Act No. 73 Page 1 of 2
2021
This act summary is provided for the convenience of the public and members of the General
Assembly. It is intended to provide a general summary of the act and may not be
exhaustive. It has been prepared by the staff of the Office of Legislative Counsel without
input from members of the General Assembly. It is not intended to aid in the interpretation
of legislation or to serve as a source of legislative intent.
Act No. 73 (H.436). Taxation and fees; miscellaneous
An act relating to miscellaneous changes to Vermont’s tax laws
This act makes numerous miscellaneous changes to Vermont’s tax laws,
including the meals and rooms tax, sales and use tax, education property tax, and
income tax. By tax type, this act makes the following notable changes:
• Meals and rooms tax
o Applies meals tax to taxable meals delivered to customers and
to any delivery or other facilitator charge. Makes taxable meal
facilitators liable for collection and remittance of meals tax.
Effective August 1, 2021.
o Exempts alcoholic beverages from tax when sold under the
same circumstances under which food or beverage is exempt.
Effective April 1, 2021.
• Sales and use tax
o Creates a new exemption for “feminine hygiene products.”
o Clarifies that wood pellets sold at retail to an individual or
delivered to an individual’s residence are presumed to be tax-
exempt as residential sales of fuel for domestic use.
• Education property tax
o Sets the education property tax yields and nonhomestead rate
for fiscal year 2022.
o Allows certain mistakes on the property tax credit claim form to
be amended by the claimant without requiring an extraordinary
relief order.
o Excludes capital project costs when granted preliminary
approval from excess spending penalty calculation.
o Creates 3.5% hold harmless provision for purposes of
determining a school district’s weighted membership.
o Allows a school district that received a small schools grant in
fiscal year 2020 to continue to receive an annual small schools
grant.
o Requires the Commissioner of Taxes, on or before January 15,
2022, to submit a report to the Legislature proposing ways to
assist towns with appraising high-value or unique commercial
properties, including property owned by utilities.
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Act No. 73 Page 2 of 2
2021
o Amends the audit schedule for Burlington Waterfront Tax
Increment Financing (TIF) district and extends the periods for
TIF districts to incur indebtedness by one year.
• Income tax
o Conforms Vermont income tax law applicable to taxable years
2021 and after, to the federal statutes in effect on March 31,
2021.
o Conforms to the federal exclusion of forgiven Payroll
Protection Program loans from taxable income.
This act also makes the following miscellaneous changes:
• sets the workers’ compensation rates for fiscal year 2022
• amends certain town clerk recording fees
• extends the repeal of certain health care-related taxes
• amends the dates for pharmaceutical manufacturers to report and pay
fees to the Attorney General’s Office for allowable expenditures or
gifts
• requires the Commissioner of Taxes, on or before January 15, 2022, to
submit a report to the Legislature proposing options to collect and
report data annually on the number and grand list value of secondary
residences located within Vermont
• retroactively corrects an erroneous technical revision to contingent
current use liens
• allows the Commissioner of Taxes to accept all methods of payment
deemed necessary for the effective administration of taxes
Multiple effective dates, beginning on July 1, 2020
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Statutes affected:
As Introduced: 32-9202, 32-6074, 32-3110, 32-5874, 32-7483, 32-9243(a), 32-9243, 32-9776, 32-3777, 32-5258, 33-1955a, 18-4632
As Passed By the House -- Official: 32-9202, 32-6074, 32-3110, 32-5874, 32-7483, 32-9243(a), 32-9243, 32-9776, 32-3777, 32-5258, 33-1955a, 18-4632
As Passed By the House -- Unofficial: 32-9202, 32-6074, 32-3110, 32-5874, 32-7483, 32-9243(a), 32-9243, 32-9776, 32-3777, 32-5258, 33-1955a, 18-4632
As Passed by Both House and Senate -- Official: 32-9202, 32-6074, 32-3110, 32-5874, 32-7483, 32-9243(a), 32-9243, 32-9776, 32-3777, 32-9741, 32-5258, 33-1955a, 18-4632, 16-4001, 16-4010, 16-4015, 32-5824, 32-7402(8), 32-7402, 32-5404a(l), 32-5404a
As Passed by Both House and Senate -- Unofficial: 32-9202, 32-6074, 32-3110, 32-5874, 32-7483, 32-9243(a), 32-9243, 32-9776, 32-3777, 32-9741, 32-5258, 33-1955a, 18-4632, 16-4001, 16-4010, 16-4015, 32-5824, 32-7402(8), 32-7402, 32-5404a(l), 32-5404a
As Enacted: 32-9202, 32-6074, 32-3110, 32-5874, 32-7483, 32-9243(a), 32-9243, 32-9776, 32-3777, 32-9741, 32-5258, 33-1955a, 18-4632, 16-4001, 16-4010, 16-4015, 32-5824, 32-7402(8), 32-7402, 32-5404a(l), 32-5404a
House proposal of amendment to Senate proposal of amendment Official: 32-5404a(l), 32-5404a
House proposal of amendment to Senate proposal of amendment Unofficial: 32-5404a(l), 32-5404a