reglab/statecodes huggingface dataset:
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5866. Supplemental information; changes in federal tax liability or taxable income

§ 5866. Supplemental information; changes in federal tax liability or taxable income
(a) If, after the time for filing any return required by this chapter, a taxpayer:
(1) becomes aware of any information that makes that return materially false, inaccurate, or incomplete;
(2) is notified of any assertion by the United States, whether under 26 U.S.C. § 6212 or otherwise, that the taxpayer’s taxable income under the laws of the United States is other than the amount stated in the return; or
(3) files an amended return under the laws of the United States, the taxpayer shall, within 180 days of the receipt of that information or notification of that assertion or filing that amended return, notify the Commissioner thereof, and of such particulars as may be relevant to the amount of any tax liability of the taxpayer under this chapter.
(b) Any notice required to be given to the Commissioner under this section shall be considered to be a return for purposes of this chapter, and a taxpayer required to file any such return shall be subject, with respect thereto, to the provisions of this chapter, including the provisions governing fees for failure to file a return, except as those provisions conflict with the express provisions of this section.
(c) If a change in federal tax liability results from the audit of a partnership or an adjustment of a partnership’s taxable income under 26 U.S.C. subtitle F, chapter 63, subchapter C, the taxpayer shall file and amend returns and pay tax owed pursuant to section 5866a of this title. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2005, No. 94 (Adj. Sess.), § 4, eff. March 8, 2006; 2019, No. 175 (Adj. Sess.), § 17, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 539, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 12, eff. January 1, 2022.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5867. Form and verification of returns

§ 5867. Form and verification of returns
The returns required to be filed under this chapter shall be in such form and manner as the Commissioner prescribes in order to ensure payment of the taxes imposed by this chapter and shall be filed at the main office of the Department of Taxes. Those returns shall be verified by written declarations that the statements therein are made subject to the pains and penalties of perjury. When a return is made by a corporation, the person signing it shall be considered to be the person who is subject to the pains and penalties of perjury. The Commissioner shall cause to be prepared blank forms for the returns and shall cause them to be distributed throughout the State and to be furnished upon application, but failure to secure or receive such a form shall not relieve a taxpayer from the obligation of filing any return herein required. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5868. Extension of time for filing of returns

§ 5868. Extension of time for filing of returns
The Commissioner may extend the time within which a taxpayer is required to file a return. The Commissioner shall extend the time for filing a taxpayer’s Vermont income tax return to the extended date for filing the United States income tax return if the taxpayer has been granted either an automatic or a good cause extension of time for filing the United States income tax return, except that the time for filing a corporation’s Vermont income tax return shall be extended to one month after the extended date for filing the United States income tax return. An extension of the time in which to file a return will not result in a corresponding extension of the time for the payment of the tax liability with respect to which the return is filed. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1979, No. 105 (Adj. Sess.), § 6; 1981, No. 191 (Adj. Sess.), § 7; 1989, No. 222 (Adj. Sess.), § 11, eff. May 31, 1990; 1991, No. 67, § 5, eff. June 19, 1991; 2019, No. 175 (Adj. Sess.), § 18, eff. Oct. 8, 2020.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5870. Reporting use tax on individual income tax returns

§ 5870. Reporting use tax on individual income tax returns
(a) The Commissioner of Taxes shall provide that individuals report use tax on their State individual income tax returns. Taxpayers are required to attest to the amount of their use tax liability under chapter 233 of this title for the period of the tax return. Alternatively, they may elect to report an amount that is a percentage of their adjusted gross income determined under subsection (b) of this section, and use tax liability arising from the purchase of each item with a purchase price in excess of $1,000.00 shall be added to the table amount shown under subsection (b) of this section.
(b) The amount of use tax a taxpayer may elect to report under subsection (a) of this section shall be based on the taxpayer’s adjusted gross income as determined by the following tables; provided, however, that a taxpayer shall not be required to pay more than $150.00 for use tax liability under this subsection arising from total purchases of items with a purchase price of $1,000.00 or less.
If adjusted gross income is: The tax is:
Not over $20,000.00 $ 0.00
$20,001.00 to $30,000.00 $10.00
$30,001.00 to $40,000.00 $15.00
$40,001.00 to $50,000.00 $20.00
$50,001.00 to $60,000.00 $25.00
$60,001.00 to $70,000.00 $30.00
$70,001.00 to $80,000.00 $35.00
$80,001.00 to $90,000.00 $40.00
$90,001.00 to $100,000.00 $45.00
$100,001.00 and over the lesser of $150.00 or
0.05% of adjusted gross income.
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5871. Payments by individuals, trusts, and estates

