Finance Committee to make targeted updates to Vermont’s tax code, including provisions to enhance the state’s research and development environment. The bill now moves to the Senate Floor.
Budget: The Senate Appropriation and Finance Committees advanced H.951, funding a $9.4 billion budget and investing additional onetime funds in additional economic development programs, including the Rural Industrial Development Program, the Small Business Law and Development Centers, and the first generation homebuyer program. These changes reflect thoughtful investments in programs that align efficient spending with growth opportunities. The bill now moves to the Senate Floor
Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee reviewed a new draft of H.512, clarifying definitions of ticket resellers, and adding a 2028 sunset to the regulation as a check back mechanism to ensure effectiveness.
Franchise Agreements: The Governor signed into law H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. This new regulation will take effect January 1, 2027.
Non-compete: The House General and Housing Committee advanced S.230, creating distinctions between exempt and nonexempt employee non-compete contracts and banning non-competes for non-exempt employees starting on July 1^st. The bill now moves to the House Floor

April 24, 2026

CONNECT WITH OUR TEAM

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Economic Momentum in Focus as Lawmakers Examine Vermont’s Competitive Position

April 24, 2026April 24, 2026

Economic Momentum in Focus as Lawmakers Examine Vermont’s Competitive Position

Vermont’s economic competitiveness took center stage in the House Ways and Means Committee this week as lawmakers listened to the Vermont Futures Project present findings from its Competitiveness Dashboard. The dashboard is a compilation of national and regional research, illustrating data sets that provide a clear picture of how Vermont compares to other states and highlights trends shaping the state’s economic performance.

The most striking data point of the research is Vermont ranks 51st in economic momentum, a measure that evaluates population trends, employment growth, business formation, and overall economic performance relative to other states. The ranking reflects a combination of indicators that, taken together, point to a slowing trajectory in key areas that drive long-term growth.

In presenting the data, Vermont Futures Project Executive Director Kevin Chu emphasized these findings are not based on a single metric, but rather a consistent pattern across multiple measures. Vermont is currently the only state experiencing both natural population decline and negative net migration, while also ranking near the bottom in business formation and employment growth. These trends are further compounded by challenges related to cost of living and overall economic competitiveness.

A key theme from the presentation was the importance of focusing on the foundational elements that support economic growth. Housing availability and workforce supply continue to be central constraints. Maintaining a stable population requires sufficient housing to meet changing needs, and expanding the workforce depends on the state’s ability to attract and retain residents.

The data also highlights the broader competitive landscape. Other states are actively investing in strategies to attract talent, support business growth, and expand economic opportunities. In that context, Vermont’s ability to build economic momentum depends on how effectively it aligns its policies and investments to support those same goals. Currently these goals seem unattainable, as the Committee continues to evaluate tax policy proposals that would add barriers to improving Vermont’s economic competitiveness.

While there are no single solutions to these challenges, the Futures Project’s findings reinforced that improving competitiveness will require a coordinated approach. Aligning housing, workforce development, regulatory predictability, and overall economic policy will be essential to supporting sustainable growth and strengthening Vermont’s position in a competitive national environment. As policymakers continue to evaluate proposals, including changes to tax policy, grounding those decisions in data and a clear understanding of the state’s economic trajectory will be critical to building long-term economic momentum.

April 24, 2026

CONNECT WITH OUR ECONOMIC DEVELOPMENT EXPERT

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Help Shape Vermont’s Business Climate

April 17, 2026

Help Shape Vermont’s Business Climate

We are gathering input from Vermont businesses to identify the most challenging regulations, opportunities for improvement, and ways state policy can better support a predictable, competitive business climate.

Take this one-minute survey to share your perspective. Your input will directly inform our advocacy.

Vermont Chamber of Commerce Mini Survey – Regulations – Fill out form

April 17, 2026

CONNECT WITH OUR POLICY EXPERT

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A Tax Proposal With Broader Implications for Vermont Businesses

April 17, 2026

A Tax Proposal With Broader Implications For Vermont Businesses

A policy framed around who it targets often raises a more important question: how it works. In Vermont, that distinction can change the outcome.

