By Claire MacDonald
Hinesburg Record Staff Reporter
The selectboard discussed the potential levying of a local option tax at its Aug. 19 meeting, a measure that will be on the election ballot in November.
Hinesburg decisively voted down the local option tax in 2024 when it last appeared on the ballot. The tax – described by the Vermont Department of Taxes as a way for municipalities to raise additional revenue for matters the town decides to use it upon, such as infrastructure and public safety – is a one percent tax added to state business taxes on retail sales, meals, alcohol and lodging.
“As a Vermont municipality, the only other option we have for generating revenue other than the property tax is the local option tax,” Town Manager Todd Odit said.
Chairperson Merrily Lovell said that, given previous opposition, the selectboard should approach the issue differently this election cycle. She cited towns such as Bristol, where the local option tax passed, as having detailed descriptions on their website of what the tax is and how the generated revenue is used by the town.
Additionally, she referenced methods used by Hinesburg groups, such as the Town Common Committee, that have seen fundraising success.
“They fundraise for specific things, such as the pavilion,” Lovell said. “I think that approach is going to be more successful … if we say we’re going to do this local option tax, we’ll make some good income on it, and this is what we plan to use it on.”
She suggested a selectboard open meeting about the tax once more has been decided regarding allocation of the potential funds.
The board preliminarily discussed how they may plan to budget the revenue if the tax were to pass.
Odit said that the intention could be to spend the majority of the revenue in the capital budget, and put some funds towards general operating expenses.
He noted a few longstanding capital needs that could benefit from the extra funds, such as renovations to the town hall and a new fire station.
Ultimately, how the revenue is spent would be up to voters.
“If they don’t like how [the selectboard] decides to spend the money, they can say no,” Odit said.
Additionally, the board:
Approved the acceptance of the proposed police vehicle loan quote from Northfield Savings Bank, for a $65,000 five-year loan with annual payments at a rate of 4.95 percent; and
approved the renewal of any approved but unconnected water and wastewater allocations that expire this year for another three years.
The Town Manager noted in his report:
Work to replace the lower two culverts at Lincoln Hill has begun;
culvert pieces have begun to go in place at the lower culvert on Beecher Hill;
Zach Nersinger, hired as the Town Planner, has been promoted to the Director of Planning & Zoning; and
the Development Review Board Coordinator position is now advertised as a 20-24 hours/week position, as opposed to full-time.
Claire MacDonald is this year’s recipient of The Hinesburg Record Journalism Fellowship. In May she graduated from the University of Vermont with a degree in political science. She can be reached by email by clicking here.