title-32•Title 32 — Taxation and Finance
The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated, provided as a convenience by the Vermont General Assembly. The official text is the printed Vermont Statutes Annotated published by LexisNexis.
Chapter 1 General Provisions
§ 1 Fiscal year and biennial period
The fiscal year shall commence on July 1 and end on June 30, but the accounts of the June terms of court shall be carried forward to the succeeding fiscal year. Each two consecutive fiscal years shall constitute a biennial period.
§ 2 F.H.A. securities as collateral
Wherever collateral must or may be furnished by any depository in the State of Vermont as security for the deposit of any funds whatsoever, or wherever collateral must or may be deposited with any official of the State of Vermont pursuant to any statute of this State, mortgage notes and bonds insured and debentures issued by the Federal Housing Administrator shall be considered eligible collateral for such purposes.
§ 3 Change in fiscal quarters authorized
Whenever by law an officer, whether State, county, or municipal and whether executive or judicial, is required to pay or turn over money or make a report to the State Treasurer or any other State official, department, institution, or agency on a quarterly basis, the Governor may by executive order require that the money be paid or turned over or the return or report be filed on such dates as the Governor shall designate, which dates shall be three months apart, any other provision of law notwithstanding. Before making the change, he or she shall give at least three months notice thereof by sending a copy of the executive order by personal delivery or certified mail to each officer required to make the payment, return, or report.
(Added 1959, No. 328 (Adj. Sess.), § 20.)
§ 4 Repealed
[Repealed]
1971, No. 260 (Adj. Sess.), § 29(b).
§ 5 Acceptance of grants
(a) Definitions. As used in this section:
(1) “Loan” means a loan that is interest free or below market value.
(2) “State agency” means an Executive Branch agency, department, commission, office, or board.
(b) Executive Branch approval.
(1) Approval required. A State agency shall not accept the original of any grant, gift, loan, or any sum of money or thing of value, except as follows:
(A) the State agency is granted approval pursuant to this subsection (b); or
(B) Joint Fiscal Committee policies adopted pursuant to subsection (e) of this section do not require a State agency to obtain approval.
(2) Governor review. The Governor shall review each grant, gift, loan, or any sum of money or thing of value and shall send a copy of the approval or rejection to the Joint Fiscal Committee through the Joint Fiscal Office together with the following information with respect to these items:
(A) the source and value;
(B) the legal and referenced title, in the case of a grant;
(C) the costs, direct and indirect, for the present and future years;
(D) the receiving department or program, or both;
(E) a brief statement of purpose; and
(F) any impact on existing programs if there is a rejection.
(3) Legislative review.
(A) The Governor’s approval in subdivision (b)(2) of this section shall be final, except as follows:
(i) When the General Assembly is not in session, within 30 days of receipt of the copy of an approval and related information required under subdivision (b)(2) of this section, a member of the Committee requests such grant, gift, loan, sum of money, or thing of value be placed on the Committee’s agenda; or
(ii) When the General Assembly is in session, within 30 days of receipt of the copy of an approval and related information required under subdivision (b)(2) of this section, a member of the Committee requests that such grant, gift, loan, sum of money, or thing of value be held for legislative approval. If a copy of an approval and related information is received when the General Assembly is in session, but before the members of the Joint Fiscal Committee are appointed, one of the statutorily appointed members of the Committee may request to hold a grant for legislative approval. Legislative approval under this subdivision may be granted by legislation or resolution.
(B) In the event of a request to hold a grant made pursuant to subdivision (3) of this subsection (b), the grant shall not be accepted until approved by the Joint Fiscal Committee or the General Assembly.
(C) The 30-day period described in subdivision (3)(A)(i) of this subsection (b) may be reduced where expedited consideration is warranted in accordance with Joint Fiscal Committee policies adopted pursuant to subsection (e) of this section.
(D) Upon receipt of the copy of an approval and related information required under subdivision (b)(2) of this section while the General Assembly is in session, the Joint Fiscal Committee shall promptly file a notice with the House and Senate Clerks for publication in the respective calendars.
(4) Exceptions.
(A) General. The review and approval process set forth in subsection (b) of this section shall not apply to the following items:
(i) the acceptance of grants, gifts, loans, sums of money, or other things of value with a value of $15,000.00 or less, if the acceptance of those items will not incur additional expense to the State or create an ongoing requirement for funds, services, or facilities; or
(ii) a legal settlement.
(B) Notification required.
(i) The receiving agency shall promptly notify the Secretary of Administration and Joint Fiscal Office of the source, value, and purpose of any items received under this subdivision; provided, however, that no notification is required for an item received under this subdivision with a value of less than $1,500.00.
(ii) The Joint Fiscal Office shall report all items received under this subdivision to the Joint Fiscal Committee quarterly. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subdivision.
(5) Transportation. With respect to acceptance of the original of a federal transportation earmark or of a discretionary federal grant for a transportation project, the provisions of subdivision (1) of this subsection shall apply, except that in addition:
(A) notification of the Governor’s approval or rejection shall also be made to the Chairs of the House and Senate Committees on Transportation; and
(B) such grant or earmark shall be placed on the agenda, and shall be subject to the approval, of a committee comprising the Joint Fiscal Committee and the Chairs of the House and Senate Committees on Transportation, if one of the Chairs or a member of the Joint Fiscal Committee so requests.
(c) Legislative and Judicial Branch approval.
(1) Approval required. The Legislative and Judicial Branches shall not accept the original of any grant, gift, loan, or any sum of money or thing of value, except as follows:
(A) approval is granted pursuant to the process set forth in subdivision (b)(3) of this section if the item received has a value of more than $15,000.00; and
(B) notification is sent to the Joint Fiscal Committee and the Secretary of Administration of the source, value, and purpose of the item received if the item has a value of $1,500.00 or more.
(2) Exceptions. The review process set forth in subdivision (b)(2) of this section shall not apply to the approval of any grant, gift, loan, or any sum of money or thing of value received by the Legislative or Judicial Branches.
(d) Limited service position.
(1) The Joint Fiscal Committee is authorized to approve a limited service position request in conjunction with a grant if the position is explicitly stated for a specific purpose in the grant. A limited service position request shall also include a certification from the appointing authority to the Joint Fiscal Committee that there exists equipment and housing for the position or that funds are available to purchase equipment and housing for the position.
(2) For the Executive Branch, the position request is approved pursuant to the process set forth in subsection (b) of this section. For the Legislative and Judicial Branches, the position request is approved pursuant to the process set forth in subsection (c) of this section.
(3) The position shall terminate with the expiration of the grant funding unless otherwise funded by an act of the General Assembly.
(e) Policies. The Joint Fiscal Committee is authorized to adopt policies to implement this section, including a policy on expedited review by the Joint Fiscal Committee when the General Assembly is not in session.
(Added 1971, No. 260 (Adj. Sess.), § 29(a); amended 1977, No. 247 (Adj. Sess.), § 186, eff. April 17, 1978; 1983, No. 253 (Adj. Sess.), § 248; 1995, No. 46, § 52; 1995, No. 63, § 277, eff. May 4, 1995; 1995, No. 178 (Adj. Sess.), § 416, eff. May 22, 1996; 1997, No. 2, § 72, eff. Feb. 12, 1997; 1997, No. 66 (Adj. Sess.), § 60, eff. Feb. 20, 1998; 2007, No. 65, § 394; 2009, No. 146 (Adj. Sess.), § B15; 2009, No. 156 (Adj. Sess.), § E.127.2, eff. June 3, 2010; 2013, No. 142 (Adj. Sess.), § 54; 2013, No. 167 (Adj. Sess.), § 17; 2013, No. 179 (Adj. Sess.), § E.342.7; 2017, No. 85, § E.700; 2019, No. 72, § E.127.2; 2019, No. 88 (Adj. Sess.), § 68, eff. March 4, 2020; 2021, No. 105 (Adj. Sess.), § 436, eff. July 1, 2022; 2025, No. 27, § F.166, eff. May 21, 2025.)
§ 6 Indirect costs
(a) All State agencies and departments shall prepare and submit to the appropriate federal agency indirect cost rate proposals for the reimbursement of departmental and statewide indirect costs unless specifically exempted in writing by the Secretary of Administration.
(b) Requests for federal funds shall include a specific request for reimbursement of indirect costs. Awards of statewide indirect costs will be deposited into the General Fund, except statewide indirect costs will be deposited into the Transportation Fund for costs recovered by the Agency of Transportation. The Commissioner of Finance and Management may authorize departments to retain recovered indirect cost receipts.
(Added 1979, No. 205 (Adj. Sess.), § 137, eff. May 9, 1980; amended 1999, No. 1, § 92, eff. March 31, 1999; 2011, No. 162 (Adj. Sess.), § E.102.)
Chapter 3 Fiscal Officers and Commissions
Subchapter 1 Treasurer
§ 101 Communications to Governor and Assembly
The Treasurer shall prepare an annual financial report and shall submit to the Governor and either house of the General Assembly: abstracts; copies of accounts or official documents of any kind; and information relating to revenue, official transactions, and the Department of the Treasury.
(Amended 1965, No. 158, § 2; 1971, No. 13, § 1, eff. Feb. 25, 1971; 2017, No. 74, § 131.)
§ 102 Embezzlements
If the Treasurer diverts, misapplies, or conceals the public treasure, he or she shall be fined double the amount so diverted, misapplied, or concealed and shall be imprisoned not more than 10 years nor less than two years.
§ 103 Account with successor
If the Treasurer goes out of office, the Treasurer shall exhibit to the Treasurer’s successor a true and particular account of the money received and paid out since the last examination of the Treasurer’s books and accounts as provided in section 801 of this title, and, within 10 days after the Treasurer’s successor is declared elected or is appointed, with the successor and the Auditor, the Treasurer shall adjust and strike the balance found against the Treasurer within such time as is prescribed by the Auditor, or be liable for that balance to the State in a civil action.
(Amended 2021, No. 105 (Adj. Sess.), § 437, eff. July 1, 2022.)
§ 104 Balance due retiring Treasurer
Upon such adjustment, if it appears that a balance is due to the retiring Treasurer, it shall be reported to the General Assembly and discharged as it directs.
§ 105 Settlement upon death of Treasurer
If a person dies while holding such office, the settlement provided for in sections 103 and 104 of this title shall be made with his or her executor or administrator.
§ 106 Penalty for refusal to settle
After demand made by the Auditor, if such retiring Treasurer refuses to exhibit and settle his or her account, he or she shall be fined $2,000.00 for each month’s refusal.
§ 107 Books and records delivered to successor
At the time of adjusting his or her account or within 10 days after his or her term of office expires, such retiring Treasurer shall deliver to his or her successor the books of account, memorandum or registry, the bonds, bills, notes, obligations, contracts, securities, and other instruments or papers belonging to the State Treasury and, for each month’s default thereof, shall be fined $2,000.00.
§ 108 Repealed
[Repealed]
1999, No. 71 (Adj. Sess.), § 1.
§ 109 Solicitations and contributions prohibited
(a) As used in this section:
(1) “Firm” means any person or entity that provides investment services and includes the owner of the firm, excluding those shareholders owning less than one percent holdings in the firm’s outstanding shares, and all managers, officers, directors, partners, or employees who have managerial or discretionary responsibility to invest funds, manage funds, or provide investment services.
(2) “Investment services” means legal services, investment banking services, investment advisory services, underwriting services, financial advisory services, or brokerage firm services for brokerage, underwriting, and financial advisory activities that are within the statutory purview of the Treasurer.
(3) “Treasurer” means the Treasurer of the State of Vermont.
(b) A firm that currently has a contract with the State Treasurer or a political committee established by that firm shall not make a contribution to, or solicit contributions on behalf of, a candidate for the Office of Treasurer. A violation of this subsection shall be considered a material breach and a default by the firm of any contract issued to it by the Treasurer. Upon the occurrence of such a material breach and default, the Treasurer shall notify the firm of the State’s intention to terminate the firm’s contract. The Treasurer shall forthwith seek to reissue the contract to another person or entity in accordance with existing law and procedures. This subsection shall not preclude the payment of compensation, expenses or fees to a firm that has violated this subsection regarding work performed or expenses incurred prior to the date the contract is terminated.
(c) The Treasurer shall not enter into any contract with any firm if the firm or a political committee established by that firm has made a contribution or solicited contributions on behalf of a candidate for the Office of Treasurer after July 1, 1997 and within five years of the date of the contract.
(Added 1997, No. 64, § 26.)
§ 110 Reports
(a) The Treasurer shall prepare and submit, consistent with 2 V.S.A. § 20(a), reports on the following subjects:
(1) The Vermont Higher Education Endowment Trust Fund, pursuant to 16 V.S.A. § 2885(e).
(2) [Repealed.]
(3) The Trust Investment Account, pursuant to subdivision 434(a)(5) of this title.
(4), (5) [Repealed.]
(b) Reports required to be submitted to the General Assembly annually by January 15 shall be consolidated in a single document.
(Added 2003, No. 122 (Adj. Sess.), § 294b; amended 2009, No. 33, § 83(m)(1); 2011, No. 139 (Adj. Sess.), § 31, eff. May 14, 2012.)
§ 111 Financial Literacy Trust Fund
(a) There is hereby established and created a fund entitled the Financial Literacy Trust Fund to be administered by the State Treasurer. The purpose of the Fund is to promote the adoption of fiscally sound money management practices by Vermonters through education and outreach efforts that raise awareness of the need for and benefits of practicing such skills and to create opportunities to build and encourage the development of new financial literacy activities and educational products for Vermont citizens.
(b) The Fund may receive State appropriations, gifts, grants, federal funds, and any other funds, both public and private, consistent with this section. The Funds may be expended for financial literacy projects as the Treasurer may direct, in accordance with the trust fund provisions of section 462 of this title.
(c) The Treasurer may invest monies in the Fund in accordance with the provisions of section 434 of this title. All balances in the Fund at the end of the fiscal year shall be carried forward and shall not revert to the General Fund. Interest earned shall remain in the Fund. The Treasurer’s annual financial report to the Governor and the General Assembly shall contain an accounting of receipts, disbursements, and earnings of the Fund.
(Added 2007, No. 192 (Adj. Sess.), § 6.009.)
Subchapter 2 Emergency Board
§ 131 Composition
There shall be an Emergency Board to consist of the Governor, the Chair of the Senate Committee on Finance, the Chair of the Senate Committee on Appropriations, the Chair of the House Committee on Ways and Means, and the Chair of the House Committee on Appropriations; but the Chair of any one of such committees may designate a member of his or her committee who shall be a member of such Board in lieu of the Chair. The Board shall meet at the call of the Governor or a majority of the legislative members of the Board.
(Amended 2017, No. 85, § C.116, eff. June 28, 2017.)
§ 132 Chair and Secretary
The Governor shall be Chair, and the Secretary of Civil and Military Affairs shall be Secretary of the Board. The Secretary shall keep the minutes of each meeting of the Board in a book kept for that purpose, and such minutes shall be a public record, and certified copies of such record shall be furnished the Auditor and the Treasurer.
§ 133 Duties
(a) The Board shall have authority to make expenditures necessitated by unforeseen emergencies and may draw on the State’s General Fund for that purpose.
(b) Pursuant to section 706 of this title, the Board shall also have authority to transfer appropriations made to other agencies and to use the transferred amounts to make expenditures necessitated by unforeseen emergencies.
(c) In a fiscal year, the sum of the Board’s expenditures under subsections (a) and (b) of this section shall not exceed two percent of the total General Fund appropriation for the year of the expenditures.
(Amended 2007, No. 65, § 287.)
§ 134 Insurance Reserve Fund
The Insurance Reserve Fund is hereby created. All funds paid to the State under property insurance policies for the benefit of the State for losses to real and personal property shall be paid into the Insurance Reserve Fund.
(Amended 1961, No. 64, § 1, eff. April 7, 1961; 1995, No. 178 (Adj. Sess.), § 422, eff. May 22, 1996.)
§ 135 Use of Fund
When any building or property of the State is damaged by fire or other hazard, notwithstanding subdivision 588(4) of this title, the Board or, for amounts under $10,000.00, the Secretary of Administration, may at their discretion transfer from the Insurance Reserve Fund amounts for the purpose of replacing, repairing, or rebuilding the same, and for related losses.
(Amended 1961, No. 64, § 2, eff. April 7, 1961; 1995, No. 178 (Adj. Sess.), § 423, eff. May 22, 1996.)
§§ 136-138 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 424, eff. May 22, 1996.
Subchapter 3 Auditor of Accounts
§ 161 Oath
The Auditor shall take the oath of office prescribed by law.
§ 162 Repealed
[Repealed]
1959, No. 328 (Adj. Sess.), §§ 17, 35(f).
§ 163 Duties of the Auditor of Accounts
In addition to any other duties prescribed by law, the Auditor of Accounts shall:
(1) Annually perform or contract for:
(A) an audit of the basic financial statements of the State of Vermont;
(B) the financial and compliance audits of the State of Vermont’s federal programs as required by federal law, except that this audit requirement shall not apply to the University of Vermont or the Vermont State Colleges; and
(C) at his or her discretion, governmental audits as defined by governmental auditing standards issued by the U.S. Government Accountability Office (GAO) of every department, institution, and agency of the State, including trustees or custodians of retirement and other trust funds held by the State or any officer or officers of the State, and also including every county officer who receives or disburses funds of the State or for the benefit of the State or any county.
(2) In his or her discretion, conduct a continuing post audit of all disbursements made through the Office of the Commissioner of Finance and Management or the Office of the State Treasurer, including disbursements to a municipality, school supervisory union, school district, or county.
(3)(A) Prominently post and retain on his or her official State website, and update at least annually, the following information:
(i) All reports that result from audits conducted under subdivision (1) of this section.
(ii) [Repealed.]
(iii) A summary of all embezzlement convictions and false claim convictions as described in 13 V.S.A. § 3016 against any agency or department of the State since July 1, 2007. The summary shall include the names of all persons convicted of those offenses.
(B) Periodically follow up on the Auditor’s recommendations contained in audit reports arising from audits conducted under subdivision (1) of this section for up to three years from the date of the audit report.
(4)(A)(i) From time to time, as audits are completed, report his or her audit findings first to the Speaker of the House of Representatives and the President Pro Tempore of the Senate, then to the Governor, the Secretary of Administration, the Commissioner of Finance and Management, and the head of the department, institution, or agency covered by the report.
(ii) The audit reports shall be public records.
(B)(i) Draft audit reports, working papers, correspondence, and other materials relied on by the Auditor of Accounts to produce the draft audit report shall be confidential and exempt from public inspection and copying under the Public Records Act until the audit is completed but shall be provided to the audited entity upon request unless the record is exempt from public inspection and copying under another provision of law.
(ii) Draft audit reports, working papers, correspondence, and other materials received by an audited entity prior to completion of the audit shall remain confidential until completion of the audit, and shall not be further disclosed by the audited entity until completion of the audit.
(5) Make special audits of any department, institution, and agency as the Governor may from time to time require.
(6) [Repealed.]
(7) Subject to the provisions of 3 V.S.A. chapter 13, employ and set the compensation of such assistants, clerical or otherwise, as he or she deems necessary for the proper and efficient administration of his or her office. However, he or she shall not expend or authorize expenditure of funds for his or her office in excess of the amount appropriated for his or her office in any fiscal year.
(8) Require all State departments and agencies to file with the Auditor of Accounts all audit reports and reports of findings and recommendations received as a result of audits and examinations conducted by or for any federal agency.
(9), (10) [Repealed.]
(11)(A) Make available to all counties, municipalities, and supervisory unions as defined in 16 V.S.A. § 11(23) and supervisory districts as defined in 16 V.S.A. § 11(24) a document designed to determine the internal financial controls in place to ensure proper use of all public funds.
(i) The Auditor shall consult with the Vermont School Boards Association, the Vermont Association of School Business Officials, and the Vermont League of Cities and Towns in the development of the document.
(ii) The Auditor shall strive to limit the document to one letter-size page.
(B) The Auditor shall also make available to public officials charged with completing the document instructions to assist in its completion.
(12) Make available to county, municipal, and school district officials with fiduciary responsibilities an education program related to those responsibilities, as resources permit.
(Added 1959, No. 328 (Adj. Sess.), § 17; amended 1967, No. 91, § 1; 1969, No. 219 (Adj. Sess.), §§ 2, 4, eff. March 27, 1970; 1971, No. 32, eff. July 1, 1971; 1977, No. 146 (Adj. Sess.), § 4; 1983, No. 195 (Adj. Sess.), § 5(b); 1985, No. 122 (Adj. Sess.), § 1, eff. April 17, 1986; 1999, No. 159 (Adj. Sess.), § 15; 2003, No. 67, § 13c; 2005, No. 184 (Adj. Sess.), § 15; 2007, No. 121 (Adj. Sess.), §§ 23, 32; 2011, No. 155 (Adj. Sess.), § 23; 2013, No. 108 (Adj. Sess.), § 2, eff. April 22, 2014; 2019, No. 104 (Adj. Sess.), § 1.)
§ 164 Certified copies
The Auditor shall be a certifying officer, and a certified copy of a record or paper belonging to the Auditor’s Department or that is lodged there by law shall be admitted as evidence by the courts in any cause, civil or criminal. The Auditor shall furnish copies of records or papers upon being paid the legal fees for the copies by the person requesting the copies.
(Amended 2021, No. 105 (Adj. Sess.), § 438, eff. July 1, 2022.)
§ 165 Repealed
[Repealed]
1961, No. 40, § 2.
§ 166 Payments to towns; returns by Commissioner of Finance and Management
On or before January 10 of each year, the Commissioner of Finance and Management shall transmit to the auditors of each town a statement showing the amount of money paid by the State to the town and the purpose for which paid during the year ending December 31 preceding the date of such statement, the date of such payments, and purpose for which made, unless the Commissioner of Finance and Management is requested to send such statement at some other date to conform to the fiscal year of such municipality.
(Added 1961, No. 40, § 1; amended 1969, No. 301 (Adj. Sess.), § 2, eff. April 9, 1970; 1983, No. 195 (Adj. Sess.), § 5(b); 2013, No. 142 (Adj. Sess.), § 55; 2015, No. 131 (Adj. Sess.), § 31.)
§ 167 Records to be available for audit
(a) For the purpose of examination and audit authorized by law, all the records, accounts, books, papers, reports, and returns in all formats of all departments, institutions, and agencies of the State, including the trustees or custodians of trust funds and all municipal, school supervisory union, school district, and county officers who receive or disburse funds for the benefit of the State, shall be made available to the Auditor of Accounts. It shall be the duty of each officer of each department, institution, and agency of the State or municipality, school supervisory union, school district, or county to provide the records, accounts, books, papers, reports, returns, and such other explanatory information when required by the Auditor of Accounts.
(b) In connection with any of his or her duties, the Auditor of Accounts may administer oaths and may subpoena any person to appear before him or her. Such persons shall testify under oath and be subject to the penalties of perjury and may be examined concerning any matter relating to the statutory duties of the Auditor provided by section 163 of this title. Nothing in this subsection shall limit a person’s Fifth Amendment rights against self-incrimination.
(Added 1959, No. 328 (Adj. Sess.), § 19; amended 1969, No. 219 (Adj. Sess.), § 3, eff. March 27, 1970; 1971, No. 149 (Adj. Sess.); 2007, No. 121 (Adj. Sess.), § 24; 2007, No. 169 (Adj. Sess.), § 6.)
§ 168 Single Audit Revolving Fund
(a)(1) The Single Audit Revolving Fund is established within the State Treasury, to be administered by the Auditor of Accounts, from which payments may be made for the costs of audits performed pursuant to subdivisions 163(1), 163(2), and 5404a(l) of this title and 24 V.S.A. § 290b.
(2) All monies received from charges made for audit services under the provisions of subsection (b) of this section and sums that may be appropriated to the Fund shall be deposited in the Fund.
(3) Any balance remaining in the Fund at the end of any fiscal year shall be carried forward and remain a part of the Fund.
(b)(1) The Auditor of Accounts shall charge the State department, agency, commission, instrumentality, political subdivision, or State-created authority audited for the direct and indirect costs of an audit performed pursuant to subdivisions 163(1), 163(2), and 5404a(l) of this title and 24 V.S.A. § 290b.
(2) Costs shall be determined by the Auditor of Accounts and costs associated with subdivisions 163(1) and (2) of this title shall be approved by the Secretary of Administration.
(Added 1985, No. 122 (Adj. Sess.), § 2, eff. April 17, 1986; amended 2005, No. 215 (Adj. Sess.), § 288; 2019, No. 104 (Adj. Sess.), § 2; 2019, No. 154 (Adj. Sess.), § E.130, eff. Oct. 2, 2020; 2021, No. 74, § E.130.)
