Tourism Economy Day Brings Business and Policy Leaders Together at the State House

Tourism Economy Day Brings Business and Policy Leaders Together at the State House

Over 100 tourism and hospitality industry leaders gathered at the State House on April 11 to engage with legislators and raise awareness of the collective contributions of these industries to the Vermont economy. “Tourism Economy Day,” convened by the Vermont Chamber of Commerce and Ski Vermont, brought businesses together to advocate for a thriving Vermont visitor economy.

The Vermont visitor economy has a $3 billion annual economic impact, supports 35,000 jobs, and represents 11.5% of our workforce. Businesses, legislative leaders, and Administration officials collaborated for a day of advocacy that elevated the collective contributions of the visitor economy to Vermont. A coffee hour with Governor Scott, a joint hearing with the House Commerce and Economic Development Committee and the Senate Economic Development, Housing, and General Affairs Committee, a Resolution reading on the floor of the House of Representatives, an evening food and beverage tasting reception with the Vermont Specialty Food Association all took place throughout the day.

Rep. Stephanie Zak Jerome (Rutland-9), a stalwart supporter of the tourism industry, offered a House Resolution, H.C.R 211. “The Vermont visitor economy remains a vital engine powering our state and bolstering our businesses and local economy. This annual event provides an opportunity for industry leaders from across Vermont to testify on the importance of their work, speak directly to legislators, and elevate the importance of the tourism and hospitality sectors in the State House,” commented Rep. Jerome.

“The Vermont Chamber has a proven track record of bringing businesses together with a shared purpose to work together to build a stronger Vermont economy,” said Amy Spear Vice President of Tourism for the Vermont Chamber of Commerce. “This year’s event focused on advocating for strategic initiatives to bolster business success and contribute to the vitality and resiliency of our state: workforce development, economic recovery and resiliency, and workforce housing.”

“Outdoor recreation relies on sustaining a healthy and thriving environment and is vital to Vermont’s $1.9 billion outdoor recreation tourism economy,” says Ski Vermont President Molly Mahar. “Vermont’s ski areas understand the importance of sustainable stewardship for tourism and its economic benefit to their local communities and across the state. For decades they have worked to support and enhance the state’s capacity for outdoor recreation while protecting the environment and reducing carbon emissions. They maintain that focus so current and future generations can continue to enjoy all that Vermont has to offer.”

Business leaders centered their advocacy on three key pillars of opportunity: workforce development investments in training and education to meet industry demands, economic recovery and resiliency programs to address and anticipate economic injuries from disasters, and workforce housing solutions to meet future needs.

“Friends, mentors, and colleagues have had to shutter their businesses in the wake of recent catastrophes. It’s heartbreaking,” stated Stefano Coppola, Chef and Owner of Morse Block Deli & Taps. “While the State’s work to help businesses through the pandemic, and later the flood, was commendable, there is still much progress to be made. We need additional support so that when something like this happens again, we are more prepared to help the hospitality industry.”

“By investing in education and workforce development, we can cultivate future leaders and ensure the sustainability of our vibrant tourism economy,” stated Hans van Wees, General Manager of Hotel Vermont and Co-Chair of the Vermont Lodging Association. “Our goal is to empower high school graduates, career changers, and current industry professionals through targeted programs that bridge the gap between education and practical experience.”

Additional business and policy leaders that testified were: Charles Tino Rutanhira of the Vermont Professionals of Color Network, Jay Wahl of The Flynn, Emily Schriebl Scott of the Weston Theater Company, Andrew Stenger of Jay Peak Resort, Bob Grim of Foam Brewers, Hans van Wees of Hotel Vermont and the Vermont Lodging Association, and Heather Pelham, Commissioner of the Department of Tourism & Marketing.

