Tag Archives: Tim Ashe

Lawmakers strike tax deal without gov’s approval

MONTPELIER — House and Senate negotiators were nearing a deal on a $30 million revenue package early Saturday morning that will help balance the 2016 fiscal year budget and close a projected $113 million gap — but includes provisions Gov. Peter Shumlin has said he does not support.

The bulk of the new revenue comes from changes to the income tax code. Both the House and Senate have agreed with the governor to raise $15 million by eliminating taxpayers’ ability to deduct their prior year local and state taxes on their state returns.

Senate Finance Committee Chairman Tim Ashe, D/P-Chittenden, briefs reporters late Friday night on a tax plan. (Photo by Erin Sigrist)

Senate Finance Committee Chairman Tim Ashe, D/P-Chittenden, briefs reporters late Friday night on a tax plan. (Photo by Erin Sigrist)

But the House and Senate are also looking to raise about $10.5 million by making changes to how much taxpayers can deduct. Under the plan lawmakers were nearing agreement on, income tax deductions would be capped at two times the standard deduction — about $25,000 for a couple. The plan exempts charitable donations and deductions for catastrophic health care costs, however.

In total, lawmakers are looking to raise $26 million in new income taxes with the changes.

Shumlin has spent much of the week restating his opposition to lawmakers’ plans to limit deductions. He made that case again to the Vermont Press Bureau in an interview Friday morning.

“The reason states don’t tend to cap these deductions … is because they all provide an important role in ensuring you have a strong economy and a strong state and an economy that works for every single member of that state,” Shumlin told the Vermont Press Bureau in an interview. “Among the tax choices that are going to be made, let’s not make illogical choices.”

Senate President Pro Tem John Campbell, D-Windsor, has said Shumlin has threatened to veto the revenue bill because of his opposition to deduction limits.

But that didn’t stop lawmakers from forging ahead.

Senate Finance Committee Chairman Tim Ashe, D/P-Chittenden, said he worked with the House to complete a revenue plan both chambers could agree on.

“The governor’s made no hesitation to say that he would prefer that the only income tax that’s raised be the $15 million that he raised,” Ashe said. “We arrived at what we thought was a fair way to raise the money and that we could reach agreement with the House.”

House Ways and Means Committee Chairwoman Janet Ancel, D-Calais, echoed Ashe’s comments, saying the revenue plan is one that both sides have agreed to.

“We’re trying to get a revenue bill and trying to get out of here,” Ancel said.

House Speaker Shap Smith, D-Morrisville, acknowledged the tax deal was arrived at without the governor’s approval.

“That is true, yes,” the speaker said.

But the plan addresses many of the concerns Shumlin has raised, according to Smith.

“We’ve responded to a number of the concerns that the governor expressed, particularly around the health care and the charitable deduction. We tried to address that. So, my hope is that in addressing those things we can move closer together. I’m eternally optimistic, but perhaps it is unwarranted in this instance,” he said.

The deduction cap included in the deal is fair, Smith said.

“You’re going to get a $25,000 cap on your itemized deductions. That’s a significant amount of allowable deductions, including, on top of that, charitable deductions and for medical. It seems to me pretty reasonable,” he said.

Lawmakers planned to complete the deal early Saturday morning and return later in the day to have both chambers vote on it. Smith declined to comment on how lawmakers would address a potential veto by Shumlin.

“We’ll take it one step at a time,” Smith said.

Scott Coriell, spokesman for Shumlin, left the State House around 11:30 p.m. Friday and said the administration was reviewing the proposal and would have no comment until later on Saturday.

House Appropriations Committee Chairwoman Mitzi Johnson, D-South Hero, left, and Senate Appropriations Committee Chairwoman Jane Kitchel, D-Caledonia, speak during budget negotiations Friday.

House Appropriations Committee Chairwoman Mitzi Johnson, D-South Hero, left, and Senate Appropriations Committee Chairwoman Jane Kitchel, D-Caledonia, speak during budget negotiations Friday.

The revenue plan also includes extending the state’s 6 percent sales tax to soft drinks, which will raise $5.1 million, extending the 9 percent rooms and meals tax to vending machine purchases, and includes a 3 percent minimum tax on taxpayers earning at least $150,000.

