in the State House of Representatives
on March 27, 2013, by a vote of
Purpose:“This bill proposes to make changes to Vermont’s income tax, sales and use tax, meals and rooms tax, cigarette taxes, property tax, fuel gross receipts tax, and provider taxes.” (Read the Bill)
Analysis: Those members voting YES voted to expand the Vermont state sales tax (6%) to bottled water, clothing (including shoes) over $110, candy, soft drinks, and dietary supplements, and to increase the tax on cigarettes and smokeless tobacco by $0.50 (total: $3.12) and $0.88 (total: $3.12) respectively. They voted to increase the Rooms & Meals tax from 9% to 9.5% for 2014, and they voted to apply the Meals tax to food sold out of vending machines. They voted to cap all itemized tax deductions at 2.5 times standard deduction, eliminated Vermont’s 8.8% tax bracket, moving those earning $178,651 and more into the top 8.95% tax bracket, formerly reserved for those earning $388,351 and above. The total estimated cost to Vermont taxpayers: $27 million in 2014 and $32.3 million in 2015. (See JFO fiscal note.)
As Recorded in the House Journal, Wednesday, March 27, 2013: “Shall the bill be read a third time? was decided in the affirmative. Yeas, 85. Nays, 55.” (Read the Journal) There are 31 vote explanations recorded in the Journal.
The Ethan Allen Institute is Vermont’s free-market public policy research and education organization. Founded in 1993, we are one of fifty-plus similar but independent state-level, public policy organizations around the country which exchange ideas and information through the State Policy Network. Read more...