Vermont 2025-2026 Regular Session Status: Enacted

H 933 — An act relating to miscellaneous administrative and policy changes to the tax laws

Last action — House message: Governor approved bill on June 18, 2026

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 17, 2026. Enacted.

Signed by Governor Phil Scott (Republican) on May 29, 2026.

Prognosis

Advancing 38% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Failed a recorded vote

    Failed 2 recorded votes so far — a real headwind.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

The bill makes various administrative and policy changes to tax laws.

This measure introduces multiple changes to the existing tax laws, aimed at improving administration and policy. The specifics of these changes are not detailed in the provided information.

Bill Text

What changed in the latest version

1139 added · 1096 removed

Plain-language change summary

The recent changes to Bill H.933 primarily consist of updating the language while maintaining the core intent of the legislation, which addresses various administrative and policy aspects of Vermont’s tax laws. Some sections were reformatted and specific wording was adjusted for clarity. These revisions are important because they help ensure that the bill is easier to understand and implement, ultimately benefiting those affected by tax regulations in Vermont.

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AS PASSED BY HOUSE H.933 Page 1 of 56 H.933 An act relating to miscellaneous administrative and policy changes to the tax laws It is hereby enacted by the General Assembly of the State of Vermont:
BILL AS PASSED BY THE HOUSE H.933 Page 1 of 60 H.933 Introduced by Committee on Ways and Means Date:
Subject:
Taxation;
income tax;
property transfer tax;
use value appraisal;
property tax;
property valuation;
municipal grand list stabilization;
equalization study;
health IT fund;
education finance;
inflation index;
homestead declaration;
property tax credit;
estate tax;
federal tax credit for contributions to scholarship granting organizations;
grand lists;
grand list assessment date;
municipal tax collection;
meals and rooms tax;
purchase and use tax;
general fund;
education fund;
transportation fund Statement of purpose of bill as introduced:
This bill proposes to make multiple administrative and policy changes to Vermont tax laws.
An act relating to miscellaneous administrative and policy changes to the tax laws It is hereby enacted by the General Assembly of the State of Vermont:
* * * Property Transfer Tax * * * Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 2 of 60 * * * Property Transfer Tax * * * Sec.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 2 of 56 (B) that will not be used as the principal residence of the transferee;
(B) that will not be used as the principal residence of the transferee;
(5) If a transfer would have been subject to the tax rate under subdivision (4) of this section but for the transferee’s filing of a landlord certificate of rent for which there is no bona fide landlord-tenant relationship between the parties, the Commissioner shall assess tax at the rate under subdivision (4) of this section on the transfer.
(5) If a transfer would have been subject to the tax rate under subdivision (4) of this section but for the transferee’s filing of a landlord certificate of rent for which there is no bona fide landlord-tenant relationship between the parties, the Commissioner shall assess tax at the rate under BILL AS PASSED BY THE HOUSE H.933 Page 3 of 60 subdivision (4) of this section on the transfer.
§ 3757 is amended to read:
§ 3757 is amended to read:
If changed land is a VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 3 of 56 portion of a parcel, the fair market value of the changed land shall be the fair market value of the changed land as a separate parcel, divided by the common level of appraisal.
If changed land is a portion of a parcel, the fair market value of the changed land shall be the fair market value of the changed land as a separate parcel, divided by the common level of appraisal.
Nothing in this section shall be construed to require payment of an additional land use change tax upon the subsequent development of the same land, nor shall it be construed to require payment of a land use change tax merely because previously eligible land becomes ineligible, provided no development of the land has occurred.
Nothing in this section shall be construed to require payment of an additional land use change tax upon the subsequent development of the same land, nor shall it be construed to require payment of a land use change tax merely because BILL AS PASSED BY THE HOUSE H.933 Page 4 of 60 previously eligible land becomes ineligible, provided no development of the land has occurred.
(c) For the purposes of the land use change tax, the determination of the fair market value of the land shall be made by the local assessing officials in VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 4 of 56 accordance with the provisions of subsection (b) of this section and divided by the municipality’s most recent common level of appraisal as determined by the Director.
(c) For the purposes of the land use change tax, the determination of the fair market value of the land shall be made by the local assessing officials in accordance with the provisions of subsection (b) of this section and divided by the municipality’s most recent common level of appraisal as determined by the Director.
Failing a determination of the fair market value of the withdrawn portion of the parcel by the local assessing officials within 30 days as required under this subsection, the Director shall establish the fair market value of the changed land and notify the local assessing officials and the owner of the Director’s determination within 30 days.
Failing a determination of the fair market value of the withdrawn portion of BILL AS PASSED BY THE HOUSE H.933 Page 5 of 60 the parcel by the local assessing officials within 30 days as required under this subsection, the Director shall establish the fair market value of the changed land and notify the local assessing officials and the owner of the Director’s determination within 30 days.
The tax shall be paid to VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 5 of 56 the Commissioner, who, if the municipality’s local assessing officials timely determine fair market value of the withdrawn portion of the parcel pursuant to subsection (c) of this section, shall remit to the municipality the lesser of one- half the tax paid or $2,000.00.
The tax shall be paid to the Commissioner, who, if the municipality’s local assessing officials timely determine fair market value of the withdrawn portion of the parcel pursuant to subsection (c) of this section, shall remit to the municipality the lesser of one- half the tax paid or $2,000.00.
If the municipality’s local assessing officials fail to timely determine fair market value of the withdrawn portion of the parcel pursuant to subsection (c) of this section, the municipality shall forfeit any tax paid and the Commissioner shall deposit three-quarters of the tax paid in the Education Fund, and one-quarter of the tax paid in the General Fund.
If the municipality’s local assessing officials fail to timely determine fair market value of the withdrawn portion of the parcel pursuant to subsection (c) of this section, the municipality BILL AS PASSED BY THE HOUSE H.933 Page 6 of 60 shall forfeit any tax paid and the Commissioner shall deposit three-quarters of the tax paid in the Education Fund, and one-quarter of the tax paid in the General Fund.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 6 of 56 * * * Sec.
* * * Sec.
* * * Municipal Grand List Stabilization Program * * * Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 7 of 60 * * * Municipal Grand List Stabilization Program * * * Sec.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 7 of 56 * * * Communications Property;
* * * Communications Property;
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(3) The Division shall prescribe the form of the inventory required under subdivision (2) of this subsection and the officer or officers who shall submit the sworn inventory.
BILL AS PASSED BY THE HOUSE H.933 Page 8 of 60 (3) The Division shall prescribe the form of the inventory required under subdivision (2) of this subsection and the officer or officers who shall submit the sworn inventory.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 8 of 56 * * * Equalization Study * * * Sec.
* * * Equalization Study * * * Sec.
chapter 53, subchapter 7 shall include the fair market value of the property in the district or site and not the original taxable value of the property, and further provided that the unified towns and gores of Essex County may be treated as one municipality for the purpose of determining an equalized education property grand list and a coefficient of dispersion, if the Director determines that all such entities have a uniform appraisal schedule and uniform appraisal practices.
chapter 53, subchapter 7 shall include the fair market value of the property in the district or site and not the original taxable value of the property, and further provided that the unified towns and gores of Essex County may be treated as one municipality BILL AS PASSED BY THE HOUSE H.933 Page 9 of 60 for the purpose of determining an equalized education property grand list and a coefficient of dispersion, if the Director determines that all such entities have a uniform appraisal schedule and uniform appraisal practices.
§ 5406 is amended to read:
§ 5406 is amended to read:
NOTICE OF FAIR MARKET VALUE AND COEFFICIENT OF DISPERSION * * * (c) If the Director of Property Valuation and Review certifies that a municipality has completed a townwide reappraisal, the common level of appraisal for that municipality shall be equal to its new grand list value divided VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 9 of 56 by its most recent equalized grand list value 100 percent, for purposes of determining education property tax rates.
NOTICE OF FAIR MARKET VALUE AND COEFFICIENT OF DISPERSION * * * (c) If the Director of Property Valuation and Review certifies that a municipality has completed a townwide reappraisal, the common level of appraisal for that municipality shall be equal to its new grand list value divided by its most recent equalized grand list value 100 percent, for purposes of determining education property tax rates.
73, Sec.
73, Sec. 14, 2023 Acts and Resolves No.
14, 2023 Acts and Resolves No.
Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 10 of 60 Sec.
§ 559(e)(7) is amended to read:
§ 559(e)(7) is amended to read:
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 10 of 56 (7) Nothing in this section shall require a school board or supervisory union board to invite or advertise for bids if it is renewing a contract entered into pursuant to subsection (a) of this section, provided that:
(7) Nothing in this section shall require a school board or supervisory union board to invite or advertise for bids if it is renewing a contract entered into pursuant to subsection (a) of this section, provided that:
and (C) the contract for the renewal period allows termination by the board following an annual review of performance.
and BILL AS PASSED BY THE HOUSE H.933 Page 11 of 60 (C) the contract for the renewal period allows termination by the board following an annual review of performance.
§ 2959a(d) is amended to read:
§ 2959a(d) is amended to read:
These funds shall be used for an incentive payment to supervisory unions with student participation rates of over 80 percent in accordance with a formula to be VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 11 of 56 developed by the Agency, in consultation with the Vermont Superintendents Association.
These funds shall be used for an incentive payment to supervisory unions with student participation rates of over 80 percent in accordance with a formula to be developed by the Agency, in consultation with the Vermont Superintendents Association.
Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 12 of 60 Sec.
§ 4011(b) is amended to read:
§ 4011(b) is amended to read:
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 12 of 56 Sec.
Sec.
§ 5401(12)(B) is amended to read:
§ 5401(12)(B) is amended to read:
Department of Commerce, Bureau of Economic Analysis, from fiscal year 2025 through the fiscal year for which the amount is being determined.
Department of Commerce, Bureau of Economic Analysis, from BILL AS PASSED BY THE HOUSE H.933 Page 13 of 60 fiscal year 2025 through the fiscal year for which the amount is being determined.
§ 6062(c) is amended to read:
§ 6062(c) is amended to read:
* * * VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 13 of 56 (3) the property tax of a claimant who is a joint tenant with a former spouse and who has possession of the homestead pursuant to the joint owners’ final divorce decree is the property tax for which the claimant is responsible under the joint owners’ final divorce decree or any modifying orders;
* * * (3) the property tax of a claimant who is a joint tenant with a former spouse and who has possession of the homestead pursuant to the joint owners’ final divorce decree is the property tax for which the claimant is responsible under the joint owners’ final divorce decree or any modifying orders;
and (5) the property tax of a claimant who is a joint tenant or tenant by the entirety with a spouse who is not a member of the household, and who is party to a divorce or separation proceeding in a court of law, shall be 100 percent of the property tax.
and BILL AS PASSED BY THE HOUSE H.933 Page 14 of 60 (5) the property tax of a claimant who is a joint tenant or tenant by the entirety with a spouse who is not a member of the household, and who is party to a divorce or separation proceeding in a court of law, shall be 100 percent of the property tax.
§ 6018;
§ 6018;
or VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 14 of 56 (2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 26 U.S.C.
or (2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 26 U.S.C.
§ 5930u(h) is amended to read:
§ 5930u(h) is amended to read:
(2) In fiscal year 2020 through fiscal year 2026, the allocating agency may award up to $250,000.00 in total first-year credit allocations for loans through the Down Payment Assistance Program created in subdivision (b)(3) of this section.
BILL AS PASSED BY THE HOUSE H.933 Page 15 of 60 (2) In fiscal year 2020 through fiscal year 2026, the allocating agency may award up to $250,000.00 in total first-year credit allocations for loans through the Down Payment Assistance Program created in subdivision (b)(3) of this section.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 15 of 56 (1) Section 25F of the Internal Revenue Code creates a new federal program to subsidize scholarships for expenses at public and private schools.
(1) Section 25F of the Internal Revenue Code creates a new federal program to subsidize scholarships for expenses at public and private schools.
§ 24 is added to read:
§ 24 is added to read:
§ 24.
DESIGNATED ENTITY;
PARTICIPATION IN FEDERAL TAX BILL AS PASSED BY THE HOUSE H.933 Page 16 of 60 CREDIT PROGRAM (a) In accordance with 26 U.S.C.
§ 25F(g)(1)(B), the General Assembly designates itself as the sole entity to make an election under 26 U.S.C.
§ 25F.
(b) Vermont shall not participate in the federal tax credit program for contributions to scholarship granting organizations under 26 U.S.C.
§ 25F.
(c) Any election to the contrary made by another State official or entity is void and shall have no effect.
Sec.
19.
2 V.S.A.
§ 24 is added to read:
§ 25F for the following year.
§ 25F for the following year.
§ 25F(g).
§ 25F(g).
§ 25F by another State official or entity is void and shall have no effect.
§ 25F by another State official or entity is void and shall have no effect.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 16 of 56 * * * Definition of Parcel * * * Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 17 of 60 * * * Definition of Parcel * * * Sec.
§ 4152(a)(3) is amended to read:
§ 4152(a)(3) is amended to read:
§ 4132 is amended to read:
§ 4132 is amended to read:
Fees collected for the use of fish and wildlife lands and properties shall be deposited in the Fish and Wildlife Fund VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 17 of 56 Notwithstanding 32 V.S.A.
Fees collected for the use of fish and wildlife lands and properties shall be deposited in the Fish and Wildlife Fund BILL AS PASSED BY THE HOUSE H.933 Page 18 of 60 Notwithstanding 32 V.S.A.
§ 603 and with the approval of the Secretary, the Commissioner may:
§ 603 and with the approval of the Secretary, the Commissioner may:
COMMISSIONER OF FISH AND WILDLIFE RULE ON FEES FOR THE USE OF FISH AND WILDLIFE DEPARTMENT LANDS AND FACILITIES VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 18 of 56 Commissioner of Fish and Wildlife Rule 2008-01, CVR 12-010-075, Fees for the Use of Fish and Wildlife Department Lands and Facilities, is repealed.
COMMISSIONER OF FISH AND WILDLIFE RULE ON FEES FOR THE USE OF FISH AND WILDLIFE DEPARTMENT LANDS AND FACILITIES BILL AS PASSED BY THE HOUSE H.933 Page 19 of 60 Commissioner of Fish and Wildlife Rule 2008-01, CVR 12-010-075, Fees for the Use of Fish and Wildlife Department Lands and Facilities, is repealed.
§ 603, shall establish the fees by statute for the service or product provided or regulatory function performed.
§ 603, shall establish the fees by statute for the service or product provided or regulatory function performed.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 19 of 56 Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 20 of 60 Sec.
§ 3481(1)(B)(iv) is amended to read:
§ 3481(1)(B)(iv) is amended to read:
§ 3482 is amended to read:
§ 3482 is amended to read:
§ 3485 is amended to read:
§ 3485 is amended to read:
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 20 of 56 (b) Failure on the part of the town municipal clerk to furnish the copies required under subsection (a) of this section shall not render the town liable in damages to any person.
BILL AS PASSED BY THE HOUSE H.933 Page 21 of 60 (b) Failure on the part of the town municipal clerk to furnish the copies required under subsection (a) of this section shall not render the town liable in damages to any person.
§ 3603(a) is amended to read:
§ 3603(a) is amended to read:
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 21 of 56 Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 22 of 60 Sec.
§ 3618(c)(2) is amended to read:
§ 3618(c)(2) is amended to read:
§ 3651 is amended to read:
§ 3651 is amended to read:
§ 3691 is amended to read:
§ 3691 is amended to read:
GENERAL RULE Taxable tangible personal estate shall be set in the list to the last owner thereof on April January 1 in each year, in the town, village, school, and fire VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 22 of 56 district where such property is situated, with the exception that such personal estate situated within this State owned by persons residing outside the State or by persons unknown to the listers shall be set in the list to the person having the same in charge, in the town, village, school, and fire district where the same is situated and shall be holden for all taxes assessed on such list.
GENERAL RULE Taxable tangible personal estate shall be set in the list to the last owner thereof on April January 1 in each year, in the town, village, school, and fire BILL AS PASSED BY THE HOUSE H.933 Page 23 of 60 district where such property is situated, with the exception that such personal estate situated within this State owned by persons residing outside the State or by persons unknown to the listers shall be set in the list to the person having the same in charge, in the town, village, school, and fire district where the same is situated and shall be holden for all taxes assessed on such list.
§ 3692(b) is amended to read:
§ 3692(b) is amended to read:
§ 3708 is amended to read:
§ 3708 is amended to read:
PAYMENTS IN LIEU OF TAXES FOR LANDS HELD BY THE AGENCY OF NATURAL RESOURCES * * * VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 23 of 56 (b) The State shall annually pay on or before October 31 to each municipality a payment in lieu of taxes (PILOT) that shall be the base payment as set forth under this section, for all ANR land, excluding buildings or other improvements thereon, as of April January 1 of the current year.
PAYMENTS IN LIEU OF TAXES FOR LANDS HELD BY THE AGENCY OF NATURAL RESOURCES * * * BILL AS PASSED BY THE HOUSE H.933 Page 24 of 60 (b) The State shall annually pay on or before October 31 to each municipality a payment in lieu of taxes (PILOT) that shall be the base payment as set forth under this section, for all ANR land, excluding buildings or other improvements thereon, as of April January 1 of the current year.
§ 3755(b) is amended to read:
§ 3755(b) is amended to read:
§ 6306(b), that is filed in the manner and form required by the Department of Forests, Parks and Recreation and that:
