Bennington Moves Forward with Option Tax Discussion Ahead of November Vote

Last updated: July 29, 2026

BENNINGTON, Vt. NewsWK — Residents of Bennington are gearing up for a significant decision regarding local option taxes, as the town prepares for a special vote on November 3. This week, an informational session was held to discuss the potential benefits of implementing a local option tax, which would add 1 percent to the state sales tax on various goods and services.

Key Information Session

The session took place on Tuesday at the Bennington Theater and was also broadcasted on Catamount Access Television. Local officials, including Select Board member Jackie Matts, explained how the local option tax could generate approximately $1.8 million annually for the town. “We are leaving additional, non-property tax revenue on the table,” Matts stated, emphasizing the need for diversified funding sources for municipal services.

What is the Local Option Tax?

The state’s Local Option Tax program allows municipalities to impose an additional 1 percent tax, with 75 percent of the generated revenue returned to the community. Bennington, unlike many of its peers, has yet to adopt this tax, which has raised concerns about funding for essential services like road maintenance and community marketing.

Community Perspectives

During the session, several panelists shared insights from other municipalities. Gordon Black, a North Bennington resident and Manchester town assessor, noted that Manchester has benefited significantly from the option tax since its implementation in 1999, bringing in over $30 million. “We averaged between $1.6 million and $1.7 million a year, which helps keep our tax rate low,” Black said.

Panelist Chris Macksey, a local business owner, added that his experience indicates local option taxes do not negatively impact business revenues. Select Board member Jim Sullivan stressed the importance of diversifying the town’s revenue base to alleviate the current burden on property taxpayers.

Next Steps

A public discussion on the proposed option tax will take place during a special town meeting on October 26 at 6 p.m. at the Bennington Fire Facility. This meeting will provide residents with an opportunity to voice their opinions and gather more information before the vote in November. For those interested, a video of the information session is available on CAT-TV and the town’s website.

As the community prepares to make this decision, it is important for residents to consider how the option tax could enhance services and reduce reliance on property taxes.