Department achieves 97% timely income tax refunds for third consecutive year

The House Ways and Means Committee convened on March 12, 2025, to discuss significant updates and achievements within the Vermont Department of Taxes. The meeting highlighted the department's successful performance in issuing timely personal income tax refunds, achieving a goal of 95% for the third consecutive year. This accomplishment reflects a notable improvement from previous years, where the department struggled to meet even 90% of its targets.

The discussion began with an overview of the department's various benefit programs, including child tax credits and property tax credits. The department reported a record high of 97% of refunds issued by the June deadline last year, showcasing a steady upward trend in efficiency. The speaker noted the initial skepticism surrounding the 95% goal, emphasizing the progress made over the years.

In addition to income tax refunds, the committee reviewed the status of renter credit claims, with 96% processed within 60 days, marking another key performance metric achieved. The completion of homestead declarations was also ahead of schedule, finalized two weeks before the late June deadline, which is crucial for municipalities to generate property tax bills.

The meeting also addressed recent implementations, including a new childcare contribution initiative that featured a comprehensive outreach campaign. Furthermore, a major overhaul of the corporate income tax code was discussed, along with updates to business income tax forms aimed at simplifying complexities for tax preparers.

Technological advancements were a focal point, with the department completing phase 2 of a new scanning system designed to enhance efficiency in processing paper returns and checks. The new system allows checks to be scanned once, streamlining the process significantly. Additionally, a new phone system was introduced, which will enable the department to gather feedback through post-call surveys, further improving customer service.

Overall, the meeting underscored the Vermont Department of Taxes' commitment to enhancing operational efficiency and service delivery, with plans for continued improvements in the coming year.