Bennington residents have an opportunity to shape how town funds are invested as local officials weigh the future of a proposed municipal tax. The Bennington Select Board is actively seeking public input on how to utilize revenue from a potential 1% Local Option Tax ahead of a town-wide vote on Nov. 3.

The proposal would give voters the final say on adopting the local tax under Vermont state law. Before the ballot takes place, town leaders want to hear directly from neighbors about community priorities and spending strategies.

How this affects You

If approved, the 1% tax would create a significant new revenue stream for our municipal operations. Town staff estimate the tax would generate more than .8 million every year, which represents roughly 10% of Bennington’s current tax-supported municipal budget.

A major benefit highlighted by local analyses is that outside visitors will help shoulder the cost of local public services. More than 50% of the tax revenue is projected to be paid by non-residents, including daily commuters, tourists, and regional shoppers who utilize Bennington roads, emergency services, and infrastructure.

Under Vermont statute, 75% of all local option tax revenue generated stays directly within Bennington for municipal use, while the remaining 25% goes to the state.

How the revenue would be spent

To provide certainty to local taxpayers, the Bennington Select Board has already adopted an expenditure framework governing how the funds must be used. Under this policy, the revenue is split evenly between direct tax relief and targeted community development:

• Property Tax Relief (50%): At least half of all revenue generated by the tax must be used directly to reduce municipal property taxes for local residents.
• Community Priorities (50%): The remaining half will be dedicated to key local investment projects, guided by ongoing public feedback.

The community investment portion can support a variety of local initiatives. Potential focus areas include housing development, economic initiatives, infrastructure repairs, and downtown vibrancy efforts.

Understanding what is taxed and what is exempt

Under Vermont law, municipalities may levy an optional 1% tax across three distinct categories: Sales and Use, Rooms and Meals, and Alcohol. However, essential everyday purchases are protected from the tax.

Items that are currently exempt from the standard Vermont sales tax will remain fully exempt under the Local Option Tax. Everyday necessities that will not see any tax increase include:

• Groceries and unprepared food items
• Clothing and footwear
• Prescription medications and medical devices
• Residential heating oil and propane
• Agricultural supplies and farming equipment

How to share your feedback and key dates

The Select Board is offering multiple ways for residents to ask questions, suggest funding priorities, and voice their opinions before casting their ballots. Community members are encouraged to fill out an online public survey available on the town portal to rank potential spending areas.

Residents can also attend several upcoming public meetings to participate in the discussion directly:

• Sept. 14: Regular Select Board Meeting with public discussion.
• Sept. 28: Regular Select Board Meeting with public discussion.
• Oct. 5: Special Public Meeting dedicated solely to the Local Option Tax proposal.
• Nov. 3: Town-wide vote on the Local Option Tax ballot measure.

What comes next

The ultimate decision on whether to implement the 1% Local Option Tax rests entirely with local voters on Nov. 3. Residents can review complete proposal details, review financial estimates, and take the official community survey by visiting the town website at benningtonvt.org/LOT.

Sources

• https://www.benningtonvt.org/LOT
• https://www.benningtonvt.org
• https://citizenportal.org
• https://www.vlct.org

This article was produced with the assistance of AI and reviewed by our editorial team.

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