House approves Stowe charter amendment; Ways and Means splits new local option tax to fund roads

The House on the floor amended and passed House Bill 954, approving a charter amendment for the town of Stowe that authorizes a 2% local option tax on sales, rooms, meals and alcoholic beverages and, by a Ways and Means amendment, allocates the additional 1% evenly between the town and a new local options municipal transportation special fund.

Representative Waters Evans, speaking for the House Government Operations and Military Affairs Committee, said the underlying charter change was approved by town voters at a March 3, 2026 town meeting, which she reported as 467–310 with roughly 19% turnout. The committee described the change as adding a second 1% local option tax to Stowe’s existing 1% tax on rooms, meals and alcoholic beverages.

Representative Wazac, speaking for Ways and Means, described the committee’s amendment and economic estimate: the Ways and Means amendment replaces section 2 so that the new 1% is split 50/50, with half going to the town and half to the newly created local options municipal transportation special fund. He said the Joint Fiscal Office estimates the measure would raise about $3.6 million in fiscal year 2027 and roughly $4.8 million in fiscal year 2028, implying about $2.4 million to Stowe and $2.4 million to the transportation fund in FY28.

The bill’s lead sponsor, identified in debate as the member from Stowe, said they were “a little shocked” to learn the amendment had been taken up in committee without invitation and criticized the lack of consultation, asking for greater transparency and opportunity to negotiate allocation options. The sponsor asked whether the bill’s language would apply the full 2% to sales, rooms, meals and alcoholic beverages; Ways and Means representatives confirmed the 2% would cover those categories.

Several members voiced concerns about process and representation. The member from Burlington said the amendment changed “fundamental ways” the voters’ measure might be understood and said they would not support the amendment on procedural grounds; a member from Norwich apologized to the Stowe delegation for the committee process that left the sponsor without earlier involvement. Supporters argued the amendment created a way to direct new revenue toward statewide transportation needs while preserving local share.

Members also sought and received clarification on who would control the special fund. Ways and Means representatives said the new special fund would be appropriated through the standard legislative budget process: decisions about allocations would be made in the T bill (transportation bill) and the appropriations process, with the transportation and appropriations committees determining spending in subsequent bills.

After brief consultation on the floor, the House adopted the Ways and Means amendment by voice vote, ordered third reading and then passed House Bill 954 on third reading. The House then suspended rules to message its action on H954 to the Senate forthwith.

The next procedural step is receipt of the House message in the Senate; appropriation and programmatic details for the local options municipal transportation special fund will be determined through the transportation and budget bills in subsequent legislative action.