Following approval by Morristown voters on Town Meeting Day, the town is moving ahead with implementing the 1% Local Option Tax (LOT). This voter-supported measure is intended to diversify revenue sources, ease pressure on property taxes, and support investment in essential infrastructure.
**Official Announcement: Local Option Tax Implementation**
Morristown voters have officially authorized the 1% Local Option Tax for **Retail Sales, Meals & Alcoholic Beverages, and Lodging/Rooms**. This new tax structure is designed to ensure that visitors help fund the services they use while keeping 75% of the revenue right here in Morristown to support our roads, public safety, and community development.
**Key Information for Residents and Visitors**
**Effective Date:** The 1% local option tax will begin being collected on **July 1, 2026**.
**Tax Impact:** This is a 1% add-on to existing Vermont state taxes. For example, the general sales tax will move from 6% to **7%**
**Essential Exemptions:** Everyday necessities—including **groceries and clothing**—that are not currently taxed by the state will remain **exempt** from the Local Option Tax.
**Action Required for Morristown Businesses**
All businesses currently collecting Vermont sales tax must prepare for this transition before the July 1 deadline:
**Update Systems:** You may need to update your cash registers or point-of-sale (POS) systems to include the additional 1%.
**Ensure Accuracy:** Businesses are responsible for applying the correct total tax rate starting July 1.
**Review Guidance:** Detailed business-specific applications and official state guidance can be found at **tax.vermont.gov/business/local-option-tax**.
Don’t wait—be ready before July 1, 2026!
Tax breakdown:
Local Option Sales Tax: 6% sales tax + 1% = 7% total tax
Local Option Meals Tax: 9% meals tax + 1% = 10% total tax
Local Option Alcoholic Beverage Tax: 10% alcohol tax + 1% = 11% total tax
Local Option Rooms Tax: 9% rooms tax + 1% = 10% total tax