Ways & Means reviews 50‑section miscellaneous tax bill, flags S‑corp credit repeal, transfer‑tax compliance and Fish & Wildlife fee change

The Vermont House Ways & Means Committee met Feb. 13 in the Ways & Means room for a section‑by‑section review of a 50‑section miscellaneous tax bill, staff said. Kirby Keating of the Legislative Council walked members through each change and staff will invite witnesses next week on several items the committee flagged for further detail.

The bill covers a broad set of technical and substantive changes. "Section 1 on page 1 line 12 is a repeal of the denial of tax credits for s corporations," Keating said, noting staff historical briefing that the provision traces to litigation in the 1990s. Keating also described Section 2 as granting the Department of Taxes authority to investigate whether a bona fide landlord‑tenant relationship exists for transfer‑tax purposes to limit avoidance of higher rates for second homes and short‑term rentals.

Members spent notable time on proposals affecting property valuation and municipal finance. Sections 3 and 4 would let PVR perform valuations for portions of parcels that are unenrolled or developed when municipalities cannot complete the appraisal work in a timely way, applying land‑use change tax to the developed portion. Section 5 would add grazing income or grazing rights as a qualifying path for enrolling small agricultural parcels in current‑use programs; committee members said the Natural Resources committee and agricultural stakeholders should review potential loopholes.

On municipa…