Bill > H0643

This bill proposes to gradually shift the allocation of revenue generated from the purchase and use tax, which is a tax on the sale and rental of tangible personal property and certain services, to the Transportation Fund over a six-year period. Specifically, it amends existing law (16 V.S.A. § 4025(a)(5)) to progressively increase the portion of these tax revenues directed to the Transportation Fund, starting with a cap of $50,000,000 in the first year (effective July 1, 2026) and decreasing this cap by $10,000,000 each subsequent year until July 1, 2031, at which point the previous provision for one-third of the revenues up to $10,000,000 will be repealed, effectively allowing a larger, uncapped portion of the purchase and use tax revenue to flow into the Transportation Fund.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.643