Budget & Taxes (Local Government)

H.766 would allow Vermont municipalities to impose a local tax of $0.01 per gallon on gasoline and diesel fuel sales, collected by the Department of Motor Vehicles. Municipalities would need voter approval through a majority vote at a public meeting to adopt the tax, which would generate revenue for general municipal services (not education). The bill specifies that 75% of collected revenue would go directly to the municipality where the tax was collected, after covering administrative costs. This option is limited to five new municipalities per year, requiring certification by the Commissioner of Taxes.