October, 8 2013

The Department of Taxes recently introduced a voluntary self-audit program, Know What You Owe, to help businesses better understand the Vermont Sales and Use Tax and pay the right amount of tax. The program, which ends May 1, 2014, educates business owners and their tax practitioners about the use tax so that business owners will have the information they need to conduct a self-audit and remit tax owed. The next Know What You Owe workshop is scheduled for Newport on October 15, and the department is considering more workshops for other regions. You can find further information on Know What You Owe and workshops here. 

Many Vermonters will be eligible for federal premium tax credits when purchasing health insurance through the state health insurance exchange, Vermont Health Connect. The Vermont Department of Taxes does not administer this tax credit, but we want to point taxpayers to the right places for information about how to claim the credit for the 2014 tax year when they file in 2015. The department will have a page on its website with helpful links to Vermont Health Connect and IRS webpages that will provide the information needed. We hope to have this ready by mid-October. Until then, we suggest you visit Vermont Health Connect, as well as the IRS, for guidance.

Vermont's fall/winter tourist season is in full swing, and a number of Vermonters rent out rooms in their homes or vacation cottages to visitors. Property owners should be aware that if they rent 15 days or more over the course of the year, they should collect rooms tax and remit it to the Department of Taxes. For guidance, see our fact sheet. 

The Vermont Department of Taxes was pleased to be part of the July debut issue of MY Finance Magazine. Published in Williston, Vt., MY Finance Magazine focuses on personal and family finance. Look for the "Tax Matters" article written by members of department staff. The magazine is published three times a year, and the next issue is scheduled for October.

We have recently added many of our fact sheets to our website. You'll find helpful topics from Sales and Use Tax to Homestead Declaration to information specific to contractors.

A law criminalizing automated sales suppression devices, known as "zappers," was enacted earlier this year. The law included a "safe harbor" provision in which individuals using zappers could voluntarily come forward and avoid prosecution under the new law. The safe harbor expired on October 1, 2013. Those convicted of being in violation of the law may be subject to imprisonment for not less than one year and not more than five years, fined not more than $100,000.00 or both. In addition, the person must pay all taxes, interest and penalties due to the State of Vermont. For more information about zappers, you may read the press release issued in August that provides more details. 

A new law, effective July 1, 2013, removes the $10,000.00 threshold on the Vermont Fuel Gross Receipts Tax. This means that all sales of fuel are subject to the 0.5% tax, regardless of sales volume, for heating oil, kerosene and other dyed diesel fuels delivered to a business or residence; propane gas; natural gas; electricity; and coal. The law also removes the $10,000.00 threshold from the Petroleum Distributor Licensing Fee. Therefore, all retail deliveries of heating oil, kerosene, and other dyed diesel fuel to a business or residence are subject to the $.01 per gallon licensing fee, regardless of sales volume. For more details, see the fact sheet . 

It's tax education season for tax professionals, and a representative from the Department of Taxes will be on hand to bring you up to date on the latest news from the department and new legislation that will affect your clients. Look for us at the following upcoming events:

• National Association of Tax Professionals (NATP), Oct. 10, South Burlington
• Vermont Society of CPAs, Oct. 17, Burlington
• UVM Tax School, Nov. 6-7, Essex Jct. 
• UVM Tax School, Nov. 13-14, Killington
• National Association of Tax Professionals (NATP) 1040 Workshop, Nov. 22, South Burlington
• Vermont Tax Practitioners' Association (VTPA), Dec. 10, Montpelier  
• Vermont Tax Seminar, Dec. 6, Burlington 

In This Issue

  

Read the highlights of the 2013 changes to the tax laws here.

See fact sheets on a variety of tax topics. Check back regularly for updates and new fact sheets.