Jul 01, 2024
MONTPELIER, Vt. (WCAX) - A new fiscal year means a new payroll tax in Vermont. It comes as fees for certain services saw an increase this year, too.More money could soon be coming out of your paycheck. Thanks to a bill passed last year, two new taxes will help pay for $120 million in child care subsidies.One is a 0.44% payroll tax. Employers could pick up the entire tab or take some from your pay.“Employers can withhold up to a quarter of that or up to 0.11% from employees,” Vt. Tax Commissioner Craig Bolio said.It’s not a big burden on your take-home pay. A $1,500 paycheck would see a deduction of $1.65.“They may start either seeing a deduction on their paycheck for the portion that their employer may choose to withhold or if your employer lists out employer-paid benefits, you’ll be seeing a share of that as well,” Bolio said about the impact on workers.The other tax is on self-employed Vermonters-- a 0.11% payroll tax.Meanwhile, new fees on EVs are coming down the pike. Starting in 2025, EV drivers will need to pay $89 for a new EV infrastructure fee. Plug-in hybrid drivers will pay half that.The fee is temporary until Vermont lawmakers approve a mileage-based fee to help pay for road repairs.“Believe me, I’m very against fees going up and everything, but it does make sense that governments are trying to adapt to the changes that’s coming with electric vehicles,” said Brian Garvey Jr. of St. Albans.Those fees are in addition to typical state registration costs which have also gone up. It now costs $15 more to register your car and $11 more for your license.The money is helping to fill lost revenue as cars have become more fuel efficient.“I still feel like that’s an OK price because taxes-- we need taxes in order to make the economy work,” said Beth Schwann of Burlington.The new taxes and fees are coupled with a statewide property tax increase that has been set just shy of 14%.Other laws that take effect on July 1 include:A law, S.254, banning single-use and rechargeable batteries from landfills, meaning you can’t toss them in the trash.Children 2 and under must now be in a rear-facing car seat. That’s up from the previous rule of 1-year-olds.A law, S.220, lowers the age of confidentiality from 16 to 12, preventing parents from knowing what their kids check out from the library.Another law raises possible fines for farmers whose livestock gets loose in public places. And towns can now also pass local ordinances related to loose livestock.A bill covering a host of employment policy changes crossed the finish line without securing the governor’s signature. H.55 includes changes to detect firefighter cancer earlier and expand unemployment benefits during a declared state of emergency-- both components Gov. Phil Scott supported.The bill also establishes the Baby Bond Trust which would invest $3,200 for every Vermont child born on Medicaid to be invested by the Treasurer’s Office for the child to use later in life. Gov. Scott opposed the initiative, saying the Baby Bond Trust has the potential to add $6.5 million to the state budget.The bill was allowed to pass into law without the governor’s signature.
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