In Montpelier, Voters To Weigh Tax Changes

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(Host) 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.

The Council proposes that 80 percent of revenues raised be used to offset property taxes.

Montpelier’s City Manager Bill Frasier says the other 20 percent will promote business development.

(Frasier) "That was a nod from the council to say hey look we know that this may create some burden on the business community so we would like to use a portion of that revenue to help promote our community and make it attractive to people to come here and shop."

(Host) Supporters say property taxes in the state capital are too high, and the sales tax could bring in enough revenue from non-residents to lower them.

Opponents, however, say Montpelier lacks box stores or a mall, and is not the kind of community that could generate enough revenue through a sales tax to boost the municipal budget.

If the local rooms, meals and alcohol tax is approved, 100 percent of its revenue would be earmarked for infrastructure improvements.

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