Keys v. Vermont Department of Taxes

Supreme Court of Vermont

Keys v. Vermont Department of Taxes

552 A.2d 418, 149 Vt. 658, 1987 Vt. LEXIS 622

CourtSupreme Court of Vermont

DecidedDecember 24, 1987

DocketNo. 85-531

StatusPublished

Cited by2 cases

This text of 552 A.2d 418 (Keys v. Vermont Department of Taxes) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Keys v. Vermont Department of Taxes, 552 A.2d 418, 149 Vt. 658, 1987 Vt. LEXIS 622 (Vt. 1987).

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Opinion

The State stipulates that the lump sum payment received by the taxpayer represents income derived from his investment in a retirement fund which invests solely in federal obligations. The prospectus for the retirement plan containing the fund shows that the taxpayer elected to invest in that fund as one of five options and that his selection was made to ensure that, once placed in the fund, the money he invested could only be invested in federal obligations. Interest earned by the taxpayer on that investment must be characterized as income derived from federal obligations and as exempt from state taxation by 31 U.S.C. § 3124(a). See American Bank & Trust Co. v. Dallas County, 463 U.S. 855, 862-63 (1983). The State’s attempts to characterize the income otherwise are unavailing. See In re Sawyer Estate, 149 Vt. 541, 544, 546 A.2d 784, 785-86 (1987).

Affirmed.

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The State stipulates that the lump sum payment received by the taxpayer represents income derived from his investment in a retirement fund which invests solely in federal obligations. The prospectus for the retirement plan containing the fund shows that the taxpayer elected to invest in that fund as one of five options and that his selection was made to ensure that, once placed in the fund, the money he invested could only be invested in federal obligations. Interest earned by the taxpayer on that investment must be characterized as income derived from federal obligations and as exempt from state taxation by 31 U.S.C. § 3124(a). See American Bank & Trust Co. v. Dallas County, 463 U.S. 855, 862-63 (1983). The State’s attempts to characterize the income otherwise are unavailing. See In re Sawyer Estate, 149 Vt. 541, 544, 546 A.2d 784, 785-86 (1987).

Affirmed.

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Bluebook (online)

552 A.2d 418, 149 Vt. 658, 1987 Vt. LEXIS 622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keys-v-vermont-department-of-taxes-vt-1987.

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