Introduced by Representatives Metzger of Milton, Endres of Milton, Morrissey of Bennington and Wright of Burlington
Subject: Taxation; income tax; elderly exclusion
Statement of purpose: This bill proposes to create a household income exclusion and an income tax exclusion for low income elderly people.
AN ACT RELATING TO LOW INCOME ELDERLY INCOME TAX EXCLUSION
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 5823(a)(8) and (e) are added to read:
(8) Up to $10,000.00, or $15,000.00 for married persons filing jointly, of income includible in federal adjusted gross income, received by an individual who has federal adjusted gross income for the taxable year of $50,000.00 or less, and who has attained the age of 65.
(e) A nonresident or part-year resident individual who has total federal adjusted gross income for the taxable year of $50,000.00 or less, and who has attained the age of 65, may reduce the Vermont income determined under subsection (b) or (c) of this section by up to $10,000.00, or $15,000.00 jointly for married persons both required to file in Vermont, of income includible in the individual’s federal adjusted gross income, reduced by a percentage equal to the percentage of the taxpayer’s adjusted gross income for the taxable year which is not Vermont income, determined without regard to this subsection.
Sec. 2. 32 V.S.A. § 6061(5)(C) is amended and (D) is added to read:
* * *
(C) without the inclusion of gifts from nongovernmental sources, surplus food or other relief in kind supplied by a governmental agency, or the first $6,500.00 of income earned by a full-time student who qualifies as a dependent of the claimant under the federal Internal Revenue Code, or the first $6,500.00 of income received by a parent who qualifies as a dependent of the claimant under the Internal Revenue Code, or payments made by the state for foster care or to a family for the support of an eligible person with a developmental disability as defined in subdivision 8722(2) of Title 18. If the commissioner determines, upon application by the claimant, that a person resides with a claimant who is disabled or was at least 62 years of age as of the end of the year preceding the claim, for the primary purpose of providing attendant care services (as defined in section 6321 of Title 33) or homemaker or companionship services, with or without compensation, which allow the claimant to remain in his or her home or avoid institutionalization, the commissioner shall exclude that person's modified adjusted gross income from the claimant's household income. The commissioner may require that a certificate in a form satisfactory to the commissioner be submitted which supports the claim; and
(D) excluding up to $10,000.00, or $15,000.00 for married persons filing jointly, of income includible in adjusted gross income for federal income tax purposes, received by an individual who has federal adjusted gross income for the taxable year of $50,000.00 or less and who has attained the age of 65.
Sec. 3. EFFECTIVE DATE
Sec. 1 of this act shall apply to taxable years beginning on or after January 1, 2005; Sec. 2 of this act shall apply to claims made in 2006 and after.
The Vermont General Assembly
115 State Street