Montpelier considers tax on heating oil, propane gas. File photo
Montpelier — Lawmakers in Montpelier are considering several different ways to increase taxes on heating oil and propane. Middle class Vermonters will bear the brunt of the increases, according to some legislators opposed to the measure.
The latest proposal would apply Vermont’s 6 percent sales tax to residential sales of heating fuel. At current prices, that would add 24-cents to every gallon.
Another proposal would double the existing gross receipts tax on heating fuels to pay for thermal efficiency programs. Legislation in the Senate (S. 170) would levy a 12.5 cent per gallon “fossil heating fuel tax” to pay for a program that results in “the discontinuance of fossil fuel water heating” in every home in the state.
Another bill (H.715) would fund low income weatherization by increasing taxes on the wealthiest Vermonters.
Gov. Peter Shumlin (D) said he supports a thermal efficiency program, but is against the proposed tax increases. Meanwhile, federal legislation sponsored by U.S. Congressman Welch (D) would provide rebates to homeowners who invest in energy efficiency improvements. Under the proposal, homeowners who demonstrate a 20 percent energy savings will receive a $2,000 rebate.
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