This week, the House Ways and Means Committee continued its review of a draft bill that proposes new taxes on high-income earners, investment proceeds, and income from pass-through businesses. The proposal is framed around higher-income filers, but in practice it reaches many Vermont small businesses because their income is reported through owners’ personal tax returns. In Vermont, business and personal income are closely connected, a distinction is not technical. It shapes how this policy will be felt across Vermont’s economy.

The Vermont Chamber testified before the Committee on this proposal and submitted a detailed white paper outlining how the bill functions within Vermont’s business structure. That testimony focused on the interaction between the proposal and Vermont’s pass-through business model, particularly in rural regions where locally owned businesses are the backbone of the economy.

At the same time, testimony from other organizations reflected a broader policy conversation.

Proponents argued it would boost tax fairness, respond to federal changes, and raise revenue for public investments, noting that higher-income households often pay a smaller share of their income in state and local taxes and that added funds could help address affordability challenges. Opponents raised concerns about Vermont’s competitiveness, warning that higher marginal rates and new taxes on investment and pass-through income could affect business investment, workforce recruitment, and long-term growth.

Against that backdrop, the question is not only who the bill is intended to impact, but how it operates in practice.

What the Proposal Does

At a high level, the bill introduces three structural changes to Vermont’s tax framework:

New surtax layers on higher-income
A 3% minimum tax floor based on adjusted gross income (AGI)
A new tax on investment proceeds

Individually, each of these is significant. Together, they represent a shift in how income is taxed in Vermont. Notably, the minimum tax floor is tied to adjusted gross income rather than taxable income. That distinction is central to understanding the bill’s broader effects.

Why It Reaches Beyond Wealth

The proposal is framed as targeting wealth; however, in Vermont, that framing does not fully capture how the policy operates.

Most Vermont businesses are not taxed as traditional corporations. They are pass-through entities, including LLCs, S corporations, partnerships, and sole proprietorships. In these structures, business income flows directly onto the owner’s personal tax return.

That means changes to personal income tax policy often function as changes to business taxation. This includes many of the businesses that define Vermont’s economy:

Farms
Inns and lodging businesses
Contractors and trades
Small manufacturers
Specialty food producers

This structure is especially common in rural Vermont, where locally owned businesses are often the primary employers in a community.

The AGI Constraint

One of the least visible but most consequential elements of the proposal is the 3% minimum tax floor based on AGI. AGI is an accounting measure. It reflects income before many real-world obligations are accounted for. For pass-through businesses, income reported on a personal return may already be committed to:

Payroll
Equipment replacement
Debt service
Reinvestment into operations

This creates the potential for tax liability that does not align with available cash. For businesses with narrow margins, seasonal cycles, or high reinvestment needs, that distinction becomes particularly important.

Business Succession and Capital Gains

The proposal also introduces a new tax on investment proceeds. According to the state’s analysis, capital gains represent a significant share of that tax base. In Vermont, capital gains are not limited to passive investment activity. They are often tied to business succession.

When a business owner retires and sells a company, those proceeds typically represent:

A lifetime of reinvestment
A transition to new ownership
The continuation of a local employer

Changes to how those transactions are taxed can influence whether businesses are transferred locally, sold to outside buyers, or closed altogether. In rural communities, where businesses often serve as economic anchors, those outcomes carry broader implications.

Context Matters

This proposal does not exist in isolation. Vermont already has one of the most progressive tax systems in the country. At the same time, the state ranks near the bottom nationally in economic outlook. That combination shapes how policy changes are absorbed.

In a state working to grow its workforce, expand housing, and strengthen long-term economic capacity, the structure and impact of tax policy matter.

Affordability and Outcomes

The proposal is often discussed in the context of affordability. However, it does not directly address the primary drivers of cost:

Housing supply
Workforce availability
Healthcare costs
Childcare access

At the same time, it may influence:

Business reinvestment
Workforce recruitment
Ownership succession

Redistribution and structural affordability are not the same.