§ 5871. Payments by individuals, trusts, and estates
In the case of individuals, trusts, and estates, the income tax liability imposed by this chapter shall be discharged as follows:
(1) In the case of those taxpayers whose wages are subject to withholding, by periodic withholding within the taxable year for which the tax is imposed, or within such longer period as the Commissioner by regulation may prescribe.
(2) In the case of those taxpayers required to make installment payments of estimated non-withheld tax under subchapter 5 of this chapter by those payments.
(3) All income tax liabilities not theretofore discharged by withholding or installment payments shall be paid on or before the date when the return of the taxpayer for the taxable year is required to be filed. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5872. Payment by corporations

§ 5872. Payment by corporations
In the case of corporations, if the income tax liability is, or is expected to be, in excess of $500.00, the income tax liability imposed by this chapter shall be discharged in accordance with subchapter 5A of this chapter; any balance due shall be paid on or before the date on which the return of the corporation for the taxable year is required to be filed (determined with regard to any extension of time for filing). Payments made under extension are subject to interest pursuant to section 5868 of this title. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 73, § 19, eff. April 16, 1971; 1975, No. 1 (Sp. Sess.), § 12, eff. Jan. 1, 1976; 1979, No. 105 (Adj. Sess.), § 8; 1989, No. 119, § 7, eff. June 22, 1989.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5873. Extension of time for payment

§ 5873. Extension of time for payment
For good cause shown, the Commissioner may extend the time for the payment of any tax liability, but the taxpayer shall pay, at the time the tax liability is paid, without assessment or demand, interest computed at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title on the unpaid amount of that tax liability from the time when the liability was originally due to the time of payment. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1979, No. 105 (Adj. Sess.), § 9; 1981, No. 191 (Adj. Sess.), § 7.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5874. Method of payment

§ 5874. Method of payment
All tax liabilities imposed by this chapter may be paid pursuant to section 3110 of this title. A tax liability may be paid with uncertified check, but if an uncertified check is not honored by the bank on which it is drawn, the taxpayer shall remain liable for the payment of the tax and for all lawful penalties and interest, in the same manner as if the check had not been tendered. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2021, No. 73, § 5.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5882. Time limitation on notices of deficiency and assessment of penalty and interest

§ 5882. Time limitation on notices of deficiency and assessment of penalty and interest
(a) The Commissioner may notify a taxpayer of a deficiency with respect to the payment of any tax liability, or assess a penalty or interest with respect thereto, in accordance with section 3202 of this title, at any time within three years after the date that tax liability was originally required to be paid under this chapter.
(b) Notwithstanding subsection (a) of this section:
(1) If the taxpayer fails to file a proper return with respect to any tax liability at the time prescribed for its filing, the notification or assessment may be made at any time before the end of three years after the taxpayer files such a return.
(2) If the deficiency is caused by reason of fraud or the willful intent of the taxpayer to defeat or evade this chapter, the notification or assessment may be made at any time.
(3) If the notice of deficiency or assessment is founded upon an assertion or determination by the United States that the taxable income, or income tax liability, of the taxpayer under the laws of the United States is greater than the amount of the taxable income or income tax liability reported on any return of the taxpayer filed under the laws of the United States, the notification or assessment under section 3203 of this title may be made within the time prescribed under subsection (a) of this section, or at any time before the expiration of six months after the date the Commissioner is notified, in writing, by the taxpayer or by the United States of the federal assertion or determination, whichever period is the later to expire.
(4) If the taxpayer and Commissioner agree, the notification or assessment may be made at any time before the date so agreed upon.
(5) If a person withholds tax under subchapter 4 of this chapter but underreports the tax withheld by 20 percent or more, the notification or assessment may be made at any time before the expiration of six years from the date of the filing of such return.
(6) If the notice or deficiency is based upon a refund that was paid in error, the notification or assessment under section 3203 of this title may be made within the time prescribed under subsection (a) of this section or at any time before the expiration of one year after the date the refund was paid, whichever period is the later to expire. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1989, No. 119, § 13, eff. June 22, 1989; 2007, No. 190 (Adj. Sess.), § 21, eff. June 6, 2008.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5883. Determination of deficiency, refund, or assessment

§ 5883. Determination of deficiency, refund, or assessment
Upon receipt of a notice of deficiency, of denial or reduction of a refund claim, or of assessment of penalty or interest under section 3203 of this title, the taxpayer may, within 60 days after the date of mailing of the notice or assessment, petition the Commissioner in writing for a determination of that deficiency, refund, or assessment. The Commissioner shall thereafter grant a hearing upon the matter and notify the taxpayer in writing of his or her determination concerning the deficiency, refund, or assessment. (Added 1966 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1975, No. 154 (Adj. Sess.), § 1, eff. date, see note set out below; 1979, No. 105 (Adj. Sess.), § 12; 1989, No. 222 (Adj. Sess.), § 34; 2007, No. 190 (Adj. Sess.), § 22, eff. June 6, 2008; 2013, No. 73, § 23, eff. June 5, 2013.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5885. Procedure for hearings by Commissioner; appeals

