Bill H.619, introduced by Representative Waszazak of Barre City, proposes the implementation of a personal income tax surcharge for individuals with an adjusted gross income exceeding $1,000,000. The new section 5822a will establish a surcharge of three percent on federal adjusted gross income for those meeting this threshold. This surcharge will be in addition to any existing taxes and will be administered in the same manner as current tax assessments. Furthermore, the Commissioner of Taxes is required to adjust the income threshold for inflation annually.

The bill also includes a provision that allows it to take effect retroactively on January 1, 2026, applying to taxable years starting from that date. This retroactive application is specified despite the general rule outlined in 1 V.S.A. 214. Overall, the bill aims to increase tax revenue from high-income earners while ensuring that the surcharge is adjusted for inflation over time.