10-010 Code Vt. R. 10-060-010-X

Current through August, 2024

Section 10 060 010 - EXEMPTION FOR MILITARY PAY FOR FULL-TIME ACTIVE DUTY WITH THE ARMED SERVICES

Section 15823(2) 1 EXEMPTION FOR MILITARY PAY FOR FULL-TIME ACTIVE DUTY WITH THE ARMED SERVICES

(a) Definitions "Full-time active duty" shall mean full-time active duty in the active military service of the United States. The term does not include "annual training", "inactive duty for training," or any other period of training duty of less than fifteen (15) consecutive days.

"Armed Service" shall mean that Army, Navy, Air Force, Marine Corps, and Coast Guard (and components thereof, including the reserve components), the Vermont Army National Guard, and Vermont Air National Guard.

(b) Effective dates - The definition of "full-time active duty" shall be effective for tax years commencing on and after January 1, 1981. The definition of "armed service" shall be effective for tax years commencing on and after January 1, 1980.

ECONOMIC IMPACT STATEMENT

Reserve members of the armed services will be required to pay Vermont Income taxes totaling approximately $ 100,000 annually on their pay for weekend drill and summer camp training. Under prior department practice all reservists' pay was permitted exemption.

Previously all National Guard pay was taxable. Under the adopted regulation Guard pay, other than for weekend drill and summer camp training, will be exempt. The loss in tax revenues from this exemption is approximately $ 15,000 annually.

The net revenue impact is an annual increase in income tax revenues of approximately $ 85,000.

There are no realistic alternatives to this action. We believe the adopted regulation reflects the legislative intent of the statutory exemption.

10-010 Code Vt. R. 10-060-010-X

Adopted, December 29, 1980
Effective Date: January 1981 (Secretary of State Rule Log # 80-134)