Gov. Peter Shumlin says he
will sign legislation that imposes the state sales tax on cloud computing
software beginning in the summer of 2013, but he says he will try to persuade
lawmakers next year to drop this tax before it goes into effect.
new revenue is supposed to ease the burden on local property taxpayers in Montpelier and help
repair the city’s crumbling streets and sidewalks. But the tax proposal has outraged many businesses in
the Capital City.
On Town Meeting Day, voters in Montpelier will consider proposed tax changes designed to raise revenue. Montpelier’s City Council wants to implement a 1 percent local sales
tax as well as a 1 percent local rooms, meals and alcohol tax.
House Ways and Means committee is taking a serious look at ways
to collect the state sales tax from large Internet companies. It’s estimated that Vermont is losing between $30-40 million a year in
revenue because most online purchases are tax free.
A special commission is looking at making some dramatic changes to Vermont’s sales tax.
the plan, the sales tax would be applied to a variety of consumer services that
are now exempt. But in return, the sales tax rate would be reduced.