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BILL AS INTRODUCED 2007-2008

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H.603

Introduced by Representative Fisher of Lincoln

Referred to Committee on

Date:

Subject:  Income tax; capital gain exclusion; child care; subsidy;

Statement of purpose:  This bill proposes to repeal the capital gain exclusion on all but the first $15,000.00 of capital gain annually; and to use the new revenue to fund the child care subsidy program in the department for children and families.

AN ACT RELATING TO FULLY FUNDING CHILD CARE SUBSIDIES FOR LOW INCOME VERMONTERS

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

Sec. 1.  32 V.S.A. § 5811(21)(B) is amended to read:

(21)  “Taxable income” means federal taxable income:

* * *

(B)  Decreased by the following items of income (to the extent such income is included in federal adjusted gross income):

(i)  income from United States government obligations; and

(ii)  40 percent of the first $15,000.00 capital gain.  In this subdivision, “capital gain” means adjusted net capital gain income as defined in Section 1(h) of the Internal Revenue Code.

Sec. 2.  CHILD CARE; SUBSIDY

The department for children and families shall fully fund the child care subsidy program, including increasing the income eligibility standards from the 1999 federal poverty guidelines to the 2007 federal poverty guidelines in order to comply with 33 V.S.A. § 3512 and increasing the child care subsidy rates to the 75th percentile of Vermont market rates in accordance with the standards set by the federal Child Care Bureau.

Sec. 3.  APPROPRIATIONS

The sum of $18,105, 937.00 in general funds is appropriated to the department for children and families, division of child development, in fiscal year 2009 to fund the child care subsidy as provided for in this act.

Sec. 4.  EFFECTIVE DATE

     This act shall take effect upon passage, except that Sec. 1 of this act (limitation on capital gain exclusion) shall apply to taxable year 2009 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us