By Guy Page
House Ways & Means Thursday morning, May 1 voted 10-0-1 in favor of exempting military retirement pensions and survivor benefits 100% up to $125,000 AGI, and phased exemptions up to $175,000.
An earlier version of this story omitted reference to the retirement income exemption. The Chronicle regrets the omission.
S.51 also gives a $250 tax credit to Vermont veterans for earners of up to $25,000, and reduces the size of the credit on a graduated basis on earners claiming up to $30,000.
An income tax break bill introduced at the beginning of the session failed to pass before the March crossover deadline. The governor and most legislators agreed on the child tax credit, the earned income tax credit, and a Social Security tax exemption.
The sticking point was a tax break on military pensions. Advocates of first responders argued that they, too, should receive the same benefit.
After weeks of negotiations, Ways & Means opted to ‘strike all’ of S.51, a tax bill passed by the Senate and sent to the House. After stripping all language out of S.51, Ways & Means inserted the agreed-upon tax breaks listed above as well as the Vermont Veteran Tax Credit, which reads as follows:
“If the federal adjusted gross income of the taxpayer is less than or equal to $25,000, the amount of tax credit provided under this section shal be $250. If the federal adjusted gross income of the taxpayer is greater than $25,000 but less than $30,000, the amount of credit shall be $250 less $5.00 per $100 of federal adjusted gross income exceeding $25,000 of federal adjusted gross income.”
Even if S.51 passes the House, it’s future is not assured because some senators may take exception to one of their bills being stripped of language they approved and turned into a vehicle for the House’s idea of income tax reform.
Committee studies long-term care options – House Human Services this morning looked at options for the thorny problem of paying for nursing home care.
Vermonters have the third-highest median age in the USA. Maine and New Hampshire are #1 and #2, and Nevada is #4. Connecticut, Massachusetts and Rhode Island rank 5-7th. The state also has no comprehensive paid nursing home coverage, leaving many families struggling to pay the bills for loved ones.
During the meeting, Chair Theresa Wood led a detailed discussion on H. 120, focusing on long-term care planning in Vermont. She mentioned efforts to restructure the bill to explore implementation ramifications, funding options, and potential reductions in reliance on Medicaid.
Committee member Eric Maguire provided expertise on Medicaid Estate Recovery Plans (MERP) and the crossover between probate and long-term care issues. He explained that under federal law, Medicaid can recover expenses from a deceased person’s estate, primarily focusing on their primary residence.
Maguire described estate planning tools like life estates and trusts, which can help individuals transfer assets to beneficiaries without going through probate, potentially avoiding Medicaid recovery. Enhanced life estates allow the homeowner to maintain rights while transferring future ownership, preventing immediate Medicaid claims.
The committee discussed the complexity of these tools and the need for public education on estate planning, highlighting inequities faced by individuals with less access to information.
The discussion also touched on the implications of a proposed long-term care trust fund, emphasizing the potential need for legislation addressing how such contributions impact probate estates and Medicaid recovery. Maguire highlighted complications in Medicaid eligibility determinations and the necessity for further consultation with experts as they refine the bill.
Former senator named side judge – Governor Phil Scott today announced the appointments of Jay Sweeny of St. Albans Bay and former state senator and retired lawyer Joe Benning of Lyndonville to fill assistance judge vacancies in Franklin and Caledonia counties, respectively.
Sweeny began his career as a deputy sheriff for the Franklin County Sheriff’s Office where he spent 34 ½ years before retiring as the chief deputy in 2019. During this time, he worked within the court system in both the criminal and civil systems and worked closely with various assistant judges during annual budget preparation. In retirement, Jay works part time for Heald Funeral Home as well as maintains two cemeteries in St. Albans Bay. Jay also recently completed a 6-year appointment with the Vermont Fish and Wildlife Board.
Sweeny is a lifelong resident of St. Albans Bay where he lives with his wife Ruth. He attended the University of Vermont and is a graduate of the Vermont Police Academy. Sweeny is a member of Franklin Masonic Lodge #4, MT Sinai Shriners, and is an active member of the St. Albans Town Fire Department where he has served since 1980.
Benning recently closed his law practice after working as a trial attorney for over forty years. During that time, he also served for twelve years as a state senator for Caledonia County and held multiple leadership roles including minority leader, chair of the Senate Institutions committee, and chair of the Human Rights Commission during the Douglas Administration. Benning formerly served on the Lyndon Town School Board, as Lyndon town moderator, and as chair of the Lyndon State College Foundation.
Benning graduated with honors from Lyndon State College and Vermont Law School. He currently resides in Lyndonville with his wife Deb, an elementary school teacher, and has two children: Emily and Justin.
Bills signed – On April 29, Governor Scott signed into law H.118, expanding the scope of hate-motivated crimes, and H.259, preventing workplace violence in hospitals.