§ 5885. Procedure for hearings by Commissioner; appeals
(a) Any hearing granted by the Commissioner under section 5883 or 5884 of this title shall be subject to and governed by 3 V.S.A. chapter 25.
(b) Any aggrieved taxpayer may, within 30 days after a determination by the Commissioner concerning a notice of deficiency, an assessment of penalty or interest, or a claim to refund, appeal that determination to the Washington Superior Court or the Superior Court of the county in which the taxpayer resides or has a place of business. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 185 (Adj. Sess.), § 224, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1979, No. 105 (Adj. Sess.), § 13; 1997, No. 50, § 20, eff. June 26, 1997.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5886. Payment and collection of deficiencies and assessments; jeopardy notices

§ 5886. Payment and collection of deficiencies and assessments; jeopardy notices
(a) Upon notification to a taxpayer of any deficiency, and upon assessment against the taxpayer of any penalty or interest, under sections 3202 and 3203 of this title, the amount of the assessment shall be payable immediately and the amount of the deficiency and assessment shall be collectible by the Commissioner 60 days after the date of the notification or assessment. The collection by the Commissioner of the deficiency, penalty, or interest shall be stayed:
(1) if the taxpayer files a petition for determination by the Commissioner in accordance with section 5883 of this title, collection shall be stayed until 30 days after the notification of the taxpayer of the determination;
(2) if within 30 days of the notification of determination the taxpayer files a notice of appeal, collection shall be stayed pending judgment of the court upon the appeal; and
(3) under such further circumstances and upon such terms as the Commissioner prescribes.
(b) Notwithstanding subsection (a) of this section, the Commissioner, if he or she believes the collection from a taxpayer of any deficiency, penalty, or interest to be in jeopardy, may demand, in writing, that the taxpayer pay the deficiency, penalty, or interest forthwith. The demand may be made concurrently with, or after, the notice of deficiency or the assessment of penalty, or interest given to the taxpayer under sections 3202 and 3203 of this title. The amount of deficiency, penalty, or interest shall be collectible by the Commissioner on the date of the demand, unless the taxpayer files with the Commissioner a bond in an amount equal to the deficiency, penalty, or interest sought to be collected as security for such amount as finally may be determined. In the event that it is finally determined that the taxpayer was not liable for the amount of the deficiency, penalty, or interest referred to in any demand under this subsection, the Commissioner shall reimburse the taxpayer promptly upon such determination for the reasonable cost to the taxpayer of any bond obtained by him or her for the purposes of this subsection. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 185 (Adj. Sess.), § 225, eff. March 29, 1972; 1979, No. 105 (Adj. Sess.), § 14; 1995, No. 29, § 23, eff. April 14, 1995; 2017, No. 74, § 138; 2021, No. 105 (Adj. Sess.), § 540, eff. July 1, 2022.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5887. Remedy exclusive; determination final

§ 5887. Remedy exclusive; determination final
(a) The exclusive remedy of a taxpayer with respect to the refund of monies paid in connection with a return filed under this chapter shall be the petition for refund provided under section 5884 of this title and the appeal from an adverse determination of the petition for refund provided under section 5885 of this title. The exclusive remedy of a taxpayer with respect to a notification of deficiency or assessment of penalty or interest under sections 3202 and 3203 of this title shall be the petition for determination of the deficiency or assessment provided under section 5883 of this title and the appeal from an adverse determination of deficiency or assessment provided under section 5885 of this title.
(b) Upon the failure of a taxpayer to petition in accordance with section 5883 of this title from a notice of deficiency or assessment under sections 3202 and 3203 of this title, or to appeal in accordance with section 5885 of this title from a determination of a deficiency or assessment of tax liability under section 5883 of this title, the taxpayer shall be bound by the terms of the notification, assessment, or determination, as the case may be. The taxpayer shall not thereafter contest, either directly or indirectly, the tax liability as therein set forth in any proceeding, including a proceeding upon a claim of refund of all or any part of any payment made with respect to the tax liability or a proceeding for the enforcement or collection of all or any part of the tax liability.
(c) Notwithstanding subsections (a) and (b) of this section, the Commissioner may compromise a tax liability arising under this title upon the grounds of doubt as to liability or doubt as to collectibility, or both. Upon acceptance by the Commissioner of an offer in compromise, the liability of the taxpayer in question is conclusively settled, and neither the taxpayer nor the Commissioner may reopen the case except by reason of falsification or concealment of assets by the taxpayer or mutual mistake of a material fact or if, in the opinion of the Commissioner, justice requires it. The decision of the Commissioner to reject an offer in compromise is not subject to review. The Commissioner may adopt rules regarding the procedures to be followed for the submission and consideration of offers in compromise. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2011, No. 45, § 36f, eff. May 24, 2011; 2017, No. 74, § 139.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5891. Tax a debt to the State

