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1 Reg. § 1.5811(11), § 1.5401(7), (14) § 1.6066(c) DOMICILE (Effective 8/6/04) Section 1 Introduction Domicile is a legal concept that has implications for Vermont income tax, the statewide education tax and property tax adjustments. With regard to income tax, resident individuals are taxed on more of their taxable income than nonresidents. An individual qualifies for residency for the portion of the year in which the individual is domiciled in the state. 32 V.S.A. § 5811(11). The statewide education tax is affected because the tax is imposed at different rates on homestead property and nonresidential property. A homestead is the principal dwelling owned and occupied by a resident individual as the individual’s domicile. 32 V.S.A. § 5401(7). Domicile is defined with respect to the statewide education tax at 32 V.S.A. § 5401(14). Finally, to be eligible for a property tax adjustment under Chapter 154 of Title 32, a claimant must be domiciled in the state. 32 V.S.A. § 6066(c). This rule provides guidelines that are consistent with the definition in 32 V.S.A. § 5401(14) for determining domicile. It further clarifies that domicile has the same definition for purposes of income tax, statewide property tax and property tax adjustments. Section 2 Definition of Domicile (a) Domicile means the place where an individual has a true, fixed permanent home, and to which place, whenever the person is absent, he or she has the intention of returning. An individual may have several places of abode in a year, but at no time can he or she have more than one domicile. Domicile is not limited to a specific structure, but refers rather to a place or an area to which the individual expects to return. (b) Domicile is established by birth, operation of law, or choice. (c) Once established, domicile is never lost, changed or destroyed unless there is an actual change in the residence, together with steps manifesting an intention to abandon the former residence and acquire a new one. A mere intent or desire to make a change in domicile is not sufficient to effectuate a change; voluntary and positive steps must be taken. (d) Domicile does not change if an individual leaves his or her place of domicile: 1. for a period of rest or vacation;