Act No. 179 Page 1 of 2
2022
This act summary is provided for the convenience of the public and members of the General
Assembly. It is intended to provide a general summary of the act and may not be
exhaustive. It has been prepared by the staff of the Office of Legislative Counsel without
input from members of the General Assembly. It is not intended to aid in the interpretation
of legislation or to serve as a source of legislative intent.
Act No. 179 (H.738). Taxation; income taxes; property transfer tax; sales and use
tax; property valuation; tax increment financing; administration of taxes;
miscellaneous
An act relating to technical and administrative changes to Vermont’s tax
laws
This act makes numerous technical and administrative changes to Vermont’s
tax laws, including:
• clarifies that property transfer tax applies to enhanced life estate deeds
in the same way as to conventional life estates, and defines the value of
life estate or enhanced life estate deeds to which the property transfer
tax applies;
• aligns corporate income tax estimated payment and filing deadlines for
purposes of penalties and interest on underpayments;
• replaces all references to the Children’s Trust Fund with the Vermont
Children’s Trust Foundation for purposes of administering the income
tax return checkoff box for individuals to elect to donate a portion of
their income tax refund;
• authorizes Vermont to require reporting or to assess tax on partnerships
following federal audits and adjustments, when federal tax is assessed
to and paid by the partnership or by individual partners, and allows
partnerships to elect either to pay the adjusted Vermont tax or to allow
individual partners to pay;
• amends uniform capacity tax section cross-reference to property tax
system with regard to valuation of land underlying a solar energy plant
or an energy storage facility;
• amends mileage reimbursement for legislators during any session of the
General Assembly so that only actual mileage traveled will be
reimbursed;
• expands the list of allowable uses of funds withdrawn from a Vermont
Higher Education Investment Plan account (529 plan account) that will
not trigger recapture of the 10 percent Vermont tax credit, to include
the new allowable use of repayment of student loans for higher
education only;
• authorizes the City of Montpelier, with Vermont Economic Progress
Council’s approval, to reset the original taxable value in its tax
VT LEG #363532 v.2
Act No. 179 Page 2 of 2
2022
increment financing (TIF) district to April 1, 2023 grand list values,
provided certain conditions are met;
• expands the sales and use tax exemption for manufacturing machinery
and equipment so that manufacturing machinery and equipment that is
part of an integrated production process will be exempt; and
• replaces the description of menstrual products exempt from the sales
and use tax with more respectful language.
This act also makes numerous miscellaneous changes to Vermont statutes,
including:
• clarifies that fishing, hunting, or trapping licenses for a certified citizen
of a State-recognized Native American Indian tribe will be received
free of charge;
• strikes requirement that ownership of grant-funded network assets of a
grantee of the Broadband Construction Grant Program be automatically
transferred “to the State” if the grantee materially fails to comply with
the grant conditions;
• requires a communications union district (CUD) to notify the Vermont
Community Broadband Board if it is at risk of defaulting on a loan
payment, and the Board, in turn, must notify the General Assembly (or
the Joint Fiscal Committee if the General Assembly is not in session);
and
• allows certain town officers and employees and school directors to
have crime insurance coverage instead of requiring the individuals to
give a bond conditioned for the faithful performance of the individual’s
duties.
Multiple effective dates, beginning on July 1, 2021
VT LEG #363532 v.2


Statutes affected:
As Introduced: 32-9601, 32-9617(h), 32-9617, 32-3202(b), 32-3202, 32-5859(b), 32-5859, 32-5824, 32-7402(8), 32-7402, 32-5862b, 33-3303(b), 33-3303, 32-8701(d), 32-8701, 10-4255(c)(7), 10-4255, 10-4255(c)
As Passed By the House -- Official: 32-9601, 32-9617(h), 32-9617, 32-3202(b), 32-3202, 32-5859(b), 32-5859, 32-5824, 32-7402(8), 32-7402, 32-5862b, 33-3303(b), 33-3303, 32-8701(d), 32-8701, 10-4255(c)(7), 10-4255, 10-4255(c)
As Passed By the House -- Unofficial: 32-9601, 32-9617(h), 32-9617, 32-3202(b), 32-3202, 32-5859(b), 32-5859, 32-5824, 32-7402(8), 32-7402, 32-5862b, 33-3303(b), 33-3303, 32-8701(d), 32-8701, 10-4255(c)(7), 10-4255, 10-4255(c)
As Passed by Both House and Senate -- Official: 32-9601, 32-9617(h), 32-9617, 32-3202(b), 32-3202, 32-5859(b), 32-5859, 32-5824, 32-7402(8), 32-7402, 32-5862b, 33-3303(b), 33-3303, 32-8701(d), 32-8701, 10-4255(c)(7), 10-4255, 10-4255(c), 32-1052(b), 32-1052, 32-5825a(b), 32-5825a, 30-8086(c)(3), 30-8086, 30-8086(c), 24-835, 24-1234, 24-1306, 24-2433, 32-9741(14), 32-9741, 32-9706(oo), 32-9706, 32-9741(56)
As Passed by Both House and Senate -- Unofficial: 32-9601, 32-9617(h), 32-9617, 32-3202(b), 32-3202, 32-5859(b), 32-5859, 32-5862b, 33-3303(b), 33-3303, 32-8701(d), 32-8701, 10-4255(c)(7), 10-4255, 10-4255(c), 32-1052(b), 32-1052, 32-5825a(b), 32-5825a, 30-8086(c)(3), 30-8086, 30-8086(c), 24-835, 24-1234, 24-1306, 24-2433, 32-9741(14), 32-9741, 32-9706(oo), 32-9706, 32-9741(56)
As Enacted: 32-9601, 32-9617(h), 32-9617, 32-3202(b), 32-3202, 32-5859(b), 32-5859, 32-5862b, 33-3303(b), 33-3303, 32-8701(d), 32-8701, 10-4255(c)(7), 10-4255, 10-4255(c), 32-1052(b), 32-1052, 32-5825a(b), 32-5825a, 30-8086(c)(3), 30-8086, 30-8086(c), 24-835, 24-1234, 24-1306, 24-2433, 32-9741(14), 32-9741, 32-9706(oo), 32-9706, 32-9741(56)