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BILL AS INTRODUCED 2007-2008

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H.518

Introduced by Committee on Ways and Means

Date:

Subject:  Taxation; technical amendments

Statement of purpose:  This bill proposes to make technical amendments to various tax laws.

AN ACT RELATING TO TECHNICAL TAX AMENDMENTS

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

* * * Repeal Provisions * * *

Sec. 1.  REPEAL

The following sections in Title 32 are repealed:

(1)  § 3101(B)(12)(requiring commissioner to submit annual report to joint fiscal office on downtown tax credits).

(2)  § 5823(a)(7) (exclusion of income received from Vermont higher education investment plans).

* * * School District Definition * * *

Sec. 2.  32 V.S.A. § 5861(e) is amended to read:

(e)  The commissioner may require information on a Vermont personal income tax return which is sufficient to identify the school district, as defined in 16 V.S.A. § 3441 § 11(a)(10), in which the taxpayer resides.  The commissioner may consider a return incomplete if the information required under this subsection is not provided, and shall cause the return to be completed.

* * * Debt Setoff * * *

Sec. 3.  32 V.S.A. § 5932(9) is amended to read:

(9)  “Judgment debtor” means any person who has not paid in full a court judgment for payment of a fine, penalty, surcharge, or fee, but not damages, due and payable to the state or a political subdivision thereof.

Sec. 4.  32 V.S.A. § 5941(a) is amended to read:

(a)  The court shall include in any judgment a notice that any unpaid amounts shall amount of a fine, penalty, surcharge, or fee, but not damages, may be certified to the department for a setoff on the judgment debtor’s income tax refund and property tax adjustment under chapter 154 of this title, and the notice shall explain how the judgment debtor may challenge the certification.

* * * SPAN Statutory Reference * * *

Sec. 5.  32 V.S.A. § 6068(a) is amended to read:

(a)  A tax adjustment claim or request for allocation of an income tax refund to homestead property tax payment shall be filed with the commissioner on or before the due date for filing the Vermont income tax return, without extension, and shall describe the school district in which the homestead property is located and shall particularly describe the homestead property for which the adjustment or allocation is sought, including a parcel identification number if the town has assigned one the school parcel account number prescribed in 32 V.S.A. § 5404(b)

* * * Annual Update of Links to Federal Law * * *

Sec. 6.  32 V.S.A. § 5824 is amended to read:

§ 5824.  ADOPTION OF FEDERAL INCOME TAX LAWS

The statutes of the United States relating to the federal income tax, as in effect for taxable year 2005 2006, but without regard to federal income tax rates under Section 1 of the Internal Revenue Code, are hereby adopted for the purpose of computing the tax liability under this chapter.

Sec. 7.  32 V.S.A. § 7475 is amended to read:

§ 7475.  ADOPTION OF FEDERAL ESTATE AND GIFT TAX LAWS

The laws of the United States, relating to the federal estate and gift taxes as in effect on January 1, 2006 2007, are hereby adopted for the purpose of computing the tax liability under this chapter, except with the credit for state death taxes under Sections 2011 and 2604 as in effect on January 1, 2001, of the Internal Revenue Code, and without any deduction for state death taxes under Section 2058 of the Internal Revenue Code.  


* * * Corporate Net Operating Losses * * *

Sec. 8.  Sec. 18(4) of No. 207 of the Acts of the 2005 Adj. Sess. (2006) is amended to read:

(3)  For losses occurring in taxable year 2009, the amount of Vermont net operating loss carryforward available under 32 V.S.A. § 5888(4)(B) shall be the same proportion of the Vermont net operating loss as the proportion of the federal net operating loss that was carried forward in determining the federal taxable income increased by 40 percent of the remaining Vermont net operating loss.

(4)  For losses occurring in taxable years after 2009 and after, the full amount of the Vermont net operating loss may be carried forward.

* * * Technical Conforming Changes Related to
Act No. 185 of 2006 * * *

Sec. 9.  32 V.S.A. § 6061(14) is amended and (17) is added to read:

(14)  “Statewide education tax rate” means the municipality’s adjusted homestead education property tax rate for multiplied by the municipality’s education spending adjustment under subdivsion 5402(a)(2) of this title and used to calculate taxes assessed in the municipal fiscal year which began in the taxable year.

(17)  “Equalized value of the housesite in the taxable year” means the value of the housesite on the grand list for April 1 of the taxable year, divided by the municipality’s common level of appraisal determined by equalization of the grand list for April 1 of the year preceding the taxable year.

Sec. 10.  32 V.S.A. § 6066(a)(1)(A), (B), and (C) are amended to read:

§ 6066.  COMPUTATION OF ADJUSTMENT

(a)  An eligible claimant who owned the homestead on April 1 of the year in which the claim is filed shall be entitled to an adjustment amount determined as follows:

(1)(A)  For a claimant with household income of $90,000.00 or more:

(i)  the statewide education tax rate as adjusted under subdivision 5402(a)(2) of this title, multiplied by the equalized value of the housesite in the taxable year;

(ii)  minus (if less) the sum of:

(I)  the applicable percentage of household income for the taxable year,; plus

(II)  the statewide education tax rate as adjusted under subdivision 5402(a)(2) of this title, multiplied by the equalized value of the housesite in the taxable year in excess of $200,000.00.

(B)  For a claimant with household income of less than $90,000.00 but more than $47,000.00, the statewide education tax rate as adjusted under subdivision 5402(a)(2) of this title, multiplied by the equalized value of the housesite in the taxable year, minus the applicable percentage of household income for the taxable year.

(C)  For a claimant whose household income does not exceed $47,000.00, the statewide education tax rate as adjusted under subdivision 5402(a)(2) of this title, multiplied by the equalized value of the housesite in the taxable year, minus the lesser of:

(i)  the applicable percentage of household income for the taxable year; or

(ii)  the statewide education tax rate under subdivision 5402(a)(2) of this title, multiplied by the equalized value of the housesite in the taxable year reduced by $15,000.00.

Sec. 11.  32 V.S.A. § 5402(b)(2) is amended to read:

(2)  Taxes assessed under this section shall be assessed and collected in the same manner as taxes assessed under chapter 133 of this title with no tax classification other than as homestead or nonresidential property.  Taxes assessed on homesteads shall be assessed without regard to the adjustment for eligible claimants under chapter 154 of this title.

* * * Effective Dates * * *

Sec. 12.  EFFECTIVE DATES

This act shall take effect upon passage, except as follows:

(1)  Sec. 6 (update of link to federal income tax laws) shall apply to taxable years beginning on or after January 1, 2006.

(2)  Sec. 7 (update of link to federal estate and gift tax laws) shall apply to estates of decedents with a date of death on or after, and gifts made on or after January 1, 2007.

(3)  Secs. 9, 10, and 11 (technical amendments conforming to Act No. 185) shall apply to claims filed in 2007 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us