Town Meeting Day is coming up and in Waitsfield the select board has placed the adoption of a Local Option Tax (LOT) on the ballot. Full disclosure: We are not residents of Waitsfield. But as a small business owner in town, we wanted to know more about the proposal and how it could affect the community.
Since buying our home in 2011, we have seen our property taxes go up significantly. Like most people (we’re assuming), when we hear about the possibility of more taxes, the first response is understandably, "No, thank you."
That being said, Waitsfield, like many towns, has infrastructure needs which can’t be ignored, requiring a significant investment. So, could a LOT lighten the financial load on the budget and property taxes?
Here are the basics of what we’ve learned. The LOT would add 1% onto the state tax on certain categories of retail sales, rooms, meals, and alcoholic beverages. However, unlike the state taxes, which go entirely to the state, Waitsfield would receive 75% of the LOT revenue.
How much money could that earn for the community? The projected annual revenue, including online sales, is $598,641.
The 38 municipalities in Vermont that have already adopted a LOT have used the funds to support infrastructure projects, attainable housing initiatives, and to improve recreational facilities for year-round residents. The proposal in Waitsfield would also extend to supporting emergency services and economic development.
For fellow business owners fearing a LOT will be the death knell for spending in our area, studies show that a decrease in spending is highly unlikely, especially if neighboring communities have comparable tax rates. Waterbury, Stowe, and Montpelier have all adopted Local Option Taxes. When revenues are used to enhance road maintenance, utility upgrades, and public space improvements, it not only benefits residents, but can drive more foot traffic to local shops.
So, the bottom line: How would this impact resident families financially? It’s estimated that the visitors coming to enjoy our beautiful area would actually carry 82% of the burden, leaving residents with only 18%. That comes to around $186 a year, per household; or approximately $15.50 a month.
For some perspective, to get the same estimated revenue through a property tax increase, it would require a 26% hike on Waitsfield’s property taxes. And shift the burden to residents.
Waitsfield has so much to offer, but if it’s going to continue being a resilient and thriving community, then addressing the infrastructure challenges head on is crucial.
In a time when access to state, and especially federal, funding assistance has become much more challenging, a Local Option Tax seems to us the most efficient way to not only raise revenue for much-needed projects, but to spend our tax dollars as the community sees fit.
We encourage you to read more at www.waitsfieldvt.gov/lot and make your voice heard on March 3.
Wray lives in Warren
