Editor’s note: This commentary is by Paul Bruhn, executive director of the Preservation Trust of Vermont.
We all value Vermont’s special landscape, our special sense of place, our community spirit, and our local businesses that strive to bring us good paying jobs and products for sale at a competitive price.
We are also an independent bunch of people with a strong commitment to fairness.
In this time of divisive, negative political rhetoric, we should pause for a moment to praise our state leaders for taking action to fight for these Vermont values.
Our elected officials are pushing to close sales tax loopholes that give online only sellers an unfair advantage in the rapidly changing marketplace.
For the past two decades, online only sellers like Amazon have exploited a tax law loophole from the pre-internet era that allows them to avoid collecting Vermont sales taxes.
This hurts Vermont businesses. It gives online-only sellers a big advantage over local brick and mortar stores, many of which are located in our downtowns and village centers.
It hurts our state treasury to the tune of over $50 million a year in lost revenue. In fact, if the state was receiving its fair sales tax revenue, none of the other revenue enhancements in the tax bill would be necessary!
It also hurts our economy by costing us local jobs. A recent study by Civic Economics found the Amazon alone has cost Vermont 556 jobs.
Competition for local stores is one thing, but there should be a level playing field. In a free market, everyone should play by the same rules without the government picking winners and losers.
In Montpelier, lawmakers from all parties are advancing legislation this session that will both make some realistic improvements in this area while redoubling Vermont’s effort to challenge the antiquated federal loophole.
This year’s state revenue adjustment bill includes a provision that would require online only sellers to enhance their effort to connect buyers with their responsibility to pay the sales and use tax.
The provision was introduced by Rep. Janet Ancel, Chair the House Ways and Means Committee and was endorsed with unanimous, nonpartisan support in the Committee.
Wisely, the bill also includes provisions that align Vermont with other states, even conservative areas like Alabama and South Dakota, that are driving the effort to get the U.S. Supreme Court to allow states to level the playing field.
The bill next goes to the Senate where the Finance Committee, chaired by Sen. Tim Ashe, will consider these local business fairness provisions.
Ashe and Senator Rich Westman introduced a bill in 2011 to advance this type of reform so they are known supporters of this effort. I hope their colleagues in the Senate will follow their leadership.
These leaders are fighting for the Vermont values of fairness in the marketplace and championing our local, downtown and village center merchants.
Read the story on VTDigger here: Bruhn: Statehouse leadership fights for Vermont businesses and communities.