§ 6306(b), that is filed in the manner and form required by the Department of Forests, Parks and Recreation and that:
* * * VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 24 of 56 (D) Provides for continued conservation management, reserve forestland management, or forest crop production on the parcel for 10 years.
* * * BILL AS PASSED BY THE HOUSE H.933 Page 25 of 60 (D) Provides for continued conservation management, reserve forestland management, or forest crop production on the parcel for 10 years.
The management activity report shall be on a form prescribed by the Commissioner of Forests, Parks and Recreation in consultation with the Commissioner of Taxes and shall be signed by all the owners and shall contain the tax VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 25 of 56 identification numbers of all the owners.
The management activity report shall be on a form prescribed by the Commissioner of Forests, Parks and Recreation in consultation with the Commissioner of Taxes and shall be signed by all the owners and shall contain BILL AS PASSED BY THE HOUSE H.933 Page 26 of 60 the tax identification numbers of all the owners.
§ 3802a is amended to read:
§ 3802a is amended to read:
REQUIREMENT TO PROVIDE INSURANCE INFORMATION Before April January 1 of each year, owners of property exempt from taxation under subdivisions 3802(4), (6), (9), (12), and (15) and under subdivisions 5401(10)(D), (F), (G), and (J) of this title shall provide their local assessing officials with information regarding the insurance replacement cost VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 26 of 56 of the exempt property or with a written explanation of why the property is not insured.
REQUIREMENT TO PROVIDE INSURANCE INFORMATION Before April January 1 of each year, owners of property exempt from taxation under subdivisions 3802(4), (6), (9), (12), and (15) and under subdivisions 5401(10)(D), (F), (G), and (J) of this title shall provide their local assessing officials with information regarding the insurance replacement cost BILL AS PASSED BY THE HOUSE H.933 Page 27 of 60 of the exempt property or with a written explanation of why the property is not insured.
§ 3850(d) is amended to read:
§ 3850(d) is amended to read:
§ 4001(a) is amended to read:
§ 4001(a) is amended to read:
Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 28 of 60 Sec.
§ 4004 is amended to read:
§ 4004 is amended to read:
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 27 of 56 § 4004.
§ 4004.
§ 4041 is amended to read:
§ 4041 is amended to read:
When a board of listers is of the opinion that expert advice or assistance is needed in making any appraisal required by law, it may, with approval of VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 28 of 56 selectboard the legislative body of the municipality or by vote of the town municipality, employ such assistance.
When a board of listers is of the opinion that expert advice or assistance is BILL AS PASSED BY THE HOUSE H.933 Page 29 of 60 needed in making any appraisal required by law, it may, with approval of selectboard the legislative body of the municipality or by vote of the town municipality, employ such assistance.
§ 4044 is amended to read:
§ 4044 is amended to read:
§ 4045 is amended to read:
§ 4045 is amended to read:
ASSESSMENT WHEN APPRAISAL ON OTHER THAN APRIL JANUARY 1 * * * Sec.
ASSESSMENT WHEN APPRAISAL ON OTHER THAN APRIL JANUARY 1 * * * BILL AS PASSED BY THE HOUSE H.933 Page 30 of 60 Sec.
§ 5401(7) is amended to read:
§ 5401(7) is amended to read:
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 29 of 56 (A) “Homestead” means the principal dwelling and parcel of land surrounding the dwelling, owned and occupied by a resident individual as the individual’s domicile or owned and fully leased on April January 1, provided the property is not leased for more than 182 days out of the calendar year or, for purposes of the renter credit under subsection 6066(b) of this title, is rented and occupied by a resident individual as the individual’s domicile.
(A) “Homestead” means the principal dwelling and parcel of land surrounding the dwelling, owned and occupied by a resident individual as the individual’s domicile or owned and fully leased on April January 1, provided the property is not leased for more than 182 days out of the calendar year or, for purposes of the renter credit under subsection 6066(b) of this title, is rented and occupied by a resident individual as the individual’s domicile.
§ 5404a(a)(6) is amended to read:
§ 5404a(a)(6) is amended to read:
An owner of a qualified rental unit parcel shall be entitled to an exemption on the education property tax grand list of 10 percent of the grand list value of the parcel, multiplied by the ratio of square footage of improvements used for or related to residential rental purposes to total square footage of all improvements, multiplied by the ratio of qualified rental units to total residential rental units on the parcel.
An owner of a qualified rental unit parcel shall be entitled to an exemption on the education property tax grand list of 10 percent of the grand list value of the parcel, multiplied by the ratio of square footage of improvements used for or related to residential rental purposes to total square BILL AS PASSED BY THE HOUSE H.933 Page 31 of 60 footage of all improvements, multiplied by the ratio of qualified rental units to total residential rental units on the parcel.
“Qualified rental units” means VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 30 of 56 residential rental units that are subject to rent restriction under provisions of State or federal law but excluding units subject to rent restrictions under only one of the following programs:
“Qualified rental units” means residential rental units that are subject to rent restriction under provisions of State or federal law but excluding units subject to rent restrictions under only one of the following programs:
§ 5405 is amended to read:
§ 5405 is amended to read:
DETERMINATION OF EQUALIZED EDUCATION PROPERTY TAX GRAND LIST AND COEFFICIENT OF DISPERSION (a) Annually, on or before April 1, the Commissioner shall determine the equalized education property tax grand list and coefficient of dispersion for each municipality in the State;
DETERMINATION OF EQUALIZED EDUCATION PROPERTY TAX GRAND LIST AND COEFFICIENT OF DISPERSION BILL AS PASSED BY THE HOUSE H.933 Page 32 of 60 (a) Annually, on or before April 1, the Commissioner shall determine the equalized education property tax grand list and coefficient of dispersion for each municipality in the State;
provided, however, that for purposes of VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 31 of 56 equalizing grand lists pursuant to this section, the equalized education property tax grand list of a municipality that establishes a tax increment financing district shall include the fair market value of the property in the district and not the original taxable value of the property, and further provided that the unified towns and gores of Essex County may be treated as one municipality for the purpose of determining an equalized education property grand list and a coefficient of dispersion, if the Director determines that all such entities have a uniform appraisal schedule and uniform appraisal practices.
provided, however, that for purposes of equalizing grand lists pursuant to this section, the equalized education property tax grand list of a municipality that establishes a tax increment financing district shall include the fair market value of the property in the district and not the original taxable value of the property, and further provided that the unified towns and gores of Essex County may be treated as one municipality for the purpose of determining an equalized education property grand list and a coefficient of dispersion, if the Director determines that all such entities have a uniform appraisal schedule and uniform appraisal practices.
§ 5410 is amended to read:
§ 5410 is amended to read:
DECLARATION OF HOMESTEAD (a) A homestead owner shall declare ownership of a homestead for purposes of education property tax.
DECLARATION OF HOMESTEAD BILL AS PASSED BY THE HOUSE H.933 Page 33 of 60 (a) A homestead owner shall declare ownership of a homestead for purposes of education property tax.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 32 of 56 (b) Annually, on or before the due date for filing the Vermont income tax return, without extension, each homestead owner shall, on a form prescribed by the Commissioner, which shall be verified under the pains and penalties of perjury, declare the owner’s homestead, if any, as of, or expected to be as of, April January 1 of the year in which the declaration is made.
(b) Annually, on or before the due date for filing the Vermont income tax return, without extension, each homestead owner shall, on a form prescribed by the Commissioner, which shall be verified under the pains and penalties of perjury, declare the owner’s homestead, if any, as of, or expected to be as of, April January 1 of the year in which the declaration is made.
FORMS The Director may examine a tax list in the hands of a collector;
FORMS BILL AS PASSED BY THE HOUSE H.933 Page 34 of 60 The Director may examine a tax list in the hands of a collector;
shall confer from time to time with collectors, advise them concerning their official duties, VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 33 of 56 and furnish them printed instructions and directions relating thereto;
shall confer from time to time with collectors, advise them concerning their official duties, and furnish them printed instructions and directions relating thereto;
RETURNS TO DIRECTOR Collectors and other officials named in this chapter shall render such assistance, furnish such information, and make such returns to the Director in VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 34 of 56 relation to the subject of delinquent taxes and the administration of the law in reference thereto as he or she may require.
RETURNS TO DIRECTOR BILL AS PASSED BY THE HOUSE H.933 Page 35 of 60 Collectors and other officials named in this chapter shall render such assistance, furnish such information, and make such returns to the Director in relation to the subject of delinquent taxes and the administration of the law in reference thereto as he or she may require.
[Repealed.] * * * Sec.
[Repealed.] * * * * * * PVR Expenses;
PILOT Special Fund * * * Sec.
32 V.S.A.
§ 3436(e) is amended to read:
(e) A sum not to exceed $100,000.00 each year shall be paid from the Education Fund PILOT Special Fund to the Division of Property Valuation and Review for the purpose of providing assessment education for municipal listers and assessors.
