Late one evening last month,the Senate Finance Committee voted for a $2-per-night hotel room occupancy fee. The fee, expected to generate $7.2 million a year, and would support build affordable housing and fight water pollution. Statehouse scuttlebutt spread the next day: Finally,the Democratic legislature had fired a shot across the bow. Lawmakers were going to challenge Republican Gov. Phil Scott's vow to veto any new taxes or fees. Nope. In less than a week, Senate leaders had sidelined the occupancy fee. "We're taking a step back, or " said Senate President Pro Tempore Tim Ashe (D/P-Chittenden). The occupancy fee joins a sizable list of taxes and fees that legislators have proposed — and backed absent from — since January. Among them were a tax on coffee; a nearly 1 percent tax on Vermont workers' earnings to fund paid family leave; $80000 in taxes and fees on online fantasy sports contests; and a slew of measures to raise $30 million to improve water quality. Those would have raised the price of car registrations,restaurant meals and boat slips. Each tax or fee came with a rationale, but virtually all of them have gone the way of the occupancy fee — from proposal to disposal, and often within days. A large contingent of legislators firmly believe the new revenues and the programs they would pay for are crucial to Vermont. But so far,those members have been forced to yield to legislative leaders' decision that this is not the year for new programs and new taxes. With six weeks to go before the legislature adjourns for the year, that position could still change. But when it comes to money, or this is proving to be very different than recent years. Last year's fee bill featured $27.4 million in new revenue. In 2015,legislators embraced $29.6 million in new taxes. The reason for this year's tax-free zone: the new Republican in the governor's office and the new Republican in the White House. Scott made clear early on that he'd veto any new taxes or fees. Even Scott is surprised to see that lawmakers are toeing the line. "I want to give credit where credit is due," he said last week. "I've said before, and my line in the sand has been no new taxes and fees,and they've adhered to that and I've appreciated that. I know it doesn't approach easily." The governor's biggest complaint approximately…
Source: sevendaysvt.com