Henry Raymond

Fairfax News => Political Issues/Comments => Topic started by: Carolyn Branagan on May 18, 2010, 03:42:10 PM

Title: end of legislative session
Post by: Carolyn Branagan on May 18, 2010, 03:42:10 PM
In the end everyone gave a little in order to get a satisfactory spending plan. I am very pleased with the FY2011 state budget approved last week by the Vermont General Assembly and will be paying close attention to revenue figures as they come in for the new fiscal year. 
 
Below is a summary of changes in tax law approved with the FY2011state budget. Feel free to e-mail me at cbranagan@leg.state.vt.us if you have questions.
 
Capital gains
Starting January 1, 2011, taxpayers can choose to exempt either (a) the first $5,000 of federal adjusted net capital gain, or (b) 40% of capital gain from assets held more than three years. These assets include business real estate, farm real estate, farm business equipment, other farm capital assets and standing timber. This 40% option cannot be applied to the taxpayer's residence or second home (or third, fourth, etc. home), non-farm business equipment, nor any financial instrument that's traded like stocks, bonds, derivatives, commodities, futures etc.
     
Education Funding
*The property tax adjustment calculation for the income sensitivity program will not decrease tax on the equalized value of a housesite in excess of $500,000. This is a cap designed to prevent a taxpayer with a very valuable house site from getting full income sensitivity on the value over a half a million dollars 
*The $10 per-acre adjustment amount for up to 5 additional acres for claimants with household income under $90,000 has been deleted. Very few taxpayers were using this adjustment. 
*The education property tax rates for FY2011 are the same as last year. Rates remain  $0.86 for homestead property and $1.35 for nonresidential property.
*The homestead declaration filed in 2010 will remain in effect until some kind of change effects the homestead eligibility. No more annual filing for the homestead declaration.

Estate Tax
Starting in 2011, the exclusion amount is increased from $2.0 million to $2.75 million. This means that the first $2.75 million of an estate will be exempt from taxation.

Tobacco Taxes
This change defines a cigar and amends the amount of roll-your-own tobacco that constitutes a cigarette for tax purposes. The tax on snuff and smokeless tobacco are equalized with the tax on cigarettes. Cigar tax is:
1.   If wholesale price is between $1.09 and $9.99, tax is $2.00;
2.   If wholesale price is greater than $10.00, tax is $4.00 and is the wholesale price is $1.08 or less, tax is 92% of wholesale price.

Hydroelectric Facilities
This change freezes the grand list values of hydroelectric facilities for 2 years at no less than the April1, 2009 value. This change involves communities with a hydroelectric dam: Milton, Vergennes, Fairfax and others.

Rep. Carolyn Branagan
Franklin-1, Fairfax/Georgia
Vermont House of Representatives





Title: Re: end of legislative session
Post by: special ED on May 19, 2010, 04:50:06 AM
wish I could invite dickson and horwagain to have some tea with me