Introduced by Representative Howard of Rutland City
Subject: Income taxation; credit; vacation property
Statement of purpose: This bill would provide a credit against Vermont income taxes in the amount of any additional state education property taxes paid on vacation home property owned by the taxpayer in the state.
AN ACT RELATING TO A CREDIT FOR STATE EDUCATION PROPERTY TAXES ON VACATION PROPERTY
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 5828d is added to read:
§ 5828d. RESIDENT VACATION HOME; CREDIT
A taxpayer of this state shall be entitled to receive a credit against the tax imposed under section 5822 of this title for certain state education property taxes paid on one vacation home in this state owned by the taxpayer for the taxpayer’s own use. The amount of the credit shall equal the amount of the education property tax paid by the taxpayer in the prior taxable year on the vacation home taxed as nonresidential property under subdivision 5402(a)(1) of this title, less the amount of the tax that would have been due on the vacation home in the prior taxable year if taxed as homestead property under subdivision 5402(a)(2) of this title, without regard to any homestead property tax adjustments that would be available to the taxpayer under chapter 154 of this title.
Sec. 2. EFFECTIVE DATE
This act shall take effect from passage and apply to taxable years beginning on and after January 1, 2005.
The Vermont General Assembly
115 State Street