VERMONT
H.463 & H.477 Acts Relating to Carbon Charge
In 2019, Vermont legislators introduced two carbon tax bills: H.463 by Rep. Colburn, and H.477 by Rep. Gonzalez. They both start with a tax of $5 per metric ton of carbon dioxide content of various fuels, including heating oil, diesel, gasoline and natural gas. To the relief of the power utilities, electricity is left off; though since power plants primarily burn natural gas, which will be taxed, presumably electric rates will also increase, when not offset by the rebates in this bill.
The main difference between these two bills' tax schemes is that while they both start at imposing a tax of $5/metric ton of carbon dioxide released from the combustion of various fuels, and increase by $5/ton annually thereafter, H.463's tax is capped at $40/ton in 2028 and H.477's tax is capped at $50/ton by 2030. Needless to say if the legislature in future years is happy with the tax, nothing prevents them from increasing the tax once the system is up and running and people begin to get used to it.
Here is the how the tax looks when applied to various fuels (*only applies to H.477 since H.463 becomes capped in 2028):
Propane Tax/gall Tax/Household
2021 $.0228 $35.21
2024 $.1152 $140.83
2028 $.2305 $281.66
2030* $.2881 $352.07
Heating Oil Tax/gall Tax/Household
2021 $.0508 $40.65
2024 $.2033 $162.61
2028 $.4065 $325.23
2030* $.5082 $406.53
Gasoline Tax/gall Tax/Household
2021 $.0445 $29.17
2024 $.1779 $116.68
2028 $.3557 $233.35
2030* $.4446 $291.69
Natural Gas Tax/ccf Tax/Household
2021 $.0293 $31.56
2024 $.1171 $126.23
2028 $.2342 $252.47
2030* $.2928 $315.58
Heating fuel consumption assumes about 111 million BTUs produced annually by heating equipment. The tax on diesel is the same as heating oil. Heating oil rates assume no Bioheat use as the bio-portion of Bioheat would not be taxed. We assume 656 gallons of annual consumption of gasoline per vehicle.
Let's consider the total tax impact for a typical family in 2030, under H.477, heating with propane, and with two cars. The tax on their heating would be $352.07 and their tax on their cars would be $583.38 for a total annual tax burden of $935.45. Under both bills, families may be eligible for some credits on their electric bills and rebates on weatherization and appliances. {Heat pump rebates are specifically mentioned, and see www.learnaboutheatpumps.com for information on these.) But these credits and rebates won't come close to the taxes paid.
The main difference between these two bills' tax schemes is that while they both start at imposing a tax of $5/metric ton of carbon dioxide released from the combustion of various fuels, and increase by $5/ton annually thereafter, H.463's tax is capped at $40/ton in 2028 and H.477's tax is capped at $50/ton by 2030. Needless to say if the legislature in future years is happy with the tax, nothing prevents them from increasing the tax once the system is up and running and people begin to get used to it.
Here is the how the tax looks when applied to various fuels (*only applies to H.477 since H.463 becomes capped in 2028):
Propane Tax/gall Tax/Household
2021 $.0228 $35.21
2024 $.1152 $140.83
2028 $.2305 $281.66
2030* $.2881 $352.07
Heating Oil Tax/gall Tax/Household
2021 $.0508 $40.65
2024 $.2033 $162.61
2028 $.4065 $325.23
2030* $.5082 $406.53
Gasoline Tax/gall Tax/Household
2021 $.0445 $29.17
2024 $.1779 $116.68
2028 $.3557 $233.35
2030* $.4446 $291.69
Natural Gas Tax/ccf Tax/Household
2021 $.0293 $31.56
2024 $.1171 $126.23
2028 $.2342 $252.47
2030* $.2928 $315.58
Heating fuel consumption assumes about 111 million BTUs produced annually by heating equipment. The tax on diesel is the same as heating oil. Heating oil rates assume no Bioheat use as the bio-portion of Bioheat would not be taxed. We assume 656 gallons of annual consumption of gasoline per vehicle.
Let's consider the total tax impact for a typical family in 2030, under H.477, heating with propane, and with two cars. The tax on their heating would be $352.07 and their tax on their cars would be $583.38 for a total annual tax burden of $935.45. Under both bills, families may be eligible for some credits on their electric bills and rebates on weatherization and appliances. {Heat pump rebates are specifically mentioned, and see www.learnaboutheatpumps.com for information on these.) But these credits and rebates won't come close to the taxes paid.