§ 5891. Tax a debt to the State
Any tax liability imposed by this chapter becomes, from the time the tax liability is due and payable, a debt of the taxpayer to the State to be recovered in an action on this title. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5892. Action to collect taxes; limitations

§ 5892. Action to collect taxes; limitations
(a) Action may be brought by the Attorney General of the State at the instance of the Commissioner in the name of the State to recover the amount of the tax liability of any taxpayer, if the action is brought within six years after the date the tax liability was collectible under section 5886 of this title. The action shall be returnable in the county where the taxpayer resides or has a place of business, and if the taxpayer neither resides nor has a place of business in this State, the action shall be returnable in Washington County.
(b) Notwithstanding 12 V.S.A. §§ 3167 and 3168, a motion may be brought by the Attorney General of the State at the instance of the Commissioner in the name of the State for issuance of trustee process at the same time as an action is brought under subsection (a) of this section, and, if judgment is granted in that action, the court may proceed immediately to hear and render a decision on the trustee process. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2009, No. 1 (Sp. Sess.), § H.27, eff. June 2, 2009.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5893. Levy for nonpayment

§ 5893. Levy for nonpayment
When all or any portion of a tax liability imposed by this chapter is not paid within 60 days after it becomes collectible under section 5886 of this title, the Commissioner may issue a warrant under his or her hand and official seal directed to the sheriff of any county of this State. The warrant shall command the sheriff to levy upon and sell the real and personal property of the taxpayer for the payment of the unpaid tax liability imposed by this chapter, together with allowable fees and costs. The levy and sale shall be effected in the manner, and shall be subject to the limitations, prescribed for the levy, distraint, and sale of property for the nonpayment of town taxes under sections 5191-5193 and 5253-5263 of this title. The sheriff shall return the warrant to the Commissioner and pay to him or her the money collected thereunder within the time specified in the warrant. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5894. Liability for failure or delinquency

§ 5894. Liability for failure or delinquency
(a) Failure to supply information. An individual, fiduciary, or officer or employee of any corporation or partner or employee of any partnership who, with intent to evade any requirement of this chapter or any lawful requirement of the Commissioner hereunder, fails to supply any information required by or under this chapter shall be fined not more than $1,000.00 or be imprisoned not more than one year, or both.
(b) Failure to file. An individual, fiduciary, or officer or employee of any corporation or partner or employee of any partnership who knowingly fails to file a tax return when due shall be imprisoned not more than one year or fined not more than $1,000.00, or both.
(c) Failure to pay. An individual, fiduciary, or officer or employee of any corporation or partner or employee of any partnership who, with intent to evade a tax liability, fails to pay a tax when due shall, if the amount of tax evaded is $500.00 or less in a single calendar year, be imprisoned not more than one year or fined not more than $1,000.00, or both.
(d) Failure to file or failure to pay; in excess of $500.00. An individual, fiduciary, or officer or employee of a corporation or partner or employee of a partnership who, with intent to evade a tax liability, fails to file a tax return when required to do so or fails to pay a tax when due shall, if the amount of tax evaded is in excess of $500.00 in a single calendar year, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(e) False or fraudulent return. An individual, fiduciary, or officer or employee of a corporation or partner or employee of a partnership who knowingly makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall be imprisoned not more than one year or fined not more than $1,000.00, or both. An individual, fiduciary, or officer or employee of a corporation or partner or employee of a partnership who, with intent to evade a tax liability, makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall, if the amount of tax evaded is more than $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(f) Violations from income derived from illegal activity. An individual, fiduciary, officer, or employee of any corporation or a partner or employee of any partnership who violates subsections (a)-(e) of this section based on income derived from illegal activity shall be imprisoned not more than three years or fined not more than $10,000.00, or not more than $100,000.00 if the violation was based on income derived from the unlawful sale of a regulated drug in violation of 18 V.S.A. chapter 84, or both. The penalty provided in this subsection shall be in addition to any other civil or criminal penalties provided by law. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1987, No. 48, § 9; 2013, No. 76, § 7; 2019, No. 40, § 12.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5901. Consent to use or disclosure of information

