Tax News

CCH (cch.taxgroup.com) reports:

  The Vermont Legislature has forwarded an appropriations bill to the governor that contains many of the key personal income, corporate, income, franchise, sales and use, property, and tobacco tax proposals contained in H.B. 442. which, as previously reported, was passed by the Senate on May 1, 2009. (TAXDAY, 2009/05/01, S.17) Major differences from the Senate version of H.B. 442 include:

  -- a new personal income tax addition adjustment for the 2009 taxable year only of the amount of the federal deduction taken for sales and use tax on the purchase of a new vehicle;

  -- a new personal income subtraction adjustment for the recapture of state and local income tax deductions not taken against Vermont income tax; and

  -- an amended reduction in the education property tax rate. For fiscal year 2010 only, the education property tax rate per $100 would be reduced to $1.35 (currently, $1.59) for nonresidential property and $0.86 (currently, $1.10) for homestead property.

  Provisions that were proposed in H.B. 442, but that are no longer contained in the appropriations bill sent to the Governor, include:

  -- a new satellite programming tax;

  -- a sales and use tax on clothing articles costing $110 or more;

  -- an increase in the tax on spirituous liquors; and

  -- a property tax adjustment cap.

  Subscribers can view the full text of the May 9, 2009, edition of the Journal of the House, which contains the complete committee report.
 
H.B. 441, Laws 2009, as passed by the Vermont Legislature on May 9, 2009