Subchapter 4 Finance and Management Department
§ 181 Repealed
[Repealed]
1987, No. 243 (Adj. Sess.), § 52(1), eff. June 13, 1988.
§ 182 Duties of Commissioner
(a) In addition to the duties expressly set forth elsewhere by law, the Commissioner of Finance and Management shall:
(1) Prescribe appropriate systems for all State departments and agencies to use in accounting, and each department and agency shall keep their accounts in accordance with a system prescribed by the Commissioner. The Commissioner may review and examine any accounting system to determine its compliance with the prescribed system.
(2) Maintain a system of central accounting of income and disbursement so as to enable fiscal officers of the State at any time to provide an evaluation and analysis of the status of State finances.
(3) Coordinate the fiscal procedures of the State, including all departments, institutions, and agencies with the controlling accounts kept under this section.
(4) Maintain a system of encumbrance accounting to control expenditures within budget appropriations.
(5) In the Commissioner’s discretion, pre-audit receipts, expenditures, and encumbrances.
(6) Draw warrants on the Treasurer for all valid and legal payroll disbursements certified by voucher.
(7) Draw warrants on the Treasurer for all disbursements.
(8) Prepare monthly revenue reports for the Governor, Secretary of Administration, and other officials and for release to the general public, and an Annual Comprehensive Financial Report (ACFR) in accordance with generally accepted accounting principles that shall be distributed to the Chairs of the House Committees on Appropriations, on Corrections and Institutions, and on Ways and Means and to the Senate Committees on Appropriations, on Finance, and on Institutions on or before December 31 of each year. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the required report to be made under this subdivision.
(9) Make available monthly reports of appropriations, expenditures, encumbrances, and balances for all operating departments.
(10) Maintain a standard chart of accounts structure pertaining to appropriation, revenue, and expenditure codes.
(11) [Repealed.]
(12) Exercise central management of the appropriation act.
(13) Maintain the general control ledger of State accounts.
(14) Manage special funds in accordance with this section and with chapter 7, subchapter 5 of this title.
(b) Nothing in this section shall be interpreted to allow the Commissioner to expend money, except in accordance with the provisions of section 462 of this title.
(Added 1959, No. 328 (Adj. Sess.), § 7; amended 1965, No. 158, § 3; 1971, No. 13, § 2, eff. Feb. 25, 1971; 1975, No. 118, § 86, eff. April 30, 1975; 1977, No. 113, § 351; 1983, No. 195 (Adj. Sess.), § 3; 1987, No. 243 (Adj. Sess.), §§ 52(2), 53, eff. June 13, 1988; 1989, No. 210 (Adj. Sess.), § 8a; 1991, No. 226 (Adj. Sess.), § 1, eff. May 28, 1992; 1995, No. 123 (Adj. Sess.), § 4, eff. June 6, 1996; 1997, No. 66 (Adj. Sess.), § 64, eff. Feb. 20, 1998; 2001, No. 149 (Adj. Sess.), § 92, eff. June 21, 2002; 2003, No. 156 (Adj. Sess.), § 15; 2007, No. 7, § 3; 2007, No. 65, § 391; 2015, No. 131 (Adj. Sess.), § 6; 2025, No. 18, § 51, eff. May 13, 2025.)
§ 183 Financial and Human Resource Information Internal Service Fund
(a) There is established in the Department of Finance and Management a Financial and Human Resource Information Internal Service Fund, to consist of revenues from charges to agencies, departments, and similar units of Vermont State government, and to be available to fund the costs of the Division of Financial Operations in the Department of Finance and Management, and the technical support and services provided by the Agency of Digital Services for the statewide central accounting and encumbrance, budget development, and human resource management systems.
(b) The rate of the charges shall be proposed by the Commissioner of Finance and Management, subject to the approval of the Secretary of Administration. Proposed rates of charges shall be based upon the cost of operations.
(Added 2001, No. 142 (Adj. Sess.), § 309; amended 2003, No. 156 (Adj. Sess.), § 15; 2009, No. 1 (Sp. Sess.), § E.100.3; 2011, No. 63, § E.103; 2019, No. 49, § 11, eff. June 10, 2019.)
§§ 184-200 [Reserved for future use.]
§ 201 Repealed
[Repealed]
1987, No. 243 (Adj. Sess.), § 55, eff. June 13, 1988.
§ 202 Duties of Commissioner
In addition to the duties expressly set forth elsewhere by law, the Commissioner of Finance and Management through the Commissioner’s Department shall:
(1) perform the following duties with respect to the budget:
(A) prepare an operating budget for the Governor-elect or Governor as provided by sections 301-307 of this title;
(B) prepare and install forms upon which departmental and capital budget requests are made;
(C) schedule and assist in hearings on departmental and agency requests;
(D) assist the Governor and, on request, the General Assembly on budget matters;
(E) exercise continuing supervision and study of budget procedures; and
(F) carry out expenditure control and budget-balancing policies and procedures as directed by the Secretary of Administration;
(2) perform the following duties with respect to fiscal management and management analysis:
(A) carry out continuing studies of the operation of existing or new State agencies and make recommendations to obtain most economic and effective management;
(B) assist departments on procedures and other problems of management;
(C) carry on a research program in the field of governmental and financial administration and analysis of State tax structure and yield; and
(D) study simplification and standardization of forms and methods in use in various departments for purposes of management and budget control;
(3) prepare estimates of State revenue and income when requested by the Governor; and
(4) provide the legislative Joint Fiscal Office on or before November 1 of the first fiscal year of each biennium and December 1 of the second fiscal year of each biennium copies of the most recent budget forms submitted by all governmental units in connection with annual or supplemental budget requests.
(Added 1959, No. 328 (Adj. Sess.), § 3; amended 1969, No. 75, § 1; 1973, No. 144 (Adj. Sess.), § 1; 1979, No. 205 (Adj. Sess.), § 127, eff. May 9, 1980; 1985, No. 74, § 306, eff. May 28, 1985; 1987, No. 243 (Adj. Sess.), § 56, eff. June 13, 1988; 2021, No. 105 (Adj. Sess.), § 439, eff. July 1, 2022.)
§ 203 Repealed
[Repealed]
2009, No. 135 (Adj. Sess.), § 26(15).
Subchapter 6 Contracts for Goods and Services [repealed]
§ 215 Repealed
[Repealed]
Chapter 5 Budget
§ 301 Department estimate and statement
(a) The head of every department of State, board, or commission, and any officer or individual having in charge any State activity for which funds are appropriated by the General Assembly, on or before September 1 preceding each biennium, shall file with the Commissioner of Finance and Management, upon forms prepared and furnished by the Commissioner of Finance and Management, statements showing in detail the amount appropriated and expended for the current and next preceding fiscal years, and the amount estimated for such activity to be necessary for the ensuing two fiscal years, properly arranged in detail by classification and summaries. Requests for items for any activity, purpose, or program not previously authorized by legislation shall not be included in those statements but shall be clearly stated on separate accompanying forms.
(b) Such statements shall also include an itemized account of the revenues of the State for the current fiscal year to date, the last two preceding fiscal years, and the estimated revenues for the ensuing two fiscal years, all in such manner and form as to show comparatively the revenues and expenditures of each of the periods so tabulated, with the ensuing two fiscal years.
(c) If any State department or agency fails to transmit the program and financial information provided under subsections (a) and (b) of this section on or before the specified date, the Agency of Administration may prepare that information with the same effect as if it had been prepared by the proper State department or agency.
(Amended 1959, No. 328 (Adj. Sess.), § 4(a); 1965, No. 108; 1969, No. 14, No. 75, § 2; 1973, No. 144 (Adj. Sess.), § 2, eff. July 1, 1974; 1987, No. 243 (Adj. Sess.), § 57, eff. June 13, 1988.)
§ 302 Tabulation of estimates and statements
On or before November 15 preceding each biennium, the Commissioner of Finance and Management and the Secretary of Administration shall deliver to the Governor and to the Governor-elect, if they so request, statements of State accounts setting forth in tabulated form all appropriations and expenditures for the current fiscal year, all appropriations and expenditures for all State purposes for the last four preceding fiscal years, estimates of all claims against the State, and all expenditures from the State Treasury authorized by law, together with the estimates filed with them for the ensuing two fiscal years, under the provisions of subsection 301(a) of this title.
(Amended 1959, No. 328 (Adj. Sess.), § 4(b); 1969, No. 75, § 3; 1971, No. 24; 1973, No. 144 (Adj. Sess.), § 3, eff. July 1, 1974.)
§ 303 Delivery of estimates and statements when no Governor elected by popular vote
In the event of no election of Governor by the voters at the November election, the Secretary of Administration shall deliver the statements and estimates provided for under this chapter to the person elected Governor by the General Assembly.
(Amended 1959, No. 328 (Adj. Sess.), § 4(c); 2021, No. 105 (Adj. Sess.), § 440, eff. July 1, 2022.)
§ 304 Preparation of budget
(a) Upon receiving from the Secretary of Administration the statements and estimates as provided in this chapter, the Governor-elect shall immediately thereafter study and review the same and shall make such investigations as may be necessary to enable him or her to prepare a budget setting forth such recommendations as he or she may determine.
(b) The Secretary of Administration shall furnish the Governor-elect with complete information relative to the finances of the State and shall render such assistance as requested in preparation of the budget.
(Amended 1959, No. 328 (Adj. Sess.), § 4(d).)
§ 305 Power to revise estimates
In making up the budget, the Governor-elect shall have the power to revise, increase, decrease, or eliminate the sum estimated to be needed for or by each activity hereinbefore referred to and shall include in the message dealing with the budget, as provided in section 306 of this title, the reasons for the Governor-elect’s action.
(Amended 2021, No. 105 (Adj. Sess.), § 441, eff. July 1, 2022.)
§ 305a Official State revenue estimate
(a) On or about January 15 and again by July 31 of each year, and at such other times as the Emergency Board or the Governor deems proper, the Joint Fiscal Office and the Secretary of Administration shall provide to the Emergency Board their respective estimates of State revenues in the General, Transportation, Transportation Infrastructure Bond, and Education Funds. The January revenue estimate shall be for the current and next two succeeding fiscal years, and the July revenue estimate shall be for the current and immediately succeeding fiscal years. Federal fund estimates shall be provided at the same times for the current fiscal year.
(b) Within 10 days of receipt of such estimates, the Board shall determine an official State revenue estimate for deposit in the respective funds for the years covered by the estimates. For the purpose of revising an official revenue estimate only, a majority of the legislative members of the Emergency Board may convene a meeting of the Board.
(c)(1)(A) The January estimates shall include estimated caseloads and estimated per-member per-month expenditures for the current and next succeeding fiscal years for each Medicaid enrollment group as defined by the Agency and the Joint Fiscal Office for State Health Care Assistance Programs or premium assistance programs supported by the Global Commitment Fund and for the programs under any Medicaid Section 1115 waiver.
(B) For Board consideration, there shall be provided three versions of the next succeeding fiscal year’s estimated per-member per-month expenditures:
(i) one version shall include inflation trends as set forth in subdivision 307(d)(5) of this title;
(ii) one version shall be without the inflationary adjustment; and
(iii) one version shall reflect any additional increase or decrease to Medicaid provider reimbursements that would be necessary to attain Medicare levels as set forth in subdivision 307(d)(6) of this title.
(C) For VPharm, the January estimates shall include estimated caseloads and estimated per-member per-month expenditures for the current and next succeeding fiscal years by income category.
(D) The January estimates shall include the expenditures for the current and next succeeding fiscal years for the Medicare Part D phased-down State contribution payment and for the disproportionate share hospital payments.
(2) In July, the Administration and the Joint Fiscal Office shall make a report to the Emergency Board on the most recently ended fiscal year for all Medicaid and Medicaid-related programs, including caseload and expenditure information for each Medicaid eligibility group. Based on this report, the Emergency Board may adopt revised estimates for the current fiscal year and estimates for the next succeeding fiscal year. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
(Added 1995, No. 178 (Adj. Sess.), § 282; amended 1997, No. 60, § 19, eff. July 1, 1998; 2001, No. 142 (Adj. Sess.), § 148c; 2005, No. 6, § 87, eff. March 26, 2005; 2005, No. 191 (Adj. Sess.), § 46; 2005, No. 215 (Adj. Sess.), § 315; 2007, No. 65, § 268; 2007, No. 192 (Adj. Sess.), § 6.010; 2009, No. 4, § 93, eff. April 29, 2009; 2009, No. 67 (Adj. Sess.), § 106, eff. February 25, 2010; 2011, No. 3, § 88, eff. Feb. 17, 2011; 2011, No. 75 (Adj. Sess.), § 108; 2013, No. 50, §§ E.106, E.306; 2017, No. 154 (Adj. Sess.), § 31, eff. May 21, 2018; 2017, No. 167 (Adj. Sess.), § 15, eff. May 22, 2018; 2019, No. 6, § 69, eff. April 22, 2019.)
§ 305b Education property tax increment; Emergency Board estimate
Annually, at the January meeting of the Emergency Board held pursuant to section 305a of this title, the Joint Fiscal Office and the Secretary of Administration shall provide to the Emergency Board a consensus estimate of the impact on the Education Fund resulting from tax increment financing districts authorized pursuant to 24 V.S.A. chapter 53 and section 5404a of this title. The estimate shall be for the succeeding fiscal year. The Emergency Board shall adopt an official estimate of the impact on the Education Fund at the January meeting.
(Added 2017, No. 73, § 11a, eff. June 13, 2017.)
§ 306 Budget report
(a) The Governor shall submit to the General Assembly, not later than the third Tuesday of every annual session, a budget that shall embody the Governor’s estimates, requests, and recommendations for appropriations or other authorizations for expenditures from the State Treasury. In the first year of the biennium, the budget shall relate to the two succeeding fiscal years. In the second year of the biennium, it shall relate to the succeeding fiscal year. The budget shall be based upon the official State revenue estimates, including the Medicaid estimated caseloads and per-member per-month expenditures, adopted by the Emergency Board pursuant to section 305a of this title.
(1) As part of the budget report, the Governor shall:
(A) develop and publish annually for public review a current services budget, providing the public with an estimate of what the current level of services is projected to cost in the next fiscal year;
(B) provide an estimated cost of deferred infrastructure maintenance in the State’s transportation system; and
(C) itemize current services liabilities, including the total obligations and the amount estimated for full funding in the current year in which an amortization schedule exists. These shall include the following liabilities projected for the start of the budget fiscal year:
(i) pension liabilities for the Vermont State Employees’ Retirement System (VSERS) and the Vermont State Teachers’ Retirement System (VSTRS) and other postemployment benefit liabilities under current law and relevant Government Accounting Standards Board standards for these systems;
(ii) child care fee scale funding requirements pursuant to 33 V.S.A. § 3512 to bring total year funding to current market rates and current federal poverty levels;
(iii) Reach Up funding full benefit obligations, including the standard of need for the current fiscal year, reflecting the level of financial assistance necessary to meet a family’s ongoing basic needs in the current fiscal year as defined in 33 V.S.A. § 1101(13), prior to any rateable reductions made pursuant to 33 V.S.A. § 1103(a), which ensure that the expenditures for the programs shall not exceed appropriations;
(iv) statutory funding levels from the Property Transfer Tax;
(v) projected fund liabilities of the funds identified in the “Notes” section of the most recent Annual Comprehensive Financial Report (ACFR), including the Workers’ Compensation Fund, the State Liability Insurance Fund, the Medical Insurance Fund, and the Dental Insurance Fund; and
(vi) a summary of other nonmajor enterprise funds and internal service funds where deficits exist in excess of $1,500,000.00.
(2) The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
(b) The Governor shall also submit to the General Assembly, not later than the third Tuesday of each session of every biennium, a tax expenditure budget that shall embody his or her estimates, requests, and recommendations. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection. The tax expenditure budget shall be divided into three parts and made as follows:
(1) A budget covering tax expenditures related to nonprofits and charitable organizations and covering miscellaneous expenditures shall be made by the third Tuesday of the legislative session beginning in January 2012 and every three years thereafter.
(2) A budget covering tax expenditures related to economic development, including business, investment, and energy, shall be made by the third Tuesday of the legislative session beginning in January 2013 and every three years thereafter.
(3) A budget covering tax expenditures made in furtherance of Vermont’s human services, including tax expenditures affecting veterans, shall be made by the third Tuesday of the legislative session beginning in January 2014 and every three years thereafter.
(c) The tax expenditure budget shall be provided to the House Committee on Ways and Means and the Senate Committee on Finance, which Committees shall review the tax expenditure budget and shall report their recommendations in bill form.
(d) The Governor shall develop a process for public participation in the development of budget goals, as well as general prioritization and evaluation of spending and revenue initiatives.
(Amended 1969, No. 75, § 4; 1973, No. 144 (Adj. Sess.), § 4; 1974; 1987, No. 243 (Adj. Sess.), § 58, eff. June 13, 1988; 2009, No. 1 (Sp. Sess.), § H.16, eff. June 2, 2009; 2011, No. 45, § 36j, eff. May 24, 2011; 2013, No. 142 (Adj. Sess.), § 56; 2015 No. 172 (Adj. Sess.), § E.100.7; 2017, No. 85, § C.117, eff. June 28, 2017; 2019, No. 72, § E.124; 2023, No. 113 (Adj. Sess.), § E.323, eff. July 1, 2024; 2025, No. 18, § 52, eff. May 13, 2025.)
§ 306a Purpose of the State budget
(a) The State budget, consistent with Chapter I, Article 7 of Vermont’s Constitution, should “be instituted for the common benefit, protection, and security of the people, nation, or community . . .” The State budget should be designed to address the needs of the people of Vermont in a way that advances human dignity and equity and in a manner that supports the population-level outcomes set forth in 3 V.S.A. § 2311.
(b) Spending and revenue policies will seek to promote economic well-being among the people of Vermont and foster a vibrant economy. Integral to achieving the purpose of the State budget is continuous evaluation of the use of public funds by systems of outcome measurement based on indicators that measure success in accomplishing the purposes of the State budget.
(c) Spending and revenue policies will reflect the public policy goals established in State law and recognize every person’s need for health, housing, dignified work, education, food, social security, and a healthy environment.
(d) As consistent with State law and in conjunction with the federal government, the budget will reflect support for economic development, public safety, transportation, and other infrastructure needs.
(e) Revenue measures shall also be based on the principles of sustainability and stability. The Administration shall develop budget and revenue proposals as part of a transparent and accountable process with direct and meaningful participation from Vermont residents.
(Added 2011, No. 162 (Adj. Sess.), § E.100.1; amended 2015, No. 11, § 32; 2019, No. 131 (Adj. Sess.), § 291.)
§ 307 Form of budget
(a) The budget shall be arranged and classified so as to show separately the following estimates and recommendations:
(1) expenses of State administration;
(2) deficiencies, overdrafts, and unexpended balances in appropriations of former years;
(3) bonded debt, loans, and interest charges;
(4) all requests and proposals for expenditures for new projects, new construction, additions, improvements, and other capital outlay; and
(5) with respect to the tax expenditure budget required under subsection 306(b) of this chapter, all requests and proposals for new, amended, or continued tax expenditures as defined in section 312 of this chapter.
(b) The budget shall also include in detail definite recommendations of the Governor relative to the amounts that should be appropriated to each of the activities referred to under this section. It shall also include definite recommendations of the Governor relative to the financing of the expenditures recommended and the appropriate amounts to be raised from ordinary revenue, direct taxes, bonds, or loans. The financing of the expenditures recommended, as proposed by the Governor, shall not include the funds from the Budget Stabilization Reserve as established in section 308 of this title. With the budget, the Governor shall submit to the General Assembly such messages, statements, or supplemental data with reference to the same, as the Governor may deem expedient; however, budget documentation shall include to the extent possible the following:
(1) Specific sources of receipts. In the event of special fund appropriations, the particular special fund sources shall be itemized.
(2) Interdepartmental transfers shall be explained, including the source department of said transfer.
(3) Changes in positions within departmental budgets, including prior year, current year, and requested budget year positions counts by title and category. Positions should be identified as to whether they are filled and unfilled.
(4) A document outlining proposed changes in program funding and related policy changes that they reflect. This summary shall include narrative description of the proposed changes.
(c) The budget shall also include a strategic plan for each State agency, department, office, or other entity or program. A strategic plan shall include the following:
(1) a statement of mission and goals that support the relevant population-level outcomes set forth in 3 V.S.A. § 2311;
(2) a description of program performance measures used to demonstrate output and results;
(3) identification of the groups of people served, including those having service priorities or other service measures established by law, and estimates of the changes in those groups expected during the term of the plan;
(4) an analysis of the use of resources to meet needs, including future needs, an analysis of additional resources that may be necessary to meet future needs;
(5) an analysis of expected changes in the services provided by that agency because of changes in State or federal law;
(6) a description of the means and strategies for meeting needs of the agency or program, including future needs and achieving the goals under which the agency or program provides services;
(7) a description of the capital improvement needs of the agency during the period covered by the plan;
(8) a prioritization, if appropriate, of the capital investment needs of the agency or program during the period covered by the plan; and
(9) any other information that may be required.
(d) The Governor’s budget shall include his or her recommendations for an annual budget for Medicaid and all other health care assistance programs administered by the Agency of Human Services. The Governor’s proposed Medicaid budget shall include a proposed annual financial plan, and a proposed five-year financial plan, with the following information and analysis:
(1) anticipated revenues;
(2) anticipated expenditures, including anticipated per-member per-month expenditures for each population category eligible for health care assistance;
(3) anticipated caseloads, including anticipated caseloads for each population category eligible for health care assistance;
(4) anticipated utilization;
(5) health care inflation trends that reflect consideration of provider reimbursements approved under 18 V.S.A. § 9376 and expenditure trends reported under 18 V.S.A. § 9383;
(6) recommendations for funding provider reimbursement at levels sufficient to ensure reasonable access to care, and at levels at least equal to Medicare reimbursement;
(7) recommendations relating to Medicaid and other program eligibility, the benefit plan, cost-sharing, utilization controls, reimbursement, and any other matter necessary to align anticipated expenditures and revenues; and
(8) any other recommendations or information affecting the financial sustainability of Medicaid and all other health care assistance programs administered by the Agency of Human Services.
(e) The budget shall also include any proposed expenditures and charges for enterprise and internal service funds to be billed to departmental budgets. Expenditures from enterprise and internal service funds shall be managed in accordance with subsection 462(b) of this title.
(Amended 1987, No. 114, § 1, eff. June 29, 1987; 1993, No. 210 (Adj. Sess.), § 281; 2001, No. 142 (Adj. Sess.), § 148d; 2003, No. 66, §§ 298, 299; 2003, No. 122 (Adj. Sess.), § 10, eff. June 10, 2004; 2005, No. 174 (Adj. Sess.), § 61; 2009, No. 1 (Sp. Sess.), § H.17, eff. June 2, 2009; 2011, No. 63, § E.103.1; 2013, No. 50, § E.306.1; 2013, No. 179 (Adj. Sess.), § E.306; 2015, No. 11, § 33; 2017, No. 167 (Adj. Sess.), § 16, eff. May 22, 2018; 2021, No. 105 (Adj. Sess.), § 442, eff. July 1, 2022.)
§ 308 General Fund Budget Stabilization Reserve; creation and purpose
(a) It is the purpose of this section to reduce the effects of annual variations in State revenues upon the General Fund budget of the State by reserving certain surpluses in General Fund revenues that may accrue for the purpose of offsetting deficits or reducing General Fund bonds.
(b) There is hereby created a General Fund Budget Stabilization Reserve determined on a budgetary basis and administered by the Commissioner of Finance and Management. Any budgetary basis undesignated General Fund surplus occurring at the close of a fiscal year shall be reserved within the General Fund Budget Stabilization Reserve, provided that the balance reserved shall not exceed five percent of the appropriations from the General Fund for the prior fiscal year, and any additional amounts as may be authorized by the General Assembly. Any undesignated General Fund surplus remaining after the General Fund Budget Stabilization Reserve has been brought to the maximum authorized level shall remain in the General Fund. When the General Assembly next meets, it may specifically appropriate the use of the undesignated General Fund surplus for the reduction of General Fund bonds authorized but yet to be issued by the Treasurer, a reduction of revenues, or for other needs as the General Assembly may determine.
(c) In any fiscal year, if the General Fund is found to have an undesignated fund deficit, the General Fund Budget Stabilization Reserve shall be used by the Commissioner of Finance and Management to the extent necessary to offset the undesignated fund deficit as determined by Generally Accepted Accounting Principles.
