From staff reports

Essex Junction’s Local Option Tax Study Committee is recommending that Village Trustees place an article on the Village Annual Meeting Warning to discuss and vote on the adoption of Local Option Taxes (LOT).

The committee says the recommendation is based on information gathered from published information, discussions with Village businesses, residents, and a report by Richard Heaps of Northern Economic Consulting Inc. Heaps estimates that between 70 to 80 percent of the tax would come from a source outside of Village taxpayers – from people not living in Essex Junction. The projections for Essex Junction’s net annual revenues from the LOT are at least $350,000, the committee says.

The Local Option Tax Study Committee, which includes Deborah Billado, Trustee, Dave Crawford, Village Manager, Peter Gustafson, Trustee, and Jeffrey Harton, Deb McAdoo, Bernie Lemieux and Michael Quinn, was set up upon the request of Village voters at the 2009 annual meeting to study local option taxes as an alternative means of raising money.

The Trustees have indicated that the LOT would be used for funding the Village’s Capital Improvement Program, funding the purchase of a new ladder fire truck in 2013 and funding a road pavement plan for Class 1 roads (the state numbered highways owned by the Village).

In 1998, Vermont passed 24 V.S.A. 138. This law allows municipalities to adopt a one percent sales tax, rooms and meals and alcohol tax. Not all municipalities qualify to impose this tax. Essex Junction does qualify, the committee reported last week.

Here is a sample list of items not subject to a local option tax: Services; Motor Vehicles (auto, motorcycles); Heating fuels; Food; Medicines, prescription drugs; Electricity.

Here is a list of items purchased in Essex Junction which are subject to a local option tax: Clothing (over $110); Building Materials; Household supplies; Toys; Jewelry; Garden supplies; Alcohol; Prepared foods, meals, hotel rooms.