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1 H.954
2 Introduced by Committee on Ways and Means
3 Date:
4 Subject: Taxation; sales and use tax; meals and rooms tax; income tax;
5 education property tax; property transfer tax; administration;
6 confidentiality; universal service charge
7 Statement of purpose of bill as introduced: This bill proposes to make
8 numerous substantive and administrative changes to Vermont’s tax laws. This
9 bill decreases the amount of use tax due under the safe harbor calculation
10 based on adjusted gross income. The Department of Taxes is authorized to
11 charge penalties for fraudulent requests for refunds irrespective of whether a
12 refund is issued. This bill clarifies that beverage deposit redemption
13 information received by the Department of Taxes is not confidential tax
14 information. The requirements for noncollecting vendors and short-term rental
15 platforms to report to the Department of Taxes are repealed. Marketplace
16 facilitators will be required to collect the universal service charge on behalf of
17 marketplace sellers. This bill amends due dates for municipal grand list
18 corrections, property transfer tax returns and payments, income tax filing
19 extensions, and certain claims for refunds of tax paid or offset. Numerous
20 other changes are made to the definitions used for the purposes of current use,
21 the income sensitivity property tax credit, and the sales and use tax.
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1 An act relating to miscellaneous tax provisions
2 It is hereby enacted by the General Assembly of the State of Vermont:
3 * * * Education Property Tax * * *
4 Sec. 1. 32 V.S.A. § 4261 is amended to read:
5 § 4261. CORRECTING OMISSION FROM GRAND LIST
6 When real or personal estate is omitted from the grand list by mistake, or an
7 obvious error is found, the listers, with the approval of the Selectboard
8 selectboard, on or before December 31, may supply such omissions or correct
9 such errors and make a certificate thereon of the fact; provided, however, the
10 listers may make a correction resulting from the filing or rescission of a
11 homestead declaration without approval of the Selectboard selectboard.
12 Sec. 2. 32 V.S.A. § 4342 is amended to read:
13 § 4342. EXTENSIONS BY THE DIRECTOR
14 On written application therefor made by the listers or assessors of any town,
15 with the approval of the Selectboard selectboard of the town or mayor of the
16 city, the several dates fixed by law and extended by the preceding section or
17 the charter of any municipal corporation, on or before which certain acts must
18 be done relating to duties of listers and assessors, may be further extended by
19 the Director and such extensions shall be in writing and shall be recorded in
20 the office of the town clerk.
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1 Sec. 3. 32 V.S.A. § 5405(f) is amended to read:
2 (f) Within the limits of the resources available for that purpose, the
3 Commissioner may employ such individuals, whether on a permanent,
4 temporary, or contractual basis, as shall be necessary, in the judgment of the
5 Commissioner, to aid in the performance of duties under this section. The
6 Commissioner shall pay each municipality the sum of $1.00 per grand list
7 parcel in the municipality, for services provided to the Commissioner in
8 connection with his or her the performance of duties under this section. Such
9 payment shall be made from the equalization and reappraisal account within
10 the Education Fund. Each municipality shall deposit payments received under
11 this subsection into a special fund that shall be used to support the preparation
12 of the education property tax grand list.
13 Sec. 4. BILLING AND COLLECTION OF EDUCATION PROPERTY
14 TAX; DEPARTMENT OF TAXES; IMPLEMENTATION PLAN
15 (a) On or before January 15, 2021, the Department of Taxes, in
16 consultation with the Vermont League of Cities and Towns, the Vermont
17 Municipal Clerks’ and Treasurers’ Association, the Vermont Bankers
18 Association, and the Association of Vermont Credit Unions, shall submit to the
19 House Committees on Ways and Means and on Government Operations and
20 the Senate Committees on Finance and on Government Operations an
21 implementation plan to transition the responsibility for billing and collecting VT LEG #345224 v.2
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1 the statewide education property tax from municipalities to the Department.
