MONTPELIER, Vt. (AP) - Vermont Republican Gov. Phil Scott rejected a compromise being discussed by Democratic leaders of the Legislature that could end a stalemate over the state budget and property tax legislation because it still would have increased property taxes for non-residential property owners.
As expected on Friday, Scott vetoed the state budget and the property tax bills because the bills would result in what he calls an “unnecessary and avoidable” $33 million increase in statewide property tax rates.
Scott and the Democratic-led Legislature have been sparring for weeks over the best way handle $60 million in unexpected revenues. Democrats say the extra money would be better spent by paying down future pension obligations, saving $100 million over the next two decades.
“I have been clear as a candidate, and throughout this term in office, that I cannot support legislation which adds or increases taxes on Vermonters,” Scott said in his veto letter.
Lt. Gov. David Zuckerman, a Progressive and Democrat, told Vermont Public Radio he didn’t want to use additional one-time money to break this current impasse but the proposal is an “acceptable compromise.”
“Not even an acknowledgement of the Legislature moving beyond where it had wanted to be, nothing of saying you know this is good we’re working toward a middle ground somewhere,” Zuckerman said. “The governor has said ’it’s my way or the highway, no ifs ands or buts.’”
Democrats’ compromise would have kept the residential property tax stable, but increase non-residential taxes.
Lawmakers adjourned for the year earlier this month, but Scott called them back for a special session after he promised to veto the budget and several other pieces of legislation.
Lawmakers are due back on Montpelier Tuesday to continue the special session.
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