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BILL AS INTRODUCED 2007-2008

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H.167

Introduced by Representative Branagan of Georgia

Referred to Committee on

Date:

Subject:  Taxation; income tax; corporate income tax; gradual repeal

Statement of purpose:  This bill proposes to repeal the corporate income tax by phasing the rates down over four years to a rate of zero in 2011.

AN ACT RELATING TO GRADUAL REPEAL OF CORPORATE INCOME TAX

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

Sec. 1.  32 V.S.A. § 5832 is amended to read:

§ 5832.  TAX ON INCOME OF CORPORATIONS

A tax is imposed for each calendar year, or fiscal year ending during that calendar year, upon the income earned or received in that taxable year by every taxable corporation, reduced by any Vermont net operating loss allowed under section 5888 of this title, such tax being the greater of:

(1)  an amount determined in accordance with the following schedule:

Vermont net income of the corpo-

ration for the taxable year allo-

cated or apportioned to Vermont

under section 5833 of this title                              Tax

    $             0-10,000.00                                   6.00%  4.50%

     10,001.00-25,000.00                                  $600.00 $440.00 plus 7.0% 5.5%                                                                    of the excess over $10,000.00              25,001.00 and over                              $1,650.00 $1,265.00 plus 8.5%                                                                         6.5% of the excess over                                                                                    $25,000.00

or

(2)(A)  $75.00 for small farm corporations.  “Small farm corporation” means any corporation organized for the purpose of farming, which during the taxable year is owned solely by active participants in that farm business and receives less than $100,000.00 gross receipts from that farm operation, exclusive of any income from forest crops; or

(B)  $250.00 for all other corporations.

Sec. 2.  32 V.S.A. § 5832(1) is amended to read:

(1)  an amount determined in accordance with the following schedule:

Vermont net income of the corpo-

ration for the taxable year allo-

cated or apportioned to Vermont

under section 5833 of this title                              Tax

    $             0-10,000.00                                   4.50% 3.0%

     10,001.00-25,000.00                                  $440.00 $300.00 plus 5.5% 4.0%                                                                    of the excess over $10,000.00              25,001.00 and over                              $1,265.00 $900.00 plus 6.5%                                                             5.0% of the excess over                                                                                    $25,000.00

or

Sec. 3.  32 V.S.A. § 5832 is amended to read:

§ 5832.  TAX ON INCOME OF CORPORATIONS

A tax is imposed for each calendar year, or fiscal year ending during that calendar year, upon the income earned or received in that taxable year by every taxable corporation, reduced by any Vermont net operating loss allowed under section 5888 of this title, such tax being the greater of : 3 percent

            (1)  an amount determined in accordance with the following schedule:

Vermont net income of the corpo-

ration for the taxable year allo-

cated or apportioned to Vermont

under section 5833 of this title                              Tax

    $             0-10,000.00                                   3.0%

     10,001.00-25,000.00                                  $300.00 plus 4.0%                                                                                           of the excess over $10,000.00

     25,001.00 and over                                     $900.00 plus 5.0% of the excess                                                                      over $25,000.00

or

* * *

Sec. 4.  REPEAL

     Sections 5832 and 5833 (corporate income tax) are repealed, effective for taxable years 2011 and after.

Sec. 5.  EFFECTIVE DATES

     This section 5 shall take effect upon passage, and Sec. 1 of this act shall apply only to taxable year 2008; Sec. 2 of this act shall apply only to taxable year 2009; Sec. 3 of this act shall apply only to taxable year 2010; and Sec. 4 shall apply to taxable years 2011 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us