Bill H.135, introduced by Representative Canfield, proposes several updates and modifications to Vermont's tax laws. Notable changes include the adoption of federal income tax laws for the year 2024, a requirement for spouses or surviving spouses to file joint Vermont personal income tax returns if they do so federally, and revisions to the definitions related to the tobacco products tax. The bill also increases the compensation for property tax hearing officers from a maximum of $150 per day to $38 per hour, along with cost-of-living adjustments. Additionally, it extends reimbursement for municipalities regarding State education property taxes abated due to flooding, with eligibility based on property loss from federally declared disasters.

Further amendments in the bill include an increase in the qualifying age for the Vermont Child Tax Credit from five to six years, adjustments to the Earned Income Tax Credit to provide a 100% credit for individuals without qualifying children, and new definitions for tobacco products. The bill specifies exclusions for U.S. military retirement income and survivor benefits from taxable income. It also addresses financial relief for municipalities affected by flooding, allowing reimbursement for unanticipated interest expenses related to State education property tax payments, and modifies provisions regarding property tax credit late fees. Lastly, the annual cap on tax credits under the Downtown and Village Center Tax Credit program is raised from $3,000,000 to $5,000,000, with various effective dates outlined for the changes.

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