Bill H.135, introduced by Representative Canfield, proposes several updates to Vermont's tax laws, including aligning the adoption of federal income tax laws to the year 2024. The bill mandates that spouses or surviving spouses who file jointly at the federal level must also file a joint Vermont personal income tax return. It also modifies definitions related to the tobacco products tax and increases the compensation for property tax hearing officers from a maximum of $150 per day to $38 per hour, with cost-of-living adjustments. Additionally, the bill extends reimbursement for municipalities regarding State education property taxes that were abated due to flooding, linking eligibility to property loss from federally declared disasters.

Further changes include revising the Vermont Child Tax Credit by raising the qualifying age for children from five to six years and adjusting the Earned Income Tax Credit provisions to allow individuals without taxpayer identification numbers to receive credits. The bill introduces new definitions for tobacco products and clarifies the treatment of military retirement income in tax calculations. It also addresses financial relief for municipalities affected by flooding declared a federal disaster between July 1, 2023, and December 31, 2024, allowing for reimbursement of unanticipated interest expenses related to State education property tax payments. The annual cap on tax credits awarded by the State Board is increased from $3,000,000 to $5,000,000, and the bill outlines effective dates for various sections, including retroactive provisions for certain tax laws.

Statutes affected:
As Introduced: 32-5824, 32-7402, 32-5861(c), 32-5861, 32-5830f, 32-5828b, 32-5811(21), 32-5811, 32-5830e, 32-7702, 32-4465, 32-5402(c)(2), 32-5402, 32-5402(c), 32-5930ee