The Director is authorized to establish guidelines and requirements for education programs to be provided using the funds described in this section.
Education programs provided using funds described in this section shall be provided at no cost or minimal cost to the municipal listers and assessors.
In addition to providing the annual education programs described in this section, up to 20 percent of the amount available for education programs may be reserved as a scholarship fund to permit municipal listers and assessors to attend national programs providing education opportunities on advanced assessment topics.
All applications for scholarships shall be submitted to and approved by the Director.
BILL AS PASSED BY THE HOUSE H.933 Page 36 of 60 Sec.
51.
32 V.S.A.
§ 3709(a) is amended to read:
(a) There is hereby established a PILOT Special Fund consisting of local option tax revenues paid to the State Treasurer pursuant to 24 V.S.A.
§ 138.
This Fund shall be managed by the Commissioner of Taxes pursuant to chapter 7, subchapter 5 of this title.
Notwithstanding subdivision 588(3) of this title, all interest earned on the Fund shall be retained in the Fund for use in meeting future obligations.
The Fund shall be exclusively for payments required under sections 3436, 4041a, and 5405 of this title, chapter 123, subchapters 4 and 4C of this title, and for any additional State payments in lieu of taxes for correctional facilities.
The Commissioner of Finance and Management may draw warrants for disbursements from this Fund in anticipation of receipts.
Sec.
52.
32 V.S.A.
§ 4041a is amended to read:
§ 4041a.
REAPPRAISAL (a) A municipality shall be paid $8.50 per grand list parcel per year from the General PILOT Special Fund to be used only for reappraisal and costs related to reappraisal of its grand list properties and for maintenance of the grand list.
Sec.
53.
32 V.S.A.
§ 5405 is amended to read:
§ 5405.
DETERMINATION OF EQUALIZED EDUCATION PROPERTY TAX GRAND LIST AND COEFFICIENT OF DISPERSION BILL AS PASSED BY THE HOUSE H.933 Page 37 of 60 * * * (f) Within the limits of the resources available for that purpose, the Commissioner may employ such individuals, whether on a permanent, temporary, or contractual basis, as shall be necessary, in the judgment of the Commissioner, to aid in the performance of duties under this section.
The Commissioner shall pay from the PILOT Special Fund to each municipality the sum of $1.00 per grand list parcel in the municipality for services provided to the Commissioner in connection with the performance of duties under this section.
Each municipality shall deposit payments received under this subsection into a special fund that shall be used to support the preparation of the education property tax grand list.
* * * Sec.
50.
(b) In conducting the study, the Joint Fiscal Office shall:
BILL AS PASSED BY THE HOUSE H.933 Page 38 of 60 (b) In conducting the study, the Joint Fiscal Office shall:
(2) Analyze Vermont’s taxation levels and tax responsibilities per capita, per income level, and by incidence on typical Vermont families of varying incomes, and on typical Vermont business enterprises of varying sizes VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 35 of 56 and types, and analyze trends in the taxpayer revenue bases for various tax types.
(2) Analyze Vermont’s taxation levels and tax responsibilities per capita, per income level, and by incidence on typical Vermont families of varying incomes, and on typical Vermont business enterprises of varying sizes and types, and analyze trends in the taxpayer revenue bases for various tax types.
(e) In fiscal year 2027, $100,000.00 is appropriated from the General Fund to the Joint Fiscal Office for consultant assistance, data analysis, and other expenses related to the study conducted under this section.
BILL AS PASSED BY THE HOUSE H.933 Page 39 of 60 (e) In fiscal year 2027, $100,000.00 is appropriated from the General Fund to the Joint Fiscal Office for consultant assistance, data analysis, and other expenses related to the study conducted under this section.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 36 of 56 (f) The Joint Fiscal Office shall submit the Vermont 10-year tax study to the House Committee on Ways and Means and the Senate Committee on Finance on or before January 15, 2027.
(f) The Joint Fiscal Office shall submit the Vermont 10-year tax study to the House Committee on Ways and Means and the Senate Committee on Finance on or before January 15, 2027.
§ 5811 is amended to read:
§ 5811 is amended to read:
(I) the amount of any deduction for State and local taxes on or measured by income, franchise taxes measured by net income, franchise taxes for the privilege of doing business and capital stock taxes;
BILL AS PASSED BY THE HOUSE H.933 Page 40 of 60 (I) the amount of any deduction for State and local taxes on or measured by income, franchise taxes measured by net income, franchise taxes for the privilege of doing business and capital stock taxes;
and (II) to the extent such income is exempted from taxation under the laws of the United States by, the amount received by the taxpayer on and after January 1, 1986, as interest income from state and local obligations, other VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 37 of 56 than obligations of Vermont and its political subdivisions, and any dividends or other distributions from any fund to the extent such dividend or distribution is attributable to such Vermont State or local obligations;
and (II) to the extent such income is exempted from taxation under the laws of the United States by, the amount received by the taxpayer on and after January 1, 1986, as interest income from state and local obligations, other than obligations of Vermont and its political subdivisions, and any dividends or other distributions from any fund to the extent such dividend or distribution is attributable to such Vermont State or local obligations;
and (VI) an amount equal to the amount of income deducted under Section 250 of the Internal Revenue Code for the taxable year to the extent deducted from net income;
and BILL AS PASSED BY THE HOUSE H.933 Page 41 of 60 (VI) an amount equal to the amount of income deducted under Section 250 of the Internal Revenue Code for the taxable year to the extent deducted from net income;
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 38 of 56 (I) the “gross-up of dividends” required by the federal Internal Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the foreign tax credit;
(I) the “gross-up of dividends” required by the federal Internal Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the foreign tax credit;
In the taxable year that property is sold or otherwise disposed of, an additional deduction shall be allowed to the extent the amount of depreciation claimed under Section 168(k) or (n) of the Internal Revenue Code on that property has not been recovered through the additional deductions provided under this subdivision (18).
In the taxable year that property is sold or otherwise disposed BILL AS PASSED BY THE HOUSE H.933 Page 42 of 60 of, an additional deduction shall be allowed to the extent the amount of depreciation claimed under Section 168(k) or (n) of the Internal Revenue Code on that property has not been recovered through the additional deductions provided under this subdivision (18).
The aggregate amount deducted under VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 39 of 56 this subdivision (18)(A)(ii)(IV) in all taxable years for any one piece of property shall not exceed the amount of the bonus depreciation deduction taken on that property on the taxpayer’s federal income tax return under Section 168(k) or (n) of the Internal Revenue Code, or exceed the amount of the additional modifications taken for that property on the taxpayer’s Vermont income tax return under subdivision (i)(IV) of this subdivision (18)(A);
The aggregate amount deducted under this subdivision (18)(A)(ii)(IV) in all taxable years for any one piece of property shall not exceed the amount of the bonus depreciation deduction taken on that property on the taxpayer’s federal income tax return under Section 168(k) or (n) of the Internal Revenue Code, or exceed the amount of the additional modifications taken for that property on the taxpayer’s Vermont income tax return under subdivision (i)(IV) of this subdivision (18)(A);
The aggregate amount deducted under this subdivision (18)(A)(ii)(V) in all taxable years may not exceed the amount of the deduction taken on that expenditure on the taxpayer’s federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken on the taxpayer’s Vermont income tax return under subdivision (i)(V) of this subdivision (18)(A);
The aggregate amount deducted under this subdivision (18)(A)(ii)(V) in all taxable years may not exceed the amount of the deduction taken on that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications BILL AS PASSED BY THE HOUSE H.933 Page 43 of 60 taken on the taxpayer’s Vermont income tax return under subdivision (i)(V) of this subdivision (18)(A);
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 40 of 56 § 174A, as added by subsection 174A(a), which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account pursuant to 26 U.S.C.
§  174A, as added by subsection 174A(a), which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account pursuant to 26 U.S.C.
The aggregate amount deducted under this subdivision (A)(ii)(VI) in all taxable years for any domestic research or experimental expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer’s federal income tax return under the Internal Revenue Code;
The aggregate amount deducted under this subdivision (A)(ii)(VI) in all taxable years for any domestic research or experimental expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code;
and (VII) for a taxpayer that qualifies as an eligible taxpayer for the taxable year as defined under subdivision (i)(V) of this subdivision (18)(A) and has made an addition modification under subdivision (i)(V) in a prior tax year, an amount equal to the subtraction modification that would have been allowed in this taxable year under subdivision (A)(ii)(V) of this subdivision (18) but for the taxpayer’s current status as an eligible taxpayer.
