Vermont H 759: An act relating to the use of neonicotinoid-treated article seed

Bill Text

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H.759 1
Introduced by Representatives Dobrovich of Williamstown, Bosch of 2
Clarendon, Burtt of Cabot, Coffin of Cavendish, Galfetti of 3
Barre Town, Goslant of Northfield, and Southworth of Walden 4
Referred to Committee on 5
Date: 6
Subject: Taxation; income tax; education property tax; sales and use tax; flat 7
income tax 8
Statement of purpose of bill as introduced: This bill proposes to repeal several 9
existing Vermont tax types and replace them with a flat income tax. 10
An act relating to a flat income tax 11
It is hereby enacted by the General Assembly of the State of Vermont: 12
Sec. 1. FINDINGS 13
The General Assembly finds: 14
(1) Vermont’s current tax system, including personal and corporate 15
income tax, sales and use tax, property tax, and estate tax, is complex and 16
burdensome, hindering economic growth and fairness. 17
(2) A flat income tax rate can provide a transparent and equitable 18
funding mechanism for essential State services, including education, 19
healthcare, public safety, and infrastructure. 20

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(3) Targeted relief for low-income households and support for rural 1
communities will mitigate regressive impacts and ensure equitable access to 2
services. 3
(4) Simplifying the tax code will attract residents and businesses, 4
fostering economic development while maintaining fiscal stability through 5
legislative and public oversight. 6
(5) A balanced transition plan is necessary to phase out existing taxes 7
and implement the new system effectively. 8
Sec. 2. REPEALS; REPORT 9
(a) Repeal of Vermont tax types. 10
(1) 24 V.S.A. § 138 (local option tax) is repealed. 11
(2) 32 V.S.A. chapters 135 and 154 (education property tax) are 12
repealed. 13
(3) 32 V.S.A. chapters 185, 187, 189, and 190 (estate and gift taxes) are 14
repealed. 15
(4) 32 V.S.A. chapter 219 (purchase and use tax) is repealed. 16
(5) 32 V.S.A. chapter 215 (uniform capacity tax) is repealed. 17
(6) 32 V.S.A. chapter 231 (property transfer tax) is repealed. 18
(7) 32 V.S.A. chapter 233 (sales and use tax) is repealed. 19
(8) 32 V.S.A. chapter 236 (land gains tax) is repealed. 20
(9) 32 V.S.A. chapter 237 (hazardous waste tax) is repealed. 21

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(10) 32 V.S.A. chapter 243 (health care claims tax) is repealed. 1
(11) 32 V.S.A. chapter 246 (child care contribution) is repealed. 2
(12) 33 V.S.A. § 2503 (fuel tax) is repealed. 3
(b) The Office of Legislative Counsel shall make all conforming changes to 4
Vermont statutes as necessary to effectuate the repeals in subsection (a) of this 5
section, including the repeal of any special fund solely funded by the taxes 6
repealed under this section. 7
(c) It is the intent of the General Assembly that any program or institution 8
funded solely through a special fund that is effectively repealed by this section 9
will instead be funded through appropriation from the General Fund. It shall 10
be presumed that the General Assembly has chosen not to fund the program or 11
institution if an appropriation is not made for that program or institution. 12
Sec. 3. 32 V.S.A. § 5811(21) is amended to read: 13
(21) “Taxable income” means, in the case of an individual, federal 14
adjusted gross income determined without regard to 26 U.S.C. § 168(k) and: 15
(A) increased by the following items of income (to the extent such 16
income is excluded from federal adjusted gross income): 17
(i) interest income from non-Vermont state and local obligations; 18
and 19
(ii) dividends or other distributions from any fund to the extent 20
they are attributable to non-Vermont state or local obligations; and 21

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(B) decreased by the following items of income (to the extent such 1
income is included in federal adjusted gross income): 2
(i) income from U.S. government obligations; 3
(ii) with respect to adjusted net capital gain income as defined in 4
26 U.S.C. § 1(h) reduced by the total amount of any qualified dividend 5
income: either the first $5,000.00 of such adjusted net capital gain income or 6
40 percent of adjusted net capital gain income from the sale of assets held by 7
the taxpayer for more than three years, except not adjusted net capital gain 8
income from: 9
(I) the sale of any real estate or portion of real estate used by the 10
taxpayer as a primary or nonprimary residence; or 11
(II) the sale of depreciable personal property other than farm 12
property and standing timber; or stocks or bonds publicly traded or traded on 13
an exchange, or any other financial instruments; regardless of whether sold by 14
an individual or business; and provided that the total amount of decrease under 15
this subdivision (21)(B)(ii) shall not exceed 40 percent of federal taxable 16
income or $350,000.00, whichever is less; 17
(iii) recapture of State and local inco