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H 619

An act relating to an income tax surcharge

2025-2026 Regular Session Introduced by Teddy Waszazak

The bill would impose a new income tax surcharge on Vermont filers to raise additional revenue, with specifics on rate, eligibility, uses, and collection to be defined in the bill.

Read first time and referred to the Committee on Ways and Means
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WeVote Research Nonpartisan
Bill Summary · H 619

Bill overview

  • Bill: H 619
  • Session: 2025-2026
  • Jurisdiction: Vermont
  • Title: An act relating to an income tax surcharge
  • Current status: Read first time and referred to the Committee on Ways and Means (as of 2026-01-08)
  • Sponsors: Co-sponsor Teddy Waszazak

What the bill aims to do

  • The bill proposes the creation of an income tax surcharge in Vermont. An income tax surcharge is an additional tax levied on top of the existing income tax rates.
  • The intent is typically to raise additional state revenue to fund specified programs or fiscal needs, though the exact purposes would be detailed in the bill’s text (e.g., education, healthcare, debt service, or general fund balancing).

Key provisions and changes (what the bill would do)

  • Imposition of a surcharge: Establishes an extra tax amount applied to individual or household income, calculated as a percentage or fixed amount added to the current Vermont income tax liability.
  • Scope of applicability: Defines who would pay the surcharge (e.g., all filers, high-income earners above a threshold, joint filers vs. single filers). It may specify brackets, exemption criteria, or adjustments for dependents.
  • Revenue allocation (uses): Likely designates how the additional revenue is to be used (e.g., funding for specific programs, improving fiscal balance, capital projects). The exact allocations would be described in the bill’s text.
  • Administration and collection: Outlines how the surcharge would be collected (through annual or quarterly tax filings) and how it interacts with the existing Vermont income tax structure. May include compliance, withholding, and enforcement provisions.
  • Sunset or duration: May specify whether the surcharge is temporary (with an end date or sunset review) or permanent, and under what conditions it could be extended or repealed.
  • Adjustments and indexing: Could include provisions for annual adjustments to ensure revenue targets keep pace with inflation or income growth.
  • Conformity with federal rules: Ensures the surcharge aligns with internal Vermont tax administration and avoids conflicts with federal tax treatment.

Who would be affected

  • Taxpayers filing Vermont income tax returns: The surcharge would directly increase the tax liability for affected filers.
  • Households by income level: Depending on brackets or thresholds, different income groups may be affected more or less, potentially with progressivity considerations.
  • Businesses and payroll systems: Employers and tax preparers would need to account for the additional withholding/withholding adjustments where applicable, and tax software would require updates.
  • State fiscal planners: Increased revenue would influence budget planning, allocation to programs, and potential impacts on fiscal policy.

Procedural and timeline considerations

  • Referral to committee: The bill has been referred to the Committee on Ways and Means, indicating the next steps involve committee deliberations, hearings, and potential amendments.
  • Potential milestones (typical for Vermont bills):
    • Committee work (testimony, fiscal analyses)
    • Floor votes in the House (and possibly the Senate if it progresses)
    • Potential conference or reconciliation if there are differences between chambers
    • Final passage and governor’s consideration
  • Effective date: The bill would specify when the surcharge takes effect (e.g., a tax year starting after a certain date) and whether there is a transition period.

Notes and considerations

  • The provided information reflects the bill’s title and initial action; the full text would clarify the exact rate, eligibility, sunset provisions, and designated uses of revenue.
  • As a new proposal, impacts depend on the surcharge rate and the set of affected taxpayers; analyses from Ways and Means would typically include revenue projections, distributional impact, and fiscal notes.

If you’d like, I can tailor this summary to focus on specific potential uses (e.g., education funding) or compare how similar surcharges have been structured in Vermont or neighboring states.

Compiled from official sources — confirm details with the bill’s official record.

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