ORDINANCE 5.4

Sponsor: Board of Finance,

Ordinance Committee

Public Hearing Dates:

First reading: 04/13/26

Referred to: Ordinance Committee

Rules suspended and placed in all

stages of passage:

Second reading: 06/01/26

Action: adopted as revised/amended

Date: 06/01/26

Signed by Mayor: 06/04/26

Published: 06/10/26

Effective: 06/30/26

It is hereby Ordained by the City Council of the City of Burlington as follows:

Chapter 21, Offenses & Miscellaneous Provisions, of the Code of Ordinances of the City of Burlington be and hereby is amended by amending Sec. 31 (Restaurant, hotel, amusements and admissions taxes), thereof to read as follows:

21-31 Restaurant, hotel, amusements and admissions taxes.

(I) GENERAL PROVISIONS: As written.

(II) TAXES IMPOSED:

(A) – (B) As written.

(C) Short–Term Rental Tax: There is hereby imposed a business occupation tax upon all persons engaged in operating short–term rentals within the City of Burlington. The tax imposed shall be at a rate of nine (9) percent of gross receipts from taxable business, as herein defined, done per monthly period in accordance with the provisions of this section and dedicated to the housing trust fund. Notwithstanding any other provision of this section, whenever state meals and rooms tax on a short-term rental is collectible from a “booking agent”, as defined in 32 V.S.A. § 9202(20), as the same may be amended from time to time, then the booking agent shall be the “taxpayer”, as defined in subsection (III)(H) of this section, but the operator of the short-term rental shall remain liable for payment of the short-term rental tax if the booking agent fails to collect and remit the tax.

(D) – (F) As written.   

(G) Temporary Tax Rate: Notwithstanding any other provision of this section, the following temporary tax rates will apply for the fiscal year commencing on July 1, 2025, and ending on June 30July 31, 2026:

(1) The restaurant, amusements, and admissions taxes on gross receipts set forth in subsections (II)(A), (II)(D), and (II)(E) of this section shall be increased from two (2) percent of gross receipts to two and one-half (2.5) percent.;and

(2) The short term rental tax on gross receipts set forth in subsection (II) © of this section shall be divided to dedicate two (2) percent of revenues for general fund purposes, with the remaining seven (7) percent dedicated to the housing trust fund.

Commencing JulyAugust 1, 2026, said tax rates shall again be set as set forth in subsections (I)(A) through (I)(E) of this section.

(III) DEFINITIONS: For the purposes of this section, the following terms, phrases, words and their derivations shall have the meanings given herein:

(A) Person means any individual, male or female, estate, trust, receiver, cooperative association, domestic and foreign corporation, syndicate, joint stock corporation, partnership of any kind, club and society.

(B) – (I) As written.

(J) Restaurant means:

(1) eEvery eating and drinking establishment operated within the City of Burlington, including every restaurant, cafe, lunch counter, private and social club, bar, tavern, diner, cafeteria, delicatessen, sandwich shop, or other place, where any food or food products are prepared and delivered on premises to the purchaser ready to eat, or where beverages, including alcoholic beverages, are served for consumption on premises, or both, and for which charge is made;

(2) All sites of athletic contests, shows, performances, movies, theaters and entertainment places where food, beverages, including alcoholic beverages, or refreshments are sold for consumption on premises; or

(3) A person who facilitates the sale and collects the charge in connection with any taxable business (as the term “taxable business” is defined in subsection (III)(G)(1) of this section), through an internet transaction or any other means. For greater clarity, where such a facilitator collects a charge for taxable business on behalf of the operator of any facility described in the foregoing subparagraphs (1) and (2), then the facilitator shall be the taxpayer and shall be required to register with the treasurer, remit monthly sworn statements, and pay all taxes due for meals facilitated, as describe in subsections (IV) and (V) of this section.

This term shall not include caterers who do not prepare and deliver food and beverages to customers at the caterer’s place of business. This term shall include all sites of athletic contests, shows, performances, movies, theaters and entertainment places where food, beverages, including alcoholic beverages, or refreshments are sold for consumption on premises.

(K) Sworn Statement As written.

(IV) TAX-WHEN DUE:

(A) – (D) As written.

(E) If the treasurer determines that a taxpayer has failed to pay any tax, penalty or portion thereof due under this section, the treasurer shall mail to such taxpayer a statement showing the balance due and shall add thereto a thirteen dollar ($13.00) late penalty payment or interest at the rate of twelve (12) percent per yearone (1) percent of the unpaid balance, whichever is greater. That unpaid balance and penalty total shall be subject to interest at a rate of twelve (12) percent per year from the date of underpayment. Such interest shall accrue until the date of payment. Within five (5) days from the date the statement is mailed, the taxpayer shall pay such balance and all interest due thereon. No such demand shall be made more than four (4) years after the close of the fiscal year in which the same accrued, except:

(1) As against a taxpayer who has been guilty of any fraud or misrepresentation of material facts; or

(2) Where a taxpayer has executed a written waiver of such limitation.

(F) – (H) As written.

(V) – (XV) As written.

* Material stricken out deleted.

** Material underlined added.

ER/Ordinances 2026/Gross Receipts Ordinance

BCO Section 21-31 6-1-2026