Partial Reprint of Mountain Times Article on Effects of 1% repeal

Below is a partial reprint of a June 27, 2014 Mountain Times article entitled "Repealing the option tax would have minimal net effect of residents, town finds" It gives a pretty good assessment on the impact of repealing the sales portion of the 1% options tax.

"Effect on taxpayers
Based on information residents have provided to the town, the average person spends approximately $50 a year in sales and use tax, which is levied on many everyday expenses such as cable, phone, and retail (including supplies, hardware, equipment, ski tickets, entertainment, recreation, etc.).
Other expenses are exempt according to state law: "There are 46 exemptions from the tax (sales and use) which include medical items, food, manufacturing machinery, equipment and fuel, residential fuel and electricity, clothing and shoes."
In order to make up the remaining town deficit of $200,000 (assuming the events and marketing were successfully transferred to an entity apart from the town and assuming no cuts are made to current spending levels) property taxes would need to increase by $0.02 - $0.03 cents per hundred.
Based on the 2013 grand list, that would mean an increased cost of about $40-$60 annually to a person with a $200,000 house (the median home value in Killington) or $50 - $75 annually to a person with a $250,000 house (the approximate average home value).
That correlates to a very minimal change to the average taxpayer per year - slight net decrease if the property taxes increased $0.02 and a slight net increase if $0.03. Those property owners with median home value ($200,000) would see a savings of $10.20/year if the rate were $0.02, or an increase of $9.80/year if the rate were $0.03. For a property owner with average home value ($250,000) the savings would be $0.20/year if the rate were $0.02, or an increase of $24.80/year if $0.03."