Tax News

CCH (cch.taxgroup.com) reports:

  The Vermont Senate has passed its version of an omnibus tax bill that contains many of the personal income, corporate income, franchise, sales and use, property, and tobacco tax proposals contained in the bill passed by the House of Representatives (TAXDAY, 2009/04/17, S.20) with the notable exception that the Senate version of the bill does not include a personal income tax surcharge. The Senate version contains a proposed reduction in the personal income tax rate and a modified version of the House's amnesty program. In addition, like the House version of the bill, the Senate version contains a franchise tax on digital business entities, a corporate income tax on federally-exempt corporations, a sales and use tax on digital products, and a reduction in the education property tax rate.

  In addition, other major changes contained in the bill passed by the Senate would:

  -- revise the personal income tax capital gains deduction;

  -- impose sales tax on articles of clothing costing $110 or more;

  -- eliminate the sales and use tax bracket schedule;

  -- increase various tobacco and alcohol taxes;

  -- increase the property tax adjustment cap; and

  -- impose a new satellite programming tax.

  Other changes proposed by the House are also included; however, the Senate version would not repeal the Vermont seed capital fund credit against personal and corporate income taxes.

  The House did not concur in the Senate amendments and the bill is now before a conference committee to reconcile the different versions.