(d) Determination of the amount of the undesignated General Fund surplus or fund deficit in any fiscal year for the purposes of this section shall be made by the Commissioner of Finance and Management. Adjustments shall be made to the amounts authorized in subsections (b) and (c) of this section upon receipt of the final audited annual report of the Commissioner of Finance and Management.
(Added 1987, No. 114, § 2, eff. June 29, 1987; amended 1991, No. 50, § 284; 1993, No. 25, § 74, eff. May 18, 1993; 1997, No. 61, § 260b.)
§ 308a Transportation Fund Budget Stabilization Reserve; creation and purpose
(a) It is the purpose of this section to reduce the effects of annual variations in State revenues upon the Transportation Fund budget of the State by reserving certain surpluses in Transportation Fund revenues that may accrue for the purpose of offsetting deficits or reducing Transportation Fund bonds.
(b) There is hereby created a Transportation Fund Budget Stabilization Reserve determined on a budgetary basis and administered by the Commissioner of Finance and Management. Any budgetary basis undesignated Transportation Fund surplus occurring at the close of a fiscal year shall be reserved within the Transportation Fund Budget Stabilization Reserve, provided that the balance reserved shall not exceed five percent of the appropriations from the Transportation Fund for the prior fiscal year, and any additional amounts as may be authorized by the General Assembly. Any undesignated Transportation Fund surplus remaining after the Transportation Fund Budget Stabilization Reserve has been brought to the maximum authorized level shall remain in the Transportation Fund. When the General Assembly next meets, it may specifically appropriate the use of the undesignated Transportation Fund surplus for the reduction of Transportation Fund bonds authorized but yet to be issued by the Treasurer, a reduction of revenues, or for other needs as the General Assembly may determine.
(c) In any fiscal year, if the Transportation Fund is found to have an undesignated fund deficit, the Transportation Fund Budget Stabilization Reserve shall be used by the Commissioner of Finance and Management to the extent necessary to offset the undesignated Transportation Fund deficit as determined by Generally Accepted Accounting Principles.
(d) Determination of the amount of the undesignated Transportation Fund surplus or Fund deficit in any fiscal year for the purposes of this section shall be made by the Commissioner of Finance and Management. Adjustments shall be made to the amounts authorized in subsections (b) and (c) of this section upon receipt of the final audited annual report of the Commissioner of Finance and Management.
(e) Commencing in fiscal year 2007, interest earned on funds in the Transportation Fund Budget Stabilization Reserve shall be credited to the Transportation Fund.
(Added 1993, No. 25, § 75, eff. May 18, 1993; amended 1997, No. 61, § 260c; 2005, No. 80, § 62.)
§ 308b Human Services Caseload Reserve
(a) There is created within the General Fund a Human Services Caseload Reserve. Expenditures from the Reserve shall be subject to an appropriation by the General Assembly or approval by the Emergency Board. Expenditures from the Reserve shall be limited to Agency of Human Services caseload-related needs primarily in the Departments for Children and Families, of Health, of Mental Health, of Disabilities, Aging, and Independent Living, of Vermont Health Access, and settlement costs associated with managing the Global Commitment waiver.
(b) The Secretary of Administration may transfer to the Human Services Caseload Reserve any General Fund carryforward directly attributable to Agency of Human Services caseload reductions and the effective management of related federal receipts, with the exclusion of the Department of Corrections.
(c) The Human Services Caseload Reserve shall contain two subaccounts:
(1) A subaccount for incurred but not reported Medicaid expenses. Each fiscal year, the Department of Finance and Management shall adjust the amount reserved for incurred but not reported Medicaid expenses to equal the amount specified in the Annual Comprehensive Financial Report (ACFR) for the fiscal year occurring two years prior for the estimated amount of incurred but not reported Medicaid expenses associated with the current Medicaid Global Commitment waiver.
(2) A subaccount for Medicaid-related pressures related to caseload, utilization, changes in federal participation in existing human services programs, and settlement costs associated with managing the Global Commitment waiver. Any decrease in the amount of required reserves in subdivision (1) of this subsection shall first be reserved in the 27/53 Reserve under section 308e of this title in order to fund the current fiscal year obligation for the next year in which a 53rd week of Medicaid payments is due, next scheduled to occur in fiscal year 2022. The remainder shall result in an offsetting increase in the account for Medicaid-related pressures, as defined in this subdivision (2) . Any increase in the amount of required reserve in subdivision (1) of this subsection shall require a corresponding transfer from the funds reserved in this subdivision (2), to the extent there are funds available.
(Added 1997, No. 147 (Adj. Sess.), § 119a, eff. April 29, 1998; amended 1999, No. 147 (Adj. Sess.), § 4; 2005, No. 174 (Adj. Sess.), § 62; 2007, No. 15, § 21; 2009, No. 33, § 83(m)(2); 2009, No. 156, (Adj. Sess.), § I.31; 2013, No. 142 (Adj. Sess.), § 97; 2017, No. 3, § 75, eff. March 2, 2017; 2018, No. 11 (Sp. Sess.), § D.105; 2019, No. 72, § D.104; 2019, No. 88 (Adj. Sess.), § 69, eff. March 4, 2020; 2021, No. 105 (Adj. Sess.), § 443, eff. July 1, 2022; 2025, No. 18, § 53, eff. May 13, 2025; 2025, No. 27, § F.173, eff. May 21, 2025.)
§ 308c General Fund and Transportation Fund Balance Reserves
(a) There is hereby created within the General Fund a General Fund Balance Reserve, also known as the “Rainy Day Reserve.” After satisfying the requirements of section 308 of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year General Fund surplus shall be reserved in the General Fund Balance Reserve. The General Fund Balance Reserve shall not exceed 10 percent of the appropriations from the General Fund for the prior fiscal year without legislative authorization.
(1), (2) [Repealed.]
(3) Of the funds that would otherwise be reserved in the General Fund Balance Reserve under this subsection, the following amounts shall be reserved as necessary and transferred from the General Fund as follows:
(A) 25 percent to the Vermont State Retirement Fund established by 3 V.S.A. § 473; and
(B) 25 percent to the Postretirement Adjustment Allowance Account established in 16 V.S.A. § 1949a.
(b)(1) The General Assembly may unreserve and appropriate or transfer an amount not to exceed 10 percent of the General Fund Balance Reserve to fund unforeseen or emergency needs. It is the intent of the General Assembly that any General Fund Balance Reserve funds utilized in accordance with this section be replenished.
(2) If the official State revenue estimates of the Emergency Board for the General Fund, determined under section 305a of this title, have been reduced by two percent or more from the estimates determined and assumed for purposes of the appropriations act or budget adjustment act, funds in the General Fund Balance Reserve may be unreserved and appropriated or transferred by the General Assembly to compensate for a reduction of revenues.
(c) There is hereby created within the Transportation Fund a Transportation Fund Balance Reserve. After satisfying the requirements of section 308a of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year Transportation Fund surplus shall be reserved in the Transportation Fund Balance Reserve. Monies from this Reserve shall be available for appropriation by the General Assembly.
(d) Determination of the amounts of the General Fund and Transportation Fund Balance Reserves shall be made by the Commissioner of Finance and Management and reported, along with the amounts appropriated pursuant to subsection (a) of this section, to the legislative Joint Fiscal Committee at its first meeting following September 1 of each year.
(Added 2005, No. 71, § 256; amended 2007, No. 65, § 275; 2009, No. 4, § 96, eff. April 29, 2009; 2011, No. 162 (Adj. Sess.), §§ D.102, D.103.1; 2013, No. 1, § 95, eff. March 7, 2013; 2013, No. 179 (Adj. Sess.), § D.104, eff. June 9, 2014; 2018, No. 11 (Sp. Sess.), § D.107; 2019, No. 6, § 89, eff. April 22, 2019; 2021, No. 105 (Adj. Sess.), § 444, eff. July 1, 2022; 2021, No. 114 (Adj. Sess.), § 29, eff. July 1, 2022; 2025, No. 27, § E.127.1, eff. July 1, 2025.)
§ 308d Repealed
[Repealed]
2011, No. 162 (Adj. Sess.), § D.103.1(c).
§ 308e 27/53 Reserve
(a)(1) There is hereby created within the General Fund the 27/53 Reserve. The purpose of this reserve is to meet the liabilities of the recurring 27th State payroll and the 53rd week of Medicaid payments. These liabilities will be funded by reserving a prorated amount of general funds each year, before the liability comes due.
(2) Beginning in September 2016 and annually thereafter at the September Joint Fiscal Committee meeting, the Commissioner of Finance and Management shall report on the anticipated liability for the next 27th payroll and 53rd week of Medicaid payments, providing the current reserve balance and a schedule of annual amounts needed to meet the obligation of these payments.
(b) As part of the Governor’s budget submission under section 306 of this title, the amount prorated for the upcoming fiscal year identified in subdivision (a)(2) of this section shall be included as a budgeted transfer to the 27/53 Reserve.
(c) In a fiscal year where a 27th State payroll or 53rd week of Medicaid payment is due, the General Assembly shall appropriate the funds from the 27/53 Reserve to meet the expenditures within the year in which these payments are due.
(Added 2015, No. 172 (Adj. Sess.), § B.1105.)
§ 309 Capital budget report
(a) Consolidated capital budget request. In addition to the general operating budget request to be submitted by the Governor to the General Assembly pursuant to this chapter, the Governor shall submit to the General Assembly, not later than the third Tuesday of every annual session, a consolidated capital budget request. In the first year of the biennium, the budget shall relate to the next two fiscal years. In the second year of the biennium, the budget shall relate primarily to the next fiscal year but may request amendments to the current or to previous fiscal years or refer to requests for future fiscal years. The request shall encompass all undertakings that may require State general obligation debt financing, including transportation projects as follows:
(1) Activities proposed for funding by general obligation debt financing shall be restricted to tangible capital investments, but may include the planning and design directly associated with a tangible capital investment.
(2) Proposed activities shall be further restricted to those capital expenses allowed under federal laws governing the use of State bond proceeds.
(3) The capital budget request shall be segmented by the expected functional life of proposed activities, and thus by a corresponding prudent use of either long-term bond issues with a customary 20-year payback period or shorter-term bond issues with a lesser payback period.
(4) The capital budget shall not include requests for debt financing of State agency operating expenses not directly related to a capital investment as required under this subsection (a). The latter operating expenses shall be accounted for in the Governor’s annual general operating budget request.
(b) Affordable bond authorization proposal. In the first year of the biennium, the annual capital budget request of the Governor shall include a statement of the total amount of new State tax supported general obligation debt the Governor considers advisable for the General Assembly to authorize for the next two fiscal years, after having considered the maximum amount recommended for the following fiscal year by the Capital Debt Affordability Advisory Committee as provided by chapter 13, subchapter 8 of this title.
(c) Women employed on State capital construction projects. This State shall encourage an increase in workforce participation rates for women in all aspects of publicly funded capital construction projects for which monies are requested under this section and authorized by the General Assembly in the Capital Construction Act pursuant to section 701a of this title, including projects of the Vermont Housing and Conservation Trust.
(d) [Repealed.]
(e) Report duration. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to any report to be made under this section.
(Added 1989, No. 258 (Adj. Sess.), § 2; amended 1991, No. 256 (Adj. Sess.), § 31, eff. June 9, 1992; 1993, No. 59, § 21, eff. June 3, 1993; 1999, No. 29, § 42, eff. May 19, 1999; 2009, No. 161 (Adj. Sess.), § 45, eff. June 4, 2010; 2011, No. 40, § 35, eff. May 20, 2011; 2011, No. 104 (Adj. Sess.), § 31, eff. May 7, 2012; 2013, No. 1, § 96, eff. March 7, 2013; 2013, No. 1, § 97, eff. June 30, 2022; 2013, No. 142 (Adj. Sess.), § 57; 2019, No. 14, § 72, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 445, eff. July 1, 2022.)
§ 310 Form of annual capital budget and 10-year capital program plan
(a) Each biennial capital budget request submitted to the General Assembly shall be accompanied by, and placed in the context of, a 10-year State capital program plan to be prepared, and revised annually, by the Governor and approved by the General Assembly. The 10-year plan shall include a list of all projects that will be recommended for funding in the current and ensuing nine fiscal years. The list shall be prioritized based on need.
(b) The capital budget request for the following biennium shall be presented as the next increment of the 10-year plan. Elements of the plan shall include:
(1) Assessment and projection of need.
(A) Capital needs and projections shall be based upon current and projected statistics on capital inventories and upon State demographic and economic conditions.
(B) Capital funding shall be categorized as follows:
(i) State buildings, facilities, land acquisitions, major maintenance, renewable energy sources, and conservation;
(ii) higher education;
(iii) aid to municipalities for education, environmental conservation, including water, sewer, and solid waste projects, and other purposes; and
(iv) transportation facilities.
(C) Capital needs and projections shall be for the current and the next nine fiscal years, with longer-term projections presented for programs with reasonably predictable longer-term needs.
(D) Capital needs and projections shall be presented independently of financing requirements or opportunities.
(E) Capital needs and projections shall include an estimated cost of deferred infrastructure maintenance in State buildings and facilities.
(2) Comprehensive cost and financing assessment.
(A) Amounts appropriated and expended for the current fiscal year and for the preceding fiscal year shall be indicated for capital programs and for individual projects. For the five fiscal years preceding these, the assessment shall include the aggregate amounts appropriated and expended for individual projects, which amounts shall be categorized by funding type and presented in a format that concisely displays the funding stream and project phases for each individual project over time. The assessment shall indicate further the source of funds for any project that required additional funding and a description of any authorized projects that were delayed.
(B) Amounts proposed to be appropriated for the following fiscal year and each of the nine years thereafter shall be indicated for capital programs and for individual projects and shall be revised annually to reflect revised cost estimates and changes made in allocations due to project delays.
(C) The capital costs of programs and of individual projects, including funds for the development and evaluation of each project, shall be presented in full for the entire period of their development.
(D) The operating costs, both actual and prospective, of capital programs and of individual projects shall be presented in full for the entire period of their development and expected useful life.
(E) The financial burden and funding opportunities of programs and of individual projects shall be presented in full, including federal, State, and local government shares, and any private participation.
(F) Alternative methods of financing capital programs and projects should be described and assessed, including debt financing and use of current revenues.
(Added 1989, No. 258 (Adj. Sess.), § 3; amended 2011, No. 104 (Adj. Sess.), § 32, eff. May 7, 2012; 2013, No. 51, § 34; 2019, No. 42, § 26, eff. May 30, 2019; 2025, No. 33, § 21, eff. May 22, 2025.)
§ 311 Retirement funds integrity report
(a) The Governor shall include, as a part of the annual budget report required by section 306 of this title, a statement of the extent by which the recommended appropriations to the Teachers’ Retirement Funds and to the Vermont Employees’ Retirement Funds differ from the amounts as recommended by the Vermont Employees’ Retirement System Retirement Board as provided by 3 V.S.A. § 471(n) and by the Teachers’ Retirement System Board of trustees as provided by 16 V.S.A. § 1942(r) and Board estimates for current obligations for retiree health care costs. If the Governor’s recommended appropriations are less than the amounts recommended by one or both of the boards of the two retirement systems for retirement obligations and retiree health care, the Governor shall set forth the long-term financial implications to the State of such shortfall and present a plan to achieve and preserve the fiscal integrity of the retirement funds of the retirement system or systems.
(b) At the request of the House or Senate Committee on Government Operations or on Appropriations, the State Treasurer and the Commissioner of Finance and Management shall present to the requesting committees the recommendations submitted under 3 V.S.A. § 471(n) and 16 V.S.A. § 1942(r).
(Added 1991, No. 265 (Adj. Sess.), § 3; amended 2005, No. 48, § 3; 2005, No. 93 (Adj. Sess.), § 80, eff. March 3, 2006; 2009, No. 1 (Sp. Sess.), § E.103.1; 2013, No. 142 (Adj. Sess.), § 58; 2015, No. 131 (Adj. Sess.), § 32.)
§ 311a Public retirement benefits; unfunded liability; findings; purpose; intent
(a) Findings. The General Assembly finds:
(1) The actuarially determined employer contribution (ADEC) for the Vermont State Employees’ Retirement System (VSERS) has increased by an annual growth rate of 12.1 percent between FY 2009 and FY 2023, and the funded ratio of the VSERS has declined from 94.1 percent from FY 2008 to 67.6 percent by year-end FY 2021.
(2) The ADEC for the Vermont State Teachers’ Retirement System (VSTRS) has increased by an annual growth rate of 13 percent between FY 2009 and FY 2023, and the funded ratio of the VSTRS has declined from 80.9 percent from FY 2008 to 52.9 percent by year-end FY 2021.
(3) The General Assembly has appropriated sufficient funds to fully pay the ADEC for both VSERS and VSTRS at the recommended amounts since FY 2007 and throughout the current amortization period.
(4) Since FY 2009, the accrued liabilities of VSERS and VSTRS have grown faster than the assets of each plan, resulting in a gap between the expected payout of future benefits and the assets VSERS and VSTRS have to pay out those benefits to retired State employees and teachers. This gap is also known as the unfunded liabilities for VSERS and VSTRS.
(5) In FY 2015, the General Assembly created the Retired Teachers’ Health and Medical Benefits Fund, and health care premiums are paid for on a pay-as-you-go basis from this Fund.
(6) The FY 2022 State budget expense for retiree health care benefits, known as other postemployment benefits (OPEB), for State employees was approximately $37.2 million and $35.1 million for teachers.
(7) As of the beginning of FY 2022, the State’s unfunded liabilities for health care benefits for retired State employees and teachers is $2.75 billion.
(b) Purpose. The purpose of this section is to provide economic stability for retired State employees and teachers by maintaining the financial health of VSERS and VSTRS, while also addressing the unfunded liabilities in the State’s pension and OPEB plans and the decline in the funded ratios of those retirement systems.
(c) Intent.
(1) It is the intent of the General Assembly to address the unfunded liabilities and decline in funded ratios of VSERS and VSTRS by implementing several measures, including:
(A) continuing the General Assembly’s policy since FY 2007 to fully fund the actuarially determined employer contributions rates for the VSERS and VSTRS at the amounts recommended by the respective boards of each retirement system to the General Assembly each year; and
(B) beginning in FY 2024, annually funding an additional payment to the actuarially recommended unfunded liability amortization payments for VSERS and VSTRS that will increase to not more than $15,000,000.00 each year to each retirement system and remain until the VSERS plan and the VSTRS plan respectively reach a 90 percent funded ratio.
(2) It is also the intent of the General Assembly to prefund other postemployment benefits to create more security and predictability in health care benefits for retired State employees and teachers.
(Added 2021, No. 114 (Adj. Sess.), § 1, eff. July 1, 2022.)
§ 312 Tax expenditure report
(a) As used in this section, “tax expenditure” shall mean the actual or estimated loss in tax revenue resulting from any exemption, exclusion, deduction, credit, preferential rate, or deferral of liability applicable to the tax. Tax expenditures shall not include the following:
(1) revenue outside the taxing power of the State;
(2) provisions outside the normal structure of a particular tax;
(3) revenue forgone as unduly burdensome to administer; and
(4) revenue forgone for the purpose of avoiding government taxing itself.
(b) Biennially, as part of the budget process, beginning on January 15, 2009, the Department of Taxes and the Joint Fiscal Office shall file with the House Committees on Ways and Means and on Appropriations and the Senate Committees on Finance and on Appropriations a report on tax expenditures in the personal and corporate income taxes, sales and use tax, meals and rooms tax, insurance premium tax, bank franchise tax, education property tax, diesel fuel tax, gasoline tax, and motor vehicle purchase and use tax. The Office of Legislative Counsel shall also be available to assist with this tax expenditure report. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection. The report shall include, for each tax expenditure, the following information:
(1) a description of the tax expenditure;
(2) the most recent fiscal information available on the direct cost of the tax expenditure in the past two years;
(3) the date of enactment of the expenditure;
(4) a description of and estimate of the number of taxpayers directly benefiting from the expenditure provision;
(5) a description of the statutory purpose explaining the policy goal behind the expenditure as required by subsection (d) of this section and 2013 Acts and Resolves No. 73, Sec. 5; and
(6) a compilation of the items excluded under subsection (a) of this section.
(c) [Repealed.]
(d) Every tax expenditure, as defined in subsection (a) of this section, in the tax expenditure report required by this section shall be accompanied in statute by a statutory purpose explaining the policy goal behind the exemption, exclusion, deduction, or credit applicable to the tax. The statutory purpose shall appear as a separate subsection or subdivision in statute and shall bear the title “Statutory Purpose.” Notwithstanding any other provision of law, a tax expenditure listed in the tax expenditure report that lacks a statutory purpose in statute shall not be implemented or enforced until a statutory purpose is provided. The Department of Taxes shall notify the General Assembly when it has determined that a tax expenditure listed in the tax expenditure report lacks a statutory purpose, and the Department shall specify a date, not later than one year after its determination, that it will cease implementation or enforcement of the tax expenditure.
(Added 2005, No. 75, § 26; amended 2005, No. 207 (Adj. Sess.), § 23, eff. May 31, 2006; 2007, No. 190 (Adj. Sess.), § 24, eff. June 6, 2008; 2009, No. 160 (Adj. Sess.), § 1, eff. June 4, 2010; 2011, No. 45, § 36k, eff. May 24, 2011; 2013, No. 73, § 4, eff. July 1, 2014; 2013, No. 142 (Adj. Sess.), § 59; 2013, No. 200 (Adj. Sess.), § 21; 2017, No. 74, § 132; 2019, No. 14, § 73, eff. April 30, 2019; 2019, No. 131 (Adj. Sess.), § 292; 2021, No. 105 (Adj. Sess.), § 446, eff. July 1, 2022.)
§ 313 Repealed
[Repealed]
2009, No. 19, § 4.
§ 314 Grant report
(a) Annually, beginning January 31, 2015, the Department of Finance and Management shall publish on its website a report on all grants of federal and State monies made by each Executive Branch agency in the preceding State fiscal year. The report shall be formatted as a table and shall include, for each grant:
(1) an identification number or code for each federal or State grant issued by an agency;
(2) the name and address of the recipient or subrecipient of the State or federal grant;
(3) a description of the purpose or use of the grant;
(4) the amount of the grant; and
(5) the Catalog of Federal Domestic Assistance (CFDA) number for each federal grant.
(b) Grant reports issued under this section shall be public records available for inspection and review.
(c) As used in this section, “grant” means a legally enforceable agreement between an agency (grantor) and a recipient or subrecipient (grantee) to carry out a purpose as defined in that agreement.
(Added 2009, No. 19, § 3, eff. July 1, 2014; amended 2011, No. 75 (Adj. Sess.), § 116, eff. March 7, 2012.)
§ 315 Repealed
[Repealed]
2019, No. 49, § 12, eff. June 10, 2019.
Chapter 7 The Public Monies
Subchapter 1 Accounting
§ 401 Accounts
(a) The Commissioner of Finance and Management shall keep fair and accurate accounts of monies received and disbursed so as to show the proceeds of the several branches of revenue and the expenses of each department of the government.
(b) The Treasurer shall keep an accurate account in books of account of all monies received by the State from whatever source and of all monies withdrawn from the Treasury of the State upon warrants issued by the Commissioner of Finance and Management.
(c) In recording revenues of the General Fund as set forth in section 435 of this title and revenues of the Transportation Fund as set forth in 19 V.S.A. § 11, the Commissioner of Finance and Management shall as of June 30 each year maintain accounting records in accordance with Generally Accepted Accounting Principles that ensure consistency with each preceding fiscal year.
(Amended 1959, No. 328 (Adj. Sess.), § 18; 1979, No. 74, § 328, eff. May 8, 1979; 1981, No. 87, § 4; 1983, No. 195 (Adj. Sess.), § 5; 1987, No. 243 (Adj. Sess.), §§ 59, 60, eff. June 13, 1988; 2015, No. 97 (Adj. Sess.), § 65.)
§ 402 Receipts
The Treasurer and Commissioner of Finance and Management shall give a receipt to persons for money paid, stating for what purpose it is paid, and shall immediately enter the payment upon their books under its appropriate head.
(Amended 1967, No. 154, § 1.)
§ 403 Repealed
[Repealed]
1959, No. 328 (Adj. Sess.), § 35(g).
§ 404 Returned payments; penalty
(a) Agencies and departments of State government may assess a penalty of $20.00 against the issuer for each payment for amounts due in the form of a check, draft, electronic payment, or other acceptable forms of payment that have been dishonored for lack of funds or credit to pay the same.
