Vermont Department of Taxes
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News for Businesses and Nonprofits
June 10, 2021
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Legislative Update
The Department of Taxes has published its annual Legislative Highlights, summarizing the legislative initiatives that the Department followed closely and which became law this session.
This year's updates to Vermont tax law include:
- Annual link up to federal statutes, including COVID-19 relief
- Meals and Rooms Tax
- Sales and Use Tax
- Alcoholic beverages
- Property Tax
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About the COVID-19 Vaccine |
Vaccines are the most important tool we have in slowing the spread of the virus, opening back up, and getting back to life. That said, it’s normal to have questions.
The vaccines used in Vermont are proven to be safe and effective. They use technologies that have been many years in the making and included ten of thousands of participants in their clinical trials. Most importantly, these vaccines were all found to be 100% effective in preventing hospitalizations and death from COVID-19. And we are seeing this impact in Vermont, with dramatically lower hospitalizations and deaths due to COVID-19 since vaccinating many of our highest-risk residents. The best vaccine you can get is the one you can get right now.
While some people have side effects after getting vaccinated, this means your body is working to build protection against the virus. The most common side effects include pain where you got the shot, headache, tiredness, fever, and chills—and these are temporary and usually mild.
It’s never been easier to get vaccinated. With vaccine clinics conveniently located throughout Vermont, and many don’t require having an appointment ahead of time.
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Audit Division Initiative Wants to Educate Businesses
The Department knows that tax law presents a tremendous learning curve for businesses. To make it easier for operators to understand the law, the Audit division has embarked on a campaign to educate businesses about common tax errors before they happen. This preemptive approach saves money and time for both businesses and the State. Throughout this campaign, Audit will be reaching out to different business sectors to provide guidance directly related to their work, and when applicable, point them to specific materials on the Department's website.
File Returns Even When Zero is Owed
Businesses with open tax accounts are reminded to file a return even when no tax is owed. If you are closing a business, see Close a Business to see what you need to do.
Reminder to Nonprofit Organizations
Use of Form S-3, Vermont Sales Tax Exemption Certificate for Purchases for Resale and by Exempt Organizations, is for the use of 501(c)(3) organizations. Civic, social, recreational, and business league organizations that are not IRS-designated 501(c)(3) organizations are not eligible for sales tax exemptions, and therefore cannot make exempt purchases. To qualify for Form S-3, a nonprofit must be organized and operated for charitable purposes, as defined in section 501 of the US Internal Revenue Code. Please see covering purchases by nonprofits.
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COVID-19 Recovery Assistance
State and Federal Grants for Businesses and Individuals
The Agency of Commerce and Community Development (ACCD) is a great source for information about state and federal COVID-19 recovery grants. See the ACCD grants page for information about applying for a past-due mortgage grant or rental assistance grant. Additionally, the page links to federal programs administered by the US Small Business Administration (SBA). These include the Shuttered Venue Operators Grant Program (for live venues, museums, and movie theaters). You may also go to the SBA's COVID-19 relief page directly. |
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Tax Credit for Insurance Marketplace Enrollees
The American Rescue Plan Act of 2021 gives eligible Vermonters extra premium tax credits for every month they’re enrolled in Vermont’s health insurance marketplace, Vermont Health Connect. Vermonters in single plans and with incomes up to $94,500 may now qualify for help. Those in family plans may qualify with incomes up to $265,000. It’s important to enroll in the marketplace as soon as possible to get the largest tax credit.
Vermont Health Connect members have the option to take the new tax credits as a discount on their monthly health insurance premium. Or they can get it all when they file their 2021 taxes. Members also have the option to change health plans from June 16 through August 15, 2021, to best take advantage of the new tax credits.
The marketplace’s Plan Comparison Tool has been updated and can help Vermonters determine which health plan will best meet their financial and medical needs. |
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New Homestead Declaration Videos for Homeowners
The Department has updated its videos illustrating Vermont's Homestead Declaration. The first video provides an overview and answers common homeowner questions. The second video provides answers to some more unusual ownership situations. |
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Upcoming Change to Federal 1099-Ks
Reduction to Reporting Threshold
The American Rescue Plan Act lowered the threshold for filing a 1099-K from $20,000 (over at least 200 transactions) to $600 for sellers on platforms such as Etsy and eBay. The new requirement has no minimum transaction level. The change takes effect in 2022.
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Use Free File for Tax Credits
Even though Tax Day has come and gone, Free File continues to be available for individual taxpayers who received an extension to file. The due date for extension filers is October 15, 2021.
Additionally, some individuals are not required to file a tax return, but may find that by doing so that they are eligible for certain credits, like Earned Income Tax Credit or Child and Dependent Care Tax Credit. These credits can only be obtained by filing a return. To ensure that filing is free for both federal and state returns, be sure to use the vendor links found on our Free File page, not those on the vendor's website. |
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New Local Option Tax Municipality
Elmore Local Option Tax adds 1% Tax on Rooms
Effective July 1, businesses in Elmore offering short-term accommodations (rooms and lodging) to the public must begin collecting 1% Local Option Tax on rooms in addition to the existing 9% Rooms Tax. For monthly filers, the first due date for Local Option Tax collected in Elmore is Aug. 25. Please see our webpage, Meals and Rooms Tax, for information.
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Yard Sales | What You Need to Know
Yard sales are a time-honored tradition in Vermont, but be careful not to have too many in one year. State law limits the number of so-called "casual sales" an individual may have before they have to register as a business and collect Vermont Sales Tax. See page 27 of the Vermont Sales and Use Tax Regulations about casual sales. |
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Interested in Joining Us?
If you've ever thought, "I don't have the right skills needed to work at the Vermont Department of Taxes," then consider this: there is a role for almost anyone at the Department. There are as many different interests, backgrounds, and experiences among employees as there are positions. Whether you have a long employment history or are just starting out, we encourage you to visit our Careers page to see what positions are open currently.
The State of Vermont offers a generous benefits package including health, dental, and life insurance, tuition reimbursement, deferred compensation options, and much more. Plus, we're fun to work with!
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Follow Us on Social Media
Stay ahead with our daily updates on Facebook and Twitter. We highlight changes to our website, new guides and fact sheets, useful tips to help individuals and businesses with state and federal taxes, financial safety alerts, and more.
To get on board, visit our Facebook page and "Like" us or hit the "Follow" button on our Twitter feed |
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Connect with Us
Many department employees are still working remotely, but that doesn't mean we aren't available to answer your questions. Should you need to contact us about a return, secure email is the best method. See our contact options. Remember--we are here to help!
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