2 The implementation plan shall include recommended legislation and estimates
3 of the fiscal impact of the proposed transition. The Department shall have the
4 legal and fiscal assistance of the Office of Legislative Council and the Joint
5 Fiscal Office in preparing the implementation plan.
6 (b) The Department shall address the following in its proposed
7 implementation plan:
8 (1) adjustments to the assessment calendar;
9 (2) establishment of billing dates and the format of bills;
10 (3) establishment of collection dates, methods of payment, including
11 withholding, and any early payment discount;
12 (4) authority to collect delinquent payments, penalties, and interest;
13 (5) administration of education payments to school districts;
14 (6) municipal obligation for locally voted exemptions from the
15 education property tax;
16 (7) jurisdiction over appeals and abatements;
17 (8) timing and duration of the transition period;
18 (9) estimated fiscal impact of the implementation plan during the
19 transition phase and anticipated operational budget; and VT LEG #345224 v.2
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1 (10) any other consideration relating to the transition of billing and
2 collecting the statewide education property tax from municipalities to the
3 Department.
4 * * * Current Use * * *
5 Sec. 5. 32 V.S.A. § 3752(10) is amended to read:
6 (10) “Owner” means the person who is the owner of record of any land
7 or the lessee under a perpetual lease as defined in subsection 3610(a) of this
8 title, provided the term of the lease is for a minimum of 999 years exclusive of
9 renewals. When enrolled land is mortgaged, the mortgagor shall be deemed
10 the owner of the land for the purposes of this subchapter, until the mortgagee
11 takes possession, either by voluntary act of the mortgagor or foreclosure, after
12 which the mortgagee shall be deemed the owner.
13 * * * Property Tax Hearing Officer Per Diem * * *
14 Sec. 6. 32 V.S.A. § 4465 is amended to read:
15 § 4465. APPOINTMENT OF PROPERTY VALUATION HEARING
16 OFFICER; OATH; PAY
17 When an appeal to the Director is not withdrawn, the Director shall refer the
18 appeal in writing to a person not employed by the Director, appointed by the
19 Director as hearing officer. The Director shall have the right to remove a
20 hearing officer for inefficiency, malfeasance in office, or other cause. In like
21 manner, the Director shall appoint a hearing officer to fill any vacancy created VT LEG #345224 v.2
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1 by resignation, removal, or other cause. Before entering into their duties,
2 persons appointed as hearing officers shall take and subscribe the oath of the
3 office prescribed in the Constitution, which oath shall be filed with the
4 Director. The Director shall pay each hearing officer a sum not to exceed
5 $120.00 $150.00 per diem for each day wherein hearings are held, together
6 with reasonable expenses as the Director may determine. A hearing officer
7 may subpoena witnesses, records, and documents in the manner provided by
8 law for serving subpoenas in civil actions and may administer oaths to
9 witnesses.
10 * * * Property Transfer Tax * * *
11 Sec. 7. 32 V.S.A. § 9605(a) shall be amended to read:
12 (a) The tax imposed by this chapter shall be paid to the Commissioner at
13 the time of within 30 days after transfer of title to property subject to the tax or,
14 in the case of a transfer or acquisition of a controlling interest in a person with
15 title to property for which a deed is not given, within 30 days after transfer or
16 acquisition.
17 * * * Sales and Use Tax * * *
18 Sec. 8. 32 V.S.A. § 5870 shall be amended to read:
19 § 5870. REPORTING USE TAX ON INDIVIDUAL INCOME TAX
20 RETURNS
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1 (a) The Commissioner of Taxes shall provide that individuals report use tax
2 on their State individual income tax returns. Taxpayers are required to attest to
3 the amount of their use tax liability under chapter 233 of this title for the period
4 of the tax return. Alternatively, they may elect to report an amount that is a
5 percentage of their adjusted gross income determined under subsection (b) of
6 this section, as shown on a table published by the Commissioner of Taxes; and
7 use tax liability arising from the purchase of each item with a purchase price in
8 excess of $1,000.00 shall be added to the table amount shown under subsection
9 (b) of this section.
10 (b) The amount of use tax a taxpayer may elect to report under subsection
11 (a) of this section shall be 0.10 percent of their adjusted gross income based on
12 the taxpayer’s adjusted gross income as determined by the following tables;
13 provided, however, that a taxpayer shall not be required to pay more than
14 $500.00 $150.00 for use tax liability under this subsection, arising from total
15 purchases of items with a purchase price of $1,000.00 or less.
16 If adjusted gross income is: The tax is:
17 Not over $20,000.00 $ 0.00
18 $20,001.00 to $30,000.00 $10.00
19 $30,001.00 to $40,000.00 $15.00
20 $40,001.00 to $50,000.00 $20.00
21 $50,001.00 to $60,000.00 $25.00
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1 $60,001.00 to $70,000.00 $30.00
2 $70,001.00 to $80,000.00 $35.00
3 $80,001.00 to $90,000.00 $40.00
4 $90,001.00 to $100,000.00 $45.00
5 $100,001.00 and over the lesser of $150.00 or
6 0.05% of adjusted gross
7 income.