(b) Such penalty collected shall be credited to a special fund established and managed pursuant to chapter 7, subchapter 5 of this title, or to another budgeted fund other than the General Fund, and shall be available to the agency or department to offset the costs of collecting the amount owed.
(Added 1983, No. 59, § 12, eff. April 22, 1983; amended 1989, No. 222 (Adj. Sess.), § 1, eff. May 31, 1990; 1991, No. 234 (Adj. Sess.), § 2; 1993, No. 27, § 5; 1997, No. 59, § 21, eff. June 30, 1997; 2013, No. 191 (Adj. Sess.), § 1; 2017, No. 74, § 133.)
Subchapter 2 Management
§ 431 Depositories of State funds
(a) The Treasurer and the Governor shall select the banks in which the funds of the State Treasury shall be deposited. Each agency or department of the State shall be required to obtain the approval of the Treasurer to establish and maintain a bank account of a selected bank as well as develop procedures, approved by the Treasurer, to reconcile a bank account.
(b) The Treasurer is hereby authorized to enter into a pledgee agreement with the Federal Reserve Bank for the purposes of collateralization of account balances through the use of a joint-custody account. The Treasurer is authorized to execute the Federal Reserve Bank’s standard form pledgee agreement, including the limitations of liability, limitations of duties, and indemnification contained in the pledgee agreement.
(Amended 1977, No. 162 (Adj. Sess.), § 2; 1989, No. 73, § 272; 1997, No. 147 (Adj. Sess.), § 261a; 2003, No. 66, § 38b; 2007, No. 121 (Adj. Sess.), § 25.)
§ 432 Management of invested State money
In the management of funds and securities belonging to the State or held in the Treasury, with approval of the Governor, he or she may change the form of investment thereof by exchange of securities or by sale and reinvestment of the same, as may be required for the safety and permanent security of such funds; may collect accruing interest and reinvest the same; and may collect, enforce payment of, and reinvest all maturing securities and obligations and, for such purposes, may make legal transfers of the title of the same.
(Amended 2007, No. 121 (Adj. Sess.), § 26.)
§ 433 Investments of State money
(a) Investments of State funds shall be made in:
(1) obligations of the United States, its agencies, and instrumentalities, which have a liquid market with readily determinable market value;
(2) certificates of deposit and other evidences of deposit at banks, community development credit unions as defined in 8 V.S.A. § 30101, and savings and loan associations approved by the Treasurer;
(3) bankers’ acceptances issued by domestic banks where the guaranteeing bank is rated in the highest tier assigned to the investments by at least two nationally recognized rating agencies;
(4) commercial paper rated in the highest tier by at least two nationally recognized rating agencies;
(5) investment-grade obligations of state or local governments, instrumentalities, and public authorities;
(6) repurchase agreements whose underlying purchased securities consist of any of the investments specified in subdivisions (1) through (5) of this subsection;
(7) investment agreements or guaranteed investment contracts rated or guaranteed by a financial institution whose senior long-term debt obligations are rated, at the time such agreement or contract is entered into, in the highest tier assigned to such investments by a nationally recognized rating agency, and where the Treasurer has the option to terminate each agreement in the event such rating is downgraded below the highest rating tier; and
(8) money market mutual funds that either are regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar-denominated securities or are managed in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940.
(b) Investments of State funds shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the probable safety of their capital as well as the probable income to be derived.
(c) Investments of State funds shall be made in accordance with written guidelines adopted by the Treasurer. Such guidelines shall address the liquidity, diversification, safety of principal, yield, maturity, and quality and capability of investment management, with primary emphasis on safety and liquidity.
(Amended 1991, No. 238 (Adj. Sess.), § 1, eff. May 28, 1992; 2005, No. 46, § 1; 2009, No. 76 (Adj. Sess.), § 1, eff. April 13, 2010.)
§ 434 Investment of certain funds
(a)(1) A Trust Investment Account is hereby created to maximize the earnings of individual funds by associating them together for common investment.
(2) The Trust Investment Account may include:
(A) the whole or any part of individual trust funds resulting from court settlements, private bequests, grants, or other awards accepted in accordance with section 5 of this title, provided the terms thereof do not require a separate investment;
(B) the whole or any part of the funds created by express enactment of the General Assembly to finance particular or restricted programs that provide that only investment earnings of the fund shall be used for program purposes, including the Vermont Higher Education Endowment Trust Fund established pursuant to 16 V.S.A. § 2885; and
(C) any other funds that the State Treasurer identifies, in consultation with the Secretary of Administration, as appropriate for inclusion in the account.
(3) The State Treasurer may invest and reinvest the funds in the account and hold, purchase, sell, assign, transfer, and dispose of the investments in accordance with the standard of care established by the prudent investor rule under 14A V.S.A. § 902. The Treasurer shall apply the same investment objectives and policies adopted by the Vermont State Employees’ Retirement System, where appropriate, to the investment of funds in the Trust Investment Account.
(4) At reasonable intervals, but at least annually in June of each fiscal year, the Treasurer shall credit each individual fund in the Trust Investment Account with a pro rata share of the net income of the Account. The value of the individual funds transferred to or withdrawn from the Trust Investment Account shall be on the basis of the fair market value of the total funds of the Account at the time of the transfer or withdrawal. The Treasurer may withdraw monies from the Account as permitted or required by the terms of the individual funds or as required by acts of the General Assembly.
(5) Annually, the Treasurer shall prepare a report to the House Committee on Ways and Means and the Senate Committee on Finance on the financial activity of the Trust Investment Account. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the required report to be made under this subdivision.
(b) The State Treasurer may invest and reinvest the monies deposited into the Tobacco Litigation Settlement Fund established by section 435a of this title and may hold, purchase, sell, assign, transfer, and dispose of the investments in accordance with the standard of care established by the prudent investor rule under 14A V.S.A. § 902.
(Added 1999, No. 66 (Adj. Sess.), § 60, eff. Feb. 8, 2000; amended 2003, No. 122 (Adj. Sess.), § 294e; 2011, No. 139 (Adj. Sess.), § 32, eff. May 14, 2012; 2015, No. 131 (Adj. Sess.), § 7; 2021, No. 105 (Adj. Sess.), § 447, eff. July 1, 2022.)
§ 435 General Fund
(a) There is established the General Fund, which shall be the basic operating fund of the State. The General Fund shall be used to finance all expenditures for which no special revenues have otherwise been provided by law.
(b) The General Fund shall be composed of revenues from the following sources:
(1) alcoholic beverage tax levied pursuant to 7 V.S.A. chapter 15;
(2) [Repealed.]
(3) [Repealed.]
(4) corporate income and franchise taxes levied pursuant to chapter 151 of this title;
(5) individual income taxes levied pursuant to chapter 151 of this title;
(6) all corporation taxes levied pursuant to chapter 211 of this title;
(7) 69 percent of the meals and rooms taxes levied pursuant to chapter 225 of this title;
(8) [Repealed.]
(9) [Repealed.]
(10) 37 percent of the revenue from the property transfer taxes levied pursuant to chapter 231 of this title and the revenue from the gains taxes levied each year pursuant to chapter 236 of this title; and
(11) [Repealed.]
(12) all other revenues accruing to the State not otherwise required by law to be deposited in any other designated fund or used for any other designated purpose.
(Added 1973, No. 262 (Adj. Sess.), § 52; amended 1975, No. 254 (Adj. Sess.), § 163; 1977, No. 118 (Adj. Sess.), § 2, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978; 1997, No. 156 (Adj. Sess.), § 39, eff. April 29, 1998; 1999, No. 49, § 78; 1999, No. 66 (Adj. Sess.), § 55, eff. Feb. 8, 2000; 1999, No. 152 (Adj. Sess.), § 272b; 2003, No. 68, § 37, eff. July 1, 2004; 2005, No. 191 (Adj. Sess.), § 43; 2011, No. 143 (Adj. Sess.), § 56a, eff. July 1, 2013; 2017, No. 74, § 134; 2017, No. 85, § H.4, eff. July 1, 2018; 2018, No. 11 (Sp. Sess.), § H.9; 2019, No. 76, § 4a, eff. Oct. 1, 2019; 2021, No. 105 (Adj. Sess.), § 448, eff. July 1, 2022; 2023, No. 181 (Adj. Sess.), § 77, eff. June 17, 2024.)
§ 435a Tobacco Litigation Settlement Fund
(a) A Tobacco Litigation Settlement Fund shall be established in the State Treasury, separate from the General Fund and any other fund, for the support of tobacco use prevention, cessation, and control, and for other health care purposes.
(b) Into the Fund shall be deposited all monies received by the State in connection with the Master Tobacco Settlement Agreement between members of the tobacco industry and the State approved by the Vermont Superior Court on December 14, 1998 and finalized in Vermont on January 13, 1999, and any interest that accrues on the balance of such monies.
(c) Of the balance in the Tobacco Litigation Settlement Fund, $19,200,000.00 is hereby reserved for the sole purpose of long-term sustainable tobacco education, prevention, cessation, and control programs and the Trust Fund proposal developed in accordance with 1999 Acts and Resolves No. 62 , Sec. 274(a)(4)(A)(iii).
(Added 1999, No. 62, § 275a.)
§ 436 Interfund borrowing
Notwithstanding any provisions of law, the State Treasurer, with the approval of the Governor, may borrow from any funds created by the General Assembly available amounts as the Treasurer may determine to be necessary or desirable for the purpose of defraying the expenses of government, including the payment of notes issued for these purposes. Borrowing may be only made twice a year; first, during the period commencing 15 business days prior to the end of the State’s fiscal year and ending 15 business days after the end of the State’s fiscal year, and second, during the period commencing on December 10, or the preceding Friday if December 10 falls on a Saturday or Sunday, and ending on January 10 of the succeeding year. Not later than the last day of the period during which the funds were borrowed, the State Treasurer shall transfer to any fund from which initial borrowing has been made an amount equal to the borrowed amount, together with interest at the rate as the State Treasurer in the Treasurer’s sole discretion shall determine.
(Added 1997, No. 61, § 254; amended 2005, No. 71, § 34a; 2021, No. 105 (Adj. Sess.), § 449, eff. July 1, 2022.)
Subchapter 3 Disbursements
§ 461 Disbursements on Commissioner’s warrants
The Treasurer shall not disburse monies from the State Treasury except upon warrants issued by the Commissioner of Finance and Management, unless otherwise provided.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988.)
§ 462 Appropriation required
(a) Except in the case of funds held by the State in trust, rebates payable to the U.S. Treasury Department in accordance with the provisions of section 476 of this title, or unless otherwise specified by statute, no monies shall be paid out of the Treasury of the State except upon specific appropriation. The Commissioner of Finance and Management shall not issue his or her warrant except as authorized under the provisions of this section. Such warrant shall be the certificate of the Commissioner of Finance and Management that the account covered by the same is approved for payment by the State Treasurer.
(b) All expenditures from enterprise and internal service funds, except those directly resulting from a client-driven demand for products or services, shall be made pursuant to an appropriation. Based on the needs of the programs, the Commissioner of Finance and Management may change authorized spending limits during the course of the year and may anticipate receipts for enterprise and internal service funds.
(Amended 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b); 1985, No. 125 (Adj. Sess.), § 5, eff. April 18, 1986; 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 1997, No. 66 (Adj. Sess.), § 63, eff. Feb. 20, 1998; 1997, No. 147 (Adj. Sess.), § 262.)
§ 463 Itemized bills with vouchers required
The Commissioner of Finance and Management shall require all bills presented to him or her for allowance to be fully itemized and accompanied, as far as possible, with vouchers.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 1995, No. 123 (Adj. Sess.), § 5, eff. June 6, 1996; 2003, No. 156 (Adj. Sess.), § 15; 2007, No. 7, § 4.)
§ 464 Itemized statements and receipts required
When required by the Commissioner of Finance and Management and before payment is made by the State, all claimants for compensation for services rendered or expense incurred for the State shall furnish the Commissioner of Finance and Management itemized statements in the form as the Commissioner of Finance and Management may from time to time prescribe and shall be verified by written declarations or, if specifically authorized by the Commissioner of Finance and Management, by electronic signature as defined at 9 V.S.A. § 271(9) that they are made under the pains and penalties of perjury, and a person who willfully makes a false statement shall be guilty of perjury and be punished accordingly.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 1993, No. 140 (Adj. Sess.), § 105, eff. April 15, 1994; 1995, No. 123 (Adj. Sess.), § 6, eff. June 6, 1996; 2003, No. 156 (Adj. Sess.), § 15; 2007, No. 7, § 5; 2009, No. 4, § 100, eff. April 29, 2009; 2021, No. 105 (Adj. Sess.), § 450, eff. July 1, 2022.)
§ 465 Only lawful claims allowed; warrants
The Commissioner of Finance and Management shall allow only a valid and legal claim except as otherwise specifically directed. The Commissioner shall issue the warrant pursuant to this section, and no other officer shall issue a warrant on the State Treasurer.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2021, No. 105 (Adj. Sess.), § 451, eff. July 1, 2022.)
§ 466 Requisitions
(a) Upon requisition of an officer having authority to expend money for the payment of expenses chargeable to the State, with the approval of the Governor, the Commissioner of Finance and Management is authorized to issue a warrant on the Treasurer for funds necessary for the expenses. Advances shall not be made until the officer files with the State Treasurer a good and sufficient bond, approved by the Governor and Commissioner of Finance and Management, to indemnify the State against all loss or shortage of sums so advanced. The expense of the bond shall be paid by the State.
(b) The State Treasurer may advance funds for travel when the travel has been approved by the Governor or the Governor’s delegated representatives. The amounts to be advanced and the requirements for settlement will be determined by rules adopted by the State Treasurer.
(c) The State Treasurer may enter into contracts with banks and other financial institutions in order to establish a credit card reimbursement program for State officials and employees and may guarantee payment of charges incurred under this program. No person shall charge personal items to a credit card account guaranteed by the State of Vermont under such a program.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1979, No. 205 (Adj. Sess.), § 138, eff. May 9, 1980; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 99; 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2009, No. 33, § 62; 2021, No. 105 (Adj. Sess.), § 452, eff. July 1, 2022.)
§ 467 Accounts with Superior Court clerks
The Commissioner of Finance and Management shall issue a warrant in favor of each Superior Court clerk when the clerk requires money for election or court expenses, and the State Treasurer shall charge the same to the clerk. The clerk shall be credited for monies properly disbursed by him or her, and the balance shall be paid by the clerk into the Treasury.
(Amended 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2009, No. 154 (Adj. Sess.), § 189.)
§ 468 Repealed
[Repealed]
1959, No. 328 (Adj. Sess.), § 35(h).
§ 469 Requisition for court expenses
With the approval of the Court Administrator, the Supreme Court, the Judicial Bureau, and the Superior Court may requisition money from the State to pay fees and expenses related to grand and petit jurors, fees and expenses of witnesses approved by the judge, expenses of guardians ad litem, expenses of elections, and other expenses of court operations. The cash advances shall be administered under the provisions of section 466 of this title.
(Amended 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2005, No. 93 (Adj. Sess.), § 83, eff. March 3, 2006; 2009, No. 154 (Adj. Sess.), § 190.)
§ 470 Repealed
[Repealed]
2005, No. 93 (Adj. Sess.), § 85, eff. March 3, 2006.
§ 471 Repealed
[Repealed]
1959, No. 328 (Adj. Sess.), § 35(h).
§§ 472, 473 Repealed
[Repealed]
2005, No. 93 (Adj. Sess.), § 85, eff. March 3, 2006.
§ 474 Repealed
[Repealed]
1991, No. 257 (Adj. Sess.), § 9.
§ 475 Disasters on State properties
The Commissioner of Finance and Management is hereby directed to issue warrants, on certificate of the Attorney General that the Attorney General has authorized the services or expenditures, in the following cases:
(1) to fire departments or municipalities maintaining the same, for services rendered by them in fighting fires, except forest fires, which are provided for in 10 V.S.A. § 2643, or dealing with disasters on State-owned or -operated properties; and
(2) for services rendered and expenses incurred in operations directed at the recovery of bodies or persons lost or perished by reason of disasters or drowning.
(Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1963, No. 97; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2021, No. 105 (Adj. Sess.), § 453, eff. July 1, 2022.)
§ 476 Rebate of income earned from investment or reinvestment of bond proceeds to the U.S. Treasury Department
Subject only to the approval of the Governor, the Commissioner of Finance and Management shall issue his or her warrant for payment to the U.S. Treasury Department or any other agency of the United States of all or any portion of the income received by the State from the investment or reinvestment of the proceeds of any bonds issued by the State in such amount and to the extent necessary to ensure that interest on bonds issued by the State is not included in gross income of the recipients thereof for federal income tax purposes.
(Added 1985, No. 125 (Adj. Sess.), § 6, eff. April 18, 1986; amended 1987, No. 36, § 7; 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988.)
Subchapter 4 Receipts
§ 501 Repealed
[Repealed]
1997, No. 147 (Adj. Sess.), § 261b.
§ 502 Monies to be paid over without deduction
(a) The gross amount of money received in their official capacities by every administrative department, board, officer, or employee, from whatever source, shall be paid forthwith to the State Treasurer, or deposited according to the direction of the State Treasurer in such bank to the credit of the State Treasurer as the Treasurer shall designate, without any deduction on account of salaries, fees, costs, charges, expenses, claim, or demand of any description whatsoever, unless otherwise provided. Such monies shall be credited to such funds as are now or may hereafter be designated for the deposit thereof. Money so paid and all monies belonging to or for the use of the State shall not be expended or applied by any department, board, officer, or employee, except in accordance with the provisions of section 462 of this title.
(b) [Repealed.]
(c) Notwithstanding subsection (a) of this section, bank charges directly related to the investment, management, and custodial services for State funds may be applied against any related investment earnings resulting from the investment, management, and custodial services provided by the financial institution. Such charges shall include only those direct fees charged by financial institutions and as expressly approved by the State Treasurer. The State Treasurer shall obtain and retain detailed monthly statements from each respective financial institution of all charges assessed and such reports shall be available for audit by the Auditor of Accounts.
(Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1983, No. 81, § 2; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 1995, No. 178 (Adj. Sess.), § 266; 1997, No. 66 (Adj. Sess.), § 65, eff. Feb. 20, 1998; 2005, No. 215 (Adj. Sess.), § 60a.)
§ 503 Payment of monies into Treasury
Quarterly and more frequently if the Commissioner of Finance and Management so directs, Superior Court clerks and other collectors and receivers of public money shall pay all money collected or held by them into the State Treasury.
(Amended 1959, No. 328 (Adj. Sess.), §§ 8(c), 21(a); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988; 2009, No. 154 (Adj. Sess.), § 191; 2021, No. 105 (Adj. Sess.), § 454, eff. July 1, 2022.)
§ 504 Fines paid to Superior Court clerk
Damages and costs received in actions to which the State is a party, and fines and the amount of bonds and recognizances to the State taken in any county, shall be paid to the Superior Court clerk. His or her receipt shall be the only valid discharge thereof and he or she shall pay the same into the State Treasury.
(Amended 1969, No. 131, § 29, eff. April 23, 1969; 2009, No. 154 (Adj. Sess.), § 192.)
§ 505 Repealed
[Repealed]
2009, No. 33, § 83(m)(3).
§ 506 Failure of Superior Court clerk to pay over
If a Superior Court clerk neglects to make a return or pay into the State Treasury any money as provided in this chapter, the Commissioner of Finance and Management shall forthwith notify the State’s Attorney, who shall immediately prosecute the clerk and the sureties on his or her official bond.
(Amended 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess. ), § 5(b); 1987 (Adj. Sess.), § 59, eff. June 13, 1988; 2009, No. 154 (Adj. Sess.), § 193.)
§ 507 Repealed
[Repealed]
2003, No. 122 (Adj. Sess.), § 294a.
§ 508 Receipts given by State officers
State officers, except Superior Court clerks and Superior judges, and every person in the employ of the State under salary or per diem established by statute, receiving money belonging to or for the use of the State, shall give the person paying the money a receipt for payment in the form as shall be prescribed by the State Treasurer.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1967, No. 154, § 2; 1971, No. 47; 2009, No. 154 (Adj. Sess.), § 194; 2021, No. 105 (Adj. Sess.), § 455, eff. July 1, 2022.)
§ 509 Overpayment; refund
An officer of the State, a board, or commission receiving money in payment of an obligation due the State, the board, or commission, when an overpayment is made, shall forthwith refund to that person the amount of such overpayment when demand is made; however, there shall be no obligation to refund sums in the amount of $1.00 or less. A person who has made such overpayment to the State, a board, or commission may recover the amount of the money in a civil action on this statute. A warrant for payment shall issue accordingly.
(Added 1959, No. 251, eff. June 10, 1959; amended 1981, No. 248 (Adj. Sess.), § 313, eff. May 6, 1982.)
§ 509a Judiciary overpayment; refund
Notwithstanding the provisions of section 509 of this title, when a person who owes money to the Judiciary makes an overpayment, the Judiciary shall forthwith refund to that person the amount of such overpayment; however, there shall be no obligation to refund sums in the amount of $10.00 or less. If a person is owed a refund of more than $10.00 and cannot be located by the Judiciary, the refund shall be submitted to the abandoned property procedure. For refunds of $10.00 or less that are not demanded by the person within a year after the payment, the refund shall revert to the State and be deposited into the revenue fund where the original payment was deposited.
(Added 2007, No. 51, § 7.)
§ 510 Appropriation; federal funds; Public Service Department receipts
All monies received from the United States government are appropriated to the purposes specified in the Acts of Congress under which those payments are made to the State of Vermont. The Commissioner of Finance and Management may anticipate receipts from the United States government, and from the gross revenue tax fund and from the sales of power by the Public Service Department and issue warrants based thereon. Anticipated receipts shall be credited to the proper account when received.
(Added 1997, No. 147 (Adj. Sess.), § 257.)
§ 511 Excess receipts
If any receipts, including federal receipts, exceed the appropriated amounts, the receipts may be allocated and expended on the approval of the Commissioner of Finance and Management. If, however, the expenditure of those receipts will establish or increase the scope of the program, which establishment or increase will at any time commit the State to the expenditure of State funds, they may only be expended upon the approval of the General Assembly. Excess federal receipts, whenever possible, shall be utilized to reduce the expenditure of State funds. The Commissioner of Finance and Management shall report to the Joint Fiscal Committee quarterly with a cumulative list and explanation of the allocation and expenditure of such excess receipts. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.
(Added 1997, No. 147 (Adj. Sess.), § 261; amended 2009, No. 67 (Adj. Sess.), § 83, eff. Feb. 25, 2010; 2013, No. 142 (Adj. Sess.), § 60.)
§§ 521-525 Repealed
[Repealed]
1987, No. 243 (Adj. Sess.), § 61, eff. June 13, 1988.
§§ 526-528 Repealed
[Repealed]
2009, No. 154 (Adj. Sess.), § 238.
§ 541 Collection of fines and costs
All fines; costs, including costs taxed as State’s Attorneys’ and court fees; bail; and unclaimed fees collected by judges shall be paid into the proper treasury.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 195.)
§ 542 Payment to Treasurer
The judge or clerk of each Criminal Division of the Superior Court shall quarterly, on or before the first day of February, May, August, and November, pay into the State Treasury all money in his or her hands belonging to the State.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 238.)
§ 543 Repealed
[Repealed]
2009, No. 33, § 83(m)(4).
§ 544 Judge may pay witnesses
The judge or clerk of each Criminal Division of the Superior Court shall pay from any fines and costs in his or her hands belonging to the State all juror and witness fees payable by the State and shall take the receipts of persons receiving the same.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 238.)
§ 561 Repealed
[Repealed]
2009, No. 33, § 83(m)(5).
§ 581 Unclaimed costs to revert to State
Fees allowed in a bill of costs to a judge that are not demanded by the party to whom such fees are due within six months after such bill is allowed shall revert to the use of the State, and the judge, after the expiration of six months, shall be relieved from all liability to parties to whom the fees were due.
(Amended 2009, No. 154 (Adj. Sess.), § 196.)
§ 582 Sale of meals; revolving fund
Superintendents of institutions in the Departments of Corrections and of Mental Health and the Vermont Veterans’ Home may sell meals prepared under their food service programs to employees, officials, visitors, and other necessary persons participating in institutional programs. Rates for meals and food issue sold shall be reasonably related to costs. Proceeds from these sales may be deposited to a separate special fund for each institution and may be used for food supplies.
(Added 1979, No. 205 (Adj. Sess.), § 151, eff. May 9, 1980; amended 1997, No. 155 (Adj. Sess.), § 23.)
