Title 32, Taxation and Finance

§ 5828b. Earned income tax credit (a) A resident individual or part-year resident individual who is entitled to an earned income tax credit granted under the laws of the United States shall be entitled to a credit against the tax imposed for each year by section 5822 of this titl…

§ 5828c. Child and dependent care credit A resident or part-year resident of this State shall be eligible for a refundable credit against the tax imposed under section 5822 of this title. The credit shall be equal to 72 percent of the federal child and dependent care credit allow…

§ 5830. Taxpayer identification numbers; credits (a) The Commissioner shall provide a process for an individual to claim the child tax credit or the earned income tax credit, or both, pursuant to subsections 5828b(a) and 5830f(a) of this title when the individual, the individual’…

§ 5830a. Interest tax (a) When another state imposes a tax upon interest earned by its residents on deposits in a lending institution located in this State, but exempts from such taxation deposits by its residents in lending institutions located within that state, then there is h…

§ 5830b. Tax credits; Entrepreneurs’ Seed Capital Fund (a) The initial capitalization of the Entrepreneurs’ Seed Capital Fund, as established in 10 V.S.A. § 291, up to $7,150,000.00 raised from Vermont taxpayers on or before January 1, 2020, shall entitle those taxpayers to a cre…

§ 5830c. Tax credits; charitable investments in housing (a) Credit authorized. A charitable investment approved by the Commissioner of Housing and Community Affairs in an eligible housing charity shall entitle a Vermont taxpayer to a credit against the tax imposed by sections 582…

§ 5830d. Deferral of income taxation; combat zone duty The provisions of 26 U.S.C. § 7508 shall apply to this chapter for the benefit of: (1) individuals called up for full-time active military duty as the result of the existence of a military conflict in an area designated as a …

§ 5830e. Retirement income; Social Security income (a) Social Security income. The portion of federally taxable Social Security benefits excluded from taxable income under subdivision 5811(21)(B)(iv) of this chapter shall be as follows: (1) For taxpayers whose filing status is si…

§ 5830f. Vermont child tax credit (a) A resident individual or part-year resident individual who is entitled to a child tax credit under the laws of the United States or who would have been entitled to a child tax credit under the laws of the United States but for the fact that t…

§ 5830g. Vermont veteran tax credit (a) A resident individual or part-year resident individual who served in the uniformed services shall be entitled to a refundable credit against the tax imposed by section 5822 of this title for the taxable year. (b) A taxpayer shall be eligibl…

§ 5831. Name of tax The tax imposed by this subchapter shall be known as the Vermont Corporate Income Tax. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)

§ 5832. Tax on income of corporations A tax is imposed for each calendar year, or fiscal year ending during that calendar year, upon the income earned or received in that taxable year by every taxable corporation, reduced by any Vermont net operating loss allowed under section 58…

§ 5832a. Digital business entity franchise tax (a) There is imposed upon every business entity that qualifies as and has elected to be taxed as a digital business entity an annual franchise tax equal to: (1) the greater of 0.02 percent of the current value of the tangible and int…

§ 5833. Allocation and apportionment of income (a) If the income of a taxable corporation is derived from any trade, business, or activity conducted entirely within this State, the Vermont net income of the corporation shall be allocated to this State in full. If the income of a …

§ 5834. Computation of gains and losses For the purpose of ascertaining gain or loss from the sale or other disposition of property, real, personal, or mixed, acquired before January 1, 1931, the taxpayer may, in lieu of the adjusted basis prescribed by the applicable U.S. Intern…

§ 5835. Construction of subchapter Nothing in this subchapter shall be construed to repeal or affect any of the provisions of chapter 211 of this title. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)

§ 5836. Franchise tax on financial institutions (a) A tax is imposed for each calendar month or part thereof upon the franchise or privilege of doing business in this State of every corporation that is a financial institution as defined in 8 V.S.A. § 11101(32) that has a business…

§ 5838. Digital business entity election A corporation shall not be subject to the tax imposed by section 5832 of this title if the corporation qualifies as and elects to be taxed as a digital business entity for the taxable year. (Added 2009, No. 1 (Sp. Sess.), § H.54, eff. Jan.…

§ 5841. Requirement and rate of withholding (a) Every person who is required under the laws of the United States to withhold federal income tax from payments that are also subject to Vermont income tax shall deduct and withhold during the calendar year from the payments made by s…

§ 5842. Return and payment of withheld taxes (a) Every person required to deduct and withhold any amount under section 5841 of this title shall make return thereof and shall pay over that amount to the Commissioner as follows: (1) In quarterly payments to be made not later than 2…

§ 5843. Failure to account; maintenance of trust account If a person fails at any time to comply with the Commissioner’s requirement under subsection 5842(b) of this title to remit amounts deducted and withheld at such intervals and based upon such classifications as the Commissi…

§ 5844. Liability; penalty; trust for the State (a) Withholding requirement. Any person who fails to withhold the required tax or to pay it to the Commissioner as required under this subchapter shall be personally and individually liable for the amount of such tax, and if the per…

