Vermont H 135: An act relating to the authority of the Agency of Digital Services

Bill Text

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VT LEG #379736 v.1
H.135 1
Introduced by Representative Canfield of Fair Haven 2
Referred to Committee on 3
Date: 4
Subject: Taxation; income tax; income tax credits; tobacco products tax; 5
property tax hearing officers; flood abatement 6
Statement of purpose of bill as introduced: This bill proposes to make several 7
technical and policy changes to Vermont tax laws, including the annual link up 8
to federal income tax laws, requiring a joint income tax return when taxpayers 9
file jointly at the federal level, changing some definitions used for the tobacco 10
products tax, and increasing the pay for property tax hearing officers. The bill 11
also extends reimbursement to municipalities of State education property taxes 12
that were abated due to flooding. 13
An act relating to administrative and policy changes to Vermont tax laws 14
and extending reimbursement to municipalities for tax abatement due to 15
flooding 16
It is hereby enacted by the General Assembly of the State of Vermont: 17
* * * Personal Income Tax * * * 18

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VT LEG #379736 v.1
Sec. 1. 32 V.S.A. § 5824 is amended to read: 1
§ 5824. ADOPTION OF FEDERAL INCOME TAX LAWS 2
The statutes of the United States relating to the federal income tax, as in 3
effect on December 31, 2023 2024, but without regard to federal income tax 4
rates under 26 U.S.C. § 1, are hereby adopted for the purpose of computing the 5
tax liability under this chapter and shall continue in effect as adopted until 6
amended, repealed, or replaced by act of the General Assembly. 7
Sec. 2. 32 V.S.A. § 7402 is amended to read: 8
§ 7402. DEFINITIONS 9
As used in this chapter unless the context requires otherwise: 10
* * * 11
(8) “Laws of the United States” means the U.S. Internal Revenue Code 12
of 1986, as amended through December 31, 2023 2024. As used in this 13
chapter, “Internal Revenue Code” has the same meaning as “laws of the United 14
States” as defined in this subdivision. The date through which amendments to 15
the U.S. Internal Revenue Code of 1986 are adopted under this subdivision 16
shall continue in effect until amended, repealed, or replaced by act of the 17
General Assembly. 18
* * * 19

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VT LEG #379736 v.1
Sec. 3. 32 V.S.A. § 5861(c) is amended to read: 1
(c) Spouses or a surviving spouse may shall file a joint Vermont personal 2
income tax return for any taxable year for which the spouses file or the 3
surviving spouse are permitted to file files a joint federal income tax return 4
under the laws of the United States, unless the Commissioner allows a different 5
filing status. 6
Sec. 4. 32 V.S.A. § 5830f is amended to read: 7
§ 5830f. VERMONT CHILD TAX CREDIT 8
(a) A resident individual or part-year resident individual who is entitled to a 9
child tax credit under the laws of the United States or who would have been 10
entitled to a child tax credit under the laws of the United States but for the fact 11
that the individual or the individual’s spouse does not have a taxpayer 12
identification number shall be entitled to a refundable credit against the tax 13
imposed by section 5822 of this title for the taxable year. The total credit per 14
taxable year shall be in the amount of $1,000.00 per qualifying child, as 15
defined under 26 U.S.C. § 152(c) but notwithstanding the taxpayer 16
identification number requirements under 26 U.S.C. § 24(e) and (h)(7), who is 17
five six years of age or younger as of the close of the calendar year in which 18
the taxable year of the taxpayer begins. For a part-year resident individual, the 19
amount of the credit shall be multiplied by the percentage that the individual’s 20

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VT LEG #379736 v.1
income that is earned or received during the period of the individual’s 1
residency in this State bears to the individual’s total income. 2
* * * 3
Sec. 5. 32 V.S.A. § 5828b is amended to read: 4
§ 5828b. EARNED INCOME TAX CREDIT 5
(a) A resident individual or part-year resident individual who is entitled to 6
an earned income tax credit granted under the laws of the United States or who 7
would have been entitled to an earned income tax credit under the laws of the 8
United States but for the fact that the individual, the individual’s spouse, or one 9
or more of the individual’s children does not have a qualifying taxpayer 10
identification number shall be entitled to a credit against the tax imposed for 11
each year by section 5822 of this title. The credit shall be for an individual 12
who claims one or more qualifying children 38 percent or for an individual 13
who does not claim one or more qualifying children 100 percent of the earned 14
income tax credit granted to the individual under the laws of the United States 15
or that would have been granted to the individual under the laws of the United 16
States but for the fact that the individual, the individual’