Taxpayer advocate urges fixes to property‑tax credit, local option tax administration and data practices
February 18, 2026 | Ways & Means, HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont
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Jeff Dooley, taxpayer advocate at the Vermont Department of Taxes, outlined a slate of administrative and statutory issues the department is watching and that are included or referenced in the miscellaneous tax bill.
Dooley said his office received about 70 extraordinary relief requests in the past year and granted relief in 63 cases. He focused members’ attention on the property‑tax credit form’s treatment of divorce, saying it can require an individual to include a nonresident spouse’s income and claim 50% ownership for the credit even when the spouse no longer contributes to household expenses. "It basically treats divorce as if you file for divorce on a Friday and by Wednesday of next week, the divorce has been finalized," he said, and recommended statutory modification so a household receives fair credit treatment.
Dooley also described cases where a town refunds a municipal overpayment but there is limited mechanism to return the education tax portion to a taxpayer; he said that creates inequity and administrative frustration. On local option taxes, Dooley warned that businesses face implementation costs (software, certification providers) and the department has to do significant outreach to ensure compliance.
On administration, Dooley highlighted two departmental improvements: adding a taxpayer‑advocate case type to the department’s VTech system to track cases and fully staffing communications to expand ADA and language access (translation into the state’s 14 most common languages and interpreter services). He said those changes will improve service for taxpayers.
Deputy Commissioner Rebecca Sam Roth also addressed administrative language in the draft, including section 7 (transition of communications property into property tax rules). She described an enforcement provision in section 7 that would allow a $100 fee per municipality for missing inventory submissions, but said the department does not expect broad enforcement and anticipates inventories will be returned by March 31.
The committee thanked Dooley and department staff and paused for a recess to continue other testimony later in the week.
Dooley said his office received about 70 extraordinary relief requests in the past year and granted relief in 63 cases. He focused members’ attention on the property‑tax credit form’s treatment of divorce, saying it can require an individual to include a nonresident spouse’s income and claim 50% ownership for the credit even when the spouse no longer contributes to household expenses. "It basically treats divorce as if you file for divorce on a Friday and by Wednesday of next week, the divorce has been finalized," he said, and recommended statutory modification so a household receives fair credit treatment.
Dooley also described cases where a town refunds a municipal overpayment but there is limited mechanism to return the education tax portion to a taxpayer; he said that creates inequity and administrative frustration. On local option taxes, Dooley warned that businesses face implementation costs (software, certification providers) and the department has to do significant outreach to ensure compliance.
On administration, Dooley highlighted two departmental improvements: adding a taxpayer‑advocate case type to the department’s VTech system to track cases and fully staffing communications to expand ADA and language access (translation into the state’s 14 most common languages and interpreter services). He said those changes will improve service for taxpayers.
Deputy Commissioner Rebecca Sam Roth also addressed administrative language in the draft, including section 7 (transition of communications property into property tax rules). She described an enforcement provision in section 7 that would allow a $100 fee per municipality for missing inventory submissions, but said the department does not expect broad enforcement and anticipates inventories will be returned by March 31.
The committee thanked Dooley and department staff and paused for a recess to continue other testimony later in the week.
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