By Guy Page
The 2022 Legislature adjourned yesterday, but not before approving some long-sought tax reform.
A miscellaneous tax bill, H510 (see House Journal, Pg. 2414) includes a child tax credit and changes on taxation of retirement income. It features a child tax credit of $1000 per qualifying child for parents with incomes of $125,000 or less. The credit declines as income rises above $125K.
It also raises by $5000 the cap on social security earnings, and exempts from state income tax the first $10,000 of federal retirement payments, including military payments. The latter decision drew this comment from retired Air Force officer Rep. Mike Morgan (R-Milton/Grand Isle): “As the member from Rutland said, it helps junior rank retirees primarily, but we could have done more for them. It is a start.”
In a move not specific to tax relief, the Legislature set the non-homestead property tax rate at $1.466 per $100.00 of equalized education property value. The bill also reserves $22 million in the Education Fund for funding the investigation, testing, assessment, remediation, and removal of polychlorinated biphenyls (PCBs) in schools.
On Monday, Vermont Daily Chronicle will report on other major bills passed (and not passed) on the final day of the Legislature.