§ 583 Credit card payments
(a) A statewide officer or secretary of a State agency, commissioner of a State department, or the Court Administrator may accept payment of taxes, registration fees, license fees, penalties, fines, interest, charges, surcharges, or any other fees or amounts due the State by means of credit cards, debit cards, charge cards, prepaid cards, stored value cards, and direct bank account withdrawals or transfers.
(b) The State Treasurer shall negotiate and contract with banks and bank credit card companies or others to provide as a method of payment to State agencies or departments the use of credit card or debit card accounts or direct bank account withdrawals or transfers and may agree to pay such bank or other company a fee or percentage of the amount collected and remitted to the State. The Court Administrator may so contract for the Judiciary with the approval of the State Treasurer. Notwithstanding section 502 of this title, an agency, a department, or the Judiciary may charge against such collections the percentage or fee imposed.
(c) The State Treasurer shall assist each statewide officer, secretary, commissioner, and Court Administrator who elects to accept payments, as authorized by this section, with establishing procedures for accepting those payments.
(d) A statewide officer or secretary of a State agency, a commissioner of a State department, or the Court Administrator who has authority to accept payment of fees, penalties, fines, charges, surcharges, or any other amounts due the State by a credit card, debit card, charge card, prepaid card, or stored value card shall not charge or collect any additional amounts for using such card to make the payment unless the agency develops a policy regarding additional charges. Each policy and recommended charge, except that which is adopted and recommended by the Court Administrator, shall be approved by the Secretary of Administration prior to applying the charge. Any such charge shall approximate the cost of providing the service.
(e) [Repealed.]
(Added 1997, No. 155 (Adj. Sess.), § 66c; amended 2003, No. 61, §§ 1, 5; 2007, No. 51, § 8; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012.)
§ 584 Vermont Clean Water Affinity Card Program
(a) The State Treasurer is hereby authorized to sponsor and participate in an Affinity Card Program for the benefit of water quality improvement in this State upon his or her determination that such a Program is feasible and may be procured at rates and terms in the best interests of the cardholders.
(b) In selecting an affinity card issuer, the Treasurer shall consider the issuer’s record of investments in the State and shall take into consideration program features that will enhance the promotion of the State-sponsored affinity card, including consumer-friendly terms, favorable interest rates, annual fees, and other fees for using the card.
(c) The net proceeds of the State fees or royalties generated by the Vermont Clean Water Affinity Card Program shall be transmitted to the State and shall be deposited into the Clean Water Fund under 10 V.S.A. § 1388 to provide financial incentives to encourage farmers in Vermont to implement agricultural practices that improve soil health, enhance crop resilience, or reduce agricultural runoff to waters.
(d) The State shall not assume any liability for lost or stolen credit cards nor any other legal debt owed to the financial institutions.
(e) The State Treasurer is authorized to adopt such rules as may be necessary to implement the Vermont Clean Water Affinity Card Program.
(Added 2009, No. 1 (Sp. Sess.), § H.18, eff. June 2, 2009; amended 2011, No. 139 (Adj. Sess.), § 33, eff. May 14, 2012; 2019, No. 83, § 4.)
Subchapter 5 Special Funds
§ 585 Definitions
(a) As used in this subchapter:
(1) “Commissioner” means the Commissioner of Finance and Management.
(2) A “special fund” is a fund created to account for specific revenues earmarked to finance particular or restricted programs and activities, or created by expressed enactment of the General Assembly or created by the Commissioner of Finance and Management to account for and manage such proceeds as those of court settlements or private bequests, transfers between State and local governments, monies of State institution inmate or patient operations, monies resulting from the disposal of State property, grants and other awards accepted by the General Assembly or in accordance with section 5 of this title, transfers of a general services nature between State agencies, or financial transactions by State government on behalf of nonstate entities.
(b) The Commissioner shall fully utilize the fund and account structure in the State finance system to manage efficiently dedicated revenues, with the intended result of reducing and limiting the number of separate special funds, while maintaining accountability and segregation of revenues dedicated by statute for specific purposes.
(Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1997, No. 59, § 79, eff. June 30, 1997; 2005, No. 215 (Adj. Sess.), § 283.)
§ 586 Application
The provisions of this subchapter shall not apply to funds established to account for proceeds from the sale of bonds; to the General Fund, the Transportation Fund, the Fish and Wildlife Fund, the Tobacco Litigation Settlement Fund; or to any federal revenue funds, trust funds, enterprise funds, internal service funds, or agency funds; or to public service enterprise funds established to implement provisions of 30 V.S.A. §§ 211 and 212a through 212f, the budget stabilization reserves created by sections 308 and 308a of this title, the Low-Level Radioactive Waste Fund created by 10 V.S.A. § 7013, the Lands and Facilities Trust Fund created by 3 V.S.A. § 2807, the Education Fund created by 16 V.S.A. § 4025, or the Vermont Housing and Conservation Trust Fund created by 10 V.S.A. § 312.
(Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1993, No. 25, § 76, eff. May 18, 1993; 1997, No. 59, § 80, eff. June 30, 1997; 1997, No. 60, § 20, eff. July 1, 1998; 1997, No. 64, § 19, eff. Jan. 1, 1998; 1999, No. 62, § 275b; 2001, No. 61, § 54, eff. June 16, 2001; 2001, No. 63, § 230a; 2013, No. 1, § 86.)
§ 587 Special funds; creation and termination
(a) Creation of special funds. The creation of all special funds shall be in accordance with the provisions of this subchapter.
(b) Termination of special funds. All special funds shall be terminated at a time specified as a condition of the fund’s creation, when the revenue source of the fund ceases to exist, or when the purpose of the fund has been fulfilled as determined by the General Assembly.
(Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1997, No. 59, § 81, eff. June 30, 1997.)
§ 588 Special funds; organization and management
All special funds shall be organized and managed in accordance with the provisions of this section.
(1) Purpose and identification. Each special fund shall be established for a specific purpose, identified by a unique name, and managed on the State Central Accounting System under the control of the Commissioner with the actual monies held under the authority and responsibility of the State Treasurer.
(2) Receipts. Each special fund shall consist of receipts specified upon its creation and of transfers from other funds as authorized by the General Assembly or by the Secretary of Administration or the Emergency Board pursuant to section 706 of this title.
(3) Interest. All interest earned by a special fund shall be credited to the General Fund, and not to the special fund concerned, except for the interest earned on proceeds of court settlements or private bequests, grants and other awards accepted in accordance with section 5 of this title that specify that interest shall be retained with the principal amount, and except where otherwise expressly provided by law.
(4) Appropriations and expenditures.
(A) All monies to be expended from a special fund shall be appropriated annually by the General Assembly, or allocated pursuant to the authority granted by the General Assembly to the Commissioner of Finance and Management with regard to excess receipts, except when the State responsibility relative to the special fund is solely for the transference of monies between nonstate entities as determined by the Commissioner. No appropriation authorization shall carry forward beyond the fiscal year for which it was granted, except for properly encumbered payments and refunds of prior year expenditures.
(B) Individual amounts expended from a special fund shall be upon the warrant of and in accordance with practices approved by the Commissioner and shall be in compliance with the purpose of the fund and of any provisions of law or other conditions of the fund’s creation.
(C) Special fund expenditures shall not exceed available revenues, except that the Commissioner may anticipate receipts to each special fund and issue warrants based thereon, and in so doing may establish limits on expenditures in anticipation of receipts for any special fund.
(5) Balances.
(A) All cash balances in a special fund at the end of the fiscal year shall be carried forward and remain in the fund unspent until authorized for expenditure in accordance with subdivision (4)(A) of this section or transferred to another fund by the General Assembly or by the Secretary of Administration or the Emergency Board pursuant to section 706 of this title.
(B) Any negative cash balance in a special fund at the end of a fiscal year shall be carried forward and applied against that fund’s receipts for the next fiscal year.
(6) Accounting and reporting.
(A) Each special fund shall be accounted for under the direction of the Commissioner, and the balance at the end of the prior fiscal year shall be reported to the Joint Fiscal Committee on or before December 1 of each year.
(B) In addition, the Commissioner shall annually report a list of any special funds created during the fiscal year. The list shall furnish for each fund its name, authorization, and revenue source or sources. The report for the prior fiscal year shall be submitted to the General Assembly through the Joint Fiscal Committee on or before December 1 of each year.
(Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1997, No. 59, § 82, eff. June 30, 1997; 2005, No. 71, § 270; 2007, No. 65, § 392, eff. June 4, 2007; 2009, No. 67 (Adj. Sess.), § 84, eff. Feb. 25, 2010.)
§ 589 Repealed
[Repealed]
1997, No. 59, § 83(1), eff. June 30, 1997.
§ 590 Repealed
[Repealed]
1997, No. 59, § 83(2), eff. June 30, 1997.
Subchapter 6 Executive and Judicial Branch Fees
§ 601 Statement of purpose
It is the purpose of this subchapter to establish a uniform policy on the creation and review of Executive and Judicial Branch fees and to require that any such fee be created solely by the General Assembly.
(Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 2007, No. 153 (Adj. Sess.), § 22.)
§ 602 Definitions
As used in this subchapter:
(1) “Agency” or “State agency” means any Executive Branch agency, department, or entity created by Title 3 and any board, commission, council, or similar entity attached to an Executive Branch agency, department, or entity.
(2) “Fee”:
(A) Means a monetary charge by an agency or the Judiciary for a service or product provided to, or the regulation of, specified classes of individuals or entities.
(B) The following charges are exempt from the provisions of this subchapter:
(i) a charge established under the jurisdiction of the Public Utility Commission as provided by 30 V.S.A. §§ 20, 21, and 218;
(ii) a charge established by the Board of Liquor and Lottery as provided by Title 7;
(iii) a duly adopted charge concerning only inmates of a correctional or detention facility, students enrolled in an educational institution, or patients admitted to a hospital or rehabilitation facility;
(iv) monies paid into an enterprise or internal service fund;
(v) a transfer between agencies of State government or between State government and a political subdivision, as compensation for a service, to support a regulatory activity, or to account for surplus property;
(vi) monies from interest and premium payments, rent or lease payments, proceeds of fair market or negotiated sales, or sales of commercially available items;
(vii) except for the purposes of section 605 of this title, motor vehicle and other highway user fees authorized by the General Assembly for the support of the Transportation Fund;
(viii) a charge established by the Department of Financial Regulation as authorized by law; and
(ix) any other charge exempt by law.
(Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 1997, No. 59, § 1, eff. June 30, 1997; 1997, No. 155 (Adj. Sess.), § 1; 2005, No. 175 (Adj. Sess.), § 43; 2007, No. 153 (Adj. Sess.), § 22; 2007, No. 174 (Adj. Sess.), § 30; 2013, No. 72, § 31; 2015, No. 149 (Adj. Sess.), § 34; 2019, No. 73, § 41.)
§ 603 Fee creation, amount, and adjustment of amount
On or after May 22, 1996:
(1) Any new fee shall be established solely by act of the General Assembly, which shall designate the service or product provided, or regulatory function performed, for which the fee is to be charged.
(2) The rate or amount of, or adjustment to, any fee shall be set by act of the General Assembly, except that the rate or amount, whether established by statute or rule, shall be adjusted by action of the Joint Fiscal Committee, if projected revenues, as demonstrated by the agency head proposing the adjustment, are reasonably related to the cost of providing the associated service or product or performing the regulatory function. “Cost” shall be narrowly construed but may include reasonable and directly related costs of administration, maintenance, and other expenses due to providing the service or product or performing the regulatory function. If submitted to the Joint Fiscal Committee, a requested fee adjustment shall be considered approved unless within 30 days of its receipt a member of the Joint Fiscal Committee requests that it be placed on the agenda of the Joint Fiscal Committee or, when the General Assembly is in session, requests that it be submitted for legislative approval. The provisions of this subdivision shall not be construed to supersede the actual cost charges for copies of public records as established pursuant to 1 V.S.A. § 316.
(3) Fees for the following, unless otherwise specified by law, may be set by the department providing the service or product, and shall be reasonably and directly related to their costs, as provided in subdivision (2) of this section:
(A) transcripts;
(B) reproductions not covered by 1 V.S.A. § 316(d);
(C) conferences;
(D) forms for commercial use;
(E) publications of the department;
(F) costs of distribution of department materials;
(G) advertising for department services or products;
(H) training;
(I) charges to attend one-time department events; and
(J) sales of department products.
(4) Fees collected under subdivision (3) of this section shall be credited to special funds established and managed pursuant to chapter 7, subchapter 5 of this title, and shall be available to the charging departments to offset the costs of providing these services or products. However, for purposes of fees established under this subdivision for copies of public records, the fees shall be calculated as provided in 1 V.S.A. § 316. These fees shall be reported in accordance with section 605 of this title.
(Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 1997, No. 59, § 2, eff. June 30, 1997; 1997, No. 155 (Adj. Sess.), § 2; 2007, No. 153 (Adj. Sess.), § 25.)
§ 604 Repealed
[Repealed]
(Added 2019, No. 59, § 37; amended 2021, No. 184 (Adj. Sess.), § 58, eff. July 1, 2022; repealed on July 1, 2025 by 2021, No. 184 (Adj. Sess.), § 57.)
§ 605 Consolidated Executive Branch annual fee report and request
(a) The Governor shall, not later than the third Tuesday of every annual legislative session, submit a consolidated Executive Branch fee report and request to the General Assembly, which shall accompany the Governor’s annual budget report and request submitted to the General Assembly as required by section 306 of this title. The content of each annual report and request for fees concerning State agency public records maintained pursuant to 1 V.S.A. chapter 5, subchapter 3 shall be prepared by the Secretary of State, who shall base all recommended fee amounts on “actual cost.” The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.
(b) Fee reports shall be made as follows:
(1) A report covering all fees in existence on the prior July 1 within the areas of government identified by the Department of Finance and Management accounting system as “general government,” “labor,” “general education,” “commerce and community development,” and “transportation” shall be submitted by the third Tuesday of the legislative session beginning in 2011 and every three years thereafter.
(2) A report covering all fees in existence on the prior July 1 within the “human services” and “natural resources” areas of government shall be submitted by the third Tuesday of the legislative session of 2012 and every three years thereafter.
(3) A report covering all fees in existence on the prior July 1 within the “protection to persons and property” area of government shall be submitted by the third Tuesday of the legislative session of 2013 and every three years thereafter.
(c) A fee report shall contain for each fee in existence on the preceding July 1:
(1) its statutory authorization and termination date if any;
(2) its current rate or amount and the date this was last set or adjusted by the General Assembly or by the Joint Fiscal Committee;
(3) the fund into which its revenues are deposited;
(4) the revenues derived from it in each of the two previous fiscal years; and
(5) whether the Governor recommends the fee be altered, reauthorized, or terminated.
(d) A fee request shall contain any proposal to:
(1) Create a new fee, or change, reauthorize, or terminate an existing fee, which shall include a description of the services or product provided or the regulatory function performed.
(2) Set a new or adjust an existing fee rate or amount. Each new or adjusted fee rate shall be accompanied by information justifying the rate, which may include:
(A) the relationship between the revenue to be raised by the fee or change in the fee and the cost or change in the cost of the service, product, or regulatory function supported by the fee, with costs construed pursuant to subdivision 603(2) of this title;
(B) the inflationary pressures that have arisen since the fee was last set;
(C) the effect on budgetary adequacy if the fee is not increased;
(D) the existence of comparable fees in other jurisdictions;
(E) policies that might affect the acceptance or the viability of the fee amount; and
(F) other considerations.
(3) Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
(e) As used in the review and reports, a “fee” shall mean any source of State revenue classified by the Department of Finance and Management Accounting System as “fees,” “business licenses,” “nonbusiness licenses,” and “fines and penalties.” In addition, the Department of Finance and Management shall identify any of the other State revenue sources that function in fact as a “fee” and reclassify them as fees.
(f) [Repealed.]
(Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 1997, No. 59, §§ 3a, 4, eff. June 30, 1997; 2005, No. 202 (Adj. Sess.), § 23b; 2007, No. 153 (Adj. Sess.), § 22; 2007, No. 174 (Adj. Sess.), § 29; 2009, No. 134 (Adj. Sess.), § 34; 2013, No. 72, § 36; 2013, No. 142 (Adj. Sess.), § 61; 2013, No. 191 (Adj. Sess.), § 22; 2021, No. 105 (Adj. Sess.), § 456, eff. July 1, 2022; 2025, No. 18, § 54, eff. May 13, 2025.)
§ 605a Consolidated Judicial Branch fee report and request
(a) The Justices of the Supreme Court or the Court Administrator if one is appointed pursuant to 4 V.S.A. § 21, in consultation with the Justices of the Supreme Court, shall submit a consolidated Judicial Branch fee report and request not later than the third Tuesday of the legislative session of 2011 and every three years thereafter. The report shall be submitted to the House Committee on Ways and Means, the Senate Committee on Finance, and the House and Senate Committees on Government Operations. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
(b) A fee report shall contain for each fee in existence on the preceding July 1:
(1) its statutory authorization and termination date if any;
(2) its current rate or amount and the date this was last set or adjusted by the General Assembly or by the Joint Fiscal Committee;
(3) the fund into which its revenues are deposited; and
(4) the revenues derived from it in each of the two previous fiscal years.
(c) A fee request shall contain any proposal to:
(1) Create a new fee, or change, reauthorize, or terminate an existing fee, which shall include a description of the services provided or the function performed.
(2) Set a new or adjust an existing fee rate or amount. Each new or adjusted fee rate shall be accompanied by information justifying the rate, which may include:
(A) the relationship between the revenue to be raised by the fee or change in the fee and the cost or change in the cost of the service, product, or regulatory function supported by the fee, with costs construed pursuant to subdivision 603(2) of this title;
(B) the inflationary pressures that have arisen since the fee was last set;
(C) the effect on budgetary adequacy if the fee is not increased;
(D) the existence of comparable fees in other jurisdictions;
(E) policies that might affect the acceptance or the viability of the fee amount; and
(F) other considerations.
(3) Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
(d) For the purpose of the review and report, a “fee” shall mean any source of State revenue classified by the Department of Finance and Management accounting system as “fees.”
(e) Notwithstanding any other provision of law, the consolidated Judicial Branch fee report and request described in this section shall include any Judicial Branch fees associated with electronic filing and any proposals to reauthorize, change, or terminate any Judicial Branch fees associated with electronic filing.
(Added 2007, No. 153 (Adj. Sess.), § 22; amended 2013, No. 142 (Adj. Sess.), § 62; 2021, No. 23, § 1, eff. July 1, 2022.)
§ 606 Legislative fee review process; fee bill
When the consolidated fee reports and requests are submitted to the General Assembly pursuant to sections 605, 605a, and 611 of this title, they shall immediately be forwarded to the House Committee on Ways and Means, which shall consult with other standing legislative committees having jurisdiction of the subject area of a fee contained in the reports and requests. As soon as possible, the Committee on Ways and Means shall prepare and introduce a “consolidated fee bill” proposing:
(1) The creation, change, reauthorization, or termination of any fee.
(2) The amount of a newly created fee, or change in amount of an existing or reauthorized fee.
(3) The designation, or redesignation, of the fund into which revenue from a fee is to be deposited.
(Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 2007, No. 153 (Adj. Sess.), § 22; 2017, No. 155 (Adj. Sess.), § 2.)
Subchapter 6A Town Fee Report and Request
§ 611 Consolidated town fee report and request
(a) As used in this section:
(1) “Cost” shall be narrowly construed and may include reasonable and directly related costs of administration, maintenance, and other expenses due to providing the service or product or performing the regulatory function.
(2) “Fee” means a monetary charge collected by or on behalf of a town for a service or product provided to, or the regulation of, specified classes of individuals or entities.
(3) “Town” means a town, city, unorganized town or gore, and the unified towns and gores in Essex County.
(b) On or before the third Tuesday of the legislative session of 2019 and every three years thereafter, the Vermont Municipal Clerks’ and Treasurers’ Association and the Vermont League of Cities and Towns shall jointly submit a consolidated town fee report and request. The report shall be submitted to the House Committee on Ways and Means, the Senate Committee on Finance, and the House and Senate Committees on Government Operations. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
(c) For each fee in existence on the preceding July 1, the report shall specify:
(1) its statutory authorization and termination date, if any;
(2) its current rate or amount and the date it was last set or adjusted by the General Assembly;
(3) the fund into which its revenues are deposited; and
(4) for each town, in each of the two previous fiscal years, the revenues derived from each fee.
(d) The report shall contain:
(1) an account of the amounts retained and spent from each town’s Restoration and Preservation Reserve Fund in the three prior fiscal years; and
(2) a summary of each town’s plan to digitize records using funds appropriated from the town’s Restoration and Preservation Reserve Fund.
(e) A fee request shall contain any proposal to:
(1) Create a new fee, or change, reauthorize, or terminate an existing fee, which shall include a description of the services provided or the function performed.
(2) Set a new or adjust an existing fee rate or amount. Each new or adjusted fee rate shall be accompanied by information justifying the rate, which may include:
(A) the relationship between the revenue to be raised by the fee or change in the fee and the cost or change in the cost of the service, product, or regulatory function supported by the fee;
(B) the inflationary pressures that have arisen since the fee was last set;
(C) the effect on budgetary adequacy if the fee is not increased;
(D) the existence of comparable fees in other jurisdictions;
(E) policies that might affect the acceptance or the viability of the fee amount; and
(F) other considerations.
(3) Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
(Added 2017, No. 155 (Adj. Sess.), § 3; amended 2019, No. 38, § 1.)
Subchapter 7 Forfeiture of Public Employee Retirement Benefits
§ 621 Statement of purpose
It is the purpose of this subchapter to establish a procedure by which the pension benefits of a public employee convicted of certain crimes may be forfeited. Honorable public service is a condition precedent for a public employee to receive retirement benefits, and any public employee who is convicted of any of the designated crimes relating to his or her public office shall be considered to have served dishonorably, and his or her retirement benefits may be subject to forfeiture.
(Added 2013, No. 2, § 1.)
§ 622 Definitions
As used in this subchapter:
(1) “Contribution” shall have the same meaning as “accumulated contribution” set forth in 3 V.S.A. § 455(a)(1), 16 V.S.A. § 1931(1), and 24 V.S.A. § 5051(1) and shall include the sum of all amounts deducted from the compensation of a member of any defined contribution plan under 3 V.S.A. § 500 or 24 V.S.A. § 5070 and any earnings or losses on those contributions, and the sum of all amounts deducted from the compensation of a member of any other retirement plan of a municipality authorized under the Internal Revenue Code, 26 U.S.C. § 401 and any earnings or losses on those contributions.
(2) “Crime related to public office” means any of the following criminal offenses if the offense is a felony and is committed in connection with employment as a member:
(A) any offense under 13 V.S.A. chapter 21;
(B) false personation as defined in 13 V.S.A. § 2001;
(C) false pretenses or tokens as defined in 13 V.S.A. § 2002;
(D) grand larceny as defined in 13 V.S.A. § 2501;
(E) person holding property in official capacity or belonging to the State or a municipality as defined in 13 V.S.A. § 2537;
(F) false claim as defined in 13 V.S.A. § 3016;
(G) a felony under the laws of the United States or any other state, including a territory; commonwealth; the District of Columbia; or military, federal, or tribal court, an element of which involves:
(i) a larceny;
(ii) an embezzlement;
(iii) the fraudulent conversion of money, property, or other valuable things for personal or other use; or
(iv) an intent to defraud; or
(H) an attempt to commit, or aiding in the commission of, any offense listed in this subdivision (2).
(3) “Member” shall have the same meaning as in 3 V.S.A. § 455(a)(11), 16 V.S.A. § 1931(10), and 24 V.S.A. § 5051(13) and shall include anyone participating in a defined contribution plan under 3 V.S.A. § 500 or 24 V.S.A. § 5070 and any other retirement plan of a municipality authorized under the Internal Revenue Code, 26 U.S.C. § 401.
(4) “Retirement benefits” shall have the same meaning as “pensions” as defined in 3 V.S.A. § 455(a)(14), 16 V.S.A. § 1931(12), and 24 V.S.A. § 5051(16) and shall also mean benefits derived from employer contributions to defined contribution plans under 3 V.S.A. § 500 or 24 V.S.A. § 5070 and benefits derived from employer contributions to any other retirement plan of a municipality authorized under the Internal Revenue Code, 26 U.S.C. § 401.
(Added 2013, No. 2, § 1.)
