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Vermont tax rate change, October 2017

  • Aug 23, 2017 | Gail Cole

 Local tax rate changes coming to Vermont on October 1.

Vermont allows municipalities to impose a 1 percent local option tax if approved by popular vote. The local option tax can be tacked on to the alcoholic beverages tax (10 percent), the meals and room tax (9 percent), or the sales and use tax (6 percent).

Beginning Oct. 1, 2017, Hartford will add the local option tax (LOT) to sales of alcohol, meals, and rooms. As a result, the combined tax rate for meals and rooms will be 10 percent and the combined rate for alcoholic beverages will be 11 percent. The jurisdiction of Hartford borders New Hampshire and encompasses White River Junction and the villages of Quechee, West Hartford, and Wilder.

The LOT applies to businesses located in — or delivering meals into — Hartford. Businesses required to collect the local option tax include bars, restaurants, and other food vendors; B&Bs, hotels, motels, and home-based short-term rentals; and vending machine operators. LOT should be remitted with Form MRT-411 (Hartford won’t be included on that form until after the Sept. 25, 2017 due date for monthly and quarterly filers passes).

The sales and use tax rate in Hartford is not impacted by LOT and remains 6 percent.

Seventeen towns currently have a local option tax on alcohol, meals, and room sales: Brandon, Brattleboro, Colchester, Dover, Killington, Manchester, Middlebury, Montpelier, Rutland Town, St. Albans Town, South Burlington, Stowe, Stratton, Williston, Wilmington, Winhall, and Woodstock. Come Oct. 1, Hartford will be number 18. Learn more about local option taxes in Vermont.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.