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Form LG-2 Land Gains Tax Return (Transferor)
Vermont is well known as a progressive state. Vermont taxes are among the highest in the nation. Overall, the Vermont tax burden amounts to about 10.3% of each citizen's income. Vermont is active in providing its underprivileged citizens with Green Mountain Care, the state's health insurance assistance program. Vermonters pay good money for their government services, paying about $4,410 per capita each year. Vermont taxes income, property, sales, use, and selective sales taxes.
In response to the Great Recession of the present, Vermont has cut their capital gains and estate taxes. This may seem like a departure from the liberal tax policies for which Vermont came to be known but it is part and parcel of creating an economic means to an end. Businesses in Vermont need to grow and cracking down on the wealthy would be counterproductive to growth. The Vermont legislature maintained their liberal integrity by chipping away at small scale taxes to appease the rich in lieu of completely reforming their approach to income tax.
Vermont taxes on income are based on a bracket system. The higher the income, the greater the percentage of earnings withheld. Vermont income taxes top off at 8.95% on people who make $373,650 and more. The lowest income tax percentage is 3.6% on those who make 32,550 and below.
Everyone who works will have a percentage of wages withheld to pay the Vermont state tax on income. Taxable income includes money won on the stock market or gifted money. Capital gains taxes are money earned as a result of selling an asset at an increased value. Essentially, capital gains taxes are imposed on any type of profit. Corporations and businesses do not like the idea of capital gains taxes because they allege that it constitutes double taxation on the company's earnings.
Capital gains taxes do not only affect businesses but those who profit off the selling of land. Vermont taxes on corporate income apply a top rate of 8.5% on businesses that make $25,000 and over. Taxable income applies to businesses that are making $25,000 a year in profits. If a company fails to put its budget into the black, it does not have to pay as much corporate income tax.
The Vermont state tax on sales stands at a rate of 6%. Vermont applies its sales tax on digital downloads of movies, books, and music. Sales taxes apply to most goods and services available in the retail sector. On one day out of each calendar year, the Vermont state tax on consumption of goods and services is exempt on the Sales Tax Holiday.
On the Vermont State sales tax holiday, any item under $2,000 is exempt from taxation. The Vermont state legislature passed the resolution for the sales tax holiday in 2008. The resolution first took effect in 2009, on August 22. The date changes every year.
Vermont retailers saw a large boost in sales and profits on the tax holiday and it was popular with the people. The only non-exempt goods and services on tax holidays are amusement charges, telecommunications taxes, cable television taxes, and digital downloads of music, movies, and books.
Vermont taxes on select items include taxes on Cigarettes, Gas, and alcoholic beverages. The Gasoline tax in Vermont is about average at 24 cents per gallon, affecting the overall price at the pump. The State of Vermont has made a strong statement against cigarette smoking with a special sales tax on cigarettes at $2.24 per pack of twenty. Vermont taxes on table wine, spirits, and beer are low with per gallon taxes at $0.55, $0.68, and $0.265 respectively.
Vermont property taxes are comparatively higher than most of its regional neighbors. The Vermont state tax on property ownership averages to about $522.29 per capita. Appraisals are conducted at the local level. County real estate appraisers determine the market value of properties and tax accordingly. Commercial, industrial, and residential zones are taxed the same according to market value.
The state of Vermont takes a small portion of property taxes while the local governments use most of the revenue from the property tax. Property taxes pay a large portion of public schooling in Vermont as a well as local police and fire departments. If you need legal advice and assistance, contact Vermont lawyers.