Source: http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2006/acts/ACT207.HTM
Timestamp: 2017-10-20 03:29:54
Document Index: 430302993

Matched Legal Cases: ['§ 7771', '§ 9775', '§ 5825', '§ 5825', '§ 3701', '§ 2178', '§ 2178', '§ 5811', '§ 5930', '§ 5930', '§ 5811', '§ 5930', '§ 9701', '§ 7501', '§ 5832', '§ 5811', '§ 5832', '§ 5832', '§ 5888', '§ 5888', '§ 5888', '§ 5930', '§ 312', '§ 5930', '§ 3802']

NO. 207. AN ACT RELATING TO MISCELLANEOUS TAX POLICY AMENDMENTS.
Sec. 4. PRIORITY OF ENACTMENTS
Sec. 3 of this act (amending 32 V.S.A. § 7771 relating to the cigarette tax) shall be subject to and further amended by any amendments to section 7771 in H.861 which are enacted in 2006, except that the repeal of the sentence at the end of subdivision (a)(3) of Sec. 3 of this act, which reads “All taxes upon cigarettes under this chapter are declared to be a direct tax upon the consumer at retail and shall conclusively be presumed to be precollected for the purpose of convenience and facility only.” shall remain repealed.
Sec. 5. 32 V.S.A. § 9775(a) is amended and (f) added to read:
(a) Every Except as otherwise provided in this section, every person required to collect or pay tax under this chapter shall, where the sales and use tax liability under this chapter for the immediately preceding calendar year has been (or would have been in cases when the business was not operating for the entire year) $500.00 or less, pay the tax imposed by this chapter in one annual payment on or before the 25th day of January of each year. Every person required to collect or pay tax under this chapter shall, where the sales and use tax liability under this chapter for the immediately preceding calendar year has been (or would have been in cases when the business was not operating for the entire year) more than $500.00 but less than $2,500.00, pay the tax imposed by this chapter in quarterly installments on or before the 25th day of the calendar month succeeding the quarter ending on the last day of March, June, September and December of each year. In all other cases, except as provided in subsection (e) of this section, the tax imposed by this chapter shall be due and payable monthly on or before the 25th (23rd of February) day of the month following the month for which the tax is due. Payment by electronic funds transfer does not affect the requirement to file returns. The return of a vendor of tangible personal property shall show such information as the commissioner may require.
(f) A person registered under the Multistate Streamlined Sales and Use Tax Agreement that does not have a legal requirement to register in this state and is not a Model 1, 2 or 3 seller may file a return within one year of the month of initial registration and may file annual returns in the same month for succeeding years; provided, however, that such person must file a return on the 25th of the month following any month in which the taxpayer accumulated state and local taxes in the amount of $1000.00 or more.
Sec. 6. 32 V.S.A. § 5825a is amended to read:
§ 5825a. CREDIT FOR VERMONT HIGHER EDUCATION
INVESTMENT PLAN CONTRIBUTIONS
(a) A taxpayer of this state, including each spouse filing a joint return, shall be eligible for a nonrefundable credit against the tax imposed under section 5822 of this title of five ten percent of the first $2,000.00 $2,500.00 per beneficiary, contributed by the taxpayer during the taxable year to a Vermont higher education investment plan account under subchapter 7 of chapter 87 of Title 16.
(b) A taxpayer who has received a credit under subsection (a) of this section shall repay to the commissioner five ten percent of any distribution from a higher education investment plan account, which distribution is not excluded from gross income in the taxable year under Section 529 of the Internal Revenue Code, as amended, up to a maximum of the total credits received by the taxpayer under subsection (a) of this section minus any amount of repayment of such credits in prior tax years. Repayments under this subsection shall be subject to assessment, notice, penalty and interest, collection, and other administration in the same manner as an income tax under this chapter.
Sec. 7. 32 V.S.A. § 3701(1)(A) is amended to read:
(1) “State-owned property” means:
(A) state-owned buildings, including buildings of the Vermont state colleges and which are tax-exempt under section 2178 of Title 16; buildings of the University of Vermont and State Agricultural College used for educational and not commercial purposes; and buildings of the agency of transportation and the department of the military; but excluding the value of land on which the buildings are located, and excluding all highways and bridges and any land pertaining thereto; and
Sec. 8. 16 V.S.A. § 2178 is amended to read:
§ 2178. TAX EXEMPTION
All real and personal property owned by the corporation and used for educational and not commercial purposes shall be exempt from taxation.
Sec. 9. 32 V.S.A. § 5811(21) is amended to read:
(iii) any amount of capital gain income which was deferred in a prior year under subdivision (B)(iii) of this subdivision (21), to be added in the taxable year of disposition of the taxpayer’s interest in the qualified business; and
(ii) 40 percent of adjusted net capital gain income as defined in Section 1(h) of the Internal Revenue Code;
(iii) 60 percent of capital gain income that is invested in the taxable year, or (through filing an amended return) within two years of receipt, in an eligible venture capital investment under section 5930v of this title.
