March 14, 2025 - Vermont Chamber of Commerce

Senate Institutions Committee Advances Balanced Data Privacy Bill

The Senate Institutions Committee has unanimously (5-0-0) advanced a data privacy bill that reflects the needs and concerns of Vermonters, including the Vermont business community. The original proposal in S.71, heavily influenced by out-of-state special interests, contained extreme provisions which would have placed costly and unworkable burdens on local businesses. A similar version of the bill was passed last year but was ultimately vetoed by Governor Phil Scott due to concerns about its lack of regional compatibility and the inclusion of a private right of action. With testimony and advocacy from Vermont stakeholders, including the Vermont Chamber of Commerce, lawmakers have instead advanced a more balanced approach that aligns with the New England model of data privacy protections.

The revised bill strengthens consumer data protections while ensuring that compliance remains practical for businesses of all sizes. Importantly, the legislation does not include a private right of action, a provision which could result in an influx of lawsuits or threats of lawsuits against Vermont businesses, creating uncertainty and increased legal costs. Following the New England model, the committee supported a framework that promotes responsible data practices without stifling economic growth or innovation. The new version of the bill also addresses requests outlined in Governor Scott’s veto letter, ensuring that Vermont’s approach to data privacy aligns with regional standards and avoids placing undue burdens on local businesses and nonprofits.

The bill will now go before the full Senate for further debate and a vote before moving to the House for additional consideration. The Vermont Chamber will continue engaging with lawmakers to ensure that the final legislation maintains a strong balance between consumer privacy and business viability, while also meeting the standards set forth by Governor Scott. As the House begins its review, the Chamber encourages Vermont businesses to stay informed and involved in the process to ensure their voices are heard.

March 14, 2025

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Property Tax Discussions Take Shape

As Vermont’s Legislature shifts into high gear amid pressing fiscal challenges, discussions on the Property Tax Yield Bill have begun in earnest. This bill is central to determining statewide property tax rates using a funding formula, school budget votes, and other key factors.

In Vermont, the overall property tax framework rests on two pillars—the Municipal Tax Rate and the Education Tax Rate—and applies to two property classifications: homestead properties (the owner-occupied principal dwelling and its surrounding land) and non-homestead properties, such as rental units and commercial spaces. The education tax rate for non-homestead properties differs from that for homesteads. With affordability concerns reaching a critical point across the state, the Vermont Chamber advocates for a uniform bill change that equalizes the impact on both homestead and non-homestead taxpayers.

What Is Being Considered

Based on the Education Fund outlook for fiscal year 2026, several scenarios are under debate by the House Ways and Means Committee. Under these scenarios, the homestead property tax rate is projected to range from $1.577 to $1.677 per $100 of assessed value, while the non-homestead rate is expected to vary between $1.703 and $1.791 per $100.

A significant factor influencing these projections is the Administration’s one-time $77.2 million General Fund transfer. The House Ways and Means Committee is exploring different approaches for this transfer—options include applying the full amount directly to reduce tax bills or allocating half of it to a transition reserve.

The Vermont Chamber’s Advocacy

Amid these evolving discussions, the Vermont Chamber continues to advocate for a uniform bill change that ensures an equal impact on both homestead and non-homestead taxpayers. This approach aims to provide greater clarity and predictability for both businesses and households across Vermont.

With the crossover deadline for fiscal policy looming next week and legislative debates intensifying around education finance and broader systemic challenges, the decisions made in Montpelier will resonate statewide. The Vermont Chamber remains committed to championing data-informed solutions that support robust economic growth and a balanced tax environment.

March 14, 2025