Vermont Chamber Continues to Raise Concerns that Data Privacy Bill Would Have Significant Ramifications for Small Businesses

Vermont Chamber Continues to Raise Concerns that Data Privacy Bill Would Have Significant Ramifications for Small Businesses

The Vermont Chamber and business leaders testified this week on the importance of balancing consumer protection with support for businesses. They emphasized the need for policymakers to ensure equitable and effective data privacy legislation by addressing the following areas of concern:

  1. Private Right of Action: Jim Hall, President and CEO of The Vermont Country Store gave a first-hand account of how a private right of action in privacy laws can lead to frivolous lawsuits against small businesses. A shakedown lawsuit over a California law previously cost The Vermont Country Store $100,000 over $2,000 worth of product sold.
  2. Regional Compatibility: If passed in its current form, the bill would make Vermont an outlier and complicate the ability of businesses to operate within its mandates.
  3. Business Education: Vermont will require a robust education plan involving Vermont’s trusted technical assistance providers to adapt to a new law. Trusted technical assistance providers need the resources and time to assist businesses through this transition.

The Senate Economic Development, Housing, and General Affairs Committee has shown that they are open to addressing the concerns of Vermont businesses, and we encourage you to contact your Senators to help ensure that they amend the legislation to be more balanced. 

The Vermont Chamber will continue to advocate for:

Removal of the Private Right of Action – The inclusion of a specific private right of action for data privacy violations poses significant risks of increased litigation, straining businesses and potentially enabling opportunistic legal actions akin to patent trolling. Empowering and supporting the Attorney General to enforce data privacy laws directly offers a more efficient path to protecting consumer interests without the potential consequences associated with a broad private right of action provision. Last month, a coalition of fourteen Vermont businesses and non-profit organizations sent a letter expressing their concerns about the bill’s private right of action.

Regional Compatibility The version of the bill passed by the House strayed from regional compatibility, which, if passed, would make Vermont an outlier and complicate the ability of businesses to operate within its mandates. The Information Technology and Innovation Foundation projects that the absence of federal privacy legislation would burden U.S. small businesses with a $20–23 billion annual cost.

A Robust Education Plan A 2019 California Attorney General’s report estimated initial compliance costs for small businesses at $50,000 and for mid-sized businesses at $100,000, excluding ongoing costs, which may vary depending on interstate compatibility. Amid significant concerns regarding businesses’ ability to comprehend and navigate these complex requirements, Vermont will require a robust education plan involving Vermont’s trusted technical assistance providers.  

Senate Finance Takes Up the $125 Million of Taxes Passed by the House

Senate Finance Takes Up the $125 Million of Taxes Passed by the House

The Senate Finance Committee began its review of the $125 million in tax increases and $6 million in increased fees passed by the House. During the run-through with Legislative Council and the Joint Fiscal Office, they raised important questions on who would be impacted and how these proposals would make Vermont compare with other states. The Chair, Sen. Ann Cummings (D-Washington), made it clear that they will welcome diverse testimony into the committee in the weeks ahead, including businesses.

The tax proposals include an increase in the Global Intangible Low Tax Income and Foreign Derived Intangible Income taxes, raising the top marginal tax rate of corporate income tax, creating a new personal income tax bracket of 11.75% starting at $500,000 of income, and a property transfer tax increase. The Vermont Chamber will continue to advocate for action that corrects systems that are not working instead of increasing taxation on residents and businesses. In doing so, we can secure Vermont’s future as a vibrant and welcoming place for all, today and tomorrow.

None of the $125 Million in Taxes Passed by the House Would Alleviate Education Fund Burden

None of the $125 Million in Taxes Passed by the House Would Alleviate Education Fund Burden

Tax increases topping $125 million hit the House floor this week amid ongoing tension on increased state spending in the absence of pandemic-era federal funding. Despite the significant new proposed revenue for the state, none of it would alleviate the $230 million education fund deficit that is slated to increase property taxes by 18%. While the bills housing these taxes all passed, there was notable vocal dissent from legislators on the floor about how the money would be allocated and the long-term impact on the Vermont economy.

As noted by Rep. Scott Beck (R-St. Johnsbury): “In the last 10 years, personal income tax receipts in the state of Vermont have grown 54%, sales tax receipts have grown 65% and property taxes have increased by 53%. Corporate income tax has nearly tripled in the last 10 years.”

