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Legislative Highlights
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Tax and This Year's Legislation
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Out-of-State Sellers
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Definition of "vendor" is expanded
Out-of-state vendors, such as marketplace facilitators and marketplace sellers with retail sales into Vermont, must collect and remit sales tax on purchases and services sold in their marketplaces. Act 46, Sec. 3 became effective June 1, making July 25, 2019, the first due date for filing and payment. For more information, including the definitions of "marketplace facilitator" and "marketplace seller," as well as the parameters which trigger the registration, collection, and remittance requirements, please visit our website.
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Good News for Automotive Dealers
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Sales tax exemption expands for auto dealers
Beginning July 1, 2019, auto dealers may take an exemption on auto parts purchased to recondition a used motor vehicle the dealer owns and has in its inventory for resale. Under the law, the seller must be registered by the Vermont Department of Motor Vehicles as a dealer. Further, the parts being installed must be itemized on the bill and Vermont Sales Tax collected from the customer. The Vermont Department of Taxes will not be auditing dealerships for any previous noncompliance.
See the revised fact sheet.
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Forestry Machinery Exemption Expanded
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More forestry equipment is exempt from sales and use tax
Vermont's Sales and Use Tax exemption on certain forestry equipment and machinery has been expanded. The exemption now includes traction enhancement accessories, tire chains, track systems, and winch cables. Because these accessories are used exclusively with the exempt machinery, a Form S-3W is not required, though some retailers may ask for it. Our fact sheet contains the complete list of exempted equipment.
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Capital Gains Exclusion
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New cap on capital gains exclusion
The existing 40% exclusion for capital gains will be capped at $350,000 under Act 71, Sec. 1, effective July 1, 2019. This means that any gain above $875,000 will be taxed at standard income tax rates. Taxpayers who are considering a sales of a large capital asset may want to consult a tax preparer for guidance as soon as possible.
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Purchase of Controlling Interest in Real Estate
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Purchase of controlling interest in real estate will trigger Property Transfer Tax
Under current law, the Property Transfer Tax only applies to the transfer of ownership of real estate (real property) by deed. Under Act 71, Sec. 9, effective July 1, 2019, the purchase of a controlling interest in an entity holding title to real property in the state of Vermont will trigger a property transfer tax liability. Generally, a controlling interest means 50% or more of stock, capital, profits or beneficial interest in an entity. The tax due from the purchaser is calculated based on the fair market value of the property.
See the press release and website.
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Landlord Certificate Bulk Uploads Now Possible
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Landlords: Use bulk upload when filing the Landlord Certificate
If you are landlord and have a large number of rental units, you may file the LC-142, Landlord Certificate, in myVTax using bulk upload. Read our guide and use the template (Excel spreadsheet) for quick and easy filing. For more information on how to complete the the Landlord Certificate, see our fact sheet.
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Taxation of Solar Plants
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What to do when multiple solar-generating facilities are connected
The Public Utility Commission (PUC) considers a group of solar-generating facilities using common infrastructure to be one "plant." For tax purposes, this means that one Form SCT-603, Solar Energy Capacity Tax, must be filed if a group of facilities uses common infrastructure, such as roads, control faclilities, and connections to the grid, and the PUC does not find them to be separate plants. Form SCT-603 should be completed based on the total capacity of the connected facilities. See the fact sheet, Taxation of Solar Plants.
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New Format for Property Tax Bills
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If your Vermont property tax bill looks different this year, here's why
Vermont property tax bills were redesigned to make it easier to find information. Bills issued by towns will now itemize the municipal and education tax rates. Our new guide, How to Understand a Property Tax Bill, shows where to find information such as the SPAN school code and Property Tax Credit. The guide is also available as a page on our website.
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Industry Guidance Page Additions
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What is taxable and exempt in the agriculture industry
The Agriculture page has information about Vermont Sales and Use Tax exemptions for compost, electricity and fuel, agricultural machinery, and more.
Selling hemp and CBD? Be sure you are collecting the right taxes
Hemp and cannabidiol (CBD) products derived from hemp may be legally sold in Vermont. Vermont businesses exploring the possiblity of selling hemp and CBD products or businesses already selling these products must know what is taxable and what is exempt from tax. See the guidance on our website.
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New Page for First-Time Employees
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First job? First-time filer
Remember when your first paycheck looked a little smaller than you thought it would be? Our first-time filer webpage explains withholding, what an employer does with a W-4, and where those tax dollars go.
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We're on Social Media
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Looking for the latest Vermont tax news?
Follow us on Facebook and Twitter!
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When You Have a Question
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Businesses with questions may reach the Department at 802-828-2505 (option 2). This phone number for businesses is answered Monday, Tuesday, Thursday, Friday 7:45AM-4:30PM. We do not take calls on Wednesdays.
For questions about Sales and Use Tax, Meals and Rooms Tax, Local Option Tax, Withholding, or for support with myVTax, email
tax.business@vermont.gov.
We are here to help.
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