Tax Committee Reviews Meals and Alcoholic Beverage Tax Recommendations

The House Committee on Ways and Means discussed recommendations provided by the Department of Taxes for the Miscellaneous Tax Bill. The Vermont Chamber responded with testimony on the two items impacting the tourism and hospitality industry: the tax treatment for third-party meal delivery platforms and alcoholic beverage tax exemption language for non-profit fundraisers, public-awareness activities, or events.

In partnership with Vermont Independent Restaurants (VTIR), the Vermont Chamber is supportive of the proposed application of the Meals Tax when a third-party delivers meals to consumers. This amendment would provide clarity and transparency for operators regarding Meals Tax collection and remittance responsibility. The Committee was asked to consider requiring that the tax liability should sit with the third-party delivery platform if the transaction is completed within their platform. This would be the same mechanism that exists in the Voluntary Collection Agreement for Airbnb. This change also aligns with the Vermont Chamber’s legislative priority to begin to regulate third-party meal delivery platforms. Regarding the alcoholic beverage language change, the Vermont Chamber asked that the Committee look at this as a policy change instead of clarification language.

The Committee is expected to continue discussion on the proposals. The other recommendations from the Department of Taxes were to allow claimants to amend certain fields on their Property Tax Credit claim and consideration of payment options accepted by the Department.

Resource: Vermont Chamber of Commerce State to Main 2021 – Week 3