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ACT NO. 94


Taxation; miscellaneous technical tax amendments

Sec. 1. Technical correction to definition of "Vermont net income." This section clarifies that a corporation which is taxed on its allocable share of unitary business income will still be taxable on its other income as well (that is, it will remain taxable on its nonunitary business income and any nonbusiness income it may have).

Secs. 2, 3. Update Vermont links to federal income tax and estate and gift tax laws.

Sec. 4. Under current law, when the amount of a taxpayer's federal taxable income changes due to a federal audit or other reason, the taxpayer has 30 days to notify the tax department of the change. It is difficult for some corporate taxpayers to react that quickly. This amendment expands the notice time to 60 days.

The section also makes a technical change, deleting "or income tax liability." (Vermont income tax is no longer linked to federal "income tax liability," but instead is linked to federal "taxable income.")

Sec. 5. Repeals the new jobs income tax credit and the manufacturer's investment tax credit, because these credits were available only on corporate returns for years ending on or before June 30, 2005. (Currently available VEPC incentives include a payroll credit, a workforce development credit, and a capital investment credit.)

Sec. 6. Deletes redundant and obsolete language in a solid waste tax statute. Act 186 of 1996 allowed small landfills the option of using volume records to compute weight, beginning in 1998. This section of the bill deletes the pre-1998 rule, and also deletes an unnecessary repeat of the new rule.

Secs. 7, 8. Act 68 of 2003 required that, for purposes of income sensitivity, the term "homestead" should be replaced with the term "housesite." Sections 7 and 8 make belated conforming changes.

Sec. 9. Act 68 of 2003 amended Vermont sales tax laws to conform to the Streamlined Sales Tax Agreement terminology, including a change from the term "receipt" to the term "sales price." Section 9 makes a belated conforming change.

Sec. 10. Effective dates.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont