Added to state sales, meals, alcoholic beverages, and rooms taxes.
Of that 1%, 75% of the revenue earned goes directly to the town.
Estimated revenue for Bristol based on 2024 state data.
Who Pays This Tax?
Tourists & Visitors
Hikers, scenic explorers, and outdoor enthusiasts visiting our mountains.
Event Attendees
Guests at Fourth of July, Pocock Rocks, and the Harvest Festival.
Lodging Guests
Visitors staying in hotels, Airbnbs, and short-term rentals.
What about Residents?
Bristol residents pay only when making taxable purchases within town limits (dining out, alcohol, taxable retail items). Remember, items such as groceries, clothing, prescription drugs, and residential heating fuels are untaxed.
You're in Good Company
Over 30 Vermont towns already use LOT to fund their communities, including:
- Middlebury ($1.3M+)
- Brandon
- Manchester
- Woodstock
- Londonderry
- Berlin
The Economic Context
Middlebury has used LOT since 2008. Bristol businesses already compete in an environment where these neighboring towns use LOT revenue to improve their downtowns without increasing property taxes.
Where Will the Money Go?
Capital Infrastructure Priority
- Road resurfacing & Bridges
- Water/Sewer systems
- Municipal facility repairs
- Heavy equipment replacement
Climate Resilience & Emergency Preparedness
- Flood mitigation & Culverts
- Emergency services equipment
- Stormwater management
- Shelter & safety improvements
Economic Development Catalyst
- Downtown vibrancy projects
- Small business support
- Recreation & Tourism marketing
- Community development grants
The "Property Tax Cliff"
The LOT protects Bristol's affordability by supplementing future property tax increases with shared revenue for our community's infrastructure and services.
New Tax Rates At A Glance
| Category | Current | New Rate | Change |
|---|---|---|---|
| Sales | 6% | 7% | +1% |
| Meals | 9% | 10% | +1% |
| Rooms | 9% | 10% | +1% |
| Alcohol | 10% | 11% | +1% |
What remains EXEMPT (NOT Taxed)?
Groceries (Bread, Milk, Produce)
Prescription Drugs & Medical Supplies
Clothing & Shoes
Farm & Manufacturing Machinery
Residential Heating Fuels & Electricity
Motor Vehicles
The Timeline
March 2026
Town Meeting Vote
March 31, 2026
Notice to VT Dept of Taxes
July 1, 2026
Effective Date (Earliest)
October 2026
First Revenue Payment to Bristol