2018 Legislative Highlights

  

The 2018 legislative highlights have been posted to the Department website. The page lists the significant tax law changes passed during the regular and special sessions.

Note: The Department is working on a guide on 2018 legislative updates for tax practitioners. We will be sending the guide to you soon via this newsletter, VTax Connect.  

Social Security Exemption

Act 11, passed during the 2018 Special Session, creates a personal income tax exemption for Social Security beneficiaries below certain income thresholds. The law takes effect in calendar year 2018 for tax returns filed in 2019. 

Short-Term Rentals  

Renting a room with a view? A law passed by the Vermont legislature this session has created new advertising requirement for owners of short-term rentals, beginning July 1, 2018. For example, they must include their Vermont Meals and Rooms Tax license number in their advertisements. Learn more about this and other requirements.

Sales tax exemption on advanced wood boilers
Beginning July 1, 2018, sales of advanced wood boilers are exempt from Vermont Sales and Use Tax. We have added a section on these boilers to the Exemptions page on our website.

Out-of-state vendors must collect Vermont Sales Tax

The recent Supreme Court decision in Wayfair v. South Dakota has made the out-of-state vendor provisions of Act 134 of 2016 effective. Certain out-of-state vendors are now required to register with the State of Vermont and collect and remit sales tax beginning July 1, 2018. Learn more .

Request for Public Comments

 

The Vermont Department of Taxes has drafted revisions to its Sales and Use Tax Regulations and its Organization and Rules of Procedure and invites you to review and comment on the revisions. The revisions are available on our Public Comments page. The deadline for comments is Sep. 10, 2018. The contact information for comments is on the website. 

 
There is a hearing scheduled for the revised regulations on Aug. 30, 2018, at 9:00 a.m., at 133 State Street, 4th Floor, Montpelier, Vermont. Attendees must check in at the first floor tax window before going to the fourth floor.  

Income tax refund for a self-employed person may go toward estimated tax  

If a small business owner or self-employed person pays taxes via a Vermont personal income tax return, an overpayment for 2017 may be applied toward the 2018 period and will count toward his or her quarterly estimated payment. This works the same way for anyone that is required to make quarterly estimated payments. A current year overpayment may be applied to the following year and count toward the first quarterly payment even if the return is filed on extension. A personal income tax refund cannot be applied toward a business tax account.

Fraud awareness campaign  

The Vermont Department of Taxes, together with the Office of the Vermont Attorney General, launched the "Don't Be Fooled" campaign in April. The campaign features a poster that aims to prevent ID theft and tax scams by educating people on how to avoid becoming a victim. We invite you to include a link to the poster in your client communications.  

Important information on local option tax changes in Killington and Barre City

Killington

Sales and use tax guide for automotive repair shops and related industries

See the new guide, Vermont Sales and Use Tax Guide for Automotive Parts and Supplies. The fact sheet clarifies existing regulation. It also describes a change in how the Department interprets regulation on parts and supplies incorporated into a vehicle that is being reconditioned for resale. This change will take effect July 1, 2019. The guide also applies to other vehicle types, including motorcycles, boats, and snowmobiles.

    

Sales and use tax fact sheet for renewable energy

The fact sheet, Vermont Sales and Use Tax Applied on Renewable Energy Generation Facilities, discusses the sales and use tax exemption for equipment used in manufacturing as it relates to facilities that manufacture and sell electricity. It also explains sales and use tax exemptions that apply to home and business energy generation systems.

Fact sheet outlines taxation of fuels
The new fact sheet, Taxation of Fuels, explains which specific fuels are taxed or exempt based on their type and use. As of July 1, 2017, clear or undyed diesel fuel is exempt from sales tax when used in certain types of forestry equipment. Furthermore, in 2016 the legislature changed how heating fuel for residential or commercial use is taxed. Tax is now imposed on each gallon sold, instead of on the seller's gross receipts.

See a complete list of fact sheets, guides and infographics on our website. 

Technical Bulletin on Meals and Rooms Tax revised

Technical Bulletin TB-48, Application of Meals and Room Tax for Meals and Room Charges at a School or College, has been revised to clarify the treatment of meals served on campuses for both school-sponsored and private events. It also provides a clarification on the exemption in the rooms and meals tax statute, 32 V.S.A. § 9202(10)(D).   

Current Use enrollment applications are due every September 1

If you wish to enroll in the Current Use Program for 2019, your application is due to the Division of Property Valuation and Review at the Department of Taxes by Sep. 1.

  

As of 2017, the due date is Nov. 1 for landowners with agricultural lands and farm buildings already enrolled in Current Use to submit their annual agricultural certifications.   

New Forest Management Activity Report forms

Tax practitioners with questions can reach the Department of Taxes at the (802) 828-6815, or by emailing tax.preparer@vermont.gov. This special phone number for professional preparers is answered Monday to Friday, 7:45 a.m. to 4:30 p.m.

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