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Vermont Lawmakers Propose $2-Per-Night Hotel Tax

Vermont lawmakers have proposed a $2-per-night occupancy fee for guests staying in hotels, motels, and Airbnbs throughout the state.  The bill, S.18, would take effect July 1, 2017. The bill proposes a estimated $10 million in new annual revenues. The revenue generated would be directly devoted to affordable housing and homelessness reduction, including investment in permanently affordable housing, infrastructure in support of workforce housing, increased rental and other forms of housing related financial assistance, and supportive services. The creation and passage of the bill is currently supported by 41 Vermont organizations.

In many parts of the state, Vermont faces shortage of affordable housing for its residents. In some cases, it is even difficult for middle-income residents to find proper housing. On average, a resident would need to earn $21 an hour to afford decent living conditions, which is well above the minimum wage. This bill would have a tremendous impact on affordable housing in Vermont. Healthy communities are created by reducing homelessness and increasing housing security. This surcharge can ultimately increase the overall well-being of resident in the state of Vermont.

Since over 90 percent of overnight hotel visits come from out-of-state residents, tourists are the ones who are mostly going to be paying the tax. However, a $2 charge will likely not stop tourists from coming to the state and stating at hotels.

Read more about the bill here.


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