An act relating to local option tax in small towns

This bill allows Vermont towns with 2,400 or fewer residents to vote on establishing a local option tax to raise revenue for municipal services. If approved, towns can impose a one percent tax on sales, meals, alcoholic beverages, or hotel rooms, with 75 percent of the revenue staying in the town instead of the current 70 percent. The remaining 25 percent would go to the state, and towns could also receive a higher share of aviation fuel taxes. The bill only applies to small towns and does not change rules for larger municipalities, which continue to follow the existing revenue split.