A letter published in VTDigger opposes a proposal to implement a second-home tax in Vermont, arguing that such a tax would harm the state’s tourism industry and economy. The writer, Dan Kronlund of South Burlington, Vt., states that second homes contribute to Vermont’s economic growth, with tourism partly driven by these properties accounting for 9% of the state’s total GDP.
Kronlund also notes that the U.S. Supreme Court has restricted states’ ability to levy property taxes that discriminate against out-of-staters, which would force legislators to apply the tax to all second homes, defeating the intended purpose of targeting wealthy out-of-state residents. He suggests alternative taxes, such as higher dining taxes, city taxes, and tolls on interstates, as potential solutions.
The letter concludes by stating that Vermont cannot rely on a second-home tax to effectively target wealthy out-of-staters.
