Economy

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Vermont businesses may see decrease in costs, lawmakers say

MONTPELIER — Legislative leaders say Vermont businesses are expected to see a $28 million decrease in expenses this year from lower workers’ compensat ion and unemployment insurance costs. Senate President Pro Tem Tim Ashe, D-Chittenden, and House Speaker Mitzi Johnson, D-South Hero, said projections from the Vermont Department of Labor indicate businesses will see the significant decrease in their costs. The reprieve in unemployment insurance costs comes as the state recovers from the Great Recession when the number of unemployed Vermonters surged. “The really good news for business out there is that between 2016 and 2017, between workers’ comp and unemployment insurance, businesses within the state of Vermont will see a $28 million reduction in expenses, which is, I think, pretty exciting and good news for businesses,” Johnson said. The speaker said projections show a $ 1 2 . Continue Reading →

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Online sales costing Vermont millions in tax revenue

MONTPELIER — The state will take in another $8 million or so in annual sales tax revenue now that Amazon has agreed to collect and remit it, but the state will continue to miss out on about $13 million more from online purchases and mail orders, according to the Legislature’s Joint Fiscal Office. Vermont’s sale tax must be collected from retailers who have a presence, or what is known as nexus, in the state. The state has tried without success in recent years to collect the sales tax for online purchases from retailers who do not have a presence in Vermont. Amazon, the nation’s largest online retailer, began voluntarily collecting Vermont’s 6 percent sales tax this month. But plenty of other online retailers continue to sell goods to Vermonters without collecting the tax. Continue Reading →

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Amazon to collect state sales tax

Editor’s Note: This story was updated at 4:30 p.m. to include comments from the governor’s office. MONTPELIER — Online retail giant Amazon has agreed to begin collecting and remitting the state’s sales tax, providing a boost in revenue as the state faces another gap between revenues and spending in the 2018 fiscal year budget. News of Amazon’s decision to collect and remit Vermont’s 6 percent sales tax beginning Feb. 1 emerged on Friday. It is expected to provide a significant boost to state revenue. Continue Reading →

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Scott proposes changes to the executive branch

MONTPELIER — Gov. Phil Scott Scott is looking to consolidate some areas of state government in a bid to create operational efficiencies and some potential cost savings, but critics say it could weaken enforcement in a key area of government. Scott, who took office earlier this month, signed three executive orders Sunday and briefed reporters at the State House Tuesday on how they will reorganize the executive branch. One will combine the Department of Liquor and the Lottery Commission into the Department of Liquor and Lottery. Another will reconfigure the state’s Department of Information and Innovation into a new Agency of Digital Services. The third order combines the Department of Labor and the Agency of Commerce and Community Development into a single Agency of Economic Opportunity. Continue Reading →

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Scott administration prepares for revenue downgrade

MONTPELIER — General fund revenues are lagging halfway through the state fiscal year and the administration of new Republican Gov. Phil Scott is preparing for state economists to project a revenue downgrade later this month for the second half of the fiscal year. New Secretary of Administration Susanne Young released revenue figures for December on Wednesday, which showed the general fund coming in $2.78 million below its monthly target set. Total general fund revenues last month were $127.33 million. The state Emergency Board, compromised of the governor and the chairs of the four money committees in Legislature, last set revenue targets in July 2016. State economists will present a new revenue forecast to the Emergency Board later this month. Continue Reading →

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Scott promises a new era of state government

MONTPELIER — Phillip B. Scott, Vermont’s 82nd governor, was sworn into office Thursday afternoon before promising in his inaugural address to bring a “centrist governing philosophy” to the office while focusing on making the state more affordable for its residents. Scott, 58, succeeded Peter Shumlin, the now former Democratic governor, who set the state on a course of bold action. Scott, in his 30-minute address, described a more subdued approach to governing. He said his administration would focus on four core issues — continuing the fight against opiate addiction, revitalizing the state’s approach to economic development, transforming the education system and building a sustainable state budget. But while he described the initial themes of his governorship, he offered few policy prescriptions to achieve them, promising more in the weeks to come. Continue Reading →

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Minter outlines tax policy

MONTPELIER — Democratic gubernatorial nominee Sue Minter says she will seek tax fairness as governor and look to lower the burden on low- and middle-income Vermonters by closing loopholes enjoyed by the wealthy and corporations. According to Minter, the tax policies she will propose as governor may incorporate some elements of the Blue Ribbon Tax Structure Commission report released in 2011. The report, which was shelved by policymakers in Montpelier, recommended expanding the sales tax to “all consumer-purchased services with limited exceptions for certain health and education services and business to business service transactions.”

Minter expressed an interest in dusting off the commission’s report during a WDEV radio debate on Sept. 14, saying she would look at expanding the base of the sales tax to include services. Her Republican opponent, Lt. Gov. Phil Scott and the Vermont Republican Party pounced, announcing to Vermonters in a coordinated effort that Minter wants to tax hair cuts, among other services that Vermonters pay for. Continue Reading →

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Scott releases economic plan, seeks tax cuts and credits

COLCHESTER — Lt. Gov. Phil Scott, the Republican nominee for governor, released an economic plan Thursday that he says will focus on major fiscal issues and lead to a more vibrant economy. Scott, who co-owns Dubois Construction with a cousin, released the plan at a news conference at Firetech Sprinkler, saying it will lead to job creation and help lift wages for Vermonters. He chose to hold the press conference Thursday morning rather than attend a debate hosted by WDEV radio at the Tunbridge World’s Fair with his Democratic opponent, Sue Minter. “As a small business owner myself, I put my faith in the skills, work ethic and ingenuity of working Vermonters every single day. That’s why Vermonters can count on me to lead a state government that leverages our talented work force and our commitment to hard work and innovation,” he said. Continue Reading →

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