Introduced by Representative Dostis of Waterbury
Subject: Taxation; income taxation; exemption of foreign service income
Statement of purpose: This bill proposes to exempt foreign service income from Vermont income tax.
AN ACT RELATING TO INCOME TAX EXEMPTION FOR FOREIGN SERVICE INCOME
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 5823(a)(8) and (b)(7) are added to read:
(a) For any taxable year, the Vermont income of a resident individual, estate or trust is the adjusted gross income of the taxpayers for that taxable year less:
* * *
(8) Pay received for full-time employment outside the United States in the United States Foreign Service.
(b) For any taxable year, the Vermont income of a nonresident individual, estate or trust is the sum of the following items of income to the extent they are required to be included in the adjusted gross income of the taxpayer for the taxable year:
* * *
(7) Pay received for full-time employment outside the United States in the United States Foreign Service.
Sec. 2. EFFECTIVE DATE
This act shall apply to taxable years 2005 and after.
The Vermont General Assembly
115 State Street