Taxes

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Online sales costing Vermont millions in tax revenue

MONTPELIER — The state will take in another $8 million or so in annual sales tax revenue now that Amazon has agreed to collect and remit it, but the state will continue to miss out on about $13 million more from online purchases and mail orders, according to the Legislature’s Joint Fiscal Office. Vermont’s sale tax must be collected from retailers who have a presence, or what is known as nexus, in the state. The state has tried without success in recent years to collect the sales tax for online purchases from retailers who do not have a presence in Vermont. Amazon, the nation’s largest online retailer, began voluntarily collecting Vermont’s 6 percent sales tax this month. But plenty of other online retailers continue to sell goods to Vermonters without collecting the tax. Continue Reading →

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House members propose paid leave, governor promises veto

MONTPELIER — House lawmakers unveiled a proposal Thursday for a state-run paid family leave program, which Gov. Phil Scott promised to veto just hours later. Reps. Matt Trieber, D-Bellows Falls, Sam Young, D-Glover, and Sarah Copeland-Hanzas, D-Bradford, said at a State House news conference Thursday they plan to file a bill that will create the pooled insurance program that provides Vermonters up to 12 weeks of paid family leave. The program, which they said will likely be administered by the Vermont Department of Labor, would be funded by a 0.93 percent payroll tax that will be split evenly between employees and employers. Employees would be able to access 100 percent of their regular pay while on approved family or medical leave under the measure. Continue Reading →

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Amazon to collect state sales tax

Editor’s Note: This story was updated at 4:30 p.m. to include comments from the governor’s office. MONTPELIER — Online retail giant Amazon has agreed to begin collecting and remitting the state’s sales tax, providing a boost in revenue as the state faces another gap between revenues and spending in the 2018 fiscal year budget. News of Amazon’s decision to collect and remit Vermont’s 6 percent sales tax beginning Feb. 1 emerged on Friday. It is expected to provide a significant boost to state revenue. Continue Reading →

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Minter outlines tax policy

MONTPELIER — Democratic gubernatorial nominee Sue Minter says she will seek tax fairness as governor and look to lower the burden on low- and middle-income Vermonters by closing loopholes enjoyed by the wealthy and corporations. According to Minter, the tax policies she will propose as governor may incorporate some elements of the Blue Ribbon Tax Structure Commission report released in 2011. The report, which was shelved by policymakers in Montpelier, recommended expanding the sales tax to “all consumer-purchased services with limited exceptions for certain health and education services and business to business service transactions.”

Minter expressed an interest in dusting off the commission’s report during a WDEV radio debate on Sept. 14, saying she would look at expanding the base of the sales tax to include services. Her Republican opponent, Lt. Gov. Phil Scott and the Vermont Republican Party pounced, announcing to Vermonters in a coordinated effort that Minter wants to tax hair cuts, among other services that Vermonters pay for. Continue Reading →

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Zuckerman releases 2015 tax return, other Dems to follow

MONTPELIER — Sen. David Zuckerman, a Democratic candidate for lieutenant governor, released his 2015 tax return Tuesday, showing he and his wife earned $63,977 in adjusted gross income. Zuckerman, who is engaged in a three-way primary for the state’s second-highest office, filed a joint 2015 return with his wife, Rachel Nevitt. Their returned showed an adjusted gross income of $63,977, including $33,429 in wages, $24,676 in income from their farm in Hinesburg, $7,055 in investment income and $125 in speaking fees. The couple paid $2,213 in federal income tax on their taxable income of $28,079. Their tax rate was 10.8 percent of taxable income. Continue Reading →

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House lawmakers vote to raise the smoking age

MONTPELIER — House lawmakers have given preliminary approval to a bill that would raise the smoking age from 18 to 21. The House voted Tuesday to approve a bill that gradually raises the age someone can buy, possess and use all forms of tobacco during the next three years, and would increase taxes on tobacco products to compensate for lost state revenue. “Our hope is this will help move Vermont to a culture of healthier youth, less government spending and a brighter future,” said Rep. Michael Mrowicki, D-Putney, one of 16 co-sponsors of the bill. Under the terms of the bill, the age to purchase, possess and use tobacco would rise from 18 to 19, beginning Jan. 1, 2017. Continue Reading →

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House gives preliminary approval to property tax bill

MONTPELIER — The proposed property tax bill would see an increase in residential rates and a decrease in the commercial and nonresidential rate. On Tuesday, House lawmakers gave preliminary approval to a bill that would raise the average property tax rate by 0.2 cents, and would lower the commercial and nonresidential rate by 0.5 cents. While the commercial and nonresidential rate is the same for everyone, regardless of where they are located, the residential tax rate will vary from municipality to municipality. For the second year, property taxes — which fund the vast majority of the state’s Education Fund — are based on a formula that results in what’s referred to as a “yield amount.”

The yield amount is the amount of money that would result from a tax rate of $1 for every $100 of assessed value. On Tuesday, lawmakers approved a yield amount of $9,701. Continue Reading →

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Ways and Means approves $14.1 million of new revenue in tax bill

MONTPELIER — The House tax writing committee has advanced a revenue bill that raises $14.1 in new money for the general fund and other special funds, but some lawmakers say it is just a fraction of the $48 million in new revenue the committee is expected to raise in total. The House Ways and Means Committee voted Wednesday night 7 to 4 to approve a miscellaneous tax bill — before the House Appropriations Committee has completed work on its budget. That has some members of Ways and Means complaining that budget writers have little incentive to make cuts to state spending. Rep. Janet Ancel, D-Calais, the committee’s chairwoman, said she took the unusual step of voting on a revenue package before the budget is finalized because some members of the committee will be out for an extended period. “I have two members of the committee who aren’t going to be here,” she said. Continue Reading →

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Shumlin seeks 3.1 percent boost in FY2017 budget, expansion of provider assessment

MONTPELIER — Gov. Peter Shumlin is looking to address a deficit in the state’s Medicaid program by expanding a tax on health care providers in the $1.537 billion 2017 fiscal year budget proposal he revealed Thursday. Shumlin, a Democrat who is not seeking re-election, delivered the final budget proposal of his tenure to lawmakers Thursday. His proposal, outlined in his 30-minute address inside the House Chamber, would boost spending by 3.1 percent over the current fiscal year — after mid-year adjustments are put in place. Shumlin touted his budget as responsible and necessary, noting he closed a projected $68 million gap between anticipated revenues and spending without the use of one-time funding for ongoing expenses for the first time since before the Great Recession. The 3.1 percent spending increase matches projected revenues, he said. Continue Reading →

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