and (VII) for a taxpayer that qualifies as an eligible taxpayer for the taxable year as defined under subdivision (i)(V) of this subdivision (18)(A) and has made an addition modification under subdivision (i)(V) in a prior tax year, an amount equal to the subtraction modification that would have been allowed in this taxable year under subdivision (A)(ii)(V) of this subdivision BILL AS PASSED BY THE HOUSE H.933 Page 44 of 60 (18) but for the taxpayer’s current status as an eligible taxpayer.
The aggregate amount deducted under this subdivision (18)(A)(ii)(VII) in all taxable years for any expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer’s federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken for VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 41 of 56 that expenditure on the taxpayer’s Vermont income tax return under subdivision (i)(V) of this subdivision (18)(A) for expenditures paid or incurred on or after January 1, 2025.
 The aggregate amount deducted under this subdivision (18)(A)(ii)(VII) in all taxable years for any expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken for that expenditure on the taxpayer’s Vermont income tax return under subdivision (i)(V) of this subdivision (18)(A) for expenditures paid or incurred on or after January 1, 2025.
and (iii) an amount equal to the bonus depreciation deduction taken on the taxpayer’s federal income tax return for the taxable year under Section 168(k) or (n) of the Internal Revenue Code, including any amount of bonus depreciation deduction carried over on the taxpayer’s federal income tax return as part of a net operating loss from a prior taxable year that is deducted in the current taxable year;
and (iii) an amount equal to the bonus depreciation deduction taken on the taxpayer’s federal income tax return for the taxable year under Section 168(k) or (n) of the Internal Revenue Code, including any amount of bonus depreciation deduction carried over on the taxpayer’s federal income tax return BILL AS PASSED BY THE HOUSE H.933 Page 45 of 60 as part of a net operating loss from a prior taxable year that is deducted in the current taxable year;
§ 174A, including any amount of VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 42 of 56 these deductions carried over on the taxpayer’s federal income tax return as part of a net operating loss from a prior tax year that is deducted in the current taxable year.
§ 174A, including any amount of these deductions carried over on the taxpayer’s federal income tax return as part of a net operating loss from a prior tax year that is deducted in the current taxable year.
§ 1(h) reduced by the total amount of any qualified dividend income:
§ 1(h), but excluding any gain specifically included in taxable income under subdivision (A)(v) of this subdivision (21), reduced by the total BILL AS PASSED BY THE HOUSE H.933 Page 46 of 60 amount of any qualified dividend income:
or VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 43 of 56 (II) the sale of depreciable personal property other than farm property and standing timber;
or (II) the sale of depreciable personal property other than farm property and standing timber;
and (vi) the amount of interest paid by a qualified resident taxpayer during the taxable year on a qualified education loan for the costs of attendance at an eligible educational institution;
and BILL AS PASSED BY THE HOUSE H.933 Page 47 of 60 (vi) the amount of interest paid by a qualified resident taxpayer during the taxable year on a qualified education loan for the costs of attendance at an eligible educational institution;
(vii) for the taxable year in which the bonus depreciation deduction is taken on the taxpayer’s federal income tax return under Section 168(k) or (n) of the Internal Revenue Code and for each applicable taxable VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 44 of 56 year thereafter, an amount equal to the depreciation deduction that would be allowed on that property if the taxpayer had made the election under Section 168(k)(7) or (n)(6) of the Internal Revenue Code to not claim bonus depreciation on that property.
(vii) for the taxable year in which the bonus depreciation deduction is taken on the taxpayer’s federal income tax return under Section 168(k) or (n) of the Internal Revenue Code and for each applicable taxable year thereafter, an amount equal to the depreciation deduction that would be allowed on that property if the taxpayer had made the election under Section 168(k)(7) or (n)(6) of the Internal Revenue Code to not claim bonus depreciation on that property.
and (viii) for a taxpayer that does not qualify as an eligible taxpayer for the taxable year, as defined under subdivision (A)(iv) of this subdivision (21), for the taxable year in which a deduction is taken on the taxpayer’s federal income tax return under 26 U.S.C.
and BILL AS PASSED BY THE HOUSE H.933 Page 48 of 60 (viii) for a taxpayer that does not qualify as an eligible taxpayer for the taxable year, as defined under subdivision (A)(iv) of this subdivision (21), for the taxable year in which a deduction is taken on the taxpayer's federal income tax return under 26 U.S.C.
§ 174 applied as those provisions were in effect on VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 45 of 56 December 31, 2024.
§ 174 applied as those provisions were in effect on December 31, 2024.
The aggregate amount deducted under this subdivision (21)(B)(viii) in all taxable years may not exceed the amount of the deduction taken on that expenditure on the taxpayer’s federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken on the taxpayer’s Vermont income tax return under subdivision (A)(iv) of this subdivision (21);
The aggregate amount deducted under this subdivision (21)(B)(viii) in all taxable years may not exceed the amount of the deduction taken on that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken on the taxpayer’s Vermont income tax return under subdivision (A)(iv) of this subdivision (21);
§ 174A, as added by subsection 174A(a), which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account pursuant to 26 U.S.C.
§ 174A, as added by subsection 174A(a), which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account pursuant to 26 U.S.C.
§ 174 as those provisions were in effect on December 31, 2024, for the tax year beginning on or after January 1, 2025, and for each applicable taxable year thereafter, an amount equal to the deduction that would be allowed on those amounts under 26 U.S.C.
§ 174 as those provisions were in effect on December 31, 2024, for the tax year beginning on or after January 1, 2025, and for each applicable taxable year thereafter, an amount equal to the deduction that would be allowed on those amounts under BILL AS PASSED BY THE HOUSE H.933 Page 49 of 60 26 U.S.C.
The aggregate amount deducted under this subdivision (21)(B)(ix) in all taxable years for any domestic research or experimental expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer’s federal income tax return under the Internal Revenue Code;
The aggregate amount deducted under this subdivision (21)(B)(ix) in all taxable years for any domestic research or experimental expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code;
and VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 46 of 56 (x) for a taxpayer that qualifies as an eligible taxpayer for the taxable year as defined under subdivision (A)(iv) of this subdivision (21) and has made an addition modification under subdivision (A)(iv) of this subdivision (21) in a prior tax year, an amount equal to the subtraction modification that would have been allowed in this taxable year under subdivision (vii) of this subdivision (21)(B) but for the taxpayer’s current status as an eligible taxpayer.
and (x) for a taxpayer that qualifies as an eligible taxpayer for the taxable year as defined under subdivision (A)(iv) of this subdivision (21) and has made an addition modification under subdivision (A)(iv) of this subdivision (21) in a prior tax year, an amount equal to the subtraction modification that would have been allowed in this taxable year under subdivision (vii) of this subdivision (21)(B) but for the taxpayer’s current status as an eligible taxpayer.
The aggregate amount deducted under this subdivision (21)(B)(x) in all taxable years for any expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer’s federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken for that expenditure on the taxpayer’s Vermont income tax return under subdivision (A)(iv) of this subdivision (21) for expenditures paid or incurred on or after January 1, 2025.
 The aggregate amount deducted under this subdivision (21)(B)(x) in all taxable years for any expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken for that expenditure on the taxpayer’s Vermont income tax return under subdivision (A)(iv) of this subdivision (21) for expenditures paid or incurred on or after January 1, 2025.
(A) increased by the following items of income:
BILL AS PASSED BY THE HOUSE H.933 Page 50 of 60 (A) increased by the following items of income:
and VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 47 of 56 (iii) the amount of State and local income taxes deducted from federal gross income for the taxable year;
and (iii) the amount of State and local income taxes deducted from federal gross income for the taxable year;
§ 448(a)(3)) that meets the gross receipts test of 26 U.S.C.
§ 448(a)(3)) BILL AS PASSED BY THE HOUSE H.933 Page 51 of 60 that meets the gross receipts test of 26 U.S.C.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 48 of 56 (i) income from U.S.
(i) income from U.S.
§ 1(h) reduced by the total amount of any qualified dividend income:
§ 1(h), but excluding any gain specifically included in taxable income as described in subdivision (A)(vi) of this subdivision (28), reduced by the total amount of any qualified dividend income:
and provided that the total amount of decrease under this subdivision (28)(B)(ii) shall not exceed 40 percent of federal taxable income or $350,000.00, whichever is less;
and provided that the total amount of decrease under BILL AS PASSED BY THE HOUSE H.933 Page 52 of 60 this subdivision (28)(B)(ii) shall not exceed 40 percent of federal taxable income or $350,000.00, whichever is less;
(iv) for the taxable year in which the bonus depreciation deduction is taken on the taxpayer’s federal income tax return under Section 168(k) or (n) of the Internal Revenue Code and for each applicable taxable year thereafter, an amount equal to the depreciation deduction that would be allowed on that VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 49 of 56 property if the taxpayer had made the election under Section 168(k)(7) or (n)(6) of the Internal Revenue Code to not claim bonus depreciation on that property.
