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Legislative Highlights
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Tax and This Year's Legislation
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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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529 Plan Withdrawals Only for Post-Secondary Education
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Vermont restricts use of VHEIP withdrawals
Funds invested in Vermont's 529 savings plan, also known as the Vermont Higher Education Investment Plan (VHEIP), may only be used for costs of attendance at approved post-secondary educational institutions. The new rule in
Act 51, Sec. 16 takes effect retroactively to Jan. 1, 2019. It differs from federal law, which expanded the use of 529 plans under the Tax Cuts and Jobs Act of 2017. Vermont will require taxpayers who received a tax credit and used VHEIP savings toward non-qualified expenses in 2019 and thereafter to repay 10% of the non-qualified disbursement to the state, up to a maximum of the total Vermont credits received by the taxpayer.
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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.
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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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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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Your First Job
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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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Taxpayers with questions may reach the Department at 802-828-2865, or (toll-free in Vermont)
1-866-828-2865. The Individual Income Tax Section phone number is answered Monday, Tuesday, Thursday, and Friday, 7:45AM-4:30PM. In order to focus on processing, we do not take calls on Wednesdays.
A Taxpayer Service window is located on the first floor of the Vermont Department of Taxes Building, 133 State Street, Montpelier. The window is open Monday-Friday, 7:45AM-4:30PM. The Vermont Department of Taxes is closed on state holidays.
Many answers can be found on our website . At the home page, simply enter your search word or phrase in the search window.
We are here to help.
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