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Vermont software users getting notices about new tax added to their bills
By Guy Page
The tax bill is coming due on the software you download.
Effective July 1, Vermonters will pay a 6% sales tax on all purchases of most prewritten computer software. The expansion of the state sales and use tax to include software is one of two new taxes created by the Vermont Legislature this spring to reduce the 20% school spending property tax increase down to 14%.
The other new tax propping up school spending is levied on short term rental stays AKA ‘air BnBs’.
The software tax is assessed on the vendor, which will (as shown on the notice to a Vermont business, see photo) likely pass along the added cost to the customer.
As Gov. Scott is predicting another double-digit property tax increase next year if the Legislature fails to reform school spending and taxation, it is not unlikely that the 6% tax increase will climb.
The Vermont Department of Taxes website includes information on the expanded sales tax (see below).
Prewritten Computer Software
Effective July 1, 2024, all sales of prewritten computer software are subject to sales and use tax, including software purchased on storage media, downloaded to a computer system, or accessed remotely via the internet.
Since 2015, prewritten software accessed remotely and not downloaded had been exempt from sales tax. However, Act 183 (H.887) of 2024 specifically applies the sales and use tax to all prewritten computer software, regardless of the method in which the software is delivered or accessed, effective July 1, 2024.
Definition of “Prewritten Computer Software”
Prewritten computer software is defined as software not designed or developed by the creator to the specifications of a specific purchaser. This includes upgrades to software and software maintenance contracts for the provision of upgrades of prewritten computer software.
Prewritten computer software includes:
programs for office work such as spreadsheet editor, word processing, or software that creates electronic documents
accounting software
video games
web browsers
Prewritten computer software does not include:
Custom software (software designed for a specific customer). If prewritten computer software is sold together with customized software, it remains prewritten computer software and is taxable. However, if there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for such modification or enhancement, such modification or enhancement shall not constitute prewritten computer software and is exempt from tax.
Responsibility to Collect and Remit Tax
Vendors of prewritten computer software are responsible for collecting and remitting sales tax if selling software in Vermont. If sales tax is not collected, users (buyers) are responsible for paying use tax. Use tax applies if a product is first used in a Vermont location, or possession takes place in Vermont.
The first payments of sales and use tax on prewritten computer software accessed remotely are due on or before August 1, 2024, unless the seller is eligible to make quarterly or annual payments under 32 V.S.A. § 9775.
In addition to sales and use tax, some Vermont communities levy a 1% Local Option Tax on sales that are subject to Vermont Sales Tax. For more information, see https://tax.vermont.gov/business/local-option-tax.
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Categories: Taxes
Another tax to lower the other tax. The dog and pony show will never end.
I wonder what else they come up with to tax. Hit us with a $.10 fee for everytime you burp?
Keep in mind this increases your medical bills also. Ever heard of e-scripts or electronic health records???? More unintended consequences
One word solution: Linux
Listen up Vermonters, you have an election coming up. VOTE THEM OUT
Fix a tax with another tax. We fought a Revolution over actions like this.
Considering the subscription based software model now, the bootleg market will return! Yeah limewire!
Our overlords in the Vermont Leftistlature will NEVER, EVER have enough of our money. In reality, they see it as THEIR money, not ours. Here is what is next. The Leftistlature will be implementing a tax on all services performed in Vermont. The only solution for rational people is to pack up and leave this state. The taxation to death will never end with an electorate that enjoys being punished with more regulation and higher taxes and will send a greater leftist majority back to Mostpeculiar in November.
By now I was hoping Transplanted citizens from Nazi Controlled States would realize they moved into another Socialist Nazi State and has been this type of state for Decade, likely 4 to 5 decades. Resist the traitors in the legislators for their day is on the horizon. We can’t vote them out of office for we have’t had a fair election, again in 4 to 5 decades and won’t this time either. There are ways to rid these Parasites from our society; resist everything they do and say. The Military will do their thing in protecting this nation because of the oath they took and believe, unlike those losers who have been in control for decades and temporarily are at the time as I pen this opinion. Resist and protect our children for they are the targets of this Satanic State.
Operation Tin Cup – A good indicator the State of Vermont is teetering toward insolvency is when the power-trippers refuse to audit, refuse to cut spending, refuse to admit we are in a financial crisis. Instead, they double down and triple down on criminal thievery disguised as “legislation.” The Vermont Bond Bank or Vermont Municipal Bond Bank – glaring examples of the State of Vermont being incorporated – run as a corporation and not a representative Republic. Indebted servitude = modern enslavement to a corporation. Where are the social justice warriors screaming injustice and declaring such abuse of all human rights? They won’t bite the hand that feeds their grift – they are tools of the corporation, they are aiding and abetting their Masters. Reprehensible. Take Back Vermont or lose any resemblence of a Republic to globalist elitist criminals.
Watch Joe Rogan’s Friday night interview with Trump as they discuss government waste.
Vermonters are the consummate ‘pigeons’ (a slang term for a victim, or someone who is easily deceived or cheated..). Vermont’s government can’t get out of its own way. It functions through its super-majority legislature, and the special interest groups supporting them, extorting money from taxpayers.
For example, I just received a ‘VERMONT SOLAR PROGRAM PUBLIC NOTICE’… a direct mailer announcing a ‘Green Mountain Power Rate Hike Application’ of 10%. Then it states that “Homes can be converted to solar power AT NO COST to a homeowner” … and gives a phone number to call.
The number of special interest groups stalking their prey at the great government watering hole can’t be exaggerated. And, clearly, most people supporting our government sponsored programs, instead of supporting free market solutions, are those who are and have been ‘easily deceived or cheated’. The other perpetrators (legislators and lobbyists) are common thieves.
So question, they will tax anything that moves or breaths, BUT, they were sure not to put too much tax on weed, why? Because they knew it could reduce sales and income to state.
Now ask you this.
Why won’t they tax porn?
Yurt Bezmanov speaks about confusing the populace about their sexuality in the military actions of subversion, which is how a foreign country and enemies within a country take power and control without firing a shot.
Vermont has been subverted, we are colony of the United Nations, aka you’ll own nothing and be happy crowd.
Re: “So question, they will tax anything that moves or breaths, BUT,… ?”
Asked and answered.
“..clearly, most people supporting our government sponsored programs, instead of supporting free market solutions, are those who are and have been ‘easily deceived or cheated’. The other perpetrators (legislators and lobbyists) are common thieves.”
What more do you need to know?
Refer to the words of Thomas Jeferson: “Man once surrendering his reason, has no remaining guard against absurdities the most monstrous, and like a ship without rudder, is the sport of every wind. With such persons, gullibility, which they call faith, takes the helm from the hand of reason, and the mind becomes a wreck..”
Why won’t they tax porn?
Why don’t they secure the border?
Why don’t they stop the drug dealing in Vermont?
Why do they censor?
Why do they use propaganda?
Why does Vermont have 10 people calling the shots in Montpelier?
Why does Vermont have so many schooled in Marxism?
Why has our education system become an indoctrination center?
Why is the police force kept from doing their job?
Same answer for all, it’s the plan, it’s subversion.
I’d rather give that money to a good VPN provider.
CORPORATION The municipal authorities of a town or city and this should include the state of Vermont The more people on the CORPORATION payroll always requires more taxes. The Vermont bond bank borrows the money with bonding. Your property is used for collateral. The state will not allow a bond default. They will bond new debt to cover for the fact they can not pay off the old debt. The taxpayers will go broke with the higher taxes and inflation.