Sec. 10. 32 V.S.A. § 5930v is amended to read:
§ 5930v. Angel venture capital; capital gain rollover
(a) A qualified taxpayer of this state shall be eligible for taxation of capital gain income under subdivision 5811(21) of this title resulting from a credit of three percent of capital gain income from an eligible venture capital investment under this section made by the taxpayer during the taxable year. If the taxpayer is a partnership, limited liability company, or S corporation, the treatment of capital gain income under this section shall be allocated ratably among the partners, members, or shareholders of the entity.
(3) “Eligible venture capital investment” means at least $50,000.00 and up to $200,000.00 of total investment by one person, which is equity or at-risk debt investment in one qualified business, for expenditure by the qualified business on the plant, equipment, research, and development or as working capital in Vermont.
Sec. 11. INVESTMENTS DEFERRED UNDER PRIOR LAW
Capital gain income, the taxation of which was deferred pursuant to 32 V.S.A. § 5811(21)(B)(iii), must be included in the qualified taxpayer’s taxable income no later than five years after the taxable year in which the investment that gave rise to the deferral was made.
32 V.S.A. § 5930t (tax credit for training employees) is repealed.
Sec. 13. 32 V.S.A. § 9701(9)(H) is amended to read:
(H) A person who provides telecommunications service provider as defined in 30 V.S.A. § 7501 subdivision (19) of this section, except that “vendor” shall not include a person whose activities in this state are limited to the performance of any activities which, without more, would not constitute nexus for sales tax collection purposes, plus any or all of the following necessary to create or maintain a worldwide web page or internet site for the person:
Sec. 14. 32 V.S.A. § 5832(1) is amended to read:
Vermont net income of the corpo-
ration for the taxable year allo-
cated or apportioned to Vermont
0-10,000.00 6.00%
$ 10,001.00-25,000.00 $600.00 plus 7.0% of the
excess over $10,000.00
25,001.00-250,000.00 $1,650.00 plus 8.75% of the
excess over $25,000.00
250,001.00 and over $19,688.00 $21,338.00 plus
8.90% of the excess over
Sec. 15. 32 V.S.A. § 5811(25) is added to read:
(25) “Vermont net operating loss” means any negative income after allocation and apportionment of Vermont net income pursuant to section 5833 of this chapter.
Sec. 16. 32 V.S.A. § 5832 is amended to read:
§ 5832. TAX ON INCOME OF CORPORATIONS
A tax is imposed for each calendar year, or fiscal year ending during that calendar year, upon the income earned or received in that taxable year by every taxable corporation, reduced by any Vermont net operating loss allowed under section 5888 of this title, such tax being the greater of
Sec. 17. 32 V.S.A. § 5888(4)(B) is amended to read:
(4) Notwithstanding any other provision of law:
(B) The amount of any Vermont net operating loss, or net operating loss carryback or carryforward, which is available to a taxpayer under the laws of the United States, shall be available to a taxpayer in the determination of his Vermont tax, provided, however, that the amount of any refund due to a net operating loss carryback shall not exceed $5,000.00 for any taxable year as a carryforward in the ten years following the loss year. Such amount shall not be adjusted in any manner for any reason, and, particularly shall not be increased in any amount on account of the fact that the taxpayer’s income under the laws of the United States included amounts of income which are not subject to taxation by the states.
Sec. 18. TRANSITION
The transition rules for implementation of Secs. 15, 16 and 17 of this act shall be:
(1) For losses occurring in taxable year 2007, the amount of net operating loss carryforward available under 32 V.S.A. § 5888(4)(B) shall be the same proportion of the Vermont net operating loss as the proportion of the federal net operating loss that was carried forward in determining federal taxable income increased by ten percent of remaining Vermont net operating loss.
(2) For losses occurring in taxable year 2008, the amount of net operating loss carryforward available under 32 V.S.A. § 5888(4)(B) shall be the same proportion of the Vermont net operating loss as the proportion of the federal net operating loss that was carried forward in determining the federal taxable income increased by 30 percent of remaining Vermont net operating loss.
(4) For losses occurring in taxable years 2009 and after, the full amount of the Vermont net operating loss may be carried forward.
Sec. 19. FARM EMPLOYEE HOUSING STUDY
(a) The director of property valuation and review and the secretary of agriculture, food and markets shall study the proposal to expand the use value definition of “farm buildings” to include the following language:
“With respect to a dwelling used to house farm employees, the dwelling shall be on a parcel of no more than two acres situated on enrolled land or surrounded by enrolled land, or surrounded by enrolled land interrupted only by road frontage, as long as the ownership of the dwelling and the enrolled land is in the same family.”
(b) The director and secretary shall analyze the possible effects of the proposed new definition, including:
(1) the number and types of buildings which could be enrolled in the use value program, and possible land configurations which could be affected by the new definition;
(2) the potential benefits to the agricultural community; and
(3) the potential costs to the state’s education fund and general fund.
(c) The director and secretary shall report their analysis and any recommendations to the chairs of the house and senate committees of jurisdiction by January 15, 2007.
