Vermont 2025-2026 Regular Session

Vermont House Bill H0077 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	BILL AS INTRODUCED H.77
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6	6	H.77 1
7	7	Introduced by Representatives McCann of Montpelier, Cordes of Lincoln, 2
8	8	Dodge of Essex, Goldman of Rockingham, Headrick of 3
9	9	Burlington, Logan of Burlington, Pouech of Hinesburg, 4
10	10	Priestley of Bradford, Tomlinson of Winooski, and Waszazak 5
11	11	of Barre City 6
12	12	Referred to Committee on 7
13	13	Date: 8
14	14	Subject: Taxation; income tax; marginal tax brackets 9
15	15	Statement of purpose of bill as introduced: This bill proposes to create a new 10
16	16	marginal tax bracket to generate revenue for education and transportation. 11
17	17	An act relating to creating a new income tax bracket 12
18	18	It is hereby enacted by the General Assembly of the State of Vermont: 13
19	19	Sec. 1. 32 V.S.A. § 5822 is amended to read: 14
20	20	§ 5822. TAX ON INCOME OF INDIVIDUALS, ESTATES, AND TRUSTS 15
21	21	(a) A tax is imposed for each taxable year upon the taxable income earned 16
22	22	or received in that year by every individual, estate, and trust, subject to income 17
23	23	taxation under the laws of the United States, in an amount determined by the 18
24	24	following tables, and adjusted as required under this section: 19 BILL AS INTRODUCED H.77
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29	29	(1) Married individuals filing joint returns and surviving spouses: 1
30	30	If taxable income is: The tax is: 2
31	31	Not over $64,600.00 $79,950.00 3.35% of taxable income 3
32	32	Over $64,600.00 $79,950.00 but $2,164.00 $2,678.00 plus 6.6% of the 4
33	33	not over $156,150.00 $193,300.00 amount of taxable income over 5
34	34	$64,600.00 $79,950.00 6
35	35	Over $156,150.00 $193,300.00 but $8,206.00 $10,159.00 plus 7.6% of 7
36	36	not over $237,950.00 $294,600.00 the amount of taxable income over 8
37	37	$156,150.00 $193,300.00 9
38	38	Over $237,950.00 $294,600.00 but $14,423.00 $17,858.00 10
39	39	not over $1,217,350.00 plus 8.75% of the amount of taxable 11
40	40	income over $237,950.00 12
41	41	$294,600.00 13
42	42	Over $1,217,350.00 $98,599.00 plus 12.75% of the 14
43	43	amount over $1,217,350.00 15
44	44	(2) Heads of households: 16
45	45	If taxable income is: The tax is: 17
46	46	Not over $51,850.00 $64,200.00 3.35% of taxable income 18
47	47	Over $51,850.00 $64,200.00 but $1,737.00 $2,151.00 plus 6.6% of the 19
48	48	not over $133,850.00 $165,700.00 amount of taxable income over 20
49	49	$51,850.00 $64,200.00 21 BILL AS INTRODUCED H.77
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54	54	Over $133,850.00 $165,700.00 but $7,149.00 $8,850.00 plus 7.6% of the 1
55	55	not over $216,700.00 $268,350.00 amount of taxable income over 2
56	56	$133,850.00 $165,700.00 3
57	57	Over $216,700.00 $268,300.00 $13,446.00 $16,647.00 plus 8.75% of 4
58	58	but not over $1,108,675.00 the amount of taxable income over 5
59	59	$216,700.00 $268,300.00 6
60	60	Over $1,108,675.00 $90,180.00 plus 12.75% of the 7
61	61	amount of taxable income over 8
62	62	$1,108,675.00 9
63	63	(3) Unmarried individuals (other than surviving spouse or head of 10
64	64	household): 11
65	65	If taxable income is: The tax is: 12
66	66	Not over $38,700.00 $47,900.00 3.35% of taxable income 13
67	67	Over $38,700.00 $47,900.00 but $1,296.00 $1,605.00 plus 6.6% of the 14
68	68	not over $93,700.00 $116,000.00 6.6% of the amount of taxable 15
69	69	income over $38,700.00 $47,900.00 16
70	70	Over $93,700.00 $116,000.00 but $4,926.00 $6,099.00 plus 7.6% of the 17
71	71	not over $195,450.00 $242,000.00 amount of taxable income over 18
72	72	$93,700.00 $116,000.00 19
73	73	Over $195,450.00 $242,000.00 but $12,659.00 $15,675.00 plus 8.75% of 20
74	74	not over $1,000,000.00 the amount of taxable income over 21 BILL AS INTRODUCED H.77
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79	79	$195,450.00 $242,000.00 1
80	80	Over $1,000,000.00 $82,000.00 plus 12.75% of the 2
81	81	amount of taxable income over 3
82	82	$1,000,000.00 4
83	83	(4) Married individuals filing separate returns: 5
84	84	If taxable income is: The tax is: 6
85	85	Not over $32,300.00 $39,975.00 3.35% of taxable income 7
86	86	Over $32,300.00 $39,975.00 but $1,082.00 $1,339.00 plus 6.6% of the 8
87	87	not over $78,075.00 $96,650.00 amount of taxable income over 9
88	88	$32,300.00 $39,975.00 10
89	89	Over $78,075.00 $96,650.00 but $4,103.00 $5,080.00 plus 7.6% of the 11
90	90	not over $118,975.00 $147,300.00 amount of taxable income over 12
91	91	$78,075.00 $96,650.00 13
92	92	Over $118,975.00 $147,300.00 but $7,212.00 $8,929.00 plus 8.75% of 14
93	93	not over $608,675.00 the amount of taxable income over 15
94	94	$118,975.00 $147,300.00 16
95	95	Over $608,675.00 $49,299.00 plus 12.75% of the 17
96	96	amount of taxable income over 18
97	97	$608,675.00 19 BILL AS INTRODUCED H.77
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102	102	(5) Estates and trusts: 1
103	103	If taxable income is: The tax is: 2
