The House Ways and Means Committee passed a provision that would tax soda and candy.
Until now soda and candy have both been exempt from the state’s 6 percent sales tax, but both the House and the Senate are proposing an expansion of the tax.
The House proposal for expanding the sales tax to include candy and soda would generate $10.4 million, divided between the General Fund and the Education Fund in fiscal year 2016.
The Education Fund portion of the sales tax from soda and candy would be used to buy down the nonresidential property tax rate by one penny. The proposed rate of $1.525 per $100 of assessed value would go down to $1.515.
Rep. Adam Greshin, I-Warren, proposed the amendment to the omnibus health care bill, S.139. The amendment passed 8-1-2, with two members absent and Rep. George Till, D-Jericho, casting the only no vote. Republican Reps. Bill Canfield and Patti Komline supported the amendment; Rep. Carolyn Branagan, R-Georgia was absent.
The amendment also includes an expansion of the meals tax to vending machine food and drink that would generate $1 million.
The vending machine, candy and soda taxes would go into effect on July 1.
Cigarette taxes would go up 10 cents in 2016 and an additional 23 cents in 2017.
The committee opted not to increase the employer assessment, a fee that is placed on employers that do not provide health insurance for employees.
The money will go toward increasing Medicaid reimbursement levels for primary doctors and covering the cost of subsidizing health insurance premiums for low-income Vermonters who do not qualify for Medicaid.