§ 623 Forfeiture of public employee retirement benefits
(a) Honorable public service is a condition precedent to receiving retirement benefits. Each time a member is hired, reassigned, promoted, demoted, enters into a new collective bargaining contract, or otherwise changes his or her employment relationship or status, he or she shall be deemed to consent and agree to be subject to the provisions of this subchapter, including to this condition precedent.
(b) Notwithstanding any other provision of law to the contrary, any member who is convicted of any crime related to public office shall be considered to have served dishonorably, and his or her retirement benefits may be subject to forfeiture.
(c) If a member is convicted of a crime related to public office, the Attorney General or State’s Attorney shall file an action in the Civil Division of the Superior Court to forfeit the member’s retirement benefits in whole or in part.
(d) A copy of the complaint shall be served on the member and any known spouse, dependent, or designated beneficiary of the member.
(e) Hearings under this subchapter shall be conducted by the Court without a jury, and the Attorney General or State’s Attorney shall have the burden of proof.
(f) The Court shall grant the petition if it finds by a preponderance of the evidence that:
(1) the person is a member as defined in this subchapter; and
(2) the person was convicted of a crime related to public office.
(g) If the Court grants the petition, it shall then determine the degree, if any, to which the member’s retirement benefits shall be forfeited. In making the determination, the Court shall consider and make findings on the following factors:
(1) the severity of the crime related to public office for which the member has been convicted;
(2) the amount of monetary loss suffered by the State, a county, a municipality, or by any other person as a result of the crime related to public office;
(3) the degree of public trust reposed in the member; and
(4) any other factors as, in the judgment of the Court, justice may require.
(h) If the Court determines that a member’s retirement benefits should be forfeited to any degree, the maximum value of the benefits ordered forfeited shall not be greater than 10 times the amount of monetary loss suffered by the State, a county, a municipality, or by any other person as a result of the crime related to public office.
(i) If the Court determines that a member’s retirement benefits should be forfeited to any degree, it may order that some or all of the retirement benefits be paid to any innocent spouse, dependent, or beneficiary as justice may require. In determining whether to make an award under this section, the Court may consider:
(1) the degree of knowledge, if any, possessed by the member’s spouse, dependent, or designated beneficiary in connection with the offense;
(2) the financial needs and resources of the member’s spouse, dependent, or designated beneficiary; and
(3) any other factors as, in the judgment of the Court, justice may require.
(j) If the Court determines that a member’s retirement benefits should not be forfeited to any degree, it shall order that retirement benefits be made to the member.
(Added 2013, No. 2, § 1.)
§ 624 Venue, procedure, and appeals
(a) Proceedings to forfeit retirement benefits under this subchapter shall be heard in the Civil Division of the Superior Court. Venue may be in the Washington unit, the unit where the conviction for the crime related to public office occurred, or in any unit where the member or any known spouse, dependent, or designated beneficiary resides.
(b) The Supreme Court, pursuant to 12 V.S.A. § 1, may enact rules and develop procedures consistent with this subchapter to govern proceedings to forfeit retirement payments.
(c) An order under this subchapter may be appealed as a matter of right to the Supreme Court by the Attorney General or State’s Attorney that filed the petition, the member, or the member’s spouse, dependent, or designated beneficiary.
(Added 2013, No. 2, § 1.)
§ 625 Return of contributions; exemptions; qualified domestic relations orders
(a) Any member whose retirement benefits are forfeited to any degree pursuant to section 623 of this title shall be entitled to a return of his or her contribution in the same manner as provided by the relevant retirement system.
(b) Notwithstanding the provisions of subsection (a) of this section, returns of contributions shall not be made or ordered unless and until the Civil Division of the Superior Court determines that the member whose retirement benefits have been forfeited to any degree pursuant to section 623 of this title has satisfied in full any judgments or orders rendered by any court of competent jurisdiction for the payment of restitution for losses incurred as a result of the crime related to public office. If the Court determines that the member whose retirement benefits have been forfeited to any degree under section 623 has failed to satisfy any outstanding judgment or order of restitution rendered by any court of competent jurisdiction that relates to the crime related to public office of which the member was convicted, it may order that any funds otherwise due such member as a return of contribution, or any portion thereof, be paid in satisfaction of the judgment or order.
(c) A provision of section 623 of this title or this section shall not be construed to prohibit or limit any payment made pursuant to a qualified domestic relations order issued prior to any such conviction and applicable to:
(1) any member who is convicted of any crime related to public office; or
(2) any State, county, or municipal agency responsible for the administration of such payment on behalf of such member.
(d) Notwithstanding the provisions of section 623 of this title, retirement benefits shall not be forfeited to any degree if the Internal Revenue Service determines that such forfeiture will negatively affect or invalidate the status of a retirement plan under the Internal Revenue Code, 26 U.S.C. § 401, or any subsequent corresponding Internal Revenue Code of the United States, as may be amended.
(Added 2013, No. 2, § 1.)
§ 626 Application; collective bargaining agreements
(a) This subchapter shall not apply to retirement benefits that accrued prior to July 1, 2013 or to crimes committed before July 1, 2013.
(b) No collective bargaining agreement or other employment agreement entered into on or after July 1, 2013 shall contain any provision that limits the application of the provisions of this subchapter.
(Added 2013, No. 2, § 1.)
Subchapter 8 Vermont False Claims Act
§ 630 Definitions
As used in this chapter:
(1) “Claim” means any request or demand, whether under a contract or otherwise, for money or property, and whether or not the State has title to the money or property, that:
(A) is presented to an officer, employee, or agent of the State; or
(B) is made to a contractor, grantee, or other recipient, if the money or property is to be spent or used on the State’s behalf or to advance a State program or interest, and if the State:
(i) provides or has provided any portion of the money or property that is requested or demanded; or
(ii) will reimburse directly or indirectly such contractor, grantee, or other recipient for any portion of the money or property that is requested or demanded. A claim shall not include a request or demand for money or property that the State has paid to an individual as compensation for State employment or as an income subsidy with no restrictions on that individual’s use of the money or property.
(2) “Knowing” and “knowingly”:
(A) means that a person, with respect to information:
(i) has actual knowledge of the information;
(ii) acts in deliberate ignorance of the truth or falsity of the information; or
(iii) acts in reckless disregard of the truth or falsity of the information; and
(B) requires no proof of specific intent to defraud.
(3) “Material” means having a natural tendency to influence, or be capable of influencing, the payment or receipt of money or property.
(4) “Obligation” means an established duty, whether or not fixed, arising from an express or implied contractual, grantor-grantee, or licensor-licensee relationship; from a fee-based or similar relationship; from statute or regulation; or from the retention of any overpayment after the deadline for reporting and returning the overpayment under subdivision 631(a)(10) of this chapter.
(5) “Original source” means an individual who:
(A) prior to a public disclosure under subsection 636(c) of this chapter, has voluntarily disclosed to the State the information on which allegations or transactions in a claim are based; or
(B) has knowledge that is independent of and materially adds to the publicly-disclosed allegations or transactions, and who has voluntarily provided the information to the State before filing a false claims action.
(6) “Overpayment” means any State or federal funds that a person receives or retains to which the person, after applicable reconciliation, is not entitled.
(7) “Relator” or “qui tam plaintiff” means an individual who brings an action under subsection 632(b) of this chapter.
(8) “State” means the State of Vermont; a county, a municipality, or other subdivision thereof; commission, board, department, or agency thereof; or any other governmental entity authorized or created by State law, including public corporations and authorities.
(Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 631 Prohibition; penalties
(a) No person shall:
(1) knowingly present, or cause to be presented, a false or fraudulent claim for payment or approval;
(2) knowingly make, use, or cause to be made or used, a false record or statement material to a false or fraudulent claim;
(3) knowingly present, or cause to be presented, a claim that includes items or services resulting from a violation of 13 V.S.A. chapter 21 or section 1128B of the Social Security Act, 42 U.S.C. §§ 1320a-7b;
(4) knowingly present, or cause to be presented, a claim that includes items or services for which the State could not receive payment from the federal government due to the operation of 42 U.S.C. § 1396b(s) because the claim includes designated health services (as defined in 42 U.S.C. § 1395nn(h)(6)) furnished to an individual on the basis of a referral that would result in the denial of payment under 42 U.S.C. chapter 7, subchapter XVIII (the “Medicare program”), due to a violation of 42 U.S.C. § 1395nn;
(5) having possession, custody, or control of property or money used, or to be used, by the State, knowingly deliver, or cause to be delivered to the State or its agent, less than all of that property or money for which the person receives a certificate or receipt;
(6) being authorized to make or deliver a document certifying receipt of property used, or to be used, by the State or its agent and, intending to defraud the State, make or deliver the receipt without completely knowing that the information on the receipt is true;
(7) knowingly buy, or receive as a pledge of an obligation or debt, public property from an officer or employee of the State, who lawfully may not sell or pledge the property;
(8) enter into a written agreement or contract with an official of the State or its agent knowing the information contained in the agreement or contract is false;
(9) knowingly make, use, or cause to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the State;
(10) knowingly conceal or knowingly and improperly avoid or decrease an obligation to pay or transmit money or property to the State;
(11) as a beneficiary of an inadvertent submission of a false claim to the State, or as a beneficiary of an overpayment from the State, and who subsequently discovers the falsity of the claim or the receipt of overpayment, fail to disclose the false claim or receipt of overpayment to the State by the later of:
(A) a date that is 120 days after the date on which the false claim or receipt of overpayment was identified; or
(B) the date any corresponding cost report is due, if applicable; or
(12) conspire to commit a violation of this subsection.
(b) Any person who violates a provision of subsection (a) of this section shall be liable to the State for:
(1) a civil penalty of not less than $5,500.00 and not more than $11,000.00 for each act constituting a violation of subsection (a) of this section, as adjusted by the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. § 2461);
(2) three times the amount of damages that the State sustains because of the act of that person; and
(3) the costs of the investigation and prosecution of such violation.
(c) Notwithstanding subdivisions (b)(1) and (b)(2) of this section, the Court may enter judgment for not less than two times the amount of damages that the State sustains because of the act of that person, and assessing no civil penalties, if the Court finds that:
(1) the person committing the violation of subsection (a) of this section furnished officials of the State responsible for investigating false claims violations with all information known to that person about the violation within 30 days after the date on which the person first obtained the information;
(2) the person fully cooperated with any investigation by the State of such violation; and
(3) at the time the person furnished the State with the information about the violation, no criminal prosecution, civil action, or administrative action had commenced under this subchapter with respect to such violation, and the person did not have actual knowledge of the existence of an investigation into the violation.
(d) This chapter shall not apply to claims, records, or statements made or presented to establish, limit, reduce, or evade liability for the payment of tax to the State or other governmental authority.
(Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2021, No. 105 (Adj. Sess.), § 457, eff. July 1, 2022.)
§ 632 Civil actions for false claims
(a) The Attorney General shall investigate violations of subsection 631(a) of this chapter. If the Attorney General finds that a person has violated or is violating subsection 631(a), the Attorney General may bring a civil action in the Civil Division of the Superior Court under this section against the person. The action may be brought in Washington County or in any county where an act prohibited by section 631 occurred.
(b)(1) A relator may bring a civil action in the Civil Division of the Superior Court in Washington County or in any county where an act prohibited by section 631 of this chapter occurred for a violation of this chapter on behalf of the relator and the State. The action shall be brought in the name of the State. The relator must file the complaint in camera. The complaint must remain under seal for at least 60 days after being served on the Attorney General and must not be served on the defendant until the court so orders.
(2) Once filed, the action may be dismissed only if the Attorney General gives written reasons for consenting to the dismissal and the court approves the dismissal. Notwithstanding any law to the contrary, it shall not be a cause for dismissal or a basis for a defense that the relator could have brought another action based on the same or similar facts under any other law.
(3) A relator filing an action under this chapter must serve a copy of the complaint and written disclosure of substantially all material evidence and information the relator possesses on the Attorney General in accordance with the Rules of Civil Procedure. The Attorney General may elect to intervene and proceed with the action within 60 days after the later of the date the Attorney General is served with:
(A) the complaint; and
(B) the material evidence and information.
(4) The Attorney General may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal under subdivision (b)(1) of this section. Any such motions may be supported by affidavits or other submissions in camera.
(5) Before the expiration of the 60-day period or any extensions obtained under subdivision (4) of this subsection, the State shall:
(A) proceed with the action, in which case the action shall be conducted by the Attorney General; or
(B) notify the court that it declines to take over the action, in which case the relator shall have the right to conduct the action.
(6) When a relator brings an action under this subsection, no person other than the Attorney General may intervene or bring a related action based on the facts underlying the pending action.
(Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 633 Rights of the parties to qui tam actions
(a) If the State proceeds with the action, the Attorney General shall have the primary responsibility for prosecuting the action and shall not be bound by any act of the relator. The relator shall have the right to continue as a party to the action, subject to the limitations in subsection (b) of this section.
(b)(1) The Attorney General may move to dismiss the action if the relator has been notified by the Attorney General of the filing of the motion and the court has provided the relator with an opportunity for a hearing on the motion.
(2) Notwithstanding any objection of a relator, the Attorney General may settle the action with the defendant if after a hearing the court determines that the proposed settlement is fair, adequate, and reasonable under all the circumstances.
(3) Upon a showing by the Attorney General that unrestricted participation during the course of the litigation by the relator would interfere with or unduly delay the prosecution of the case or would be repetitious, irrelevant, or for purposes of harassment, the court may, in its discretion, impose limitations on the relator’s participation, such as:
(A) limiting the number of witnesses the relator may call;
(B) limiting the length of the testimony of such witnesses;
(C) limiting the relator’s cross-examination of witnesses; or
(D) otherwise limiting the participation by the relator in the litigation.
(4) Upon a showing by the defendant that unrestricted participation during the course of the litigation by the relator would be for purposes of harassment or would cause the defendant undue burden or unnecessary expense, the court may limit the participation by the relator in the litigation.
(c) If the Attorney General elects not to proceed with the action, the relator who initiated the action shall have the right to conduct the action. If the Attorney General so requests, the Attorney General shall be served with copies of all pleadings filed in the action in accordance with the Rules of Civil Procedure and shall be supplied with copies of all deposition transcripts at the State’s expense. When a relator proceeds with the action, the court, without limiting the status and rights of the relator, may nevertheless permit the Attorney General to intervene at a later date upon a showing of good cause.
(d) Whether or not the Attorney General proceeds with the action, upon a showing by the Attorney General that discovery by the relator would interfere with the State’s investigation or prosecution of a criminal or civil matter arising out of the same or similar facts, the court may stay such discovery for a period of not more than 60 days. The court may extend the 60-day period upon a further showing that the Attorney General has pursued the criminal or civil investigation or proceedings with reasonable diligence and may stay any proposed discovery in the civil action that will interfere with the ongoing criminal or civil investigation or proceedings.
(Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2021, No. 105 (Adj. Sess.), § 458, eff. July 1, 2022.)
§ 634 Alternate remedies available to determine civil penalty
Notwithstanding sections 632 and 633 of this chapter, the Attorney General may elect to pursue the Attorney General’s claim through any alternate remedy available to the State under any other law or regulation, including any administrative proceeding to determine a civil monetary penalty. If any such alternate remedy is pursued in another proceeding, a relator shall have the same rights in such proceeding as said relator would have had if the action had continued under this section.
(Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2021, No. 105 (Adj. Sess.), § 459, eff. July 1, 2022.)
§ 635 Payments to relators; limitations
(a) If the Attorney General proceeds with an action brought by a relator under subsection 632(b) of this chapter, the relator shall, subject to subsection (b) of this section, receive at least 15 percent but not more than 25 percent of the proceeds recovered and collected in the action or in settlement of the claim, depending upon the extent to which the relator substantially contributed to the prosecution of the action.
(b) Where the action is one that the court finds to be based primarily on disclosures of specific information, other than information provided by the relator, relating to allegations or transactions in a criminal, civil, or administrative hearing; in a legislative, administrative, or State Auditor hearing, audit, investigation, or report; or from the news media, the court may award such sums as it considers appropriate, but in no case more than 10 percent of the proceeds, taking into account the significance of the information and the role of the relator in advancing the case to litigation.
(c) Any payment to a relator under the subsection (a) or (b) of this section shall be made only from the proceeds recovered and collected in the action or in settlement of the claims. Any such relator shall also receive an amount for reasonable expenses that the appropriate court finds to have been necessarily incurred, plus reasonable attorney’s fees and costs. All such expenses, fees, and costs shall be awarded against the defendant and paid directly by the defendant to the relator.
(d) If the Attorney General does not proceed with an action under this chapter, the relator bringing the action or settling the claim shall receive an amount that the court decides is reasonable for collecting the civil penalty and damages on behalf of the State. The amount shall be not less than 25 percent and not more than 30 percent of the proceeds recovered and collected in the action or in settlement of the claim, and shall be paid out of such proceeds. In such circumstances, the relator shall also receive an amount for reasonable expenses that the court finds to have been necessarily incurred, including reasonable attorney’s fees and costs. All such expenses, fees, and costs shall be awarded against the defendant and paid directly by the defendant to the relator.
(e) Whether or not the Attorney General proceeds with the action, if the court finds that the action was brought by a relator who planned and initiated the violation of section 631 of this chapter upon which the action was brought, then the court may, to the extent the court considers appropriate, reduce or eliminate the share of the proceeds of the action that the relator would otherwise receive pursuant to this section, taking into account the role of the relator in advancing the case to litigation and any relevant circumstances pertaining to the violation. If the relator bringing the action is convicted of criminal conduct arising from his or her role in the violation of section 631 of this chapter, that relator shall be dismissed from the civil action and shall not receive any share of the proceeds of the action. Such dismissal shall not prejudice the right of the State to continue the action.
(Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 636 Certain actions barred
(a) An individual may not bring an action under subsection 632(b) of this chapter against a member of the State Legislative Branch, the Attorney General, a member of the Judiciary, or a senior Executive Branch official if the action is based on evidence or information known to the State when the action was brought.
(b) An individual may not bring an action under subsection 632(b) of this chapter that is based upon allegations or transactions that are the subject of a civil suit or an administrative civil money penalty proceeding in which the State is already a party.
(c) Unless opposed by the Attorney General, the court shall dismiss an action or claim under subsection 632(b) of this chapter if substantially the same allegations or transactions as alleged in the action or claim were publicly disclosed:
(1) in a criminal, civil, or administrative hearing in which the State or its agent is a party;
(2) in a State legislative, administrative, or State Auditor’s report, hearing, audit, or investigation; or
(3) from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source of the information.
(Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 637 Awards of costs and attorney’s fees against relators; liability
(a) If the Attorney General does not proceed with the action and the person bringing the action conducts the action, the court may award to the defendant reasonable attorney’s fees and expenses if the defendant prevails in the action and the court finds that the claim of the person bringing the action was clearly frivolous, clearly vexatious, or brought primarily for purposes of harassment.
(b) No liability shall be incurred by the State for any expenses, attorney’s fees, or other costs incurred by any person bringing or defending an action under this chapter.
(Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 638 Relief from retaliatory actions
(a) Any employee, contractor, or agent shall be entitled to all relief necessary to make that employee, contractor, or agent whole, if that employee, contractor, or agent is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment because of lawful acts done by the employee, contractor, agent, or a person associated with the employee, contractor, or agent in furtherance of an action under section 632 of this chapter, or other efforts to stop one or more violations of this chapter.
(b) Notwithstanding any law to the contrary, relief under subsection (a) of this section shall include reinstatement with the same seniority status that employee, contractor, or agent would have had but for the discrimination, two times the amount of back pay, interest on the back pay, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorney’s fees. An employee, contractor, or agent may bring an action in the Civil Division of the Superior Court or any other appropriate court for the relief provided in this section.
(c) No employer shall make, adopt, or enforce any rule, regulation, or policy preventing an employee, contractor, or agent from disclosing information to a government or law enforcement agency or from acting to further efforts to stop one or more violations of this chapter. No employer shall require as a condition of employment, during the term of employment or at the termination of employment that any employee, contractor, or agent agree to, accept, or sign an agreement that limits or denies the rights of such employee, contractor, or agent to bring an action or provide information to a government or law enforcement agency pursuant to this chapter. Any such agreement shall be void.
(d) A civil action under this section may not be brought more than three years after the date when the retaliation occurred and became known to the employee, contractor, or agent.
(Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 639 Limitation of actions; final judgments in criminal proceedings
(a) A civil action under section 632 of this chapter for a violation of subsection 631(a) of this chapter may not be brought after the last to occur of:
(1) more than six years after the date on which the violation was committed; or
(2) more than three years after the date when facts material to the right of action are known or reasonably should have been known by the official within the Attorney General’s office with responsibility to act in the circumstances, but in no event more than 10 years after the date on which the violation is committed.
(b) A civil action under this subchapter may be brought for activity prior to enactment if the limitations period set in subsection (a) of this section has not lapsed.
(c) If the State elects to intervene and proceed with an action brought under subsection 632(b) of this chapter, the State may file its own complaint or amend the complaint of a person who has brought an action pursuant to subsection 632(b). For statute of limitations purposes, any such pleading shall relate back to the filing date of the complaint of the person who originally brought the action, to the extent that the claim of the State arises out of the conduct, transactions, or occurrences set forth, or attempted to be set forth, in the prior complaint of that person.
(d) Notwithstanding any other general or special law, rule of procedure, or rule of evidence to the contrary, a final judgment rendered in favor of the State in any criminal proceeding charging false statements or fraud, whether upon a verdict after trial or upon a plea of guilty or nolo contendere, shall estop the defendant from denying the essential elements of the offense in any action that involves the same transaction as in the criminal proceeding and that is brought under section 632 of this chapter.
(Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2017, No. 113 (Adj. Sess.), § 185.)
§ 640 Preponderance of the evidence standard
In any action brought under section 632 of this title, the party bringing the action shall be required to prove all essential elements of the cause of action, including damages, by a preponderance of the evidence.
(Added 2015, No. 25, § 1, eff. May 18, 2015.)
§ 641 Remedies under other laws; legislative construction
(a) The provisions of this chapter are not exclusive, and the remedies provided for in this chapter shall be in addition to any other remedies provided for in any other law or available under common law.
(b) It is the intent of the General Assembly that in construing this chapter, the courts of this State will be guided by the construction of similar terms contained in the Federal False Claims Act, 31 U.S.C. §§ 3729–3733, as from time to time amended by the U.S. Congress and the courts of the United States.
(Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2021, No. 105 (Adj. Sess.), § 460, eff. July 1, 2022.)
§ 642 Civil investigative demands
(a) In general.
(1) Issuance and service. Whenever the Attorney General or a designee has reason to believe that any person may be in possession, custody, or control of any documentary material or information relevant to a false claims law investigation, the Attorney General or a designee may, before commencing a civil proceeding under subsection 632(a) of this title or making an election under subsection 632(b) of this title, issue in writing and cause to be served upon such person a civil investigative demand requiring such person:
(A) to produce such documentary material for inspection and copying;
(B) to answer in writing written interrogatories with respect to such documentary material or information;
(C) to give oral testimony concerning such documentary material or information; or
(D) to furnish any combination of such material, answers, or testimony.
(2) Service authority. The Attorney General may delegate the authority to issue civil investigative demands under this subsection. Whenever a civil investigative demand is an express demand for any product of discovery, the Attorney General, the Deputy Attorney General, or an Assistant Attorney General shall cause to be served, in any manner authorized by this section, a copy of such demand upon the person from whom the discovery was obtained and shall notify the person to whom such demand is issued of the date on which such copy was served. Any information obtained by the Attorney General or a designee of the Attorney General under this section may be shared with any qui tam relator if the Attorney General or designee determines it is necessary as part of any false claims act investigation.
(3) Contents and deadlines.
(A) Each civil investigative demand issued under subdivision (1) of this subsection (a) shall state the nature of the conduct constituting the alleged violation of a false claims law that is under investigation and the applicable provision of law alleged to be violated.
(B) If such demand is for the production of documentary material, the demand shall:
(i) describe each class of documentary material to be produced with such definiteness and certainty as to permit such material to be fairly identified;
(ii) prescribe a return date for each such class that will provide a reasonable period of time within which the material so demanded may be assembled and made available for inspection and copying; and
(iii) identify the false claims law investigator to whom such material shall be made available.
(C) If such demand is for answers to written interrogatories, the demand shall:
(i) set forth with specificity the written interrogatories to be answered;
(ii) prescribe dates at which time answers to written interrogatories shall be submitted; and
(iii) identify the false claims law investigator to whom such answers shall be submitted.