104	104	$2,600.00 $3,200.00 or less 3.35% of taxable income 3
105	105	Over $2,600.00 $3,200.00 but $87.00 $107.00 plus 6.6% of the 4
106	106	not over $6,100.00 $7,500.00 amount of taxable income over 5
107	107	$2,600.00 $3,200.00 6
108	108	Over $6,100.00 $7,500.00 but $318.00 $391.00 plus 7.6% of the 7
109	109	not over $9,350.00 $11,550.00 amount of taxable income over 8
110	110	$6,100.00 $7,500.00 9
111	111	Over $9,350.00 $11,550.00 $565.00 $699.00 plus 8.75% of the 10
112	112	amount of taxable income over 11
113	113	$9,350.00 $11,550.00 12
114	114	(6) If the federal adjusted gross income of the taxpayer exceeds 13
115	115	$150,000.00, then the tax calculated under this subsection shall be the greater 14
116	116	of the tax calculated under subdivisions (1)–(5) of this subsection or three 15
117	117	percent of the taxpayer’s federal adjusted gross income. 16
118	118	(b) As used in this section: 17
119	119	(1) “Married individuals,” “surviving spouse,” “head of household,” 18
120	120	“unmarried individual,” “estate,” and “trust” have the same meaning as under 19
121	121	the Internal Revenue Code. 20 BILL AS INTRODUCED H.77
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126	126	(2) The amounts of taxable income shown in the tables in this section 1
127	127	shall be adjusted annually for inflation by the Commissioner of Taxes using 2
128	128	the Consumer Price Index adjustment percentage, in the manner prescribed for 3
129	129	inflation adjustment of federal income tax tables for the taxable year by the 4
130	130	Commissioner of Internal Revenue, beginning with taxable year 2003 2025; 5
131	131	provided, however, notwithstanding 26 U.S.C. § 1(f)(3), that as used in this 6
132	132	subdivision, “consumer price index” means the last Consumer Price Index for 7
133	133	All Urban Consumers published by the U.S. Department of Labor. 8
134	134	* * * 9
135	135	(f) The revenue generated by individual income taxes levied pursuant to 10
136	136	this chapter shall be deposited in the General Fund, except as follows: 11
137	137	(1) An amount equal to two percent of the taxable income taxed at the 12
138	138	highest marginal tax rate under subdivisions (1)–(4) of this section shall be 13
139	139	deposited in the Education Fund established under 16 V.S.A. § 4025. 14
140	140	(2) An amount equal to one percent of the taxable income taxed at the 15
141	141	highest marginal tax rate under subdivisions (1)–(4) of this section shall be 16
142	142	deposited in the Transportation Fund established under 19 V.S.A. § 11 for use 17
143	143	in the repair and maintenance of roads and bridges and for public 18
144	144	transportation. 19
145	145	(3) An amount equal to one percent of the taxable income taxed at the 20
146	146	highest marginal tax rate under subdivisions (1)–(4) of this section shall be 21 BILL AS INTRODUCED H.77
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151	151	deposited in the Vermont Higher Education Endowment Trust Fund 1
152	152	established under 16 V.S.A. § 2885. 2
153	153	Sec. 3. 32 V.S.A. § 435 is amended to read: 3
154	154	§ 435. GENERAL FUND 4
155	155	(a) There is established the General Fund, which shall be the basic 5
156	156	operating fund of the State. The General Fund shall be used to finance all 6
157	157	expenditures for which no special revenues have otherwise been provided by 7
158	158	law. 8
159	159	(b) The General Fund shall be composed of revenues from the following 9
160	160	sources: 10
161	161	* * * 11
162	162	(5) individual income taxes levied pursuant to chapter 151 of this title, 12
163	163	except as otherwise deposited pursuant to subsection 5822(f) of this title; 13
164	164	* * * 14
165	165	Sec. 4. 16 V.S.A. § 4025 is amended to read: 15
166	166	§ 4025. EDUCATION FUND 16
167	167	(a) The Education Fund is established to comprise the following: 17
168	168	* * * 18
169	169	(10) wind-powered electric generating facilities tax deposited pursuant 19
170	170	to 32 V.S.A. § 5402c; and 20 BILL AS INTRODUCED H.77
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175	175	(11) revenues from the short-term rental surcharge under 32 V.S.A. 1
176	176	§ 9301; and 2
177	177	(12) income tax revenue deposited pursuant to 32 V.S.A. § 5822(f). 3
178	178	* * * 4
179	179	Sec. 5. 19 V.S.A. § 11 is amended to read: 5
180	180	§ 11. TRANSPORTATION FUND 6
181	181	The Transportation Fund shall comprise the following: 7
182	182	* * * 8
183	183	(8) other miscellaneous sources including the sale of maps, plans, and 9
184	184	reports, fees collected by the Travel Information Council, leases for property at 10
185	185	State-owned airports and railroads, proceeds from the sale of State surplus 11
186	186	property under the provisions of 29 V.S.A. §§ 1556 and 1557, and proceeds 12
187	187	from the sale of recycled materials; and 13
188	188	(9) income tax revenue deposited pursuant to 32 V.S.A. § 5822(f). 14
189	189	Sec. 6. EFFECTIVE DATE 15
190	190	Notwithstanding 1 V.S.A. § 214, this act shall take effect retroactively on 16
191	191	January 1, 2025 and apply to taxable years on and after January 1, 2025. 17