Agreement Reached On $27.4M Fee Bill; Tax Bill Not Finalized

The House and Senate agreed to a $27.4 million in fee increases Thursday evening.

Most of the money — $24.25 million – comes from a bump in fees for mutual funds and securities brokers.

That kind of money is typically raised in the miscellaneous tax bill, but this year lawmakers chose to use fees as a vehicle for filling a $30 million plus budget gap instead of significantly raising taxes.

Last month, the Senate ditched House plans for an increase in a tax on banks and a quarterly rate hike in employer assessments for workers without health insurance. The House originally sought to raise about $10 million. As budget writers found more areas to cut and the Senate found ways to shift more of the burden on fees, the number came down to $3 million.

They did, however, move ahead with a shift and slight increase in the tax on coal, oil, kerosene and propane. For 26 years, the state has placed a gross receipts tax on fuel; this year, lawmakers have agreed to convert the tax to a per gallon tax that will be used to support low-income weatherization programs. The rate proposed in the tax bill is 2-cents per gallon.

As of Thursday evening, the Senate and House conferees had not come to a full agreement on the rest of the $3 million plus tax bill.

Sen. Tim Ashe, D/P-Chittenden, at 6:30 p.m. was pulling new rabbits out of the hat, including an estate tax provision and changes to the unemployment insurance tax, none of which Rep. Janet Ancel, D-Calais, was willing to consider.

The tax bill has to pass out of conference committee today in order for the Legislature to adjourn on Saturday.

The fee bill features a tax break for a $200 million mall redevelopment project in Burlington through the tax increment financing program. Over a 10-year period, the mall developers would receive a $4.2 million property tax break. The money would come out of the education fund and other taxpayers would pick up the difference through the statewide property tax.

The fee bill includes new EB-5 regulations and requires the Vermont EB-5 Regional Center to raise enough money in fees to support operations. It also mandates that the Agency of Commerce and Community Development recoup as much as possible in fees not collected from the Jay Peak developers who have been accused by the SEC of perpetrating a massive Ponzi-like scheme.

Patricia Moulton, the secretary of the Agency of Commerce and Community Development, has said the developers were not billed for fees and now the agency must go through the receivership process to collect money owed.

Moulton, despite inquiries from lawmakers and the press, won’t say how much the developers owe.

http://vtdigger.org/2016/05/06/fee-bill-agreement-reached-taxes-bill-not-finalized/

Mentions

• Vermont EB5 Regional Center
• UNITED STATES SECURITIES AND EXCHANGE COMMISSION

States

• Vermont