(D) If such demand is for the giving of oral testimony, the demand shall:
(i) prescribe a date, time, and place at which oral testimony shall be commenced;
(ii) identify a false claims law investigator who shall conduct the examination;
(iii) specify that such attendance and testimony are necessary to the conduct of the investigation;
(iv) notify the person receiving the demand of the right to be accompanied by an attorney and any other representative; and
(v) describe the general purpose for which the demand is being issued and the general nature of the testimony, including the primary areas of inquiry, which will be taken pursuant to the demand.
(E) Any civil investigative demand issued under this section that is an express demand for any product of discovery shall not be returned or returnable until 20 days after a copy of such demand has been served upon the person from whom the discovery was obtained.
(F) The date prescribed for the commencement of oral testimony pursuant to a civil investigative demand issued under this section shall be a date that is not less than seven business days after the date on which demand is received, unless the Attorney General or an Assistant Attorney General designated by the Attorney General determines that exceptional circumstances are present that warrant the commencement of such testimony within a lesser period of time.
(G) The Attorney General shall not authorize the issuance under this section of more than one civil investigative demand for oral testimony by the same person unless the person requests otherwise or unless the Attorney General, after investigation, notifies that person in writing that an additional demand for oral testimony is necessary.
(b) Protected material or information.
(1) In general. A civil investigative demand issued under subsection (a) of this section may not require the production of any documentary material, the submission of any answers to written interrogatories, or the giving of any oral testimony if such material, answers, or testimony would be protected from disclosure under:
(A) the standards applicable to subpoenas or subpoenas duces tecum issued by a court of the State of Vermont to aid in a grand jury investigation or conduct an inquest; or
(B) the standards applicable to discovery requests under the Vermont Rules of Civil Procedure, to the extent that the application of such standards to any such demand is appropriate and consistent with the provisions and purposes of this section.
(2) Effect on other orders, rules, and laws. Any such demand that is an express demand for any product of discovery supersedes any inconsistent order, rule, or provision of law (other than this section) preventing or restraining disclosure of such product of discovery to any person. Disclosure of any product of discovery pursuant to any such express demand does not constitute a waiver of any right or privilege that the person making such disclosure may be entitled to invoke to resist discovery of trial preparation materials.
(c) Service; jurisdiction.
(1) By whom served. Any civil investigative demand issued under this section may be served by a false claims law investigator, by a law enforcement officer, or by any other individual authorized by law to serve legal process in the jurisdiction in which the demand is served.
(2) Service outside Vermont. Any demand issued under this section or any petition filed under subsection (i) of this section may be served upon any person or entity who is not found in Vermont, consistent with 12 V.S.A. chapter 25 and in any such manner as provided in the Vermont Rules of Civil Procedure for personal service outside the State. To the extent that the courts of Vermont can assert jurisdiction over any person consistent with due process, the Civil Division of the Superior Court of Washington County shall have the same jurisdiction to take any action respecting compliance with this section by any such person that such court would have if such person were personally within the jurisdiction of such court.
(d) Service upon legal entities and natural persons.
(1) Legal entities. Service of any civil investigative demand issued under subsection (a) of this section or of any petition filed under subsection (i) of this section may be made upon a partnership, corporation, association, or other legal entity by:
(A) delivering an executed copy of such demand or petition to any partner, executive officer, managing agent, or general agent of the partnership, corporation, association, or entity, or to any agent authorized by appointment or by law to receive service of process on behalf of such partnership, corporation, association, or entity;
(B) delivering an executed copy of such demand or petition to the principal office or place of business of the partnership, corporation, association, or entity;
(C) depositing an executed copy of such demand or petition in the U.S. mail by registered or certified mail, return receipt requested, addressed to such partnership, corporation, association, or entity at its principal office or place of business; or
(D) by any other method provided by 12 V.S.A. chapter 25 or the Vermont Rules of Civil Procedure.
(2) Natural persons. Service of any such demand or petition may be made upon any natural person by:
(A) delivering an executed copy of such demand or petition to the person;
(B) depositing an executed copy of such demand or petition in the U.S. mail by registered or certified mail, return receipt requested, addressed to the person at the person’s residence or principal office or place of business; or
(C) by any other method provided by 12 V.S.A. chapter 25 or the Vermont Rules of Civil Procedure.
(e) Proof of service. A verified return by the individual serving any civil investigative demand issued under subsection (a) of this section or any petition filed under subsection (i) of this section setting forth the manner of such service shall be proof of such service. In the case of service by registered or certified mail, such return shall be accompanied by the return post office receipt of delivery of such demand.
(f) Documentary material.
(1) Sworn certificates. The production of documentary material in response to a civil investigative demand served under this section shall be made under a sworn certificate, in such form as the demand designates, by:
(A) in the case of a natural person, the person to whom the demand is directed; or
(B) in the case of a person other than a natural person, a person having knowledge of the facts and circumstances relating to such production and authorized to act on behalf of such person.
(2) Contents of certificate. The certificate shall state that all of the documentary material required by the demand and in the possession, custody, or control of the person to whom the demand is directed has been produced and made available to the false claims law investigator identified in the demand. To the extent that any information is not furnished, the information shall be identified and reasons set forth with particularity regarding the reasons why the information was not furnished.
(3) Production of materials. Any person upon whom any civil investigative demand for the production of documentary material has been served under this section shall make such material available for inspection and copying to the false claims law investigator identified in such demand at the principal place of business of such person, or at such other place as the false claims law investigator and the person thereafter may agree and prescribe in writing, or as the court may direct under subdivision (i)(1) of this section. Such material shall be made so available on the return date specified in such demand, or on such later date as the false claims law investigator may prescribe in writing. Such person may, upon written agreement between the person and the false claims law investigator, substitute copies for originals of all or any part of such material.
(g) Interrogatories.
(1) Each interrogatory in a civil investigative demand served under this section shall be answered separately and fully in writing under oath and shall be submitted under a sworn certificate, in such form as the demand designates, by:
(A) in the case of a natural person, the person to whom the demand is directed; or
(B) in the case of a person other than a natural person, the person or persons responsible for answering each interrogatory.
(2) If any interrogatory is objected to, the reasons for the objection shall be stated in the certificate instead of an answer. The certificate shall state that all information required by the demand and in the possession, custody, control, or knowledge of the person to whom the demand is directed has been submitted. To the extent that any information is not furnished, the information shall be identified and reasons set forth with particularity regarding the reasons why the information was not furnished.
(h) Oral examinations.
(1) Procedures. The examination of any person pursuant to a civil investigative demand for oral testimony served under this section shall be taken before an officer authorized to administer oaths and affirmations by the laws of Vermont or of the place where the examination is held. The officer before whom the testimony is to be taken shall put the witness on oath or affirmation and shall, personally or by someone acting under the direction of the officer and in the officer’s presence, record the testimony of the witness. The testimony shall be taken stenographically and shall be transcribed. When the testimony is fully transcribed, the officer before whom the testimony is taken shall promptly transmit a copy of the transcript of the testimony to the Attorney General or a designee. This subsection shall not preclude the taking of testimony by any means authorized by, and in a manner consistent with, the Vermont Rules of Civil Procedure.
(2) Persons present. The false claims law investigator conducting the examination shall exclude from the place where the examination is held all persons except the person giving the testimony, the attorney for and any other representative of the person giving the testimony, the attorney for the government, any person who may be agreed upon by the attorney for the government and the person giving the testimony, the officer before whom the testimony is to be taken, and any stenographer taking such testimony.
(3) Where testimony taken. The oral testimony of any person taken pursuant to a civil investigative demand served under this section shall be taken not more than 50 miles from where such person resides, is found, or transacts business, or in such other place as may be agreed upon by the false claims law investigator conducting the examination and such person.
(4) Transcript of testimony. When the testimony is fully transcribed, the false claims law investigator or the officer before whom the testimony is taken shall afford the witness, who may be accompanied by counsel, a reasonable opportunity to examine and read the transcript, unless such examination and reading are waived by the witness. Any changes in form or substance that the witness desires to make shall be entered and identified upon the transcript by the officer or the false claims law investigator, with a statement of the reasons given by the witness for making such changes. The transcript shall then be signed by the witness, unless the witness in writing waives the signing, is ill, cannot be found, or refuses to sign. If the transcript is not signed by the witness within 30 days after being afforded a reasonable opportunity to examine it, the officer or the false claims law investigator shall sign it and state on the record the fact of the waiver, illness, absence of the witness, or the refusal to sign, together with the reasons, if any, given.
(5) Certification and delivery to Attorney General. The officer before whom the testimony is taken shall certify on the transcript that the witness was sworn by the officer and that the transcript is a true record of the testimony given by the witness, and the officer or false claims law investigator shall promptly deliver the transcript or send the transcript by registered or certified mail to the Attorney General or a designee.
(6) Furnishing or inspection of transcript by witness. Upon payment of reasonable charges, the false claims law investigator shall furnish a copy of the transcript to the witness only, except that the Attorney General, the Deputy Attorney General, or an Assistant Attorney General may, for good cause, limit such witness to inspection of the official transcript of the witness’ testimony.
(7) Conduct of oral testimony.
(A) Any person compelled to appear for oral testimony under a civil investigative demand issued under subsection (a) of this section may be accompanied, represented, and advised by counsel. Counsel may advise such person, in confidence, with respect to any question asked of such person. Such person or counsel may object on the record to any question, in whole or in part, and shall briefly state for the record the reason for the objection. An objection may be made, received, and entered upon the record when it is claimed that such person is entitled to refuse to answer the question on the grounds of any constitutional or other legal right or privilege, including the privilege against self-incrimination. Such person may not otherwise object to or refuse to answer any question and may not directly or through counsel otherwise interrupt the oral examination. If such person refuses to answer any question, a petition may be filed in the Civil Division of Washington County Superior Court under subdivision (i)(1) of this section for an order compelling such person to answer such question.
(B) If such person refuses to answer any question on the grounds of the privilege against self-incrimination, the testimony of such person may be compelled in accordance with the provisions of 12 V.S.A. § 1664.
(8) Witness fees and allowances. Any person appearing for oral testimony under a civil investigative demand issued under subsection (a) of this section shall be entitled to the same fees and allowances that are paid to witnesses in the courts of the State of Vermont.
(i) Judicial proceedings.
(1) Petition for enforcement. Whenever any person fails to comply with any civil investigative demand issued under subsection (a) of this section, or whenever satisfactory copying or reproduction of any material requested in such demand cannot be done and such person refuses to surrender such material, the Attorney General may file, in the Civil Division of Washington County Superior Court or the Civil Division in any county in which such person resides, is found, or transacts business, and serve upon such person a petition for an order of such court for the enforcement of the civil investigative demand.
(2) Petition to modify or set aside demand.
(A) Any person who has received a civil investigative demand issued under subsection (a) of this section may file, in the Civil Division of Washington County Superior Court or the Civil Division in any county in which such person resides, is found, or transacts business, and serve upon the Attorney General’s Office a petition for an order of the court to modify or set aside such demand. In the case of a petition addressed to an express demand for any product of discovery, a petition to modify or set aside such demand may be brought only in the Civil Division in which the proceeding in which such discovery was obtained is or was last pending. Any petition under this subdivision (2) must be filed:
(i) within 20 days after the date of service of the civil investigative demand or at any time before the return date specified in the demand, whichever date is earlier; or
(ii) within such longer period as may be prescribed in writing by any false claims law investigator identified in the demand.
(B) The petition shall specify each ground upon which the petitioner relies in seeking relief under subdivision (A) of this subdivision (2) and may be based upon any failure of the demand to comply with the provisions of this section or upon any constitutional or other legal right or privilege of such person. During the pendency of the petition in the court, the court may stay, as it deems proper, the running of the time allowed for compliance with the demand, in whole or in part, except that the person filing the petition shall comply with any portions of the demand not sought to be modified or set aside.
(3) Petition to modify or set aside demand for product of discovery.
(A) In the case of any civil investigative demand issued under subsection (a) of this section that is an express demand for any product of discovery, the person from whom such discovery was obtained may file, in the Civil Division in which the proceeding in which such discovery was obtained is or was last pending, and serve upon any false claims law investigator identified in the demand and upon the recipient of the demand, a petition for an order of such court to modify or set aside those portions of the demand requiring production of any such product of discovery. Any petition under this subdivision (3) must be filed:
(i) within 20 days after the date of service of the civil investigative demand or at any time before the return date specified in the demand, whichever date is earlier; or
(ii) within such longer period as may be prescribed in writing by any false claims law investigator identified in the demand.
(B) The petition shall specify each ground upon which the petitioner relies in seeking relief under subdivision (A) of this subdivision (3) and may be based upon any failure of the portions of the demand from which relief is sought to comply with the provisions of this section or upon any constitutional or other legal right or privilege of the petitioner. During the pendency of the petition, the court may stay, as it deems proper, compliance with the demand and the running of the time allowed for compliance with the demand.
(4) Jurisdiction. Whenever any petition is filed under this subsection, such court shall have jurisdiction to hear and determine the matter so presented and to enter such order or orders as may be required to carry out the provisions of this section. Any final order so entered may be appealed to the Vermont Supreme Court. Any disobedience of any final order entered under this section by any court shall be punished as a contempt of the court.
(5) Applicability of Rules of Civil Procedure. The Rules of Civil Procedure shall apply to any petition under this subsection, to the extent that such rules are not inconsistent with the provisions of this section.
(j) Use and disclosure of material, answers, or transcripts. The Office of the Attorney General may use the material, answers to interrogatories, or transcripts for any lawful purpose in conducting its investigation under the false claims law, including sharing the materials with the relator as provided in subdivision (a)(1) of this section. Further, whenever any attorney from the Office of the Attorney General has been designated to appear before any court, grand jury, or agency in any case or proceeding, such attorney may obtain, possess, and use any documentary material, answers to interrogatories, or transcripts of oral testimony received under this section for official use in connection with any such case or proceeding as such attorney determines to be required. Any documentary material, answers to written interrogatories, or oral testimony provided under any civil investigative demand issued under subsection (a) of this section shall not be used or disclosed in any other manner than set forth in this subsection without a Court order. No order authorizing such further use or disclosure shall issue without notice to the Attorney General and the person from whom such discovery was obtained and, if requested by either of those parties, an opportunity to present arguments or evidence, or both, on the issue of disclosure.
(k) Definitions. As used in this section:
(1) “False claims law investigation” means any inquiry conducted by any false claims law investigator for the purpose of ascertaining whether any person is or has been engaged in any violation of a false claims law.
(2) “False claims law investigator” means any attorney or investigator employed by the Attorney General’s Office who is charged with the duty of enforcing or carrying into effect any false claims law, or any officer or employee of Vermont acting under the direction and supervision of such attorney or investigator in connection with a false claims law investigation.
(3) “Documentary material” includes the original or any copy of any book, record, report, memorandum, paper, communication, tabulation, chart, or other document, or data compilations stored in or accessible through computer or other information retrieval systems, together with instructions and all other materials necessary to use or interpret such data compilations, and any product of discovery.
(4) “Product of discovery” includes:
(A) the original or duplicate of any deposition, interrogatory, document, thing, result of the inspection of land or other property, examination, or admission, which is obtained by any method of discovery in any judicial or administrative proceeding of an adversarial nature;
(B) any digest, analysis, selection, compilation, or derivation of any item listed in subdivision (A) of this subdivision (4); and
(C) any index or other manner of access to any item listed in subdivision (A) of this subdivision (4).
(5) “Official use” means any use that is consistent with the law, and the rules and policies of the Office of the Attorney General, including use in connection with internal office memoranda and reports; communications between the office and a federal, State, or local government agency, or a contractor of a federal, State, or local government agency, undertaken in furtherance of an office investigation or prosecution of a case; interviews of any qui tam relator or other witness; oral examinations; depositions; preparation for and response to civil discovery requests; introduction into the record of a case or proceeding; applications, motions, memoranda, and briefs submitted to a court or other tribunal; and communications with government investigators, auditors, consultants, experts, the counsel of other parties, arbitrators, and mediators, concerning an investigation, case, or proceeding.
(Added 2015, No. 25, § 1, eff. May 18, 2015; amended 2017, No. 11, § 57; 2019, No. 14, § 74, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 461, eff. July 1, 2022.)
Chapter 9 Appropriations
§ 701 General appropriation bill
When the budget has been submitted to the General Assembly, it shall be immediately referred to the Committee on Appropriations, which shall at once proceed to consider the same and as soon as possible thereafter prepare a bill that shall be known as the “general appropriation bill” and introduce the same forthwith for action by the General Assembly. Such bill shall provide appropriations for the maintenance and operation of all departments of the State.
§ 701a Capital construction bill
(a) When the capital budget has been submitted by the Governor to the General Assembly, it shall immediately be referred to the House Committee on Corrections and Institutions, which shall proceed to consider the budget request in the context of the 10-year capital program plan also submitted by the Governor pursuant to sections 309 and 310 of this title. The Committee shall also propose to the General Assembly:
(1) a prudent amount of total general obligation bonding for the following fiscal year, for support of the capital budget, in consideration of the recommendation of the Capital Debt Affordability Advisory Committee pursuant to chapter 13, subchapter 8 of this title; and
(2) recommendations for capital projects that may be paid for from the Cash Fund for Capital and Essential Investments, established in section 1001b of this title.
(b) As soon as possible, the Committee shall prepare a bill to be known as the “capital construction bill,” which shall be introduced for action by the General Assembly.
(c) The spending authority authorized by a capital construction act shall carry forward until expended, unless otherwise provided.
(1) All unexpended funds remaining for projects authorized by capital construction acts enacted in a legislative session that was two or more years prior to the current legislative session shall be reported to the General Assembly and may be reallocated in future capital construction acts.
(2) Notwithstanding subdivision (1) of this subsection, any amounts appropriated in a previous capital construction act that are unexpended for at least five years shall be reallocated to future capital construction acts.
(d)(1) On or before November 15 each year, the Commissioner of Finance and Management shall require each entity to which spending authority has been authorized by a capital construction act enacted in a legislative session that was two or more years prior to the current legislative session to submit a report on the current fund balances of each authorized project with unexpended funds. The report shall include plans for the unexpended funds, any projects or contracts the funds are assigned to, and an anticipated timeline for expending the funds.
(2) On or before the third Tuesday of every annual session, the Commissioner of Finance and Management shall submit in a consolidated format the reports required by subdivision (1) of this subsection to the House Committee on Corrections and Institutions and the Senate Committee on Institutions.
(e) The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the reports to be made under subsections (c) and (d) of this section.
(Added 1989, No. 258 (Adj. Sess.), § 4; amended 2007, No. 200 (Adj. Sess.), § 36, eff. June 8, 2008; 2011, No. 104 (Adj. Sess.), § 33, eff. May 7, 2012; 2013, No. 51, § 36; 2013, No. 178 (Adj. Sess.), § 28 eff. June 9, 2014; 2017, No. 154 (Adj. Sess.), § 32, eff. May 21, 2018; 2023, No. 69, § 24, eff. June 14, 2023; 2023, No. 85 (Adj. Sess.), § 465, eff. July 1, 2024; 2025, No. 33, § 20, eff. May 22, 2025.)
§ 702 Exceeding budget
The head of a State department, who is not elected by the people, shall not exceed the limits of the budget adopted by the General Assembly for his or her department, and in the event that such limit is exceeded, the Governor shall remove him or her after due notice and hearing. However, in case any unforeseen necessity arises whereby the budget limits may be exceeded in the particular department affected, then the payment of the same may be authorized from the contingent fund, on the approval of the Governor and the State Treasurer.
§ 703 Unexpended appropriations
The unexpended and unencumbered balances of any sums appropriated by the General Assembly shall, at the end of the fiscal year, unless otherwise specifically provided, revert to the appropriate fund balance. Refunds of expenditures and reimbursements shall be credited to the appropriate fund and to appropriation accounts in the current fiscal year.
(Amended 1983, No. 253 (Adj. Sess.), § 249; 1997, No. 66 (Adj. Sess.), § 66, eff. Feb. 20, 1998; 2007, No. 192 (Adj. Sess.), § 6.011.)
§ 704 Interim budget and appropriation adjustments
(a) The General Assembly recognizes that acts of appropriations and their sources of funding reflect the priorities for expenditures of public funds enacted by the General Assembly and that major reductions or transfers, when required by reduced State revenues or other reasons, ought to be made whenever possible by an act of the General Assembly reflecting its revisions of those priorities. Nevertheless, the General Assembly also recognizes that when it is not in session, it may be necessary to reduce authorized appropriations and their sources of funding, and funds may need to be transferred, to maintain a balanced State budget. Under these limited circumstances, it is the intent of the General Assembly that appropriations may be reduced and funds transferred when the General Assembly is not in session pursuant to the provisions of this section.
(b)(1) Except as otherwise provided in subsection (f) of this section, in each instance that the official State revenue estimate for the General Fund, the Transportation Fund, or federal funds has been reduced by one percent or more from the estimates determined and assumed for purposes of the current fiscal year’s appropriations, the Secretary of Administration shall prepare an expenditure reduction plan for consideration and approval by the Joint Fiscal Committee pursuant to subsection (e) of this section, provided that any total reductions in appropriations and transfers of funds are not greater than the reductions in the official State revenue estimate.
(2) In each instance that the official State revenue estimate for the General Fund, the Transportation Fund, or federal funds has been reduced by less than one percent from the estimates determined and assumed for purposes of the current fiscal year’s appropriations, the Secretary of Administration may prepare and implement an expenditure reduction plan without the approval of the Joint Fiscal Committee, provided that any total reductions in appropriations and transfers of funds are not greater than the reductions in the official State revenue estimate. The Secretary may implement an expenditure reduction plan under this subdivision if plan reductions to the total amount appropriated in any section or subsection do not exceed five percent, the plan is designed to minimize any negative effects on the delivery of services to the public, and the plan does not have any unduly disproportionate effect on any single function, program, service, benefit, or county. Plans not requiring the approval of the Joint Fiscal Committee shall be filed with the Joint Fiscal Office prior to implementation. If the Secretary’s plan consists of reductions greater than five percent to the total amount appropriated in any section or subsection, such plan shall only be implemented in the manner provided for in subdivision (1) of this subsection.
(c) An expenditure reduction plan prepared by the Secretary shall indicate:
(1) the amounts to be reduced in each appropriation by funding source and the amounts to be transferred;
(2) in personal services, operating expenses, grants, and other categories, the effect of each reduction in appropriations and their sources of funding, and each fund transfer, on the primary purposes of the program;
(3) how it is designed to minimize any negative effects on the delivery of services to the public; and
(4) any unduly disproportionate effect the plan may have on any single function, program, service, benefit, or county.
(d) An expenditure reduction plan implemented under subdivision (b)(2) of this section shall not include any reduction in:
(1) appropriations authorized and necessary to fulfill the State’s debt obligations;
(2) appropriations authorized for the Judicial or Legislative Branch, except that the plan may recommend reductions for consideration by the Judicial or Legislative Branch; or
(3) appropriations for the salaries of elected officers of the Executive Branch listed in subsection 1003(a) of this title.
(e)(1) The Joint Fiscal Committee shall have 21 days from the date of submission of any expenditure reduction plan under subdivision (b)(1) of this section to consider the plan and may approve or disapprove the plan upon a vote of a majority of the members of the Committee. If the Committee vote results in a tie, the plan shall be deemed disapproved, and if the Committee fails for any other reason to take final action on such plan within 21 days of its submission to the Committee, it shall be deemed to be disapproved. During the 21-day period for consideration of the plan, the Committee shall conduct a public hearing and provide an opportunity for public comment on the plan.
(2) If the plan is disapproved, then in order to communicate the priorities of the General Assembly, the Committee shall make recommendations to the Secretary for amendments to the plan. Within seven days after the Committee notifies the Secretary of its disapproval of a plan, the Secretary may submit a final plan to the Committee. The Committee shall have 14 days from the date of submission of a final plan to consider that plan and to vote by a majority of the members of the Committee to approve or disapprove the plan, but if the Committee fails to approve or disapprove the plan by a majority vote, the plan shall be deemed disapproved. If the Secretary’s final plan includes any changes from the original plan other than those recommended by the Committee, then during the 14-day period for consideration of the final plan, the Committee shall conduct a public hearing and provide an opportunity for public comment, with the scope of the hearing and the comments limited to the changes from the original plan.
(3) In determining whether to approve a plan submitted by the Secretary under this subsection, the Committee shall consider whether the plan minimizes any negative effects on the delivery of services to the public and whether the plan will have any unduly disproportionate effect on any single function, program, service, benefit, or county.
(4) Any plan disapproved under subdivision (b)(1) of this section shall not be implemented.
(5) For purposes of this section, the Committee shall be convened at the call of the Chair or at the request of at least three members of the Committee.
