MONTPELIER, Vt. (AP) - A committee of the Vermont Senate this week is expected to complete work on a revenue bill that, among several other changes, would limit how much a homeowner could deduct for mortgage interest when filing state income taxes.
Finance Committee Chairman Tim Ashe says the committee is looking at a range of possible caps, from $10,000 to $15,000 in how much could be deducted from taxable income.
The Vermont real estate industry is complaining that the change could hurt middle-class homeowners and chill sales of homes. But Ashe says the typical Vermont homeowner pays $7,300 in mortgage interest and so would be under the cap.
Another notable change would remove the sales tax exemption from bottled water.