Today is first day for new state laws
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By Louis Porter Vermont Press Bureau - Published: July 1, 2009
MONTPELIER – All new statutes that don't have other specified effective dates go into law today. 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 as well.
In addition a new statute that virtually outlaws smoking at workplaces – one exemption is for residents of the Vermont Veteran's Home in Bennington.
That is an extension of a law first 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 secondhand smoke was "very compelling" she said.
"For many years we have known secondhand smoke was dangerous," she said.
The Coalition for a Tobacco Free Vermont said in a statement 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," Nicole Lukas, advocacy director for the American Heart Association, said in a statement.
Meanwhile with the implementation of a new state budget today 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 are … except capital gains earned by farmers and timberland owners that will still be taxed at the old rate. In addition those 70 years old or more 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 – make 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 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 well as 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 legally go into effect today, but their greatest impacts will likely occur later because of the season. For instance an expansion of state youth hunting programs no longer requires that one or more of a young hunter's parents be in the state becomes law, but will be first used in the fall. And a new law allowing some maple sugaring on state lands will, of course, be used next spring.
louis.porter@rutlandherald.com
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