Tax increases passed by the House include:

  • $15.3 million – Increase in the Global Intangible Low Tax Income (GILTI) and Foreign Derived Intangible Income (FDII) taxes to increase the amount of revenue from foreign corporations doing business in Vermont. Giving Vermont the highest GILTI and FDII tax rates in the country.
  • $17.7 million – Increase in the top marginal tax rate of corporate income tax from 8.5% to 10% giving Vermont the highest corporate tax rate in the country.
  • $74.9 million – New personal income tax bracket of 11.75% starting at $500,000 of income per tax flier, including.
  • $17.5 million – Property transfer tax increase from 1.25% to 3.25% for transfer values greater than $750,000. This tripling of costs will likely harm the ability to attract new and scaling employers in purchasing industrial space for expansion.

We know the House isn’t done there. As the focus now shifts to the education fund, we are expecting to see taxes proposed regarding cloud internet services and software as a service. Legislators need to hear from you about your concerns. Please contact your Representatives and Senators.

House Ways & Means Committee Passes $125 Million in Tax Increases

House Ways & Means Committee Passes $125 Million in Tax Increases

Just over three months before the $100 million payroll tax is set to start, the House Ways and Means Committee has passed an additional $125 million in new tax increases. None of these tax increases are slated to go into Vermont’s education fund deficit, which means that the additional $230 million that is projected to be needed for the education fund will be accounted for in double-digit increases to property taxes, a possible new cloud tax, and additional options.

Tax increases passed by the House Ways and Means Committee include:

  • $15.3 million – Increase in the Global Intangible Low Tax Income (GILTI) and Foreign Derived Intangible Income (FDII) taxes to increase the amount of revenue from foreign corporations doing business in Vermont
  • $17.7 million – Increase in the top marginal tax rate of corporate income tax from 8.5% to 10%
  • $74.9 million – New personal income tax bracket of 11.75% starting at $500,000 of income
  • $17.5 million – Property transfer tax increase from 1.25% to 3.25% for transfer values greater than $600,000

Notably, these changes were voted out swiftly without the robust testimony and due diligence normally afforded for major policy changes, leading to speculation that this was strategic to gain approval amid the Friday deadline to pass these bills. The Vermont Chamber raised concerns about these new taxes and the lack of thoroughness in their review with both the committee and the Speaker of the House.

The vote count for the bills containing this breathtaking spending in the committee was split on party lines. If this is any indication of what is to come when these proposals hit the House floor, it will be up to the Senate to once again make choices that align with the fiscal reality of Vermont, and an already highly taxed population.

Legislators need to hear from you about your concerns. Please contact your Representatives before these proposals are considered by the full House next week and help them understand the collective impacts they will have on Vermont’s economy. 

Vermont Chamber Raises Concerns that Data Privacy Bill Could Have Significant Implications for Businesses

Vermont Chamber Raises Concerns that Data Privacy Bill Could Have Significant Implications for Businesses

A bill that started as closely mirroring the existing data privacy laws of neighboring states has undergone several changes in recent weeks. These changes have sparked concerns regarding its jurisdiction and the potential of making Vermont an outlier rather than keeping it regionally aligned. The bill, which is expected to pass the House Commerce and Economic Development Committee this afternoon, includes a private right of action. The Vermont Chamber testified on the increased risk of litigation and the challenges Vermont businesses may face in understanding and implementing these new changes. The Vermont Chamber will continue our efforts to address these concerns for businesses throughout the session.

Before the Town Meeting Day break, a coalition of fourteen Vermont businesses and non-profit organizations sent a letter to the committee expressing their concerns about the bill’s private right of action. They suggested that alternative measures should be prioritized, focusing on prevention, remediation, and robust enforcement through mechanisms such as empowering the Attorney General’s Office. The Vermont Chamber will continue advocating for measures that prioritize prevention, and remediation, and ensure that businesses are informed and have access to technical assistance to comply with these significant regulations.

