The Vermont Tourism Alliance is committed to keeping our members informed and engaged in the legislative process that shapes our state's visitor economy. Below, you'll find an up-to-date list of bills, studies, and policy initiatives moving through the Vermont Legislature that directly impact the tourism industry — from destination marketing and workforce development to lodging, transportation, and outdoor recreation. Whether you're a business owner, destination marketing organization, or tourism advocate, this page is your resource for staying current on the issues that matter most to Vermont's tourism future.
Find the state and local legislators who represent your district so you can stay informed on tourism related policies.
2026
During the 2026 legislative session, the Vermont General Assembly addressed several key bills affecting the hospitality, outdoor recreation, and lodging sectors. Tourism is a major focal point in the state, generating a $4.2 billion annual economic impact and employing 9% of Vermont's workforce. [1, 2, 3]
The primary tourism-related bills and legislative updates for 2026 include:
Passed Legislation
The hospitality sector, heavily represented by advocacy groups like the Lake Champlain Chamber and the Vermont Chamber of Commerce, successfully lobbied to kill multiple tax hikes that they argued would damage tourism competitiveness: [1, 2]
The primary tourism-related bills and legislative updates for 2026 include:
Passed Legislation
- S.327 (Economic Development Omnibus Bill): This expansive bill allocates state funding directly to the International Business Office and mandates a comprehensive study on outdoor recreation economic opportunities. It also funds a feasibility study for a new culinary institute to address ongoing workforce shortages in the food and hospitality sectors. [1]
- H.704 (Cannabis Hospitality Pilot): While primarily a cannabis bill, this legislation introduces a pilot program allowing licensed retailers to sponsor public events (similar to farmers' markets) where travelers and locals can buy directly from local cultivators, creating new agritourism drawcards. [1]
The hospitality sector, heavily represented by advocacy groups like the Lake Champlain Chamber and the Vermont Chamber of Commerce, successfully lobbied to kill multiple tax hikes that they argued would damage tourism competitiveness: [1, 2]
- The 2% Lodging Surcharge: A proposed 2% tax bump on short-term rentals and hotels intended to fund affordable housing was defeated following intense pushback from the tourism industry. [1]
- Meals & Rooms Tax Surcharge: A separate proposal to levy a 2% surcharge on meals and rooms to fund school construction was also rejected by lawmakers. []
- S.291 (Travel Disclosures): A government oversight bill introduced to mandate strict travel and hospitality disclosures for legislators and executive officers when traveling on official business. [1]
- S.246 (Airport and Noncommercial Aircraft Incentives): Aimed at boosting regional travel infrastructure, this bill proposed sales tax exemptions for noncommercial aircraft and outlined studies to explore sharing air commerce revenue directly with Vermont airports to improve aviation tourism. [1]
The Vermont General Assembly's landmark economic development bill, S.327, was passed by both chambers and officially signed into law by the Governor. This final text represents a massive legislative compromise aimed at strengthening the state's commercial landscape, supporting workforce pipelines, and preserving core business tools. [1, 2]
The critical breakdowns of the final text of S.327 and how the local option tax voting records work are detailed below.
Key Provisions of S.327 (The Economic Development Act)
Because the proposed statewide 2% lodging and meals tax surcharges were defeated in committees and stripped out before a full roll-call floor vote, there is no single "yes" or "no" list for individual state legislators on those exact items. [1]
However, tax authority largely shifted to the local municipal level this year:
The critical breakdowns of the final text of S.327 and how the local option tax voting records work are detailed below.