The Bottom Line

In Vermont’s economy, this bill would function more broadly than a tax on wealth. It reaches into active business income, business transitions, and the employers that sustain communities across the state. As policymakers continue to evaluate the proposal, the focus should remain on how it operates in practice.

Because in Vermont, structure determines outcome.

April 17, 2026

CONNECT WITH OUR TAX EXPERT

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Issue Updates from the State House | Week of April 13, 2026

April 17, 2026April 17, 2026

Issue Updates from the State House

Week of April 13, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community.

Paid Family Leave: The House General and Housing Committee took testimony on the roll out of the state’s voluntary Paid Family Medical Leave Insurance program and heard from paid leave advocates on their push to create an expansive state mandatory program, funded through a payroll tax.
Economic Development: The House Commerce and Economic Development Committee continued work on S.327, adding additional meetings for the convention center task force and establishing a hospitality and culinary apprenticeship pilot. The Vermont Chamber is named as a stakeholder in the pilot, which could help support the state’s hospitality industry.
Commercial Property Assessed Clean Energy: The Vermont Chamber testified in the House Commerce and Economic Development Committee on S.138, a bill that would expand Vermont’s PACE program and enable businesses to finance efficiency, renewable, and resilience improvements. The committee amended language to allow lenders to also administer the program, aiming to reduce barriers and improve adoption.
Non-Compete: The House General and Housing Committee introduced non-compete regulation language to S.230, creating distinctions between exempt and nonexempt employee non-compete contracts. As discussions continue, additional testimony will be needed to ensure the proposal achieves its intent without creating broader unintended impacts.
Tax Conformity: The Senate Finance committee advanced H.933 after a week-long review of the targeted updates the bill makes to Vermont’s tax code, including provisions to enhance the state’s research and development environment. The bill now moves to the Senate Appropriations Committee.
Act 250: House Environment Committee continued in-depth review of S.325, considering amendments to repeal the road rule and Tier 3 category. These changes recognize the broken process in the roll out of Act 181, impacting rural landowners across Vermont.
Yield Bill:
The Senate Finance Committee advanced H.949, allocating additional funding for a larger buydown than advanced by the House and bringing the Senate far closer to the Governors recommendation, setting the average property tax increase to 3.8%. The amendment also reduces excess spending thresholds from 118% increases to 112%, and banks on education cost savings in future years to prevent large future rate hikes.
Career Technical Education (CTE): The House Commerce and Economic Development Committee continued work on S.313, adding a study on streamlining educator requirements to improve access while maintaining instructional quality. As the bill moves closer to advancement, progress continues towards aligning workforce training with statewide industry needs.
Education: The House advanced H.955 following a closely contested debate on the Floor, approving a bill that relies on voluntary alignment and mergers. With significant departure from the Governor’s proposal, this debate will continue.
Alcohol: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.921, considering removal of the proposed 2028 sunset on small brewer self-distribution for amounts under 3,000 barrels.
Vocational Rehabilitation: The House Commerce and Economic Development Committee reviewed a new draft of S.173, replacing proposed program changes with the creation of a working group to evaluate potential improvements to the vocational rehabilitation system. This approach maintains current program stability while laying groundwork for future efficiency and effectiveness enhancements.
Polyfluoroalkyl Substances (PFAS): The House Agriculture Committee reviewed H.911, a bill that would prohibit pesticides and pesticide packaging containing PFAS. While specific language is still under development, potential for broader PFAS definitions could increase compliance costs for manufacturers whose processes may already be subject to regulation.
Wetlands: The House Environment Committee reviewed a proposed amendment to S.223 focused on targeted wetlands permitting reform to support housing development in designated growth areas. While the amendment faces strong headwinds, continued streamlining of regulatory processes remains vital for housing growth and affordability.
Building Energy Code: The Senate Natural Resources and Energy Committee began review of H.718, hearing concerns related to funding limitations, enforcement authority, and the need for expanded workforce training resources. Continued focus on supporting the building community will be necessary as discussions continue.
Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.512, considering exemptions for noncommercial sellers and adding a potential sunset clause to ensure the bill is targeted, effective and can be reevaluated after implementation.
Sister State: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.674, maintaining quarterly meetings of the sister state council, leveraging existing state relationships, and considering U.S. and state sanctions lists in the vetting process.
Public Safety: The Senate advanced H.410, a bill that redefines recidivism to support more efficient judicial processes and quicker access to services. The bill now moves to the Governor’s Desk for consideration.