Business Advocates Voice Concerns on Potential Legal Impact of Consumer Privacy Bill

Business Advocates Voice Concerns on Potential Legal Impact of Consumer Privacy Bill

A coalition of Vermont businesses and non-profit organizations sent a letter to the House Commerce and Economic Development Committee to raise concerns over the private right of action included in a consumer privacy bill that the committee is focusing on this session. The Vermont Chamber continues to raise business concerns related to anticipated consequences that could come from the significant unfunded mandates on Vermont businesses and non-profits (notably, the state government is now exempted from these mandates). Specifically, concerns that privacy violation allegations may lead to increased litigation that strain businesses, especially smaller enterprises that are crucial to Vermont’s economy. 

The letter, sent on Monday, February 26, stated: 

Dear Chair Marcotte and House Commerce & Economic Development Committee Members, 

As we navigate the complexities of enhancing data privacy laws in Vermont, our organizations that represent Vermont businesses, non-profits, and trade associations, find ourselves at a pivotal juncture. The proposed data privacy bill, specifically its private right of action provisions, presents a significant concern that could inadvertently exacerbate the challenges facing our state’s economy and business and non-profit communities. 

The introduction of a specific private right of action for data privacy violations risks ushering in a new era of litigiousness that our state is ill-prepared to absorb. While well-intentioned in its aim to protect consumer rights, experience from other jurisdictions tells a cautionary tale: such provisions invariably lead to a surge in litigation, placing undue strain on businesses and non-profits of all sizes, but most acutely on the small enterprises that form the backbone of Vermont’s economy. 

These legal threats do not necessarily advance consumer protection. Instead, they divert critical resources away from innovation and growth, creating an environment of uncertainty that disproportionately challenges local businesses and non-profits. This is not merely a hypothetical scenario, it is a tangible risk that could undermine our collective efforts to foster a vibrant, innovative, economic landscape in Vermont that respects consumer rights. 

While we recognize the importance of providing businesses with an opportunity to rectify potential violations, and the committee’s attempts to do this through the proposed right-to-cure period, we believe that alternative mechanisms, such as enhanced enforcement measures through the Attorney General’s Office, may offer a more effective and efficient means of achieving the dual objectives of protecting consumer interests and supporting economic growth. 

In light of these considerations, we urge a recalibration of this proposed section of bill H.121 to focus on measures that prioritize prevention, remediation, and robust enforcement through our state’s legal frameworks and strengthening the Attorney General’s Office: Empowering the Attorney General’s Office to fulfill its mission as the State’s top law enforcement agency with enhanced resources to enforce data privacy laws effectively offers a more direct and efficient path to protecting consumer interests without the collateral damage of rampant litigation. 

The committee has done extensive and important work to create a data privacy bill that will make real progress on this issue. The undersigned organizations are ready to engage in meaningful dialogue and collaborate on provisions that genuinely serve the interests of Vermonters without imposing undue risk on the businesses and organizations that drive our state’s economy. 

We appreciate your commitment to this issue and look forward to working together towards solutions that safeguard data privacy while promoting economic health and innovation in Vermont. 

Thank you for your attention and consideration. 

Sincerely, 

Vermont Chamber of Commerce 

Vermont Technology Alliance 

Common Good Vermont 

Lake Champlain Chamber 

Vermont Lodging Association 

Vermont Independent Restaurants 

Vermont Retail and Grocers Association 

Heating and Cooling Contractors of Vermont 

Vermont Fuel Dealers Association 

Vermont Ski Areas Association 

Vermont Vehicle and Automotive Distributors Association 

Vermont Specialty Food Association 

Vermont Insurance Agents Association 

Associated General Contractors of Vermont 

 

Manufacturing Leaders Testify on State of the Industry

Manufacturing Leaders Testify on State of the Industry

Several business leaders from across Vermont convened for an afternoon of testimony before the House Commerce and Economic Development Committee. The hearing underscored the critical role of manufacturing businesses in the Vermont economy, while also highlighting the opportunities and challenges unique to manufacturing in Vermont. The committee’s Chair recognized Chris Carrigan, Vice President of Business Development, for his 16 years of service to the industry.  

In his opening testimony, Chris Carrigan elevated the Vermont Chamber’s work on supportive tax policies and transforming the state into a supply chain hub by bringing buyers, suppliers, and partners together. “We are committed to strengthening our cross-border commercial ties with Québec and Canada and supporting workforce development initiatives to bridge the skills gap and help address the labor shortage,” stated Carrigan. “Supportive tax policy and economic development are vital to Vermont’s manufacturing industry.” 

