The bill H.309, introduced by Representative Logan, proposes the establishment of a checkoff option on Vermont income tax returns that allows taxpayers to designate funds for the Vermont Housing and Conservation Trust Fund. The new section 5862g outlines the process for this designation, stating that individuals filing returns will have the opportunity to allocate a portion of their refunds or overpayments to the Trust Fund. The amounts designated will be deducted from the taxpayer's refunds and deposited into the Trust Fund account managed by the Commissioner of Taxes. Additionally, the Commissioner is tasked with informing taxpayers about the purpose of the fund and the contribution process.
The bill also includes provisions regarding the handling of payments. If the total payment made by a taxpayer is insufficient to cover both the tax owed and the designated contribution, the payment will first be applied to the tax liability, with any remaining balance directed to the Trust Fund. Importantly, the bill clarifies that the Commissioner is not obligated to collect any amounts designated for the Trust Fund. The act is set to take effect on January 1, 2025, and will apply to taxable years beginning on or after that date.