“That’s more of a floor payment on people with larger incomes,” he said.

The House and Senate had also agreed in principal to the budget and were expected to sign off on it early Saturday morning.

Senator’s letter to resorts rankles ski industry, fellow lawmakers

MONTPELIER — A state senator has sent a letter to each of the seven ski resorts utilizing state land asking them to renegotiate leases, but the closing paragraph he included has some lawmakers concerned he has issued a thinly-veiled threat to raise their taxes if they do not agree.

Chittenden County Sen. Tim Ashe, a Democrat and the chairman of the powerful Senate Finance Committee, sent the letters on Senate letterhead last week to Bromley, Okemo, Killington, Stowe, Smuggler’s Notch, Burke and Jay Peak. He signed each letter as chairman of Senate Finance.

Ashe’s letters follow the release of a report by State Auditor Doug Hoffer last month that found the resorts’ lease payments to the state have not kept pace with the resorts’ economic growth.

Sen. Tim Ashe

Sen. Tim Ashe

The long-term leases with the resorts range between 50 and 100 years. Bromley was the first resort to strike a deal with the state in 1942.

Over the last 50 years, resorts that once had just a handful of lifts and few facilities have become year-round enterprises. Many are now owned by large out-of-state corporations, according to Hoffer’s report. The resorts now feature new lodges, hotels, condominiums, retail stores, golf courses, waterparks and other amenities that generate significantly more revenue than the fledgling days of Vermont’s ski industry.

Between 2003 and 2013, development at the seven resorts led to increases in sales of goods and services, property values and revenues from excise taxes, all of contributed to more state revenue.

But lease payments for the 8,500 acres of public lands used by resorts have not kept the same pace of growth this decade as other tax revenues generated from the resorts. The leases were designed to capture a percentage of lift tickets, typically 5 percent of lift ticket sales. Lift ticket sales became a secondary source of revenue as the resorts evolved, however, according to the report, and the leases only generate about $3 million a year for the state.

Ashe’s letters ask the resorts to willingly open negotiations, even though most do not expire for several more decades. Bromley’s lease, for example, expires in 2032. Ashe pointed out in his letter, as Hoffer’s report did, that renegotiating makes sense because “the ski world of the lease’s origins would be unrecognizable today.”

“It is for that reason I ask you to renegotiate voluntarily your lease terms or agree to amend your lease to have it expire on December 31, 2016. Either of these options would allow for thoughtful, unhurried negotiations between the State and you to arrive at modern lease terms reflecting the great changes in the ski industry and in the revenue streams it features,” Ashe wrote.

It is the closing paragraph that has drawn the ire of some fellow lawmakers, however.

“From time to time, the Legislature considers various proposals that would have an impact on various classes of taxpayers. In terms of the ski industry, I have heard Legislators propose eliminating the property tax exemption on snowmaking equipment and other assets, and suggest creating a special non-homestead tax rate for ski areas. It seems to me that voluntary renegotiation of your lease with the State is a far superior method of striking the right balance of proceeds for the right to use public land,” Ashe wrote.

Rep. Patti Komline, R-Dorset, whose district includes Bromley Mountain, said Ashe’s letter is a clear threat to try to eliminate tax exemptions currently enjoyed by ski resorts if they refuse to scrap their current leases.

“It is very concerning when those in power look to interfere in contractual agreements using overt threats. This is an overreach and I hope it doesn’t create a precedent that will affect the credibility of our state’s reputation,” she said.

Komline said she learned about the letters Wednesday and planned to reach out to officials at Bromley and work with the Vermont Ski Areas Association to help ease any concerns the resorts have.

Rep. Heidi Scheuermann

Rep. Heidi Scheuermann

Rep. Heidi Scheuermann, R-Stowe, said she, too, found out about the letters on Wednesday after officials at Stowe Mountain Resort sent her a copy. Stowe’s lease is good until 2057, Scheuermann said.

“I think it’s inappropriate. That said, he can do it. I’m sure Stowe will have a response for him. They have a legal lease that is extremely beneficial to the state of Vermont and I expect they are going to maintain that lease,” she said.

Ashe said Wednesday his letters are not a threat and should not be seen as one.

