Vermont Society of Ass'n Executives v. Milne

In this appeal, the Secretary of State challenges the superior court’s ruling that Vermont’s tax on lobbying expenditures is unconstitutional. We conclude that, in singling out and burdening interests protected by the First Amendment, the lobby tax violates the United States Constitution under the heightened scrutiny required. Accordingly, we affirm the superior court’s judgment.

Effective January 1, 1998, the Legislature imposed a five-percent tax “on the expenditures of lobbyists and employers of lobbyists. . . . in excess of $2,500.00.” 2 V.S.A §264a(a).1 The tax is expressly restricted to…