(iv) for the taxable year in which the bonus depreciation deduction is taken on the taxpayer’s federal income tax return under Section 168(k) or (n) of the Internal Revenue Code and for each applicable taxable year thereafter, an amount equal to the depreciation deduction that would be allowed on that property if the taxpayer had made the election under Section 168(k)(7) or (n)(6) of the Internal Revenue Code to not claim bonus depreciation on that property.
(v) for a taxpayer that does not qualify as an eligible taxpayer for the taxable year, as defined under subdivision (A)(v) of this subdivision (28), for the taxable year in which a deduction is taken on the taxpayer’s federal income tax return under 26 U.S.C.
BILL AS PASSED BY THE HOUSE H.933 Page 53 of 60 (v) for a taxpayer that does not qualify as an eligible taxpayer for the taxable year, as defined under subdivision (A)(v) of this subdivision (28), for the taxable year in which a deduction is taken on the taxpayer's federal income tax return under 26 U.S.C.
The aggregate amount deducted under this subdivision in all taxable years may not exceed the amount of the deduction taken on that expenditure on the VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 50 of 56 taxpayer’s federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken on the taxpayer’s Vermont income tax return under subdivision (A)(v) of this subdivision (28);
The aggregate amount deducted under this subdivision in all taxable years may not exceed the amount of the deduction taken on that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken on the taxpayer’s Vermont income tax return under subdivision (A)(v) of this subdivision (28);
§ 174A, as added by subsection 174A(a), which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account pursuant to 26 U.S.C.
§ 174A, as added by subsection 174A(a), which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account pursuant to 26 U.S.C.
§ 174 applied as those provisions were in effect on December 31, 2024.
§ 174 applied as those provisions were in effect on December 31, BILL AS PASSED BY THE HOUSE H.933 Page 54 of 60 2024.
The aggregate amount deducted under this subdivision (28)(B)(vi) in all taxable years for any domestic research or experimental expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer’s federal income tax return under the Internal Revenue Code;
The aggregate amount deducted under this subdivision (28)(B)(vi) in all taxable years for any domestic research or experimental expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code;
and (vii) for a taxpayer that qualifies as an eligible taxpayer for the taxable year as defined under subdivision (A)(v) of this subdivision (28) and has made an addition modification under subdivision (A)(v) of this subdivision (28) in a prior tax year, an amount equal to the subtraction modification that VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 51 of 56 would have been allowed in this taxable year under subdivision (v) of this subdivision (28)(B) but for the taxpayer’s current status as an eligible taxpayer.
and (vii) for a taxpayer that qualifies as an eligible taxpayer for the taxable year as defined under subdivision (A)(v) of this subdivision (28) and has made an addition modification under subdivision (A)(v) of this subdivision (28) in a prior tax year, an amount equal to the subtraction modification that would have been allowed in this taxable year under subdivision (v) of this subdivision (28)(B) but for the taxpayer’s current status as an eligible taxpayer.
The aggregate amount deducted under this subdivision in all taxable years for any expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer’s federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken for that expenditure on the taxpayer’s Vermont income tax return under subdivision (A)(v) of this subdivision (28) for expenditures paid or incurred on or after January 1, 2025.
 The aggregate amount deducted under this subdivision in all taxable years for any expenditure may not exceed the amount of the deduction taken for that expenditure on the taxpayer's federal income tax return under the Internal Revenue Code, or exceed the amount of the addition modifications taken for that expenditure on the taxpayer’s Vermont income tax return under subdivision (A)(v) of this subdivision (28) for expenditures paid or incurred on or after January 1, 2025.
§ 5822 is amended to read:
§ 5822 is amended to read:
TAX ON INCOME OF INDIVIDUALS, TRUSTS, AND ESTATES * * * (e) The tax determined under subsections (a) through (d) of this section shall be reduced by a percentage equal to the portion of adjusted gross income that is not Vermont income;
TAX ON INCOME OF INDIVIDUALS, TRUSTS, AND ESTATES * * * BILL AS PASSED BY THE HOUSE H.933 Page 55 of 60 (e) The tax determined under subsections (a) through (d) of this section shall be reduced by a percentage equal to the portion of adjusted gross income that is not Vermont income;
For VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 52 of 56 the purposes of this subsection, adjusted gross income means federal adjusted gross income modified by the additions and subtractions provided for in subdivisions 5811(21)(A) and (B) of this chapter for an individual, and federal adjusted gross income modified by the additions and subtractions provided for in subdivisions 5811(28)(A) and (B) of this chapter for an estate or a trust.
For the purposes of this subsection, adjusted gross income means federal adjusted gross income modified by the additions and subtractions provided for in subdivisions 5811(21)(A) and (B) of this chapter for an individual, and federal adjusted gross income modified by the additions and subtractions provided for in subdivisions 5811(28)(A) and (B) of this chapter for an estate or a trust.
§ 5823 is amended to read:
§ 5823 is amended to read:
VERMONT INCOME OF INDIVIDUALS, ESTATES, AND TRUSTS * * * (b) For any taxable year, the Vermont income of a nonresident individual, estate, or trust is the sum of the following items of income to the extent they are required to be included in the federal adjusted gross income of the individual after the value of those items are modified by the additions and subtractions provided for in subdivisions 5811(21)(A) and (B) of this chapter or the gross federal adjusted gross income of an estate or trust after the value of those items are modified by the additions and subtractions provided for in subdivisions (28)(A) and (B) of this chapter for that taxable year:
VERMONT INCOME OF INDIVIDUALS, ESTATES, AND TRUSTS * * * (b) For any taxable year, the Vermont income of a nonresident individual, estate, or trust is the sum of the following items of income to the extent they are required to be included in the federal adjusted gross income of the individual after the value of those items are modified by the additions and BILL AS PASSED BY THE HOUSE H.933 Page 56 of 60 subtractions provided for in subdivisions 5811(21)(A) and (B) of this chapter or the gross federal adjusted gross income of an estate or trust after the value of those items are modified by the additions and subtractions provided for in subdivisions (28)(A) and (B) of this chapter for that taxable year:
§ 5930ii is amended to read:
§ 5930ii is amended to read:
RESEARCH AND DEVELOPMENT TAX CREDIT VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 53 of 56 (a) A taxpayer of this State shall be eligible for a credit against the tax imposed under this chapter in an amount equal to 27 75 percent of the amount of the federal tax credit allowed in the taxable year for eligible research and development expenditures under 26 U.S.C.
RESEARCH AND DEVELOPMENT TAX CREDIT (a) A taxpayer of this State shall be eligible for a credit against the tax imposed under this chapter in an amount equal to 27 75 percent of the amount of the federal tax credit allowed in the taxable year for eligible research and development expenditures under 26 U.S.C.
§ 5930ee is amended to read:
§ 5930ee is amended to read:  § 5930ee.
§ 5930ee.
(1) the total amount of tax credits awarded annually, together with sales tax reallocated under section 9819 of this title, does not exceed $3,000,000.00 $4,000,000.00;
BILL AS PASSED BY THE HOUSE H.933 Page 57 of 60 (1) the total amount of tax credits awarded annually, together with sales tax reallocated under section 9819 of this title, does not exceed $3,000,000.00 $4,000,000.00;
ADOPTION OF FEDERAL INCOME TAX LAWS VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 54 of 56 The statutes of the United States relating to the federal income tax, as in effect on December 31, 2024 2025, but without regard to federal income tax rates under 26 U.S.C.
ADOPTION OF FEDERAL INCOME TAX LAWS The statutes of the United States relating to the federal income tax, as in effect on December 31, 2024 2025, but without regard to federal income tax rates under 26 U.S.C.
* * * Revenue Deposits;
BILL AS PASSED BY THE HOUSE H.933 Page 58 of 60 * * * Revenue Deposits;
§ 4025 is amended to read:
§ 4025 is amended to read:
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 55 of 56 (5) one-third 27 percent of the revenues raised from the purchase and use tax imposed by 32 V.S.A.
(5) one-third 27 percent of the revenues raised from the purchase and use tax imposed by 32 V.S.A.
1 (credit for taxes paid in another state by an S corporation), Secs.
55–57 (decoupling from select provisions of IRC), and Secs.
60–61 (annual link-up) shall take effect retroactively on January 1, 2025, and shall apply to taxable years beginning on and after January 1, 2025.
BILL AS PASSED BY THE HOUSE H.933 Page 59 of 60 (2) Secs.
3 and 4 (current use;
land use change tax) shall take effect on October 1, 2026.
(3) Sec.
20 (grand list definition of parcel) shall take effect on April 1, 2027, and shall apply to grand lists lodged on and after that date.
(4) Sec.
22 (Department of Fish and Wildlife rule on fees) shall take effect on July 1, 2027.
(5) Secs.
24–48 (grand list assessment date) shall take effect on July 1, 2031, and shall apply to grand lists lodged after that date.
(6) Sec.
56 (Vermont research and development tax credit) shall take effect on January 1, 2027, and shall apply to taxable years beginning on and after January 1, 2027.
Sec.
64.
EFFECTIVE DATES This act shall take effect on passage except:
(1) Notwithstanding 1 V.S.A.
§ 214, Sec.
(4) Sec.
BILL AS PASSED BY THE HOUSE H.933 Page 60 of 60 (4) Sec.
VT LEG #388399 v.1 AS PASSED BY HOUSE H.933 Page 56 of 56 (6) Sec.
(6) Sec.
VT LEG #388399 v.1
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  • Introduced As IntroducedOpens in a new window pdf

