VT H0766

Authorizes Vermont municipalities to impose a $0.01 per gallon local option tax on gasoline motor fuel and a $0.01 per gallon tax on diesel fuel sold by distributors, subject to majority voter approval at town meeting

Department of Motor Vehicles would collect and administer the new fuel taxes, while Department of Taxes continues administering existing local option taxes on sales, meals/alcohol, and rooms

Municipalities receive 75% of collected fuel tax revenue quarterly for municipal services (not education); remaining 25% goes to the PILOT Special Fund

Commissioner of Taxes may limit new local option tax adoptions to five municipalities per calendar year and must consult with Commissioner of Motor Vehicles for fuel tax certifications

Effective date: January 1, 2027