Roll Call! House votes for $14 million/year tax on “cloud-based” software services (96-44), 2021

S.53 – AN ACT RELATING TO EXEMPTING FEMININE HYGIENE PRODUCTS FROM THE VERONT SALES AND USE TAX, SECTIONS 9-12

PASSED
in the State House of Representatives
on April 15, 2021, by a vote of
96-44

Purpose: Sections 9-12 of the underlying bill applied the state sales and use tax (6%) to cloud-based software services. These four sections were “divided” from the underlying bill, and this vote decided whether or not to keep the language in the bill.

Analysis: Applying the sales and use tax to “cloud-based” software services (platform services, software as a service, and infrastructure as a service) such as TurboTax, WordPress, Microsoft Office, Adobe products, music streaming services, etc. would cost Vermonters a total of $11, $12, and $14 million in each of the first three years of its implementation, according to the Joint Fiscal Office.

Those voting YES on this division question wanted to keep the Cloud Tax language in the underlying bill. They argued taxing internet based software services is “modernizing” the sales tax, and that the increased revenues would be necessary in the future when federal COVID rescue funds are no longer available.

Those voting NO on this division question wanted to strike the Cloud Tax language from the underlying bill, citing no need for a tax increase at this time given the state’s current $300 million revenue surplus, Vermonters are already over-taxed, such an expansive tax on Cloud Services would make Vermont an outlier and economically uncompetitive with other states. Additionally, noting that many businesses in the wake of COVID lockdowns have increasingly relied on cloud-based software services, being forced to shift sales from in-person to on-line. A new Cloud Tax is a kick while folks are down.

Read the Journal: "Shall the House propose to the Senate to amend the bill in the second division of amendments, Sections 9-12?, was decided in the affirmative. Yeas, 96. Nays, 44" (Pages p. 645 -647).

Watch the floor debate on YouTube 

Related: JFO Fiscal Note

These roll call reports are designed to help citizens understand how their elected representatives vote on key issues. The bills may or may not eventually become law. Click on the link to the bill page at the top of this post for an up to date status on the bill.

How They Voted
(Click on your Rep’s name to send an email)

Sally Achey (R - Middletown Springs) – NO
Janet Ancel (D – Calais) – YES
Peter Anthony (D – Barre) – YES
Norman Arrison (D - Weathersfield) – YES
Sarita Austin (D – Colchester) – YES
John Bartholomew (D – Hartland) – YES
Lynn Batchelor (R – Derby) – NO
Scott Beck (R – St. Johnsbury) – YES
Matthew Birong (D – Vergennes) – YES
Alyssa Black (D - Essex) – YES
Tiffany Bluemle (D - Burlington) – YES
Thomas Bock (D – Chester) – YES
Seth Bongartz (D - Manchester) – YES
Michelle Bos-Lun (D - Westminster) – YES
Erin Brady (D - Williston) – YES
Patrick Brennan (R – Colchester) – NO
Timothy Briglin (D – Thetford) – YES
Jana Brown (D – Richmond) – YES
Nelson Brownell (D – Pownal) – YES
Jessica Brumsted (D – Shelburne) – YES
Thomas Burditt (R – West Rutland) – NO
Mollie Burke (P/D – Brattleboro) – YES
Elizabeth Burrows (P/D - West Windsor) – YES
Scott Campbell (D – St. Johnsbury) – YES
Bill Canfield (R – Fair Haven) – NO
Seth Chase (D – Colchester) – YES
Kevin “Coach” Christie (D – Hartford) – YES
Brian Cina (P/D – Burlington) – YES
Sara Coffey (D – Guilford) – YES
Selene Colburn (P/D – Burlington) – YES
Hal Colston (D – Winooski) – YES
Peter Conlon (D – Cornwall) – YES
Sarah Copeland-Hanzas (D – Bradford) – YES
Timothy Corcoran (D – Bennington) – YES
Mari Cordes (D/P – Lincoln) – YES
Lawrence Cupoli (R – Rutland) – ABSENT
Lynn Dickinson (R – St. Albans) – NO
Karen Dolan (D - Essex) –  YES
Kari Dolan (D – Waitsfield) – YES
Kate Donnally (D - Hyde Park) – NO
Anne Donahue (R – Northfield) – YES
David Durfee (D – Shaftsbury) – YES
Caleb Elder (D – Starksboro) – YES
Alice Emmons (D – Springfield) – YES
Peter Fagan (R – Rutland) – NO
Martha Feltus (R – Lyndon) – NO
John Gannon (D – Wilmington) – YES
Leslie Goldman (D - Bellows Falls) – YES
Kenneth Goslant (R – Northfield) – NO
Maxine Grad (D – Moretown) – ABSENT
Rodney Graham (R – Williamstown) – NO
James Gregoire (R – Fairfield) – NO
Lisa Hango (R – Birkshire) – NO
James Harrison (R – Chittenden) – NO
Robert Helm (R – Fair Haven) – NO
Mark Higley (R – Lowell) – NO
Robert Hooper (D – Burlington) – YES
Mary Hooper (D – Montpelier) – YES
Philip Hooper (D – Randolph) – YES
Lori Houghton (D – Essex) – YES
Mary Howard (D – Rutland) – ABSENT
Kathleen James (D – Manchester) – YES
Stephanie Jerome (D – Brandon) – YES
Kimberly Jessup (D – Middlesex) – YES
John Killacky (D – S. Burlington) – YES
Charles Kimbell (D – Woodstock) – NO
Warren Kitzmiller (D – Montpelier) – ABSENT
Emilie Kornheiser (D – Brattleboro) – YES
Jill Krowinski (D – Burlington) – PRESIDING
Robert LaClair (R – Barre) – NO
Martin LaLonde (D – S. Burlington) – YES
Diane Lanpher (D – Vergennes) – YES
Paul Lefebvre (R – Newark) – YES
Samantha Lefebvre (R - Orange) – NO
Felisha Leffler (R – Enosburgh) – NO