§ 5901. Consent to use or disclosure of information
(a) Any return of the tax imposed by this chapter, other than a declaration of estimated tax required by this chapter, which is prepared by a person other than the taxpayer, shall contain a written declaration, under the penalties of perjury, by the person preparing the return or declaration that the statements therein are true, correct, and complete, based on all information of which the preparer has any knowledge, and that, either:
(1) he or she has not used and will not use any information furnished by the taxpayer for any purpose other than the preparation of the return or declaration, and has not made and will not make any such information available to any other person for any such purpose; or
(2) he or she has obtained a valid consent of the taxpayer to use such information for purposes other than the preparation of the return or declaration or to make such information available to another person or persons for such purposes.
(b) For the purposes of subdivision (a)(2) of this section, a consent of a taxpayer shall be valid only if it:
(1) is set forth in a separate document signed by the taxpayer;
(2) is printed in eight point or larger type or is typed or written in letters of comparable size; and
(3) specifies the information that may be used by the preparer or made available by him or her to another person or persons and the purpose or purposes for which such information may be used or made available. (Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972; amended 1985, No. 266 (Adj. Sess.), § 6, eff. June 4, 1986.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5902. Persons preparing returns

§ 5902. Persons preparing returns
A person shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both, if he or she receives any information furnished by a taxpayer to enable such person to prepare or have prepared for such taxpayer a return of the tax imposed by this chapter or a declaration of estimated tax required by this chapter and he or she:
(1) uses any such information for any purpose other than the preparation of the return or declaration or makes any such information available to any other person for any such purpose, unless a valid consent, as described in section 5901 of this title, to so use such information or to so make such information available has been obtained; or
(2) uses any such information, or makes any such information available, for a purpose not specified in such valid consent. (Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5903. Exceptions

§ 5903. Exceptions
Section 5902 of this title shall not apply to a disclosure of information if such disclosure is made:
(1) pursuant to subdivision 3102(d)(4) of this title; or
(2) pursuant to an order of a court. (Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972; amended 2003, No. 70 (Adj. Sess.), § 42, eff. March 1, 2004.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5910. Definitions; federal conformity

§ 5910. Definitions; federal conformity
(a) As used in this subchapter:
(1) “C corporation” means a corporation that is not an S corporation.
(2) “Code” means the Internal Revenue Code of 1986, as amended and as applicable to the taxable period; references to sections of the Code shall be deemed to refer to corresponding provisions of prior and subsequent federal tax laws.
(3) “Income attributable to Vermont” means items of income, loss, deduction, or credit of the S corporation allocated and apportioned to Vermont pursuant to section 5833 of this title.
(4) “Income not attributable to Vermont” means all items of income, loss, deduction, or credit of the S corporation other than income attributable to Vermont.
(5) “Pro rata share” means the portion of any item attributable to an S corporation shareholder for a taxable period determined in the manner provided in, and subject to any election made under, subsection 1377(a) or 1362(e), as the case may be, of the Code.
(6) “S corporation” means a corporation for which a valid election under subsection 1362(a) of the Code is in effect.
(7) “Taxable period” means any taxable year or portion of a taxable year during which a corporation is an S corporation.
(b) Except as otherwise expressly provided or clearly appearing from the context, any term used in this subchapter shall have the same meaning as when used in comparable context in the Code, or in any statute relating to federal income taxes, in effect for the taxable period. Due consideration shall be given in the interpretation of this subchapter to applicable sections of the Code in effect from time to time and to federal rulings and regulations interpreting such sections, provided such Code, rulings, and regulations do not conflict with the provisions of this subchapter. (Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996; amended 2021, No. 105 (Adj. Sess.), § 543, eff. July 1, 2022.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5911. Taxation of an S corporation and its shareholders

§ 5911. Taxation of an S corporation and its shareholders
(a) An S corporation shall not be subject to the tax imposed by section 5832 of this title, except to the extent of income taxable to the corporation under the provisions of the Internal Revenue Code.
(b) For the purposes of section 5823 of this title, each shareholder’s pro rata share of the S corporation’s income attributable to Vermont and each resident shareholder’s pro rata share of the S corporation’s income not attributable to Vermont shall be taken into account by the shareholder in the manner provided in 26 U.S.C. § 1366. (Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996; amended 2021, No. 105 (Adj. Sess.), § 544, eff. July 1, 2022.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5913. Part-year residence

§ 5913. Part-year residence
For purposes of this subchapter, if a shareholder of an S corporation is both a resident and nonresident of Vermont during any taxable period, the shareholder’s pro rata share of the S corporation’s income attributable to Vermont and income not attributable to Vermont for the taxable period shall be further prorated between the shareholder’s periods of residence and nonresidence during the taxable period, in accordance with the number of days in each period. (Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5915. Minimum tax