April 17, 2026

CONNECT WITH OUR TEAM

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S.325 Testimony Reflects Rising Concern Over Act 181 Implementation

April 10, 2026

S.325 Testimony Reflects Rising Concern Over Act 181 Implementation

The House Environment Committee spent the week taking extensive testimony on S.325, hearing from a wide range of stakeholders. A clear theme emerged: growing concern with how Act 181 is being implemented.

While S.325 to date has focused on timing and technical fixes, the conversation quickly shifted to broader issues of trust, process, and how land use decisions are experienced on the ground.

Act 181 was designed as a collaborative, bottom-up effort, but testimony highlighted a disconnect between that intent and a more top-down implementation, particularly in rulemaking and mapping, where stakeholders were considered only advisory and public engagement happened too late. These conversations ultimately raised further questions regarding land use decisions.

In testimony this week, the Vermont Chamber supported key elements of S.325 that support greater clarity and stability in implementation, including:

Maintaining interim housing exemptions to avoid disruption
Improving clarity and predictability in Act 250 jurisdiction
Continuing progress on Tier 1 designations

The Vermont Chamber supported provisions in S.325 that improve clarity and stability, including maintaining interim housing exemptions, clarifying Act 250 jurisdiction, and advancing Tier 1 designations. At the same time, concerns centered on the role and approach of the Land Use Review Board.

Testimony also signaled a shift in thinking, extending timelines to fix the broken process may no longer be enough to rebuild trust. Alternatives discussed included moving away from the current tiered mapping approach, expanding community-driven engagement outside of the land use review board, and refocusing the Land Use Review Board on consistent, predictable Act 250 administration.

As part of that discussion, a different path forward was raised:

Stepping away from the tiered mapping approach and rulemaking under the Land Use Review Board
Establishing a broader intentional community engagement effort to answer the questions at the core of protecting natural resources through a trusted community development organization
Refocusing the Land Use Review Board on administering Act 250 to ensure a process that is predictable, fair, and timely statewide

S.325 is no longer strictly a technical bill—it has become a focal point for a broader conversation about land use, implementation, and trust in Vermont.

April 10, 2026

CONNECT WITH OUR LAND USE EXPERT

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If Decisions Don’t Get Made

April 10, 2026

If Decisions Don't Get Made

As the legislative session nears adjournment, attention is on what will pass—the budget, the yield bill, the final numbers. But a more consequential question is: what if they don’t?

The impacts aren’t theoretical. Without a signed budget, Vermont risks partial shutdowns, disrupted payments, and long-term credit effects. Without a yield bill, default property tax rates could trigger sharp increases—42.4% for nonhomestead and 13.7% for homestead, about $325 million more than needed for the Education Fund and leaving school districts, employers, and property owners without legislative adjustment to these costs.

This uncertainty doesn’t stay in Montpelier. It stalls planning, delays hiring, and pauses investment—not from lack of will, but lack of clarity. Timing matters. Early decisions create stability; late ones create pressure; no decision creates uncertainty—compounding Vermont’s fiscal and affordability challenges.

These bills are also signals—about alignment, decision-making, and predictability. Over time, those signals shape whether businesses expand, invest, or look elsewhere. The final days of session aren’t just procedural—they influence confidence in Vermont’s economic environment.

It is important to focus on what policy decisions mean in practice—connecting them to real business impacts and advancing a more predictable, affordable future. The budget and yield bill will pass. The question is how: on time with clarity, or late with ripple effects beyond Montpelier.