S.53 Modernization and Recalibration of Vermont’s Tax System

MODERNIZATION & RECALIBRATION OF VERMONT TAX SYSTEM

S.53, approved by the VT House today, updates aspects of the sales & income tax system, brings Vermont in line with other states, prepares us for the future of our economy, and supports businesses to invest in people and property.

S.53 lowers the minimum tax rate for small businesses, while ensuring that companies with more than $300 million in sales receipts pay their fair share.

It updates the fees that managers of a mutual fund need to pay to the Dept. of Financial Regulation in order to sell their securities in Vermont.

It repeals the state's current exemption on the so-called "cloud tax" for vendor-hosted prewritten software or “canned software accessed remotely.” Consumers in 21 states already pay these fees.

The bill also concurs with the Senate by eliminating the sales tax on all menstrual products, including tampons, pads and cups.

And finally— S.53 creates an exclusion on the first $10,000 of federally taxable U.S. military retirement pay, recognizing the service of 3,900 Vermonters who derive some of their income from here.

We want a Vermont that works for all of us with strong social and physical infrastructure, and these miscellaneous tax changes support the base revenue to pay for it.