“It’s reading the auditor’s report and saying that even though they are under no obligation to open their leases … it seems to be maybe appropriate that they do so,” he said. “It’s not about a threat. It’s hoping they’ll just do it.”

Making a threat to strip away tax exemptions should the resorts decline to renegotiate leases would be bad policy for the state, according to Ashe.

“I would never threaten a taxpayer, because I don’t think that’s a very good tax policy. But rather, saying, in thinking about the use of public lands, it’s better to voluntarily step up because the proposals that are from time to time directed at them or any other industry are usually sort of inartful,” he said.

Still, lawmakers question the tax exemptions every year, and Ashe said he wanted to point out that some lawmakers could look to use it as leverage to ensure the leases are fair.

“People gravitate to that … and say, ‘Why do we do that?’ It raises this whole issue about why that equipment and stuff is exempt,” Ashe said. “And then, there’s always the discussion about, ‘Well, they do get a pretty sweet deal.’ People articulate it in different ways.”

Senate President Pro Tem John Campbell, D-Windsor, said he was not aware that Ashe was planning to send the letters. He said would discuss the matter with him.

“I have not had an opportunity to discuss this with Sen. Ashe, nor have I seen the letter,” he said Wednesday. “It’s certainly an issue that I will discuss with him.”

Bennington County Democratic Sens. Dick Sears and Brian Campion, whose districts include Bromley, both said they had concerns with Ashe’s approach.

“There has to be a balance here. I don’t want to do anything to jeopardize Bromley’s ability to attract people to Bennington County,” Campion said.

“Right now people are in a desperation mode. They’re looking (for revenue) in every corner,” Sears said. “I don’t think I want to force ski areas. I don’t want to do anything that impacts the tremendous relationship with our ski areas.”

Parker Riehle

Parker Riehle

Parker Riehle, president of the Vermont Ski Areas Association, said Wednesday the ski resorts were still crafting a response to Ashe. However, he said all are comfortable with the lease agreements in place.

“We certainly still stand by the leases and their terms as still a very good deal for both parties and a very favorable deal for the state of Vermont,” he said. “Overall it’s a really strong partnership.”

The federal government only gets 2.5 percent of lift ticket sales, on average, according to Riehle, and neighboring states get about 3 percent of lift ticket revenue.

“Vermont’s actually way ahead of the game and there’s been a couple of reports issue in that regard that back that up. We certainly are very comfortable and confident in the leases,” he said.

Additionally, the ski industry generates an estimated $100 million in various tax payments to the state, and provides about 12,000 jobs during the winter when other industries are typically laying workers off.

“You can’t just focus on the lease payments and think that they look too small,” he said.

Given the what the ski industry provides to the state, Riehle said the resorts should not be facing the threat of higher taxes.

“In light of the numerous revenue benefits to the state, we certainly don’t see a need to look for any additional tax burden on the ski areas. We certainly don’t want to see anything like that hanging over our heads,” he said.

neal.goswami@timesargus.com

Read Ashe’s letter to Bromley Mountain below:

Bills dealing with campaign finance, privacy rights, land use hit House, Senate calendars

The first of what should be a spate of campaign-finance reform bills hit the Senate calendar last week. Introduced by Sen. Tim Ashe, S.17 aims to improve an elections database that currently makes it difficult and time-consuming to figure out who gave what to whom.

The legislation would require candidates for office to submit their lists of campaign contributions and expenditures in electronic form, and stipulates that the secretary of state must maintain those submissions in a searchable online database.

Another Senate bill responds to privacy concerns raised by the growing use of “automated license plate recognition systems” by law enforcement. The Vermont chapter of the ACLU sounded the alarm last year about the ways in which this technology can be used to track the movements of residents against whom police hold no evidence of wrongdoing.

The bill, S.18, calls for study to establish limitations on the use, dissemination and retention of information gained through the license detection systems.

Sen. Dick Sears has a bill that would increase the statute of limitations for a number of crimes, including sexual offenses against a minor. For the crimes of sexual assault on a minor, lewd and lascivious conduct and sexual exploitation of a minor, Sears’ proposed legislation would allow prosecutors to file charges anytime before the alleged victim turns 40. Under current law, the window to file charges closes when the victim turns 25.

