An act relating to applying personal income tax to unrealized gains

This bill proposes a new Vermont personal income tax on unrealized gains for wealthy individuals, requiring those with net worths of $10 million or more to pay tax on 50% of the increase in value of their assets each year. The tax applies only to the portion of gains up to 10% of the taxpayer's net assets exceeding $10 million, and losses from these deemed sales can be carried forward indefinitely but may be refunded after two consecutive years of losses. The legislation establishes specific rules for adjusting the basis of assets to reflect gains and losses, including provisions for related-party transactions and temporary residents with substantial presence in Vermont.