Alberto Aguilar of Carris Reels (Rutland), Jay Bellows of KORE Power (Waterbury), Janette Bombardier of Chroma Technology (Bellows Falls), Julia Birnn Fields of Birnn Chocolates of Vermont (South Burlington), Rich Hornby of Mack Molding (Cavendish), and Julie Laforce of Built By Newport (Newport) each spoke to the unique products they manufacture, the value of their workforce, and the challenges and opportunities within the Vermont manufacturing community. 

Labor shortage concerns, rising supply chain costs, and disruptions, as well as a lack of workforce housing, were sentiments shared by each of the manufacturers. They also expressed appreciation for the work of legislators in recent years to make Vermont a state where manufacturing can continue to grow, including the expansion of the manufacturing tax exemption, forgivable student loans for workforce retention, the partial military retiree pension tax exemption, and more.  

“The importance of the tax exemption expansion has been crucial in our strategic planning,” stated Julia Birnn Fields. “We are currently reinvesting in our company and buying new, bigger machinery along with increasing our warehouse and manufacturing space. Continuing to expand upon these manufacturing tax exemptions and credits help keep our growth here in Vermont.”

Jay Bellows stated, “Today, we are doing what many thought was impossible. We have brought manufacturing back to Vermont, and manufacturing jobs here are increasing. The once shuttered facility is now being transformed into a hub of clean tech innovation and manufacturing. Our Vermont workers – some of whom hold GEDs, some advanced engineering degrees, many are graduates of our state colleges– are building battery energy storage systems that are among the safest and most efficient in the world. And they are doing it at a time when the demand for domestically built storage systems is at all-time high.” 

Major, Innovative, Solutions Required to Address Ongoing Tax Concerns

Major, Innovative, Solutions Required to Address Ongoing Tax Concerns

In the wake of recent turmoil sparked by the anticipated 20% rise in property taxes, the urgent need for innovative cost-containment measures has become increasingly important. The Senate expedited the passage of a bill that allows school boards to delay budget votes and replace the 5% property tax increase cap with a discount system. However, top lawmakers have acknowledged that these measures are only temporary fixes and a broader solution is needed to address the issue comprehensively this session.

Despite statewide affordability concerns, discussions in the tax committees have continued on other potential tax increases including:

  • A tax on the personal income of a tax filer (single or filing jointly) earning over $500,000
  • A tax on unrealized personal gains
  • A tax on the gross sales of streaming services
  • A tax increase on the USF fees in telecommunication bills

Opportunity for Short-Term Rental and Lodging Consistency in the BE Home Bill

Opportunity for Short-Term Rental and Lodging Consistency in the BE Home Bill

S.311, known as the Be Home bill, continued to be debated and refined in the Senate Economic Development, Housing, and General Affairs Committee. Included in the newest version of the Senate’s major housing bill is language that would shift short-term rentals to operate under the same Department of Health statutes that govern the rulemaking for food and lodging establishments. The provision is an opportunity to create alignment and consistency in regulations governing short-term rentals and licensed lodging establishments.  

The Vermont Chamber testified this week on the importance of health, safety, and transparency to ensure the well-being of the traveling public in support of Vermont’s visitor economy. The remarks before the Senate Economic Development, Housing, and General Affairs Committee, provided additional context to the Licensed Lodging Establishment Rule, emphasizing the distinct regulatory landscapes for licensed lodging properties and short-term rentals. If the language is retained in the bill, it will enhance clarity and transparency while ensuring public safety. The Vermont Chamber also endorsed the requirement for paperwork submission to a governing agency, annual reviews of forms, and the posting of short-term rental safety documents in a conspicuous location. 

[Update as of February 19: Current bill language now clarifies the definition of short-term rentals, mandates the Division of Fire Safety create guidance on the rules governing health, safety, sanitation, and fitness for habitation of STRs, and puts mechanisms in place for short-term rental health and safety disclosures.]