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ACT NO. 67

(H.508)

Vermont Income Tax

This act provides that the Vermont income tax is no longer calculated on the basis of 24 percent of the Federal tax, but is determined by Vermont’s own tax rates. The act is a response to the income tax rate changes enacted by the Federal Economic Growth and Tax Relief Reconciliation Act of 2001, and was drafted to allow flexibility to the Commissioner of Taxes in implementation.

It is the intent of this act that the impact of the Federal tax changes on Vermont State income tax revenues be minimal. The act includes a sunset in 2003, which will enable the State to develop a more complete strategy for the changeover from the former “piggyback” system of taxation.

Effective Date: On passage; with various other dates