Changes to VT Current Use Tax Program

Changes have been made to the Vermont Use Value Appraisal Program (Current Use) that guides the taxation of land and buildings used for agriculture, forestry and conservation.

Click this link for a resource sheet that explains the new changes: Changes in VT Current Use Tax Program _July 2015

Key changes include:

  • A new calculation for the Land Use Change Tax (LUCT) (beginning Oct. 2, 2015)
  • A temporary “easy-out” period in which landowners can remove a parcel, or portion of a parcel, without paying the full LUCT liability (between July 1 and Oct. 1, 2015).
  • A new annual requirement for owners of agricultural lands and buildings to certify in writing on or before September 1 of every year that all enrolled agricultural land and buildings meet the requirements for enrollment at the time of the certification (form will be available in August).
  • Authority given to Agency of Agriculture, Food and Markets to direct the Vermont Department of Taxes to remove agricultural land and farm buildings from the Current Use Program when the land or buildings are used by a person who has violated water quality requirements (beginning July 1, 2015).

IRS Publication 225: Farmer’s Tax Guide

It is the time of year for many questions that lead back to tax preparation.

Here is a link to the current IRS Farmer’s Tax Guide

We are also seeing more scrutiny being placed on the distinction between “agricultural” employees compared to “retail” or “non-ag” employees. Owners of businesses that diversify,  take on retail operations or manage  non-traditional farm activities will want to get familiar with the legal thresholds on employee classification. Read more in the IRS Publication 51: Agricultural Employers Tax Guide. Look at sections relating to Form 943 starting on page 18.

IRS pub 51 ag employers

 

 

Important Income Tax Changes for H-2A Status Workers

For Immediate Release

Contact: Maribeth Spellman

Director of Policy, Outreach and Legislative Affairs

Vermont Department of Taxes

(802) 828-0141 or Maribeth.Spellman@state.vt.us

 

Important Income Tax Changes for H-2A Status Workers

 

Montpelier, Vt., July 30, 2013 – The Vermont legislature recently passed a law that clarifies the tax status of individuals enrolled in the H-2A visa program. Many Vermont farms employ foreign national workers who come to the U.S. for temporary or seasonal work through the H-2A program.

 

Beginning with tax year 2012, H-2A status workers must file individual income tax returns in the state of Vermont, as well as at the federal level. For individuals who have not submitted an individual income tax return for 2012, they should do so as soon as possible.

 

For tax years prior to 2012, any liability, interest or penalty paid by an H-2A status worker will be refunded upon request. In order to be eligible, an individual must provide proof of H-2A status by submitting Form I-94 where their class of admission is H-2A. This is marked on their visa. H-2A workers seeking refunds should contact the department.

 

Employers who already have a withholding account may use that for H-2A status workers. If an employer wants to open a withholding account, they may do so by completing Form S-1, Application for Business Tax Account.

 

The Vermont Department of Taxes is assisting H-2A status workers and their employers with this change. For further information, please contact the department at (802) 828-2865 or (866) 828-2865 (toll free in Vermont).