Sears’ bill removes the statute of limitations altogether for sexual assault, human trafficking, murder, arson causing death and kidnapping.

Over in the House, a wide-ranging land-use proposal that generated some headlines before the opening of the session has been introduced in bill form. Rep Tony Klein says H9 would serve as companion legislation to Act 250, establishing a statewide planning process separate from the regulatory framework. The bill would direct the Natural Resources Board to prepare a statewide plan, replete with maps delineating lands suitable for things energy projects, housing or commercial activity.

Klein says deciding in advance what types of development belong where will streamline the regulatory process for developers while giving residents more say over development in their communities.

Rep. Ann Mook has introduced legislation that would require health insurers to pay for hearing aids; her bill also would require the Green Mountain Care Board “to consider” including hearing aids in any single-payer benefits plan plan Vermont adopts in the future.

Reps. Ann Donohue and Patty Lewis, Republicans from Northfield and Berlin, respectively, want to exempt from state income taxes the first $5,000 of military retirement pay. The legislation would benefit only residents making less than $50,000 per year.

Senator wants sway over Public Service Board, and more from the first bills of 2013

Forget about broad-based taxes, death with dignity, marijuana decriminalization and probitions on mountaintop wind: the first House bill of the new biennium aims to simplify judicial bookkeeping.

In a sure sign that the new session is nearly upon us, legislative staff have unveiled the texts of bills that are ready for introduction.

H1 is a gripping bit of statute that would repeal a provision requiring superior court clerks to “keep a book of judgments separate from the originals.”

Like most of the 1,000 or so bills introduced in a given biennium, H1 won’t generate much talk outside the committee to which it’s assigned. But in addition to the mundane work of legal bookkeeping, lawmakers will consider scores of bills this year that could have a real impact on the lives of the Vermonters they represent.

Take H6, introduced by Rep. Paul Poirier, the Barre City Independent who late last month dropped his insurgent candidacy for Speaker of the House. Poirier’s legislation would add “mental injury” to the list of job-related afflictions for which employees are entitled to workers’ compensation.

In the Senate’s first piece of new legislation, Sen. Tim Ashe, a Chittenden County Democrat/Progressive, wants to require judges “to consider the approximate financial cost” of a sentence before handing down a ruling.

It won’t the first go-round in Montpelier for many of the bills under consideration in 2013. Already on the calendar in the Senate is a bill relating to concussions in youth sports. Lawmakers failed to reach consensus on a proposal last year; S.4, introduced by Ashe, Sen. Dick Sears and Senate President John Campbell, would, among other things, prohibit a coach from letting a child reenter a game after suffering a concussion.

Sen. Robert Hartwell, a Bennington Democrat and vocal critic of the Public Service Board, promises to spark a lively debate with his first piece of legislation of the biennium. Hartwell, an opponent of ridgeline wind development and wireless “smart meters,” want to give the Senate more influence over the composition of the three-person panel responsible for regulating those technologies.

Hartwell’s S16 would require the governor’s appointments to the Public Service Board to first win consent from the Senate.

You can scroll through the first 24 bills of the session yourself at

http://www.leg.state.vt.us/docs/serviceMain.cfm, and expect to see many more added in the coming days.

Controversy brews over mental health as Senate preps for vote

Senate lawmakers this morning are frenetically preparing for a floor session this afternoon during which leaders aim to pass out, at long last, the mental-health bill that Gov. Peter Shumlin says will alleviate the “crisis” unfolding in hospitals across Vermont.

It’s been a long road for the legislation, which lays out a replacement plan for the 54-bed psychiatric hospital flooded out in Tropical Storm Irene. Seven weeks of legislative debate have done little to quell dissent over the administration’s plan. And a spate of amendments on the Senate calendar today spotlights the major areas of disagreement.

The size of the replacement hospital remains the biggest sticking point. Shumlin has demanded a bill that calls for a facility, to be located somewhere in central Vermont, with no greater than 16 beds. Exceeding that number, Shumlin says, will cost taxpayers nearly $10 million in foregone federal revenue annually. That’s because new rules in place at the Center for Medicaid and State Operations, he says, prohibit federal Medicaid matches for facilities with greater than 16 beds. Continue reading