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Introduced by   Representatives Krawczyk of Bennington and Morrissey of Bennington

Referred to Committee on


Subject:  Taxation; property tax adjustment; household income; exclusion for veterans' benefits

Statement of purpose:  This bill proposes to exclude veterans' benefits from household income for the property tax adjustment calculation.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 6061(5) is amended to read:

(5)  "Modified adjusted gross income" means "federal adjusted gross income":

(A)  before the deduction of any trade or business loss, loss from a partnership, loss from a small business or "subchapter S" corporation, loss from a rental property, or capital loss, except that in the case of a business which sells a business property with respect to which it is required, under the Internal Revenue Code, to report a capital gain, a business loss incurred in the same tax year with respect to the same business may be netted against such capital gain;

(B)  with the addition of the following, to the extent not included in adjusted gross income: alimony, support money other than gifts, gifts received by the household in excess of a total of $6,500.00 in cash or cash-equivalents, cash public assistance and relief (not including relief granted under this subchapter), cost of living allowances paid to federal employees, allowances received by dependents of servicemen and women, the portion of Roth IRA distributions representing investment earnings and not included in adjusted gross income, railroad retirement benefits, payments received under the federal Social Security Act, and all benefits under Veterans' Acts, and federal pension and annuity benefits not included in adjusted gross income; nontaxable interest received from the state or federal government or any of its instrumentalities, workers' compensation, the gross amount of "loss of time" insurance, and the amount of capital gains excluded from adjusted gross income, less the net employment and self-employment taxes withheld from or paid by the individual (exclusive of any amounts deducted to arrive at adjusted gross income or deducted on account of excess payment of employment taxes) on account of income included under this section, less any amounts paid as child support money if substantiated by receipts or other evidence that the commissioner may require; and

(C)  without the inclusion of: any gifts from nongovernmental sources other than those described in subdivision (B) of this subdivision (5); 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; the first $6,500.00 of income received by a person who qualifies as a dependent of the claimant under the Internal Revenue Code and who is the claimant's parent or disabled adult child; or payments made by the state pursuant to chapters 49 and 55 of Title 33 for foster care, or the first $6,500.00 of payments made by the state or an agency designated in section 8907 of Title 18 for flexible family funding or difficulty of care payments made to an individual 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.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont