Array of new state laws takes effect today
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By Louis Porter Vermont Press Bureau - Published: July 1, 2009
MONTPELIER — Politicians often promise change, but today they actually deliver. That's because July 1 marks the date that all new statutes that don't have other specified effective dates go into law. That means everything from new tax increases to new programs to new rules for citizens, regulators and businesses.
The cost in Vermont of tobacco products will increase, including an additional quarter on cigarette packs, on top of a 62 cent increase in the federal tax earlier this year.
In addition, a new statute that virtually outlaws smoking at workplaces — the one exemption is for residents of the Vermont Veterans' Home in Bennington.
That is an extension of a law passed in Vermont in 1987 that banned the practice everywhere in workplaces except in specific areas, said Sheri Lynn, tobacco control program chief for the state. The research into the harmful effects of even small amounts of second-hand smoke was "very compelling," she said.
"For many years we have known second-hand smoke was dangerous," she said.
The Coalition for a Tobacco Free Vermont said in a statement that the tax increase and the additional restriction — along with anti-smoking programs — will reduce smoking.
"These two new acts will provide smokers a new incentive to quit once and for all," said Nicole Lukas, advocacy director for the American Heart Association, in a statement.
Meanwhile, with the implementation today of a new state budget for the new fiscal year, other taxes will go up as well, including the state tax on capital gains on investments.
That could cause some confusion and difficulty. Capital gains have been taxed less than wages in Vermont's tax code. Now capital gains — above a blanket exclusion of $2,500 of adjusted net capital gains — will be taxed at the same rate as wages, except for capital gains earned by farmers and timberland owners, which will still be taxed at the old rate. In addition, those age 70 years and older will — for now — have the choice of excluding 40 percent of gains (the old rate) or excluding the first $2,500 of gains.
The fact that those changes go into effect today — halfway through the calendar year — makes matters somewhat trickier. That's because half of the capital gains for calendar year 2009 will be taxed under the old law and half under the new one.
"There are technical issues," Tax Commissioner Tom Pelham said. "The law itself is a bit messy."
A new bulletin available on the tax department Web site clarifies how the new tax law will work and provides examples.
In rough terms, taxpayers will pay their income taxes on capital gains under different systems for each half of the year. However, the total capital gains earned during the year (as reported to the federal government) must also be taken into account. In other words a taxpayer cannot claim a gain in the first six months and take the 40 percent exclusion under the old system, then also have a loss in the second half of the year and still claim the blanket $2,500 exemption as well.
Several other laws also go into effect today, including new Department of Motor Vehicle fee changes that have the potential to have an effect on the largest number of residents.
"The DMV fee changes will impact nearly every Vermonter," Secretary of Administration Neale Lunderville said.
A new sales tax on liquor also goes into effect today.
Jim Harrison of the Vermont Grocers' Association said that most store owners will probably not have too much trouble implementing the new liquor or tobacco taxes.
A new law allowing more sales of raw milk goes into effect today, as does a new law for updating maps and regulations for wetland protection.
Thanks to the refusal by a federal court to issue an injunction requested by data mining companies a new law restricting pharmaceutical marketing in Vermont will go into place today. However, the law is still the subject of a pending appeal by the companies that gather such drug prescription marketing data, so it is possible it will be struck down later.
Some laws go into effect today, but their greatest impacts will likely not be felt until later this year. For instance a change to the state youth hunting program in the fall drops the requirement that one or more of a young hunter's parents be in the state. And a new law allowing some maple sugaring on state lands will, of course, first apply next spring.
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