Sec. 20. PROPERTY TAXATION OF TRAILER COACHES
The legislative council, in consultation with the division of property valuation and review, the Vermont Association of Listers and Assessors, and the Vermont Campground Association, Inc., shall draft a proposal to amend the property tax laws to allow taxation or tax-exemption of trailer coaches in a fair and equitable manner, which can be applied uniformly across the state. The legislative council shall present its draft to the house committee on ways and means and the senate committee on finance by January 15, 2007.
Sec. 21. 32 V.S.A. § 5930u(c), (d), and (g) are amended to read:
(d) Availability of credit. Affordable The amount of affordable housing tax credits credit allocated with respect to a project shall be available to the taxpayer in each of every year for five consecutive tax years, beginning with the tax year in which the eligible cash contribution is made. Total tax credits available to the taxpayer shall be the amount of the first-year allocation plus the succeeding four years’ deemed allocations.
(g) In any calendar fiscal year, the allocating agency shall not award a total amount of tax credits may award up to $400,000.00 in total first-year credit allocations to all applicants under this subchapter in excess of $150,000.00. In any fiscal year, total first-year allocations plus succeeding-year deemed allocations shall not exceed $2,000,000.00.
Sec. 22. ADMINISTRATION REPORT ON NEW AFFORDABLE
(a) The agency of commerce and community development and the department of taxes, in consultation with the Vermont housing finance agency and the affordable housing coalition, are requested to study whether an additional tax credit or other alternative form of incentive would enable more low and moderate income individuals to become first-time homebuyers in Vermont. The study should include:
(1) a description of possible recipients of the credit, for example, whether the credit would be available to employers who provide homebuying assistance to employees, to income-eligible homebuyers, or others;
(2) any limits on the credit;
(3) a description of those who would be eligible for homebuying assistance under the proposal;
(4) a description of the goals of the credit, including the homebuying assistance which would be provided, how and by whom, and the costs of the assistance provided;
(5) an analysis of the annual cost of the proposal to the revenues of the state beginning in fiscal year 2008;
(6) an analysis of the effectiveness of existing tax credits in other states for employer assistance to low and moderate income employees on first-home purchases; and
(7) detailed information on the number of first-time homebuyers currently aided by VHFA, including income levels, the form of aid received, the price of homes purchased, whether this initial aid is sufficient to allow continued ownership, and, if not, what additional issues need to be addressed.
(b) The agency of commerce and community development and the department of taxes shall report their findings to the standing committees of jurisdiction of the house and senate by December 1, 2006.
Sec. 23. 32 V.S.A. § 312 is amended to read:
(b) Tax expenditure reports. Biennially, as part of the budget process, beginning January 15, 2009, the department of taxes shall file with the house committees on ways and means and appropriations and the senate committees on finance and appropriations a report on tax expenditures in the personal and corporate income, sales and use, and meals and rooms tax returns, insurance premium tax and bank franchise tax returns, and education property tax grand lists and such other tax expenditures for which the joint fiscal office and the tax department jointly have produced revenue estimates. The report shall include, for each tax expenditure, the following information:
Sec. 24. EFFECTIVE DATE AND TRANSITION RULE
Secs. 21, 22 and 23 of this act (affordable housing tax credits) shall take effect upon passage except that the Sec. 21 increase in the amount available for affordable housing investment tax credits shall take effect July 1, 2006; the total amount of first-year tax credits which may be allocated in fiscal year 2007 under 32 V.S.A. § 5930u(g) shall be limited to $300,000.00; and the total amount of first-year tax credits which may be allocated in fiscal years 2008 and after shall be $400,000.00.
Sec. 25. 32 V.S.A. § 3802(11)(B) is amended to read:
(11)(B)
An unremarried widow or widower of a previously qualified veteran shall be entitled to the exemption provided in this subdivision whether or not he or she is receiving government compensation or pension. By majority vote of those present and voting at an annual or special meeting warned for the purpose, a town may increase the veterans’ exemption under this subsection to up to $20,000.00 $40,000.00 of appraisal value. Any increase in exemption shall take effect for the taxable year in which it was voted, and shall remain in effect for future taxable years until amended or repealed by a similar vote.
Sec. 26. EFFECTIVE DATES
(3) Sec. 5 (streamlined sales tax agreement conforming language) shall take effect on the first day of the second quarter following the date of Vermont’s membership in the Multistate Streamlined Sales and Use Tax Agreement.
(4) Sec. 6 of this act (expanding the higher education investment plan tax credit) shall apply to contributions made in taxable years 2007 and after.
(5) Sec. 7 of this act (payments in lieu of taxes for tax-exempt state college buildings) shall take effect July 1, 2006; and Sec. 8 of this act (limitation on state college property tax exemption to property used for educational and not commercial purposes) shall apply to grand lists of April 1, 2011 and after.
(6) Secs. 9 and 10 of this act (angel venture capital credit) shall apply to taxable years 2006 and after.
(7) Sec. 14 of this act (correcting arithmetic error in tax table) shall apply to taxable year 2006 only.
Approved: May 31, 2006