Taxes

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Senate advances budget and tax bills unanimously

MONTPELIER — The Senate advanced its version of the 2018 fiscal year state budget and a corresponding tax bill Wednesday on unanimous votes. The Senate’s spending plan, passed on a 30 to 0 vote, includes a $1.56 billion General Fund, which is 1.7 percent higher than the current 2017 fiscal year budget. It is slightly lower than the House-passed version, however, which grew 1.8 percent over the current year. Overall, the Senate’s total state budget including all state and federal funds totals $5.83 billion — slight more than the House’s $5.815 billion in total spending. The Senate version spends more than $13 million in ways that differ from the House proposal, which cleared the House on a 143 to 1 vote. Continue Reading →

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Scaled-back paid leave plan clears tax committee

MONTPELIER — The House Ways and Means Committee passed a paid parental and family leave bill Thursday that would provide six weeks of paid time off to Vermonters, but the bill still faces long odds. The committee’s version of the paid leave legislation was drastically scaled back from what the House General, Housing and Military Affairs Committee passed earlier this year. That committee’s version, which was sought by interest groups, included 12 weeks of 100 percent paid time off and a 0.93 percent payroll tax, which raise about $80 million to pay for the benefits. The Ways and Means Committee version passed Thursday — on a 7 to 4 vote — offers six weeks of paid time off and includes a 0.141 percent payroll tax on the first $150,000 of wages. It will cost about $17 million per year. Continue Reading →

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Lawmakers pitch carbon tax proposals

BARRE — A group of lawmakers plan to introduce legislation Tuesday that would tax carbon pollution and use the revenue to cut various taxes for Vermonters. Four bills were announced at news conferences Monday as part of a coordinated campaign to begin a conversation about a so-called carbon tax. Lawmakers say they plan to introduce four separate bills focused on reforming different taxes. At Capstone Community Action in Barre, Rep. Johannah Donovan, D-Burlington, said the legislation she will introduce will cut income taxes for Vermonters, small business and will double the Earned Income Tax Credit used by 43,000 low-income residents. “This bill cuts the tax rate for the bottom income bracket in half from 3.55 percent to 1.75 percent,” she said. Continue Reading →

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State officials warn of potential scammers

BARRE — Attorney General T.J. Donovan and other state officials are urging Vermonters to be vigilant against scammers as the state and federal tax filing deadline nears. Donovan joined Vermont Tax Commissioner Kaj Samsom and others at a news conference at Capstone Community Action in Barre Monday to raise awareness of tax scams. The most common, Donovan said, is callers pretending to be from the Internal Revenue Service seeking back taxes owed to the federal government. Such scams increase as the annual tax filing deadline approaches, he said. “March Madness is over. The April reality check is upon us. Continue Reading →

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House passes budget plan with just one no vote

MONTPELIER — Tax and spending bills in the Vermont House received broad, tri-partisan support on the floor for the first time in many years as the body agreed to balance a projected state budget gap without raising taxes and fees. Majority Democrats secured the support of Republicans and managed to hold onto left-leaning Progressives as they crafted a budget bill that cuts into existing services. The House gave preliminary approval to the annual tax bill on a 138 to 0 vote Thursday morning, followed by preliminary approval of a 2018 fiscal year state budget on a 143 to 1 vote later in the afternoon. The House’s tax bill does not create any new taxes or fees, nor does it raise existing ones. It does raise about $5 million in revenue, however, by counting on better compliance from Vermonters, which was enough to gain the support of the entire GOP caucus. Continue Reading →

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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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