The City of Essex Junction and the Town of Essex were recently made aware that some businesses in the Town of Essex have been charging the City-approved 1 percent Local Option Tax (LOT) in error. Because of this, both municipalities are providing information to customers and Town of Essex businesses on what to do if they have been affected.
In July 2022, businesses in Essex Junction and the Town of Essex were sent letters from the Vermont Department of Taxes requesting that they update their business location as either the City of Essex Junction or the Town of Essex because of the 1 percent LOT adopted by the City. The 1 percent LOT is determined by the location of the business, not the postal code. The City and Town have provided a list of addresses to help customers and businesses know if they are located in the City or Town. City addresses are highlighted in yellow. Customers and businesses can find the list on the City and Town webpages at www.essexjunction.org or www.essexvt.org, or Facebook pages. There is also an interactive map customers can use to check their address to see if they are in the City or Town.
Customers:
If you believe you have been charged the 1 percent LOT in a Town of Essex business, you should request a refund directly from the business that charged the LOT in error.
Businesses:
If you are a Town of Essex business and have been charging the 1 percent LOT in error, you should contact the Vermont Department of Taxes to correct your account and to receive additional instructions. The Vermont Department of Taxes can be reached at tax.business@vermont.gov or 802-828-2551. Businesses can find additional information about the LOT at https://tax.vermont.gov/business/lot.
If you are an Essex Junction business, you should be charging the 1 percent LOT. Please check out the Vermont Department of Taxes for more information about the LOT.
Businesses that may be unsure of whether their location is in the City or Town can contact the City Offices at admin@essexjunction.org or 802-878-6944 or the Town Offices at community-development@essex.org or 802-878-1343.