Tax Holidays Signed

Gov. Jim Douglas last week signed into law two sales tax holidays in mid-July that are intended to spur economic activity in the state.

“We boost Vermont’s economy, provide a measure of relief to hard-pressed residents, and encourage investment in long-term energy,” Douglas said in a news release.

The first tax holiday will exempt sales taxes on a non-business and non automotive and vehicle purchases up to $2,000 on July 12 and 13. The second tax holiday will apply only to appliances with an Energy Star rating that signifies they meet certain energy efficiency standards. That tax holiday will run from July 14 through 20.

Moody’s Investors Service analyst Kimberly Lyons said the sales tax holiday isn’t likely to have any credit impact on the triple-A rated state.

“Vermont is in a good position because year-to-date they’re still doing relatively well whereas you see a lot of states have already started to see the financial impacts of the economic slowdown,” Lyons said. “Vermont’s revenues are on track for fiscal 2008 ... As a triple-A state they are a well managed state and a very proactive state.”

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