Taxes
Tax Information as of 2005
- Vermont State Withholding Tax -- In general, employers are required to withhold the tax from wages of employees performing services in Vermont. Employers must register for withholding by contacting the Vermont Department of Taxes, Taxpayer Assistance Business Division, 109 State St., Montpelier, VT 05602; 802-828-2551. Withholding tables and charts may be found at www.state.vt.us/tax.
- Vermont Individual Income Tax -- Nonresidents are subject to tax on wages, commissions, etc., and income derived from business conducted in Vermont. Contact: Vermont Department of Taxes, Individual Tax Payer Assistance, Individual Tax Division, 109 State St., Montpelier, VT 05602; 802-828-2865.
- Vermont Corporate Income Tax -- Tax on income earned in Vermont. For all corporations, the tax is generally a percentage of the corporation's portioned net income ranging from 5.5% to 8.25% of federal taxable income. For corporations that have both activities in and out of state, the tax is calculated from an apportionment formula based on sales, wages and property located in Vermont. Contact: Vermont Department of Taxes, Taxpayer Assistance, Business Division, 109 State St., Montpelier, VT 05602; 802-828-5723.
- Vermont Unemployment Taxes -- Under Vermont law, taxes on covered employers' payrolls finance unemployment insurance. The covered employees make no contributions themselves. Any employer required to pay Federal Unemployment Tax will be subject to Vermont Unemployment Tax for workers performing services in Vermont. When an employee performs work in Vermont and some other state, the Vermont Department of Employment and Training can readily provide a determination that will avoid any conflicts or overlapping coverage. Contact: Vermont Department of Employment and Training, Employer Status Unit, PO Box 488, Green Mountain Dr., Montpelier, VT 05602, 802-229-0311.
The actual tax rate assigned depends upon the employer's experience rating; if an employer is not eligible for an experience rating, the tax rate will be based on the average tax rate for that employer's industry classification.
For Vermont, taxable wages are the first $8,000 paid to each worker in a calendar year. The Federal Unemployment Tax rate is currently .008% on the first $7,000 in wages paid to each worker in a calendar year: when Vermont taxes are paid on time, the employer receives a 5.4% credit against the federal tax. Vermont unemployment tax is paid quarterly. For further information contact Vermont Dept. of Employment & Training, PO Box 488, Green Mountain Dr., Montpelier, VT 05602, 802-828-4000.
- Vermont Sales and Use Tax -- 5% on the sale of tangible goods in Vermont (foodstuffs exempt). Contact: Taxpayer Assistance, Business Division, Vermont Department of Taxes, 109 State St., Montpelier, VT 05602, 802-828-2551. Vermont Sales Tax Exemption Certificate may be found at www.state.vt.us/tax/pdf.word.excel/forms/business/s-3m.pdf
- Vermont Meals and Rooms Tax -- 9% on receipts from the sale of meals and accommodations. The tax is 10% on retail sale of alcoholic beverages in bars and restaurants. Rooms tax exemption: Rentals of hotel rooms for 31 or more days are not taxable if a lease is contracted in advance; however, taxes are owed for the period of occupancy if the lease is broken in less than 31 days. Contact Vermont Department of Taxes, Tax Payer Services, 109 State St., Montpelier, VT 05602, 802-828-2551, Fax: 802-828-2720.
Further information and assistance on Vermont taxes may be obtained from Director of Compliance, Vermont Department of Taxes, 109 State St., PO Box 694, Montpelier, VT 05602; 802-828-2821.
- Vermont Fuel Tax -- Gasoline: 20 cents per gallon. Diesel Fuel: 26 cents per gallon at the pump. Gross receipts tax at .05 percent on retail sale of heating oil, kerosene (unless used in a motor vehicle), propane, natural gas, electricity and coal by sellers receiving more than $10,000 from the sales of these fuels. Contact Department of Taxes, Fuel Taxes, 120 State St., Montpelier, VT 05602, 802-828-2077.
- Motor Vehicle Purchase & Use Tax -- 6% on motor vehicles purchased in Vermont. Contact Vermont Department of Motor Vehicles, 120 State St., Montpelier, VT 05602, 802-828-2000.