8 Sec. 9. 32 V.S.A. § 9701(9) is amended to read:
9 (9) “Vendor” means:
10 ***
11 (F) A person making sales of tangible personal property from outside
12 this State to a destination within this State and not maintaining a place of
13 business or other physical presence in this State that:
14 (i) engages in regular, systematic, or seasonal solicitation of sales
15 of tangible personal property in this State:
16 (I) by the display of advertisements in this State;
17 (II) by the distribution of catalogues, periodicals, advertising
18 flyers, or other advertising by means of print, radio, or television media; or
19 (III) by mail, Internet, telephone, computer database, cable,
20 optic, cellular, or other communication systems, for the purpose of effecting
21 sales of tangible personal property; and VT LEG #345224 v.2
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1 (ii) has either made sales from outside this State to destinations
2 within this State of at least $100,000.00, or totaling at least 200 individual
3 sales transactions, during any the 12-month period preceding the monthly
4 period with respect to which that person’s liability for tax under this chapter is
5 determined.
6 ***
7 (J) A marketplace facilitator who has facilitated sales by marketplace
8 sellers to destinations within this State of at least $100,000.00, or totaling at
9 least 200 individual sales transactions, during any the 12-month period
10 preceding the monthly period with respect to which that person’s liability for
11 tax under this chapter is determined.
12 (K) A marketplace seller who has combined sales to a destination
13 within this State and sales through a marketplace to a destination within this
14 State of at least $100,000.00, or totaling at least 200 individual sales
15 transactions, during any the 12-month period preceding the monthly period
16 with respect to which that person’s liability for tax under this chapter is
17 determined.
18 Sec. 10. 32 V.S.A. § 9712(c) is amended to read:
19 (c) Each noncollecting vendor shall file a copy of the notice required by
20 subsection (b) with the Department of Taxes on or before January 31 of each
21 year. The notice required by this subsection only apply to noncollecting VT LEG #345224 v.2
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1 vendors who made $100,000.00 or more of sales into Vermont in the previous
2 calendar year. Failure to file a copy of the notice required by this subsection
3 shall subject the noncollecting vendor to a penalty of $10.00 for each failure,
4 unless the noncollecting vendor shows reasonable cause. [Repealed.]
5 * * * Universal Service Charge * * *
6 Sec. 11. 30 V.S.A. § 7521(e) is amended to read:
7 (e)(1) Notwithstanding any other provision of law to the contrary,
8 beginning on January 1, 2020, the Universal Service Charge shall be imposed
9 on all retail sales of prepaid wireless telecommunications service subject to the
10 sales and use tax imposed under 32 V.S.A. chapter 233. The charges shall be
11 collected by sellers or marketplace facilitators collecting sales tax pursuant to
12 32 V.S.A. § 9713 and remitted to the Department of Taxes in the manner
13 provided under 32 V.S.A. chapter 233. Upon receipt of the charges, the
14 Department of Taxes shall have 30 days to remit the funds to the fiscal agent
15 selected under section 7503 of this chapter. The Commissioner of Taxes shall
16 establish registration and payment procedures applicable to the Universal
17 Service Charge imposed under this subsection consistent with the registration
18 and payment procedures that apply to the sales tax imposed on such services
19 and also consistent with the administrative provisions of 32 V.S.A.
20 chapter 151, including any enforcement or collection action available for taxes
21 owed pursuant to that chapter.
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1 (2) If a minimal amount of prepaid wireless telecommunications service
2 is sold with a prepaid wireless device for a single, nonitemized price, then the
3 seller may elect not to apply the Universal Service Charge to such transaction.
4 (3) As used in this subsection:
5 (A) “Minimal amount” means an amount of service denominated as
6 not more than 10 minutes or not more than $5.00.
7 (B) “Prepaid wireless telecommunications service” means a
8 telecommunications service as defined in subdivision 203(5) of this title that a
9 consumer pays for in advance and that is sold in predetermined units or dollars
10 that decline with use.
11 (C) “Seller” means a person who sells prepaid wireless
12 telecommunications service to a consumer.
13 (D) “Marketplace facilitator” shall have the same meaning as in
14 32 V.S.A. § 9701(56).
15 * * * Meals and Rooms Tax * * *
16 Sec. 12. 32 V.S.A. § 9248 is amended to read:
17 § 9248. INFORMATIONAL REPORTING
18 The Department of Taxes shall collect information on operators from
19 persons providing an Internet platform for the short-term rental of property for
20 occupancy in this State. The information collected shall include any
21 information the Commissioner shall require, and the name, address, and t