§ 5915. Minimum tax
An S corporation that is subject to the provisions of section 5914 of this title shall pay an annual tax of $250.00 to the Commissioner of Taxes on or before the due date prescribed for the filing of S corporation returns under subsection 6072(b) of the Internal Revenue Code. (Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996; amended 1997, No. 71 (Adj. Sess.), § 27a(a), eff. March 11, 1998; 2015, No. 134 (Adj. Sess.), § 14, eff. May 25, 2016.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5916. Tax credits

§ 5916. Tax credits
For purposes of section 5825 of this title, no credit shall be available to a resident individual, estate, or trust, for taxes imposed by another state or territory of the United States, the District of Columbia, or a Province of Canada upon an S corporation or the income of an S corporation. (Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5921. Minimum tax

§ 5921. Minimum tax
A partnership or a limited liability company that is taxed as a partnership under the Internal Revenue Code and is subject to the provisions of section 5920 of this title shall pay an annual tax of $250.00 to the Commissioner of Taxes on or before the due date prescribed for the filing of the entity’s federal return. The tax shall be submitted together with a form prescribed by the Commissioner. A limited liability company that does not receive partnership treatment under the Internal Revenue Code shall be taxed for State purposes in the same manner as taxed under the Internal Revenue Code. Partnerships whose activities are limited to the maintenance and management of their intangible investments and whose annual investment income does not exceed $5,000.00 and whose total assets are not in excess of $20,000.00 shall be exempt from the tax imposed by this section. (Added 1995, No. 169 (Adj. Sess.), § 24, eff. May 15, 1996; amended 1997, No. 50, § 23, eff. June 26, 1997; 1997, No. 71 (Adj. Sess.), § 27a(b), eff. March 11, 1998; 1997, No. 156 (Adj. Sess.), § 37a, eff. April 29, 1998.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5930bb. Eligibility and administration

§ 5930bb. Eligibility and administration
(a) Qualified applicants may apply to the State Board to obtain the tax credits provided by this subchapter for a qualified project at any time before the completion of the qualified project.
(b) To qualify for any of the tax credits under this subchapter, expenditures for the qualified project must exceed $5,000.00.
(c) Application shall be made in accordance with the guidelines set by the State Board.
(d) Notwithstanding any other provision of this subchapter, qualified applicants may apply to the State Board at any time prior to June 30, 2013 to obtain a tax credit not otherwise available under subsections 5930cc(a)-(c) of this title of 10 percent of qualified expenditures resulting from damage caused by a federally declared disaster in Vermont in 2011. The credit shall only be claimed against the taxpayer’s State individual income tax under section 5822 of this title. To the extent that any allocated tax credit exceeds the taxpayer’s tax liability for the first tax year in which the qualified project is completed, the taxpayer shall receive a refund equal to the unused portion of the tax credit. If within two years after the date of the credit allocation no claim for a tax credit or refund has been filed, the tax credit allocation shall be rescinded and recaptured pursuant to subdivision 5930ee(6) of this title. The total amount of tax credits available under this subsection shall not be more than $500,000.00 and shall not be subject to the limitations contained in subdivision 5930ee(2) of this subchapter.
(e) Beginning on July 1, 2025, under this subchapter no new tax credit may be allocated by the State Board to a qualified building located in a neighborhood development area unless specific funds have been appropriated for that purpose. (Added 2005, No. 183 (Adj. Sess.), § 12; amended 2011, No. 143 (Adj. Sess.), § 22; 2013, No. 199 (Adj. Sess.), § 10; 2017, No. 69, § H.9, eff. June 28, 2017; 2021, No. 182 (Adj. Sess.), § 6, eff. July 1, 2022; 2023, No. 6, § 381, eff. July 1, 2023.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5930cc. Downtown and Village Center Program tax credits

§ 5930cc. Downtown and Village Center Program tax credits
(a) Historic rehabilitation tax credit. The qualified applicant of a qualified historic rehabilitation project shall be entitled, upon the approval of the State Board, to claim against the taxpayer’s State individual income tax, corporate income tax, or bank franchise or insurance premiums tax liability a credit of 10 percent of qualified rehabilitation expenditures as defined in 26 U.S.C. § 47(c), properly chargeable to the federally certified rehabilitation.
(b) Façade improvement tax credit. The qualified applicant of a qualified façade improvement project shall be entitled, upon the approval of the State Board, to claim against the taxpayer’s State individual income tax, State corporate income tax, or bank franchise or insurance premiums tax liability a credit of 25 percent of qualified expenditures up to a maximum tax credit of $25,000.00.
(c) Code improvement tax credit. The qualified applicant of a qualified code improvement project shall be entitled, upon the approval of the State Board, to claim against the taxpayer’s State individual income tax, State corporate income tax, or bank franchise or insurance premiums tax liability a credit of 50 percent of qualified expenditures up to a maximum tax credit of $12,000.00 for installation or improvement of a platform lift, a maximum credit of $60,000.00 for the installation or improvement of a limited use or limited application elevator, a maximum tax credit of $75,000.00 for installation or improvement of an elevator, a maximum tax credit of $50,000.00 for installation or improvement of a sprinkler system, and a maximum tax credit of $50,000.00 for the combined costs of all other qualified code improvements.
(d) Flood Mitigation Tax Credit. The qualified applicant of a qualified flood mitigation project shall be entitled, upon the approval of the State Board, to claim against the taxpayer’s State individual income tax, State corporate income tax, or bank franchise or insurance premiums tax liability a credit of 50 percent of qualified expenditures up to a maximum tax credit of $75,000.00. (Added 2005, No. 183 (Adj. Sess.), § 12; amended 2013, No. 199 (Adj. Sess.), § 11; 2015, No. 57, § 72, eff. June 11, 2015; 2019, No. 71, § 4; 2021, No. 105 (Adj. Sess.), § 548, eff. July 1, 2022; 2021, No. 182 (Adj. Sess.), § 10, eff. July 1, 2022.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5930dd. Claims; availability

