Vermont H 878: An act relating to decriminalizing certain drugs commonly used for medicinal, spiritual, religious, or entheogenic purposes

Bill Text

BILL AS INTRODUCED H.878
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VT LEG #386323 v.1
H.878 1
Introduced by Representatives Harvey of Castleton, Bosch of Clarendon, 2
Coffin of Cavendish, Goslant of Northfield, Labor of Morgan, 3
Malay of Pittsford, Morgan, M. of Milton, Nielsen of Brandon, 4
North of Ferrisburgh, Pinsonault of Dorset, Powers of 5
Waterford, Tagliavia of Corinth, and Winter of Ludlow 6
Referred to Committee on 7
Date: 8
Subject: Taxation; income tax; Social Security income; tax exemption; 9
property tax 10
Statement of purpose of bill as introduced: This bill proposes to exempt all 11
Social Security benefits from income tax and cap annual property tax increases 12
at one percent. 13
An act relating to Vermont income and education property taxes 14
It is hereby enacted by the General Assembly of the State of Vermont: 15
Sec. 1. 32 V.S.A. § 5830e is amended to read: 16
§ 5830e. RETIREMENT INCOME; SOCIAL SECURITY INCOME 17
(a) Social Security income. The portion of federally taxable Social Security 18
benefits excluded from taxable income under subdivision 5811(21)(B)(iv) of 19
this chapter shall be as follows: 20

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VT LEG #386323 v.1
(1) For taxpayers whose filing status is single, married filing separately, 1
head of household, or surviving spouse: 2
(A) If the federal adjusted gross income of the taxpayer is less than or 3
equal to $55,000.00, all federally taxable benefits received under the federal 4
Social Security Act shall be excluded. 5
(B) If the federal adjusted gross income of the taxpayer is greater 6
than $55,000.00 but less than $65,000.00, the percentage of federally taxable 7
benefits received under the Social Security Act to be excluded shall be 8
proportional to the amount of the taxpayer’s federal adjusted gross income 9
over $55,000.00, determined by: 10
(i) subtracting the federal adjusted gross income of the taxpayer 11
from $65,000.00; 12
(ii) dividing the value under subdivision (i) of this subdivision (B) 13
by $10,000.00; and 14
(iii) multiplying the value under subdivision (ii) of this subdivision 15
(B) by the federally taxable benefits received under the Social Security Act. 16
(C) If the federal adjusted gross income of the taxpayer is equal to or 17
greater than $65,000.00, no amount of the federally taxable benefits received 18
under the Social Security Act shall be excluded under this section. 19

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VT LEG #386323 v.1
(2) For taxpayers whose filing status is married filing jointly: 1
(A) If the federal adjusted gross income of the taxpayer is less than or 2
equal to $70,000.00, all federally taxable benefits received under the Social 3
Security Act shall be excluded. 4
(B) If the federal adjusted gross income of the taxpayer is greater than 5
$70,000.00 but less than $80,000.00, the percentage of federally taxable 6
benefits received under the Social Security Act to be excluded shall be 7
proportional to the amount of the taxpayer’s federal adjusted gross income 8
over $70,000.00, determined by: 9
(i) subtracting the federal adjusted gross income of the taxpayer 10
from $80,000.00; 11
(ii) dividing the value under subdivision (i) of this subdivision (B) 12
by $10,000.00; and 13
(iii) multiplying the value under subdivision (ii) of this subdivision 14
(B) by the federally taxable benefits received under the Social Security Act. 15
(C) If the federal adjusted gross income of the taxpayer is equal to or 16
greater than $80,000.00, no amount of the federally taxable benefits received 17
under the Social Security Act shall be excluded under this section. [Repealed.] 18
* * * 19
(e)(1) Requirement to elect one exclusion. A taxpayer of this State who is 20
eligible during the taxable year for more than one of the exclusions under 21

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VT LEG #386323 v.1
subsections (a), subsection (b), and or (c) of this section shall elect only one of 1
the exclusions for which the taxpayer is eligible. 2
(2) A taxpayer of this State who is eligible during the taxable year for 3
the military retirement and survivor benefit exclusion under subsection (d) of 4
this section may elect that exclusion regardless of whether the taxpayer also 5
elects an exclusion under subsections (a)–(c) subsection (b) or (c) of this 6
section. 7
Sec. 2. 32 V.S.A. § 5811 is amended to read: 8
§ 5811. DEFINITIONS 9
As used in this chapter unless the context requires otherwise: 10
* * * 11
(21) “Taxable income” means, in the case of an individual, federal 12
adjusted gross income determined without regard to 26 U.S.C. § 168(k) and: 13
* * * 14
(B) decreased by the following items of income (to the extent such 15
income is included in federal adjusted gross income): 16
* * * 17
(iv) the portion of certain retirement income and federally taxable 18
benefits received under the federal Social Security Act that is required to be 19
excluded under section 5830e of this chapter and all federally taxable benefits 2