TOWN OF COLCHESTER SELECTBOARD
PUBLIC HEARINGS
Local Option Tax Proposal

The Town of Colchester Selectboard will hold two public hearings on:

• Tuesday, January 13, 2015 at 7:30 p.m. and
• Tuesday, January 27, 2015 at 7:30 p.m.

Both meetings will be held at the Colchester Meeting House, 830 Main St., to gain public input on the following proposed language for a possible charter change:

Shall the Town of Colchester amend its Charter to add Section 703, to allow the annual assessment of a one-percent (1%) Local Option sales, rooms, meals, and alcoholic beverages tax, the proceeds of which shall be used to pay general fund debt on voter approved bonds or notes of the Town, effective 7/1/15, pending approval of the Charter change by the Legislature?

The proposed language to amend the Charter is attached.

After consideration of the public input, the Selectboard will need to decide at the January 27th meeting as to whether to warn an Australian Ballot vote at the March 3rd Town Meeting and if a vote is to take place, they will hold an informational meeting closer to Town Meeting.

DRAFT Proposed Charter Language

Section 703. Local sales, rooms, meals and alcoholic beverages tax.

(a) The Town of Colchester may impose a tax on those transactions in the Town involving sales, rooms, meals, or alcoholic beverages which are subject to taxation by the State of Vermont. Imposition of any tax by the Town under this section shall be at the rate or rates specified in 24 V.S.A. § 138 and shall be imposed in accordance with the requirements of 24 V.S.A. § 138(a)(2), (c) and (d).

(b) If the Selectboard of the Town by a majority vote recommends, the voters of the Town may, at an annual or special meeting warned for the purpose by a majority of those present and voting, assess any or all of the following: (1) a one-percent sales tax; (2) a one-percent rooms tax; and, (3) a one-percent meals and alcoholic beverage tax.

(c) A tax imposed under the authority of this section shall be collected and administered and may be rescinded as provided by the general laws of this State.

(d) Sales, rooms, meals, or alcoholic beverages tax revenues received by the Town will be used to pay general fund debt service on voter approved bonds or notes of the Town of Colchester and offset future debt approved by the Town of Colchester voters.

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