§ 5847. Withholding on sales or exchanges of real estate (a) Except as otherwise provided in this section, in the case of any sale or exchange of real property located in Vermont by a nonresident of Vermont, the transferee shall be required to withhold and transmit to the Commiss…

§ 5851. Definitions As used in this subchapter: (1) “Tax” means, for any taxpayer and for any taxable year, the income tax liability of the taxpayer for that taxable year under section 5822 of this title, reduced by any allowable credits against such tax. (2) “Required annual pay…

§ 5852. Payment of estimated income tax (a) Every individual, estate, and trust subject to taxation under section 5822 of this title (other than a person receiving at least two-thirds of his or her income from farming or fishing as defined under the laws of the United States) sha…

§ 5855. Payments as tax liability (a) Any payment of estimated tax required to be made under the provisions of this subchapter shall be deemed to be a tax liability for the purposes of this chapter. All of the provisions of this chapter, including the provisions governing interes…

§ 5856. Declaration of estimated tax (a) Every corporate taxpayer shall make a declaration of estimated tax for the taxable year in such form as the Commissioner shall prescribe, if the amount payable as estimated tax can reasonably be expected to be more than $500.00 for the tax…

§ 5857. Filing dates A declaration of estimated tax shall be filed on or before the 15th day of the fourth month of each taxable year, except that if the $500.00 minimum tax requirement is met: (1) after the fourth month and before the sixth month of the taxable year, the declara…

§ 5858. Payment dates A taxpayer required to file a declaration of estimated tax shall pay such estimated tax as follows: (1) If the declaration is required to be filed on or before the 15th day of the fourth month of the taxable year, the estimated tax shall be paid in four equa…

§ 5859. Assessment date, penalties, interest (a) Any amount paid as estimated tax shall be deemed assessed upon the due date for the taxpayer’s return for the taxable year (determined without regard to any extensions of time for filing such return). (b) Except as provided in subs…

§ 5861. Returns by individuals, trusts, and estates (a) Every individual, trust, or estate subject to taxation for any taxable year under section 5822 of this title shall file a Vermont personal income tax return for that taxable year if that person is required to file a United S…

§ 5861a. Returns by partnerships (a) Every partnership having any income derived from Vermont sources shall file with the Commissioner a Vermont partnership income tax return and a copy of the federal form 1065, including Schedules K and K-1 (U.S. Partnership Return of Income and…

§ 5862. Returns by corporations (a) Every corporation that is a taxable corporation, for any taxable year, shall file a Vermont corporate income tax return for that taxable year on or before the date a U.S. income tax return is required to be filed for that year by that corporati…

§ 5862a. Nongame Wildlife Account checkoff (a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to reimburse the State, in all or in part, for its General Fund appropriation to the No…

§ 5862b. Vermont Children’s Trust Foundation checkoff (a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to the Vermont Children’s Trust Foundation. (b) Amounts so designated shall …

§ 5862c. Repealed. 2009, No. 160 (Adj. Sess.), § 51(c)(1) repealed effective for taxable years beginning on and after January 1, 2010.

§ 5862d. Filing of federal form 1099 (a) Any individual or business required to file a federal form 1099 with respect to a nonresident who performed services within the State during the taxable year shall file a copy of the form with the Department. The Commissioner may authorize…

§ 5862e. Vermont Veterans’ Fund checkoff (a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to the Vermont Veterans’ Fund. (b) Amounts designated under subsection (a) of this sectio…

§ 5862f. Vermont Green Up checkoff (a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to Vermont Green Up, Inc. (b) Amounts so designated shall be deducted from refunds due to, or o…

§ 5863. Additional returns When the Commissioner is of the opinion that a taxpayer has failed to file any return required by this chapter, or to include in any return so filed, either intentionally or through error, information by which the taxpayer’s tax liability may correctly …

§ 5864. Failure to file a return; petition and computation of tax (a) Upon the failure of a taxpayer to file any return required under this chapter within 15 days of the date of a notice to the taxpayer under section 5863 of this title, the Commissioner may petition a judge of th…

§ 5866. Supplemental information; changes in federal tax liability or taxable income (a) If, after the time for filing any return required by this chapter, a taxpayer: (1) becomes aware of any information that makes that return materially false, inaccurate, or incomplete; (2) is …

§ 5866a. Reporting adjustments to federal taxable income and federal partnership audits (a) Definitions. As used in this section: (1) “Administrative adjustment request” means an administrative adjustment request filed by a partnership under 26 U.S.C. § 6227. (2) “Audited partner…

§ 5867. Form and verification of returns The returns required to be filed under this chapter shall be in such form and manner as the Commissioner prescribes in order to ensure payment of the taxes imposed by this chapter and shall be filed at the main office of the Department of …

§ 5868. Extension of time for filing of returns The Commissioner may extend the time within which a taxpayer is required to file a return. The Commissioner shall extend the time for filing a taxpayer’s Vermont income tax return to the extended date for filing the United States in…

§ 5870. Reporting use tax on individual income tax returns (a) The Commissioner of Taxes shall provide that individuals report use tax on their State individual income tax returns. Taxpayers are required to attest to the amount of their use tax liability under chapter 233 of this…