William Lippert (D – Hinesburg) – YES
Emily Long (D – Newfane) – YES
Michael Marcotte (R – Coventry) – NO
Marcia Martel (R – Waterford) – NO
Paul Martin (R - Franklin) – ABSENT
James Masland (D – Thetford) – YES
Christopher Mattos (R – Milton) – NO
Michael McCarthy (D – St. Albans) – YES

Curtis McCormack (D – Burlington) – YES
Patricia McCoy (R – Poultney) – NO
James McCullough (D – Williston) – YES
Francis McFaun (R – Barre) – NO 
Leland Morgan (R – Milton) – NO
Michael Morgan (R - Milton) – NO
Kristi Morris (D – Springfield) – YES
Mary Morrissey (R – Bennington) – NO
Michael Mrowicki (D – Putney) – YES
Emma Mulvaney-Stanak (D - Burlington) - YES 
Barbara Murphy (I – Fairfax) – YES
Logan Nicoll (D – Ludlow) – YES
Michael Nigro (D - Bennington) – YES
Robert Norris (R - Sheldon) - NO
Terry Norris (I – Shoreham) – ABSENT
William Notte (D – Rutland) – YES
Daniel Noyes (D – Wolcott) – YES
John O’Brien (D – Tunbridge) – YES
Carol Ode (D – Burlington) – YES
“Woody” Page (R – Newport) – NO
Kelly Pajala (I – Londonderry) – YES
John Palasik (R – Milton) – NO
Joseph Parsons (R – Newbury) – ABSENT
Carolyn Partridge (D – Windham) – YES
Avram Patt (D – Worcester) – YES
Henry Pearl (D - Danville) – ABSENT
Arthur Peterson (R - Clarendon) – NO
Ann Pugh (D – S. Burlington) – YES
Barbara Rachelson (D/P – Burlington) – YES
Marybeth Redmond (D – Essex) – YES
Lucy Rogers (D – Waterville) – YES
Carl Rosenquist (R – Georgia) – NO
Larry Satcowitz (D - Randolph) – YES
Brian Savage (R – Swanton) – NO
Robin Scheu (D – Middlebury) – YES
Heidi Scheuermann (R – Stowe) – NO
Patrick Seymour (R – Sutton) – ABSENT
Charles “Butch” Shaw (R – Pittsford) – NO
Amy Sheldon (D – Middlebury) – YES
Laura Sibilia (I – Dover) – NO
Katherine Sims (D - Craftsbury) – YES
Taylor Small (P/D - Winooski) – YES
Brian Smith (R – Derby) – NO
Harvey Smith (R – New Haven) – NO
Trevor Squirrell (D – Underhill) – YES
Gabrielle Stebbins (D - Burlington) - YES
Thomas Stevens (D – Waterbury) – YES
Vicki Strong (R – Albany) – NO
Linda Joy Sullivan (D – Dorset) – NO
Heather Suprenant (D - Barnard) – YES
Curt Taylor (D – Colchester) – YES
Thomas Terenzini (R – Rutland) – NO
George Till (D – Jericho) – YES
Tristan Toleno (D – Brattleboro) – YES
Casey Toof (R – St. Albans) – NO
Maida Townsend (D – South) – YES
Joseph “Chip” Troiano (D – Stannard) – YES
Tanya Vyhovsky (P/D - Essex) – YES
Tommy Walz (D – Barre) – YES

Kathryn Webb (D – Shelburne) – YES
Kirk White (P/D - Bethel) – YES
Rebecca White (D – Hartford) – YES
Dane Whitman (D - Bennington) – YES
Terri Lynn Williams (R - Granby) – NO
Theresa Wood (D – Waterbury) – YES
David Yacovone (D – Morristown) – YES
Michael Yantachka (D – Charlotte) – YES


 

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