This commentary is by Sen. Kesha Ram Hinsdale, D-Vt., the majority leader of the Vermont Senate, representing Chittenden-Southeast. Vermont is in the middle of a deep affordability crisis, and most people assume the solutions must be complicated, slow, or politically impossible.  But one of the most effective tools we have is already on the books, quietly working — and generating more revenue than expected.  I know because I wrote the law. It’s a vacancy tax, embedded today in our property transfer tax. When someone buys a residential property and does not use it as a primary residence or rent it long-term, they pay a higher, one-time tax at purchase.  Most Vermonters have never heard of it. Even fewer know that it has brought in more revenue than state forecasters predicted. That matters — because it tells us something important: when people have wealth and want good roads, a clean environment, functioning communities and available workers, they are often willing to pay more quietly and without much fuss. Here’s the bigger idea. That same construct — the distinction between homes people live in or rent long-term, and properties that sit vacant or are used occasionally — can be applied to the annual property tax, not just at purchase.  Done right, it could ease pressure on homestead property taxpayers and renters without banning or vilifying second homes. Let’s be clear about intent. This is not about punishing second homeowners. In fact, in more than a third of Vermont communities, second homeowners currently pay less than the homestead rate.  That figure hasn’t been updated recently, and because residential property values have risen much faster than commercial property, it’s likely the imbalance is even larger today. Some argue that second homeowners are paying taxes without having children in schools. But so are countless Vermonters without children — and they pay the same or more than someone with the wealth to afford a second home. Ability to pay matters, especially when Vermont has the highest rate of second homeownership in the nation. Housing scarcity sits at the root of nearly every major challenge we face. Vermont was just ranked last in economic mobility. Housing is our number one constraint.  Limited housing stock drives property tax increases — I’ve lived through legislative sessions where we actually lowered tax rates because the grand list grew, not the price of homes.  Housing shortages are also central to our health care affordability crisis, because we don’t have enough healthy, working-age people paying into a world-class system. And they fuel our workforce crisis, as families simply cannot afford to move here or stay. Vacancy isn’t just a residential problem. The same logic applies to commercial properties. There are perverse financial incentives today to leave storefronts empty rather than lowering rents, hollowing out downtowns and Main Streets that should be economic engines. A vacancy tax could help realign those incentives toward thriving, lived-in communities. And no — this does not require intrusion or looking through people’s windows. Vermont already has the mechanism.  Filing a Homestead Declaration or a Landlord Certificate privately tells the Tax Department whether a property is a primary residence or rented long-term. Most people don’t game this system. It’s straightforward, familiar and respectful of privacy. We don’t need to ban second homes. We don’t need to vilify people who love Vermont enough to own property here. What we do need is honesty about tradeoffs. Those with greater capacity can contribute more — and those dollars can be invested directly in housing, infrastructure, and workforce solutions that benefit everyone. Don’t let anyone tell you this is too complicated or needs years of study. We are already doing it. The results are already coming in above forecast.  The choice now is whether we use a proven tool to stabilize our communities — or keep pretending the affordability crisis has no practical solutions. Read the story on VTDigger here: Kesha Ram Hinsdale: The tax Vermonters have never heard of. ...read more read less