|BILL AS INTRODUCED||2007-2008|
Introduced by Senator Doyle of Washington District
Subject: Taxation; income tax; lottery winnings
Statement of purpose: This bill proposes to apply the income tax only to lottery proceeds related to tickets purchased after 2004.
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. Sec. 13 of No. 152 of the Acts of the 2003 Adj. Sess. (2004) is amended to read:
Sec. 13. REPEAL
31 V.S.A. § 664 and § 674(s) (lottery prize income tax exemption) are repealed for taxable years beginning on or after January 1, 2005, and lottery proceeds from tickets purchased prior to January 1, 2005, shall remain exempt as under prior law.
Sec. 2. Subdivision 23(4) of No. 152 of the Acts of the 2003 Adj. Sess. (2004) is amended to read:
(4) Sec. 14 (taxation of lottery proceeds) shall apply to taxable years beginning on or after January 1, 2005, but shall not apply to proceeds related to any ticket purchased before January 1, 2005.
Sec. 3. REFUND PROVISIONS
Income tax refunds issued as a result of this act shall be paid with interest at the rate or rates established under section 3108 of Title 32 and shall be paid to the extent possible out of unclaimed lottery prizes from the state lottery fund established under section 658 of Title 31, and if these funds are insufficient, the refunds shall be paid prorata.
The Vermont General Assembly
115 State Street