An act relating to approval of amendments to the charter of the Town of Bennington concerning a local option tax on short-term rentals
H.695 is a local charter bill for the Town of Bennington. It would amend Bennington’s charter to authorize the town, if its Select Board recommends and local voters approve at a warned annual or special meeting, to impose a one percent local option tax on non-owner-occupied short-term rentals. The bill also formally approves the charter amendments that Bennington voters already approved on March 4, 2025.
The measure is narrowly focused on Bennington and does not create a statewide tax program. Instead, it adds short-term rentals to the list of local option taxes already available to the town, alongside the existing one-percent alcoholic beverages tax and one-percent sales tax. If enacted, the change would give Bennington an additional local revenue tool aimed at lodging-like rental activity that is not owner-occupied.
The bill would amend 24 App. V.S.A. chapter 103, section 511, to expressly include a one-percent tax on non-owner-occupied short-term rentals as an authorized local option tax for the Town of Bennington. Its legal effect is limited to Bennington’s municipal charter and would allow the town to levy the tax only through the local approval process described in the charter. The bill takes effect on passage and would not alter general state tax law beyond this town-specific charter authorization.
The available record suggests generally favorable sentiment, or at least no visible opposition, because the bill simply codifies a local decision already approved by Bennington voters. There are no committee transcripts or recorded votes in the provided materials, so there is no evidence of debate in the legislative history included here. The bill’s framing as a charter approval measure indicates it is likely viewed as a routine local governance item rather than a controversial statewide policy change.
The main policy issue is whether Bennington should be allowed to tax non-owner-occupied short-term rentals at the local level, which may affect hosts, property owners, and the short-term rental market. Potential concerns could include the burden on rental operators, possible effects on tourism or housing availability, and whether the town should have another local tax source. However, the bill text and provided context do not show any specific opposition, amendments, or disputed points in committee or on the floor.