§ 5930dd. Claims; availability
(a) A taxpayer claiming credit under this subchapter shall submit to the Department of Taxes with the first return on which a credit is claimed a copy of the State Board’s tax credit allocation.
(b) A credit under this subchapter shall be available for the first tax year in which the qualified project is complete. In the alternative, the State Board may allocate the credit available under this subchapter and make an allocation available upon completion of any distinct phase of a qualified project. The allocation and distinct phases of the qualified project shall be identified in the application package approved by the State Board.
(c) If within three years after the date of the credit allocation to the applicant no claim for tax credit has been filed, the tax credit allocation shall be rescinded, unless the project has an approved federal application for a phased (60 month) project pursuant to Treasury Regulation § 1.48-12(b)(2)(v), in which case the credit will not be rescinded until five years from the date of the credit allocation.
(d) Any unused credit under this section may be carried forward for no more than nine tax years following the first year for which the tax credit is claimed.
(e) In lieu of using a tax credit to reduce its own tax liability, an applicant may request the credit in the form of a bank credit certificate that a bank may accept in return for cash or may accept for adjusting the rate or term of the applicant’s mortgage or loan related to an ownership or leasehold interest in the qualified building. The amount of the bank credit certificate shall equal the unused portion of the credit allocated under this subchapter, and an applicant requesting a bank credit certificate shall provide to the State Board a copy of any returns on which any portion of the allocated credit under this section was claimed. A bank that purchases a bank credit certificate may use it to reduce its franchise tax liability under section 5836 of this title in the first tax year in which the qualified building is placed back in service after completion of the qualified project or in the subsequent nine years.
(f) In lieu of using a tax credit to reduce its own tax liability, an applicant may request the credit in the form of an insurance credit certificate that an insurance company may accept in return for cash and for use in reducing its tax liability under chapter 211, subchapter 7 of this title in the first tax year in which the qualified building is placed back in service after completion of the qualified project or in the subsequent nine years. The amount of the insurance credit certificate shall equal the unused portion of the credit allocated under this subchapter, and an applicant requesting an insurance credit certificate shall provide to the State Board a copy of any returns on which any portion of the allocated credit under this section was claimed. (Added 2005, No. 183 (Adj. Sess.), § 12; amended 2009, No. 160 (Adj. Sess.), § 30; 2011, No. 45, § 18, eff. May 24, 2011; 2019, No. 71, § 4.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5930ee. Limitations

§ 5930ee. Limitations
Beginning in fiscal year 2010 and thereafter, the State Board may award tax credits to all qualified applicants under this subchapter, provided that:
(1) the total amount of tax credits awarded annually, together with sales tax reallocated under section 9819 of this title, does not exceed $3,000,000.00;
(2) a total annual allocation of no more than 30 percent of these tax credits in combination with sales tax reallocation may be awarded in connection with all of the projects in a single municipality;
(3) façade tax credits shall not be available for projects that qualify for the federal rehabilitation tax credit;
(4) no credit shall be allowed under this subchapter for the cost of acquiring any building or interest in a building;
(5) credit under any one subsection of 5930cc of this subchapter may not be allocated more often than once every two years with respect to the same building; and
(6) credit awarded under section 5930cc of this subchapter that is rescinded or recaptured by the State Board shall be available for the State Board to award to applicants in any subsequent year, in addition to the total amount of tax credits authorized under this section. (Added 2005, No. 183 (Adj. Sess.), § 12; amended 2007, No. 81, § 23, eff. June 11, 2007; 2009, No. 54, § 29, eff. June 1, 2009; 2011, No. 45, § 19, eff. May 24, 2011; 2013, No. 174 (Adj. Sess.), § 35; 2017, No. 69, § H.8, eff. June 28, 2018; 2019, No. 71, § 4; 2019, No. 154 (Adj. Sess.), § E.802, eff. Oct. 2, 2020.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5930ff. Recapture

