VT S0238

Creates the Housing Investments Special Fund administered by the Vermont Housing and Conservation Board, funded by a new 2% rooms tax surcharge and the existing short-term rental surcharge, to create, preserve, and improve housing stock including affordable, service-supported, and transitional housing.

Establishes a $0.01 per ounce excise tax on sugar-sweetened beverages, syrups, and powders sold in Vermont, with revenue deposited into the Education Fund; exempts milk-based beverages, 100% fruit/vegetable juice, infant formula, beverages for medical use, and unsweetened coffee/tea.

Appropriates $19.5 million in fiscal year 2027 from the Housing Investments Special Fund: $5 million to the Vermont Housing Improvement Program and $14.5 million to the Vermont Housing and Conservation Board for housing development projects.

Addresses Vermont's housing shortage of 24,000-36,000 additional year-round homes needed by 2029, with an estimated 4,000 publicly subsidized units required annually to meet the needs of households earning below 80-120% of Area Median Income.

Takes effect August 1, 2026 and requires annual reporting by January 31 on projects funded, including amounts awarded, locations, homes created or preserved, and affordability terms.