Key Provisions of S.327 (The Economic Development Act)
- Permanent Business Incentives: The law officially removes the sunset date on the Vermont Employment Growth Incentive (VEGI), locking it in as a permanent tool to attract new companies and keep existing employers in the state. [1]
- Rural Infrastructure Expansion: It injects new power into the Rural Industry Development Program (RIDP). This assists rural regions in preparing infrastructure and commercial spaces for incoming businesses. [1]
- Commercial Clean Energy Framework: S.327 establishes a statewide framework for Commercial Property Assessed Clean Energy (C-PACE). This allows local municipalities to set up financing districts so businesses can more easily secure private capital for energy-efficiency or green renovations. [1, 2]
- Workforce & Industry Studies: The final text greenlights several targeted task forces. These include specialized studies on expanding outdoor recreation economic opportunities and mapping out solutions to the ongoing workforce shortages crippling the local hospitality sector. [1, 2]
- Cash Rounding Flexibility: A minor but practical technical addition allows merchants to round cash transactions up or down to the nearest five cents, provided notice is clearly displayed for consumers. [1]
Because the proposed statewide 2% lodging and meals tax surcharges were defeated in committees and stripped out before a full roll-call floor vote, there is no single "yes" or "no" list for individual state legislators on those exact items. [1]
However, tax authority largely shifted to the local municipal level this year:
- Town Meeting Day Voting: Instead of a state mandate, 20 different Vermont communities voted locally on whether to enact their own 1% Local Option Taxes on rooms, meals, alcohol, and sales to pay for things like town bridges and local infrastructure. [1]
- Mixed Results: Tourism-heavy hubs like Stowe, Bolton, Morristown, and Swanton successfully approved these measures to shift the infrastructure burden onto out-of-state visitors. Other towns outright rejected them. [1, 2]
- Burlington Surcharge: In a separate localized development, the Burlington City Council voted to make their temporary 2.5% municipal tax on hotels, short-term rentals, meals, and alcohol permanent starting this fiscal year. [1]
2027
Initial indicators for the 2027 Vermont legislative session point toward a heavy focus on Act 250 modernization, workforce retention incentives, and an ongoing defense against visitor-facing tax hikes.
Because the Vermont General Assembly runs on a two-year biennial cycle, bills that were frozen or left in committees at the end of the 2026 session will not automatically carry over to 2027. Lawmakers must introduce brand new legislation when they reconvene in January 2027. [1]
The early roadmaps for tourism-related legislation are shaped by several factors:
1. Act 250 and Environmental Permitting Reform
During the recent Tourism Economy Day, industry groups like Ski Vermont and the Vermont Chamber of Commerce flagged the state's rigid environmental permitting framework as a critical bottleneck.
The newly signed Economic Development Act (S.327) explicitly commissioned several state-backed studies that are legally required to deliver their findings to committees ahead of the 2027 session. [1]
Though the hospitality coalition successfully blocked statewide 2% lodging and meals surcharges last session, the underlying problem—Vermont's massive deficit in education funding and affordable housing—remains unresolved. [1, 2]
The Vermont Chamber of Commerce is utilizing late 2026 to select its Signature Events for the 2027 travel calendar. Lawmakers on the House Commerce and Economic Development Committee are expected to use these insights to push for expanded regional marketing grants, specifically targeting local agricultural tourism and craft beverage trail systems. [1, 2]
Because the Vermont General Assembly runs on a two-year biennial cycle, bills that were frozen or left in committees at the end of the 2026 session will not automatically carry over to 2027. Lawmakers must introduce brand new legislation when they reconvene in January 2027. [1]
The early roadmaps for tourism-related legislation are shaped by several factors:
1. Act 250 and Environmental Permitting Reform
During the recent Tourism Economy Day, industry groups like Ski Vermont and the Vermont Chamber of Commerce flagged the state's rigid environmental permitting framework as a critical bottleneck.
- Expectation for 2027: Lawmakers will face heavy pressure to introduce targeted exemptions or fast-track rules within Act 250 for outdoor recreation infrastructure, trail expansions, and resort modernization projects to keep Vermont competitive with neighboring states. [1]
The newly signed Economic Development Act (S.327) explicitly commissioned several state-backed studies that are legally required to deliver their findings to committees ahead of the 2027 session. [1]
- Outdoor Recreation Economics: A formal study will evaluate untapped economic opportunities in wilderness tourism. This report will likely serve as the blueprint for new funding bills or regulatory changes to boost rural eco-tourism in 2027. [1]
- Hospitality Workforce Crisis: Another mandated study is tasked with mapping structural solutions to the crippling employee shortages in lodging and dining. This is expected to prompt 2027 bills focused on hospitality apprentice programs, culinary education funding, or worker housing incentives. [1]
Though the hospitality coalition successfully blocked statewide 2% lodging and meals surcharges last session, the underlying problem—Vermont's massive deficit in education funding and affordable housing—remains unresolved. [1, 2]
- Expectation for 2027: Progressive legislative blocks are highly likely to reintroduce statewide lodging tax surcharges as a recurring revenue stream to offset property taxes. [1]
- Industry Defense: The tourism sector has already indicated it will shift its 2027 defensive strategy to emphasize how local option taxes—which 20 towns just passed locally—are already maxing out visitor spending limits.
The Vermont Chamber of Commerce is utilizing late 2026 to select its Signature Events for the 2027 travel calendar. Lawmakers on the House Commerce and Economic Development Committee are expected to use these insights to push for expanded regional marketing grants, specifically targeting local agricultural tourism and craft beverage trail systems. [1, 2]