Amendments

2 amendments

Click Show changes on an amendment above to see how it modifies the bill.

Action History

  1. House message: Governor approved bill on June 18, 2026

  2. Signed by Governor on June 18, 2026

  3. Delivered to the Governor on June 12, 2026

  4. House message: House adopted Conference Committee report

  5. Rep. McCoy of Poultney moved to deliver the bill to the Governor forthwith, which was agreed to

  6. Committee of Conference report adopted (House bill)

  7. Rules suspended and taken up for immediate consideration, pending entry on Notice Calendar, as moved by Rep. McCoy of Poultney

  8. Senate Message: Report of Committee of Conference adopted

  9. Rules suspended & messaged to House forthwith, on motion of Senator Lyons

  10. Committee of Conference report adopted

  11. Committee of Conference report submitted by Senator Cummings for Committee, text

  12. Rules suspended & taken up for immediate consideration, on motion of Senator Lyons

  13. Senate Message: Committee of Conference members appointed

  14. Committee of Conference appointed: Senators Cummings, Hardy, and Mattos

  15. House message: House refused to concur in Senate proposal of amendment & requested Conference Committee; House Conference Committee members appointed

  16. Speaker appointed Reps. Kornheiser of Brattleboro, Canfield of Fair Haven, and Kimbell of Woodstock as members of the Committee of Conference on the part of the House

  17. Senate proposal of amendment not concurred in and Committee of Conference requested upon motion of Rep. Kimbell of Woodstock

