This commentary is by Rep. Michelle Bos-Lun, D-Westminster, and Quinn Houston, a UVM legislative intern.
We are writing to express strong support for H.829, which recently passed out of the Vermont House of Representatives. This bill proposes long-term housing solutions by raising taxes on the top 1% of Vermonters to generate $990 million dollars to support housing needs over the next decade. An additional funding change in the bill is a property transfer fee increase on properties over $750,000.
These initiatives come as our state is grappling with significant housing challenges. The support of 1% of high-income Vermont residents will benefit the well-being of our entire state. Revenue streams would facilitate the implementation of a comprehensive 10-year plan aimed at addressing various housing needs, including both affordable and middle-income housing, housing-related services and shelter creation.
There are misconceptions surrounding H.829’s impact on working Vermonters. There is no burden to middle to lower-income Vermonters with new taxes, quite the contrary, the bill offers nearly $1,000 in savings through reduced charges in the Property Transfer Tax to individuals purchasing homes valued at less than $750,000. The increased income tax only applies to those earning more than $500,000 annually. Fewer than 4,000 Vermonters are expected to be eligible to pay the wealth tax.
H.829, initiated by the Housing and Homelessness Alliance of Vermont (HHAV) and advocated for by Chris Donnelly of Champlain Housing Trust and others, doesn’t solve the housing crisis, but it is a giant step in the right direction. ARPA funding which has been used to supplement affordable housing is exhausted. This program supplements affordable housing projects, necessitating a transition to state funds. The state does not have adequate funding to expand housing, but we can have it derived from these funding mechanisms.
While the Governor’s administration has stated the housing crisis was a priority, their proposal fell well short of addressing housing needs. Their focus on zoning reform will not create adequate, affordable housing to meet our urgent housing needs. We do not have enough places for people to live. Expanding housing is essential. Enhancing revenue to fund this priority requires urgency. This bill’s provisions include specific language directing funds towards crucial housing initiatives, demonstrating a clear commitment to addressing the root causes of housing instability in our communities.
As the bill moves on to the Senate we hope legislators in that body will recognize that passing H.829 is critical to securing the resources for comprehensive housing solutions.
We can take meaningful steps toward ensuring that all residents have access to safe, affordable housing without raising taxes for the majority of Vermonters through the two steps put into place by H 829. Many Vermonters are struggling and cannot provide extra funding to expand housing. The people who will pay the wealth tax and the property transfer fee can afford it. Those more economically fortunate can give a bigger share for the good of all in our state, which will promote a more stable and sustainable future for all Vermonters.
In closing, we would like to thank Rep. Emilie Kornheiser and her Committee on Ways and Means for moving forward with this essential legislation.
