Burlington imposes a 1% local option sales tax and 1% local option meals tax on top of Vermont's 6% sales tax and 9% meals tax, authorized under Burlington's special charter and 24 V.S.A. §138.
Under 24 V.S.A. §138, Vermont municipalities may levy 1% local option sales, meals, and rooms taxes if approved by voters. Burlington has all three in effect, generating revenue for the city general fund and capital projects, and remits the local share to the Vermont Department of Taxes. Retailers and restaurants charge a combined 7% sales or 10% meals rate within Burlington city limits and file a single Vermont return. The Vermont Department of Taxes audits compliance, while Burlington tracks revenue allocations through its Clerk Treasurer's office.
Failure to register, collect, or remit local option tax is enforced by Vermont Department of Taxes through assessments, interest, late penalties up to 25%, and potential business-license consequences in Burlington.
See how Burlington's business tax classification rules stack up against other locations.
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