New Tax Proposals

On January 15, 2021, the  Vermont Public Utility Commission (PUC)  directed the legislature to come up with more money to electrify heating and transportation. The recommendations outlined in a report to the legislature would create about $100 million in new fuel taxes. The PUC recommends the Vermont legislature:


1) Join the Transportation Climate Initiative (TCI) to provide funding for “decarbonizing the transportation sector.” This will cost Vermonters who use gasoline and diesel up to 20-cents per gallon, according to the report.


2) Create a new “Thermal Efficiency Benefit Charge” on heating oil, kerosene and propane of up to 8-cents per gallon in order to raise $18 million annually to support weatherization and fuel switching.


3) Gradually increase the existing Fuel Tax (currently 2-cpg) on heating oil, dyed diesel, propane and kerosene, which would raise about $20 million per year.


Vermont lawmakers should not support the regressive taxation of energy needed to heat our homes and power our vehicles. Given that rural Vermonters depend on these fuels the most, these taxes will have the effect of taking from the poor and giving to the rich as the taxes paid by all will provide incentives for Vermonters with means to purchase new electric vehicles and heaters.


If you agree, contact your lawmaker to let them know.