  18. Action Calendar: Senate Proposal of Amendment

  19. Notice Calendar: Senate Proposal of Amendment

  20. Senate Message: Passed in concurrence with proposal of amendment

  21. Read 3rd time & passed in concurrence with proposal of amendment

  22. Roll Call, requested by Senator Weeks, Failed -- Needed 14 of 27 to Pass -- Yeas = 11, Nays = 16

  23. Pending third reading, Senator Williams proposal of amendment, disagreed to

  24. Roll Call, requested by Senator Vyhovsky, Failed -- Needed 15 of 29 to Pass -- Yeas = 2, Nays = 27

  25. Pending third reading, Senator Vyhovsky proposal of amendment, disagreed to

  26. Pending third reading, Senator White proposal of amendment, agreed to

  27. Proposal of amendment to be offered by Senator(s) White

  28. Proposal of amendment to be offered by Senator(s) Vyhovsky

  29. Proposal of amendment to be offered by Senator(s) Beck

  30. New Business/Third Reading

  31. 3rd reading ordered

  32. Proposal of amendment by Committee on Finance, as amended, agreed to

  33. Senator White requested & granted leave to withdraw amendment

  34. Proposal of amendment by Senator(s) White; text

  35. Proposal of amendment by Senator(s) Cummings, Beck, Brock, Chittenden, Gulick, Hardy, and Mattos agreed to

  36. Reported favorably by Senator Perchlik for Committee on Appropriations

  37. Read 2nd time, reported favorably with proposal of amendment by Senator Cummings for Committee on Finance

  38. Proposal of amendment to be offered by Senator(s) Cummings

  39. Proposal of amendment to be offered by Senator(s) Beck

  40. Proposal of amendment to be offered by Senator(s) White

  41. Favorable report by Committee on Appropriations

  42. Favorable report with proposal of amendment by Committee on Finance

  43. Unfinished Business/Second Reading

  44. Proposal of amendment to be offered by Senator(s) Beck

  45. Proposal of amendment to be offered by Senator(s) White

  46. Favorable report by Committee on Appropriations

  47. Favorable report with proposal of amendment by Committee on Finance

  48. Unfinished Business/Second Reading

  49. Favorable report by Committee on Appropriations

  50. Favorable report with proposal of amendment by Committee on Finance

  51. Second Reading

  52. Favorable report by Committee on Appropriations

  53. Favorable report with proposal of amendment by Committee on Finance

  54. Second Reading

  55. Entered on Notice Calendar

  56. Referred to Committee on Appropriations per Senate Rule 31

  57. Favorable report with proposal of amendment by Committee on Finance

  58. Second Reading

  59. Entered on Notice Calendar

  60. Read 1st time & referred to Committee on Finance

  61. Read third time and passed

  62. Rep. Galfetti of Barre Town moved to amend the bill, which was disagreed to

  63. Rep. North of Ferrisburgh moved to amend the bill, which was disagreed to

  64. Rep. Tagliavia of Corinth moved to amend the bill, which was agreed to

  65. Rep. Sibilia of Dover, Burrows of West Windsor, Boutin of Barre City, Carris Duncan of Whitingham, Donahue of Northfield, Lipsky of Stowe, Tomlinson of Winooski, and White of Bethel moved to amend the bill, which was agreed to

  66. Action Calendar: Third Reading

  67. Third Reading ordered

  68. Rep. Kimbell of Woodstock and Kornheiser of Brattleboro moved to amend the bill, which was agreed to

  69. Rep. Cole of Hartford asked and was granted leave to withdraw amendment

  70. Rep. Priestley of Bradford and Cole of Hartford moved to amend the bill

  71. Rep. Tagliavia of Corinth moved to amend the bill, which was disagreed to

  72. Rep. Nigro of Bennington recommended for the Committee on Appropriations

  73. Action Calendar: Action postponed until March 26, 2026

  74. Rep. Kimbell of Woodstock moved to postpone action until March 26, 2026, which was agreed to

  75. Rep. Kimbell of Woodstock spoke for the Committee on Ways and Means

  76. Read second time

  77. Action Calendar: Favorable

  78. Notice Calendar: Favorable

  79. Committee bill read first time and referred to Committee on Appropriations per Rule 35(a)

Sponsors

  • House Committee on Ways and Means · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 189 not signed on · 28 voted No

Sponsors (1)

  • House Committee on Ways and Means

Co-sponsors (0)

None.

Not signed on (189)

189 members have not signed on to this bill.

Show all 189 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Roll Call, requested by Senator Weeks, Failed -- Needed 14 of 27 to Pass -- Yeas = 11, Nays = 16

Failed 11 Yea · 16 Nay · 3 Other
Party YeaNayPresentNot Voting
Republican 11102
Democrat/Progressive 0300
Democrat 01000
Unaffiliated 0101
Progressive/Democrat 0100
Total 111603
% of votes cast 37%53%0%10%
How each member voted (30)
Member Party Vote
White — Not Voting
Ram Hinsdale — Nay
Alison Clarkson Democrat Nay
Ann E Cummings Democrat Nay
Joseph "Joe" D Major Democrat Nay
Martine Larocque L Gulick Democrat Nay
Nader A Hashim Democrat Nay
Robert Plunkett Democrat Nay
Ruth E Hardy Democrat Nay
Seth Bongartz Democrat Nay
Thomas I Chittenden Democrat Nay
Virginia "Ginny" V Lyons Democrat Nay
Andrew J Perchlik Democrat/Progressive Nay
Anne E Watson Democrat/Progressive Nay
Philip E Baruth Democrat/Progressive Nay
Tanya C Vyhovsky Progressive/Democrat Nay
Brian P Collamore Republican Yea
Christopher P Mattos Republican Yea
David H Weeks Republican Yea
Jim F Harrison Republican Not Voting
John Benson Republican Yea
John S Morley III Republican Yea
Patrick "Pat" M Brennan Republican Not Voting
Randy D Brock Republican Nay
Richard A Westman Republican Yea
Robert W Norris Republican Yea
Russ H Ingalls Republican Yea
Scott L Beck Republican Yea
Steven Heffernan Republican Yea
Terry K Williams Republican Yea

Official roll call →

Roll Call, requested by Senator Vyhovsky, Failed -- Needed 15 of 29 to Pass -- Yeas = 2, Nays = 27

Failed 2 Yea · 27 Nay · 1 Other
Party YeaNayPresentNot Voting
Democrat 1900
Progressive/Democrat 1000
Democrat/Progressive 0300
Republican 01301
Unaffiliated 0200
Total 22701
% of votes cast 7%90%0%3%
How each member voted (30)
Member Party Vote
White — Nay
Ram Hinsdale — Nay
Alison Clarkson Democrat Nay
Ann E Cummings Democrat Nay
Joseph "Joe" D Major Democrat Nay
Martine Larocque L Gulick Democrat Yea
Nader A Hashim Democrat Nay
Robert Plunkett Democrat Nay
Ruth E Hardy Democrat Nay
Seth Bongartz Democrat Nay
Thomas I Chittenden Democrat Nay
Virginia "Ginny" V Lyons Democrat Nay
Andrew J Perchlik Democrat/Progressive Nay
Anne E Watson Democrat/Progressive Nay
Philip E Baruth Democrat/Progressive Nay
Tanya C Vyhovsky Progressive/Democrat Yea
Brian P Collamore Republican Nay
Christopher P Mattos Republican Nay
David H Weeks Republican Nay
Jim F Harrison Republican Nay
John Benson Republican Nay
John S Morley III Republican Nay
Patrick "Pat" M Brennan Republican Not Voting
Randy D Brock Republican Nay
Richard A Westman Republican Nay
Robert W Norris Republican Nay
Russ H Ingalls Republican Nay
Scott L Beck Republican Nay
Steven Heffernan Republican Nay
Terry K Williams Republican Nay

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors H 933?
H 933 is sponsored by House Committee on Ways and Means.
What is the current status of H 933?
This bill has been enacted into law. Introduced March 17, 2026. Enacted.
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