§ 5930ff. Recapture
If, within five years after completion of the qualified project, either of the following events occurs, the applicant shall be liable for a recapture penalty in an amount equal to the total tax credit claimed plus an amount equal to any value received from a bank for a bank or insurance credit certificate, and any credit allocated but unclaimed shall be disallowed to the applicant:
(1) The State Board finds that any work performed on the qualified project is inconsistent with the approved application; or the applicant knowingly failed to supply any information, or supplied incorrect or untrue information required by the State Board, or failed to comply with any award condition required by the State Board.
(2) The National Park Service revoked certification for unapproved alterations or for work not done as described in the historic preservation certification application. (Added 2005, No. 183 (Adj. Sess.), § 12; amended 2009, No. 160 (Adj. Sess.), § 31.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5930ii. Research and development tax credit

§ 5930ii. Research and development tax credit
(a) A taxpayer of this State shall be eligible for a credit against the tax imposed under this chapter in an amount equal to 27 percent of the amount of the federal tax credit allowed in the taxable year for eligible research and development expenditures under 26 U.S.C. § 41(a) that are made within this State.
(b) Any unused credit available under subsection (a) of this section may be carried forward for up to 10 years.
(c) Each year, on or before January 15, the Department of Taxes shall publish a list containing the names of the taxpayers who have claimed a credit under this section during the most recent completed calendar year. (Added 2009, No. 2 (Sp. Sess.), § 22; amended 2013, No. 174 (Adj. Sess.), § 37, eff. Jan. 1, 2014.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5932. Definitions

§ 5932. Definitions
As used in this chapter:
(1) “Claimant agency” means any unit of State government, including agencies, departments, boards, commissions, authorities, or public corporations, including the Vermont Student Assistance Corporation and a collection agency under contract with the Court Administrator pursuant to 4 V.S.A. § 1109(d) or 13 V.S.A. § 7171. Notwithstanding the foregoing, the Department of Taxes shall not be considered a claimant agency and shall not be subject to the limitations contained in this chapter when it applies a refund to the outstanding Vermont State tax liability of a taxpayer, including a taxpayer’s liability for interest, penalties, and fees.
(2) “Debtor” means any individual owing a debt to a claimant agency or owing any support debt that may be collected by the Department for Children and Families.
(3) “Nondebtor spouse” means any individual who is not a debtor, but has filed a joint income tax return or claim under chapter 154 of this title with a debtor.
(4) “Debt” means any obligation to pay a sum of money to a claimant agency, the amount of which is fixed by agreement between the debtor and the claimant agency or by operation of law.
(5) “Department” means the Vermont Department of Taxes.
(6) “Refund” means any individual’s State income tax refund under chapter 151 of this title and any payment due a claimant under chapter 154 of this title.
(7) “Support debt” means a support delinquency pursuant to an obligation determined under a court order or as a result of an administrative process established by this or another state.
(8) “Court” means a Superior Court or the Judicial Bureau.
(9) “Judgment debtor” means any person who has not paid in full a court judgment for payment of a fine, penalty, surcharge, or fee, but not damages, due and payable to the State or a political subdivision thereof. (Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 1985, No. 63, §§ 15, 15a; 1987, No. 278 (Adj. Sess.), § 14, eff. June 21, 1988; 1999, No. 147 (Adj. Sess.), § 4; 2001, No. 144 (Adj. Sess.), § 26, eff. June 21, 2002; 2003, No. 57, § 13, eff. July 1, 2004; 2005, No. 38, § 11, eff. June 2, 2005; 2005, No. 167 (Adj. Sess.), § 4, eff. Sept. 1, 2006; 2005, No. 174 (Adj. Sess.), § 64; 2007, No. 33, § 3, eff. May 18, 2007; 2009, No. 4, § 115, eff. April 24, 2009; 2009, No. 154 (Adj. Sess.), § 216.)
2023 Vermont Statutes › Title 32 - Taxation and Finance › Chapter 151 - Income Taxes › § 5933. Collection of debts through setoff

§ 5933. Collection of debts through setoff
(a) A claimant agency may submit any debt of $45.00 or more to the Department for collection under the procedure established by this chapter. This setoff debt collection remedy is in addition to and not in substitution for any other remedy available by law.
(b) The Department shall, upon request of a claimant agency, set off any refund that it owes to a debtor against the amount of debt certified by a claimant agency in accordance with the procedure established by section 5934 of this chapter. (Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2019, No. 175 (Adj. Sess.), § 25a, eff. Oct. 8, 2020.)