Vermont § 312 - Tax expenditure report

§ 312. Tax expenditure report

• (a) As used in this section, “tax expenditure” shall mean the actual or estimated loss
  in tax revenue resulting from any exemption, exclusion, deduction, credit, preferential
  rate, or deferral of liability applicable to the tax. Tax expenditures shall not include
  the following: (1) revenue outside the taxing power of the State; (2) provisions outside the normal structure of a particular tax; (3) revenue forgone as unduly burdensome to administer; and (4) revenue forgone for the purpose of avoiding government taxing itself. (b) Biennially, as part of the budget process, beginning on January 15, 2009, the Department
  of Taxes and the Joint Fiscal Office shall file with the House Committees on Ways
  and Means and on Appropriations and the Senate Committees on Finance and on Appropriations
  a report on tax expenditures in the personal and corporate income taxes, sales and
  use tax, meals and rooms tax, insurance premium tax, bank franchise tax, education
  property tax, diesel fuel tax, gasoline tax, and motor vehicle purchase and use tax.
  The Office of Legislative Counsel shall also be available to assist with this tax
  expenditure report. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this
  subsection. The report shall include, for each tax expenditure, the following information: (1) a description of the tax expenditure; (2) the most recent fiscal information available on the direct cost of the tax expenditure
  in the past two years; (3) the date of enactment of the expenditure; (4) a description of and estimate of the number of taxpayers directly benefiting from
  the expenditure provision; (5) a description of the statutory purpose explaining the policy goal behind the expenditure
  as required by subsection (d) of this section and 2013 Acts and Resolves No. 73, Sec.
  5; and (6) a compilation of the items excluded under subsection (a) of this section. (c) [Repealed.] (d) Every tax expenditure, as defined in subsection (a) of this section, in the tax expenditure
  report required by this section shall be accompanied in statute by a statutory purpose
  explaining the policy goal behind the exemption, exclusion, deduction, or credit applicable
  to the tax. The statutory purpose shall appear as a separate subsection or subdivision
  in statute and shall bear the title “Statutory Purpose.” Notwithstanding any other
  provision of law, a tax expenditure listed in the tax expenditure report that lacks
  a statutory purpose in statute shall not be implemented or enforced until a statutory
  purpose is provided. The Department of Taxes shall notify the General Assembly when
  it has determined that a tax expenditure listed in the tax expenditure report lacks
  a statutory purpose, and the Department shall specify a date, not later than one year
  after its determination, that it will cease implementation or enforcement of the tax
  expenditure. (Added 2005, No. 75, § 26; amended 2005, No. 207 (Adj. Sess.), § 23, eff. May 31, 2006; 2007, No. 190 (Adj. Sess.), § 24, eff. June 6, 2008; 2009, No. 160 (Adj. Sess.), § 1, eff. June 4, 2010; 2011, No. 45, § 36k, eff. May 24, 2011; 2013, No. 73, § 4, eff. July 1, 2014; 2013, No. 142 (Adj. Sess.), § 59; 2013, No. 200 (Adj. Sess.), § 21; 2017, No. 74, § 132; 2019, No. 14, § 73, eff. April 30, 2019; 2019, No. 131 (Adj. Sess.), § 292; 2021, No. 105 (Adj. Sess.), § 446, eff. July 1, 2022.)