(f) In the event of a reduction in the official revenue estimate of one percent or more and the Joint Fiscal Committee does not approve the Secretary’s final expenditure reduction plan prepared under subdivision (b)(1) of this section, the Secretary may implement an expenditure reduction plan in the manner provided for in subdivision (b)(2) of this section, provided that the expenditure reduction plan is not greater than one percent of the prior official revenue estimate. If the Secretary implements an expenditure reduction plan under the authority of this subsection, any subsequent expenditure reduction plan that is required to address the remaining imbalance under the current official State revenue estimate may only be implemented in the manner provided for in subdivision (b)(1) of this section.
(g) No expenditure reduction plan may be approved or implemented under this section that:
(1) would result in total reductions in appropriations from any fund, or transfers to that fund, by more than four percent of the estimate originally determined and assumed for purposes of the current fiscal year’s appropriations; or
(2) would reduce expenditures or transfer revenues of the Education Fund as prescribed by law.
(h) An expenditure reduction plan may only be implemented under subsection (b) of this section subsequent to an official State revenue estimate and when the General Assembly is not in session.
(i) [Repealed.]
(j) In each instance that cumulative revenue collections during the month of September or October are four percent or more below the respective cumulative monthly revenue targets, the Emergency Board shall convene in the manner provided for in subsection 305a(b) of this title to determine whether to revise the official State revenue estimate.
(k) As used in this section:
(1) “Cumulative monthly revenue targets” means monthly revenue targets adopted based on the most current official State revenue estimates, as agreed upon by the Legislative Joint Fiscal Office and the Secretary.
(2) “Expenditure reduction plan” means a rescission plan that includes reducing and adjusting appropriations and their sources of funding, and transferring and adjusting funds, from the amounts authorized in the current fiscal year’s appropriations.
(3) “Official State revenue estimates” means a revenue estimate determined by the Emergency Board, as provided in section 305a of this title. An official State revenue estimate does not mean cumulative monthly revenue targets.
(Added 1995, No. 178 (Adj. Sess.), § 280; amended 1997, No. 61, § 262a; 2009, No. 52, § 1; 2013, No. 142 (Adj. Sess.), § 63; 2015, No. 58, § C.103, eff. June 11, 2015; 2015, No. 131 (Adj. Sess.), § 33; 2021, No. 105 (Adj. Sess.), § 462, eff. July 1, 2022; 2025, No. 27, § E.127, eff. July 1, 2025.)
§ 704a Execution of the laws relating to appropriations
(a) The Governor and every other officer or employee of the Executive Branch shall faithfully execute the laws relating to appropriations so as to effectuate the intent of the General Assembly in enacting such laws, including the provisions of this chapter, the annual appropriations act, and any budget adjustment act.
(b) The Executive Branch is authorized and encouraged to take such actions as are necessary and desirable to manage and administer State programs and agencies in an efficient, effective, and fiscally prudent manner, and to such ends may accomplish savings and reduce spending in such programs and agencies, provided that the legislative purposes for which the sums are appropriated are substantially accomplished.
(Added 1995, No. 178 (Adj. Sess.), § 281; amended 1999, No. 1, § 99, eff. March 31, 1999; 2021, No. 105 (Adj. Sess.), § 463, eff. July 1, 2022.)
§ 705 Allotment of appropriations
(a) With the approval of the Governor, the Secretary of Administration, through the Commissioner of Finance and Management or such divisions of the Agency of Administration as the Commissioner may designate, shall have the following powers, duties, and functions:
(1) The authority to allot from time to time to each department, institution, and State agency the appropriation made by the General Assembly for the department, institution, or State agency. The allotment may be made on a monthly basis or as the work of the department, institution, and agency may progress.
(2) The keeping of such controlling accounts as may be necessary in order to determine the accuracy and limit of the expenditures made under the allotments.
(b) The departments, institutions, and agencies shall be governed by the allotments made as provided in this section and shall not at any time exceed the sums thus allotted.
(c) The authority conferred by this section is granted solely for the ministerial purpose of managing the State’s financial accounts. Nothing contained in this section shall authorize any decrease in any such appropriation. If allotments have been made, the Secretary shall report to the Joint Fiscal Committee on or before the 15th day of each quarter, identifying and describing the allotments made pursuant to the authority granted by this section during the preceding quarter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
(Added 1959, No. 328 (Adj. Sess.), § 5; amended 1987, No. 243 (Adj. Sess.), § 62, eff. June 13, 1988; 1995, No. 178 (Adj. Sess.), § 283; 2011, No. 3, § 89, eff. Feb. 17, 2011; 2013, No. 142 (Adj. Sess.), § 64.)
§ 706 Transfer of appropriations
Notwithstanding any authority granted elsewhere, all transfers of appropriations shall be made pursuant to this section upon the initiative of the Governor or upon the request of a secretary or commissioner.
(1) With the approval of the Governor, the Commissioner of Finance and Management may transfer balances of appropriations not to exceed $100,000.00 made under any appropriation act for the support of the government from one component of an agency, department, or other unit of State government to any component of the same agency, department, or unit.
(2) Except as specified in subdivision (1) of this section, the transfer of balances of appropriations may be made only with the approval of the Emergency Board.
(3) For the specific purpose of balancing and closing out fund accounts at the end of a fiscal year, the Commissioner of Finance and Management may adjust a balance within an account of an agency or department in an amount not to exceed $200.00.
(4) [Repealed.]
(Added 1959, No. 328 (Adj. Sess.), § 6; amended 1971, No. 92, § 16, eff. June 1, 1971; 1977, No. 247 (Adj. Sess.), § 188, eff. April 17, 1978; 1979, No. 74, § 321; 1983, No. 195 (Adj. Sess.), § 5(b); 1999, No. 11, § 1; 1999, No. 66 (Adj. Sess.), § 53, eff. Feb. 8, 2000; 2003, No. 80 (Adj. Sess.), § 79, eff. March 8, 2004; 2005, No. 80, § 52; 2007, No. 65, § 395, eff. June 4, 2007; 2011, No. 3, § 90, eff. Feb. 17, 2011; 2011, No. 153 (Adj. Sess.), § 29; 2025, No. 27, § F.167, eff. May 21, 2025.)
§§ 707-709 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 283a.
§ 710 Payment of State agency fees
(a) Notwithstanding any other provision of law, the Agency of Transportation, any cooperating municipalities, and their contractors or agents shall be exempt from the payment of fee charges for reviews, inspections, or nonoperating permits issued by the Department of Public Safety, a District Environmental Commission, and the Agency of Natural Resources for any projects undertaken by or for the Agency and any cooperating municipalities for which all or a portion of the funds are authorized by a legislatively approved transportation construction, rehabilitation, or paving program within a general appropriation act introduced pursuant to section 701 of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A)(iii), (j)(10), (j)(11), and (j)(26).
(b) Notwithstanding any other provision of law, no fees shall be charged for reviews, inspections, or nonoperating permits issued by the Department of Public Safety, a District Environmental Commission, and the Agency of Natural Resources for:
(1) Any project undertaken by the Department of Buildings and General Services, the Agency of Natural Resources, or the Agency of Transportation that is authorized or funded in whole or in part by the capital construction act introduced pursuant to section 701a of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A)(iii), (j)(10), (j)(11), and (j)(26).
(2) Any project undertaken by a municipality, which is funded in whole or in part by a grant or loan from the Agency of Natural Resources or the Agency of Transportation financed by an appropriation of a capital construction act introduced pursuant to section 701a of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A)(iii), (j)(7)(A) and (B), (j)(10), (j)(11), and (j)(26). However, all such fees shall be paid for reviews, inspections, or permits required by municipal solid waste facilities developed by a solid waste district that serves, or is expected to serve, in whole or in part, parties located outside its own district boundaries pursuant to 10 V.S.A. chapter 159.
(Added 1993, No. 59, § 20, eff. June 3, 1993; amended 1993, No. 233 (Adj. Sess.), § 57, eff. June 21, 1994; 1995, No. 148 (Adj. Sess.), § 4(c)(1); 1999, No. 148 (Adj. Sess.), § 86, eff. May 24, 2000; 2003, No. 115 (Adj. Sess.), § 115, eff. Jan. 31, 2005; 2005, No. 103 (Adj. Sess.), § 2, eff. April 5, 2006; 2015, No. 64, § 45.)
§ 711 Approval of debt
If a person as defined in 1 V.S.A. § 128, except a municipality as defined in 1 V.S.A. § 126, pays a majority of its operating expenses, as determined in accordance with Generally Accepted Accounting Principles, in any fiscal year with amounts appropriated by the State, either directly or indirectly as a pass-through from a State agency or department, and the person intends to incur any debt in that fiscal year in the cumulative principal amount greater than $1,000,000.00, including debt incurred through the issuance of bonds, notes, bank loans, mortgages, lease-purchase contracts, and capital leases, then the person shall notify and obtain the approval of the State Treasurer and the Governor prior to incurring the debt. For the purposes of this section, amounts appropriated by the State shall not include nondiscretionary federal funds known as special revenue funds as presented in the State’s Annual Comprehensive Financial Report (ACFR).
(Added 2001, No. 61, § 67, eff. June 16, 2001; amended 2001, No. 142 (Adj. Sess.), § 320, eff. June 21, 2002; 2025, No. 18, § 55, eff. May 13, 2025.)
Chapter 11 Auditing
§ 801 Independent audit authorized
The financial statements of the funds of State government or the financial and other records of the Tax Commissioner, Treasurer, and Agency of Administration shall be examined by competent accountants employed by the State under the direction of the Emergency Board whenever in its discretion an independent audit will serve the best interests of the State. A copy of the report of such examination shall be filed with each member of the Emergency Board and shall be open to public inspection. The Emergency Board shall transmit to the General Assembly a copy of such reports covering the examination so made for the preceding two years. The expenses of such examinations shall be paid from the General Fund. The provisions of this section shall not be construed to limit the duty of the Auditor of Accounts as set forth under subdivision 163(1) of this title.
(Amended 1959, No. 328 (Adj. Sess.), § 22; 1967, No. 91, § 2.)
§ 802 Repealed
[Repealed]
1969, No. 219 (Adj. Sess.), § 4, eff. March 27, 1970.
§ 803 Repealed
[Repealed]
1987, No. 243 (Adj. Sess.), § 63, eff. June 13, 1988.
§ 804 Repealed
[Repealed]
1977, No. 146 (Adj. Sess.), § 6.
§ 805 County accounts to be specific
The Auditor shall not allow the account of a sheriff, jailer, State’s Attorney, county clerk, Justice, or district judge, unless such account specifies the offense charged or law violated on account of which such expenses or fees were incurred, nor unless it contains a true summary of the amount of such fees and expenses that are properly chargeable to offenses punishable by death or imprisonment in the State prison, to offenses against the law prohibiting the traffic in alcohol and to other misdemeanors.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2017, No. 83, § 161(5).)
§ 806 Audit where prisoner is bound over
(a) The cost of examination of a person accused of a crime exceeding the jurisdiction of a district judge to try and determine may be certified by the judge to the Auditor who shall audit the same.
(b) The Auditor shall require each district judge to furnish in writing the name of the person by him or her bound over for trial before allowing costs of trial in the prosecution.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 92, eff. April 9, 1974.)
§ 807 Audit of sheriff’s accounts
All accounts of a sheriff or his or her deputy shall be allowed as the account of the sheriff, and all bills of costs growing out of substantially the same transaction shall be audited at the same time. An officer, magistrate, or witness shall not be allowed fees more than once for essentially the same service, nor for constructive service. A bill of costs shall not be allowed in any case where it appears to the Auditor that the prosecution was superfluous and instituted for the purpose of enhancing costs.
§ 808 Repealed
[Repealed]
1993, No. 227 (Adj. Sess.), § 21.
§ 809 Auditing of court clerk accounts and of Probate Court judges
The Auditor shall examine the accounts of the judges of Probate and Superior Court clerks and ascertain whether their fees are properly and uniformly charged and rendered, and if the Auditor finds they are not, he or she shall direct the proper corrections to be made. The Auditor shall endeavor to obtain a uniform practice in the Superior Courts in that respect.
(Amended 2009, No. 154 (Adj. Sess.), § 197, eff. Feb. 1, 2011.)
Chapter 13 Debts and Claims
Subchapter 1 Borrowing
§ 901 Borrowing money
The Treasurer shall not make a contract binding the State for money borrowed unless it is countersigned by the Secretary of State.
(Amended 2007, No. 121 (Adj. Sess.), § 27.)
§ 902 Authorization to borrow money
(a) Notwithstanding any other provision of law to the contrary, the State Treasurer, with notification to the Governor, on behalf of the State may borrow on the credit of the State for the purpose of raising funds to pay expenses of government for which appropriations have been made but for which anticipated revenues have not been received, for the purpose of defraying accumulated State deficits, for the purposes authorized by section 955 of this title and for expenses of preparing, issuing, and marketing obligations issued for such purposes. To evidence such borrowing, the State Treasurer is authorized to issue notes or other similar obligations, which shall include notes commonly known as tax exempt commercial paper (notes) from time to time in such form and denominations and with such terms and provisions including the maturity date or dates, redemption provisions, and other provisions necessary or desirable as the State Treasurer shall determine. Such notes shall be non-interest bearing or bear interest at such rate or rates, which may be fixed or variable, as, in the judgment of the State Treasurer, may be sufficient or necessary to effect the issuance and sale or resale thereof in the manner determined by the State Treasurer. The State Treasurer is authorized to enter into such agreements with other persons as he or she deems necessary or appropriate in connection with the issuance, sale, and resale of such notes, including agreements providing liquidity or credit facilities in connection with such notes, and, at his or her discretion, to resell or retire any such notes purchased by the State prior to the stated maturity thereof.
(b) The State Treasurer shall pay the interest on and principal of notes as the same fall due without further order or authority from the governmental debt service funds established in section 951a of this chapter. The authority hereby granted is in addition to and not in limitation of any other authority. Such notes shall be sold at public or private sale with or without published notice, as the State Treasurer may determine to be in the best interests of the State.
(Added 1993, No. 19, § 1, eff. May 11, 1993; amended 1995, No. 178 (Adj. Sess.), § 264; 2025, No. 27, § F.168, eff. May 21, 2025.)
Subchapter 2 Claims
§ 931 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 48, eff. April 29, 1998.
§ 932 Claims against the State
(a) A person who has a claim against the State, the payment of which is not otherwise specially provided for by law, may file a claim in Small Claims Court in accordance with 12 V.S.A. chapter 187. Notwithstanding 12 V.S.A. § 5531(a), judgments on such claims shall not exceed $2,000.00.
(b) A claim under this section shall be filed within 18 months after the date the claim accrued, and shall not be filed until the claimant has exhausted any duly adopted administrative grievance procedure of the State agency or department against which the claim is made. If the agency or department has not issued a final determination within 90 days after the grievance was filed, then for purposes of a claim under this subchapter, the grievance claim shall be deemed granted.
(Amended 1977, No. 94; 1997, No. 156 (Adj. Sess.), § 46, eff. April 29, 1998; 1999, No. 8, § 1.)
§ 932a Administrative reimbursement for property damages
(a) In lieu of proceeding under section 932 of this title, a State employee who has a claim against the State for property damages may elect to file a claim under this section, provided the claim does not exceed $1,000.00.
(b) The claim shall be:
(1) made in writing, under oath, stating the facts relating to the claim;
(2) filed with the agency, department, or other State entity that employs the claimant; and
(3) filed within one year after the date the claim accrued.
(c) The State entity with which the claim is filed may approve payment of a claim against the State for property damages sustained by the employee and payment of the claim shall be charged against that entity’s departmental appropriation.
(d) If a claim is approved under this section, the Commissioner of Finance and Management shall issue a warrant for the amount of the award, the acceptance of which shall be a full discharge of all claims against the State arising out of the matters involved in the award. If the claim is disapproved, the person may proceed to file the claim under section 932 of this title.
(e)(1) A State employee who incurs expenses for legal representation because of a criminal investigation conducted by law enforcement authorities regarding an act or omission within the scope of the employee’s duties, may present an administrative claim to the head of his or her employing agency, provided that the employee has not:
(A) been convicted of any criminal offense on account of the act or omission;
(B) been finally terminated by the employing agency; or
(C) resigned from employment due to the act or omission.
(2) If the agency head has not yet made a determination whether the employee will be terminated, or if the termination is appealed to the Vermont Labor Relations Board, the request may be held until such a determination has been made or the Board decides the case. An employee reinstated by the Board may present a claim.
(3) The agency head shall forward the request along with a recommendation to the Secretary of Administration, who may authorize administrative reimbursement from the Agency’s budget for reasonable and necessary expenses, not to exceed $5,000.00. Payment under this subsection may only be authorized upon a finding by the Secretary of Administration that the act or omission was within the scope of the employee’s duties. The decision to reimburse and the amount of reimbursement are matters fully within the Secretary’s discretion. The Secretary’s decision shall be final and there shall be no appeal or challenge of the decision. There shall be no other reimbursement of legal expenses for criminal representation except as authorized under 3 V.S.A. § 1104.
(Added 1999, No. 8, § 2; amended 2001, No. 72, § 1; 2021, No. 105 (Adj. Sess.), § 464, eff. July 1, 2022.)
§ 933 Hearing
(a) Notwithstanding 12 V.S.A. § 5535, claims to the Small Claims Court brought under this subchapter shall be decided by the court with no jury. An appeal from the decision of the Small Claims Court shall be in accordance with provisions of 12 V.S.A. § 5538.
(b) The Small Claims Court shall decide a claim filed under this subchapter by an inmate of a correctional facility on the basis of affidavits of the parties and testimony by telephone; or the court may in its discretion request additional evidence to decide such claims.
(c) Upon award of damages by the Small Claims Court, the Commissioner of Finance and Management shall issue a warrant for the amount, the acceptance of which shall be a full discharge of all claims against the State arising out of the matters involved in the award.
(Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1981, No. 249 (Adj. Sess.), § 7; 1983, No. 195 (Adj. Sess.), § 5(b); 1997, No. 156 (Adj. Sess.), § 47, eff. April 29, 1998; 2021, No. 105 (Adj. Sess.), § 465, eff. July 1, 2022.)
§ 934 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 48, eff. April 29, 1998.
§ 935 Payment of claims
The amount paid under this subchapter shall be charged to the State agency responsible for the basis of the claim; otherwise, it shall be paid from the contingent fund.
Subchapter 3 State Bonds
§ 951 Applicability
This subchapter shall apply to all bonds authorized by the General Assembly, provided that provisions in authorizing acts inconsistent with this subchapter shall control, except as provided in section 957 of this title.
(Added 1959, No. 24, § 1, eff. March 10, 1959; amended 2021, No. 105 (Adj. Sess.), § 466, eff. July 1, 2022.)
§ 951a Debt service funds
(a) Three governmental debt service funds are hereby established:
(1) the General Obligation Bonds Debt Service Fund to fulfill debt service obligations of general obligation bonds from all funding sources;
(2) the Transportation Infrastructure Bonds Debt Service Fund to fulfill debt service obligations of transportation infrastructure bonds funded primarily by the revenues of the Transportation Infrastructure Bond Fund; and
(3) other debt service funds to fulfill debt service obligations of other long-term debt funded by governmental fund dedicated revenue sources.
(b) Financial resources in each fund shall consist of the transfer of funding sources by the General Assembly to fulfill future debt service obligations, bond proceeds raised to fund a permanent reserve required by a trust agreement entered into to secure bonds, transfers of appropriations effected pursuant to section 706 of this title, investment income earned on balances held in trust agreement accounts as required by a trust agreement, and such other amounts as directed by the General Assembly or that are specifically authorized by provisions of this title. Each debt service fund shall account for the accumulation of resources and the fulfillment of debt service obligations within the current fiscal year and the accumulation of resources for debt service obligations maturing in future fiscal years.
(c) Debt service obligations of general obligation bonds, transportation infrastructure bonds, or other authorized long-term obligations shall be fulfilled from the respective governmental debt service funds established in this section.
(d) As used in this section, “debt service obligations” of bonds include requirements to:
(1) pay principal and interest, sinking fund obligations, and redemption premiums;
(2) pay investment return on and the maturity value of capital appreciation bonds;
(3) provide for reserves required by a trust agreement entered into to secure bonds; and
(4) provide any additional security, insurance, or other form of credit enhancement required by a trust agreement entered into to secure bonds.
(Added 2011, No. 63, § F.101, eff. June 2, 2011; amended 2025, No. 27, § F.169, eff. May 21, 2025.)
§ 952 Denominations; how issued
The bonds may be issued at one time or in series from time to time, in any form permitted by law. Except for zero coupon bonds or capital appreciation bonds designated as such by the State Treasurer, with the approval of the Governor, each series shall be payable in substantially equal or diminishing amounts annually, the first of the annual payments to be made not later than five years after the date of the bonds and the last of the payments to be made not later than 20 years after the date. All bonds shall mature not later than 20 years after the date of the bonds. The principal, interest, investment returns, and maturity value of the bonds shall be payable in lawful money of the United States or of the country in which the bonds were sold and for the payments the full faith and credit of the State are hereby pledged. Bonds shall be signed by the State Treasurer or the State Treasurer’s deputy and countersigned by the manual or facsimile signature of the Secretary of State or the Secretary of State’s deputy, and shall bear the Seal of the State or a facsimile of the Seal of the State, and the interest coupons on the bonds shall bear the facsimile signature of the State Treasurer. Bonds shall be registered as provided by this subchapter. The date of issuance; place of payment; rate of interest, which may be fixed or variable; or the manner of determining the rate of interest, original stated value, investment returns or manner of determining the same, maturity value, time of maturity, provisions with respect to redemption prior to maturity, at par or at a premium, sinking fund and reserve requirements, and other particulars as to the form of the bonds, within the limitations mentioned under this section, shall be determined by the State Treasurer with the approval of the Governor as the State Treasurer may deem for the best interests of the State. Bonds shall contain on their face the statement that they are issued for the purposes mentioned in, under the authority of, and in conformity with the authorizing act, and that their form and other particulars and details have been duly determined by the State Treasurer, with the approval of the Governor; and the statement shall be conclusive evidence of the liability of the State to any bona fide holder, and the bonds so issued shall be the lawful obligations of the State.
(Added 1959, No. 24, § 2, eff. March 10, 1959; amended 1979, No. 205 (Adj. Sess.), § 156, eff. May 9, 1980; 1985, No. 125 (Adj. Sess.), § 1, eff. April 18, 1986; 1989, No. 276 (Adj. Sess.), § 22, June 20, 1990; 1993, No. 19, § 2, eff. May 11, 1993; 2021, No. 105 (Adj. Sess.), § 467, eff. July 1, 2022.)
§ 953 Sales, record
The State Treasurer, with the approval of the Governor, is hereby authorized to sell such bonds at such prices, in such amount, at such times, and in such manner, with or without advertising the same, as he or she shall determine to be for the best interests of the State, at public or private sale. The State Treasurer shall keep an accurate record of each and every bond when issued, the number and denomination of each bond when issued, when and where payable, to whom sold, and the rate of interest or the investment return thereon and shall keep an accurate record of all payments of interest, principal, investment return, and maturity value. Interest and the investment return on such bonds shall be exempt from taxation in this State.
(Added 1959, No. 24, § 3, eff. March 10, 1959; amended 1989, No. 276 (Adj. Sess.), § 23, eff. June 20, 1990.)
§ 954 Proceeds
(a) The proceeds arising from the sale of bonds, inclusive of any premiums, shall be applied to the purposes for which they were authorized, and the purposes may be considered to include underwriters’ fees and amounts for reserves, but no purchasers of the bonds shall be in any way bound to see to the proper application of the proceeds. The State Treasurer shall pay the interest on, principal of, investment return on, and maturity value of the bonds and notes as the same fall due or accrue without further order or authority. The State Treasurer, with the approval of the Governor, may establish sinking funds, reserve funds, or other special funds of the State as the State Treasurer may deem for the best interests of the State. To the extent not otherwise provided, the amount necessary each year to fulfill the maturing principal and interest of, investment return and maturity value of, and sinking fund installments on all the bonds then outstanding shall be included in and made a part of the annual appropriation bill for the expense of State government, and the principal and interest on, investment return and maturity value of, and sinking fund installments on the bonds as may come due before appropriations for their fulfillment have been made shall be fulfilled from the applicable debt service fund.
(b) The estimated cost of bond issuance or issuances, including the costs of preparing, issuing, and marketing such bonds or notes shall be appropriated annually from the funds from which transfers are made to fund debt service costs.
(c) Notwithstanding any other provisions of law, the State Treasurer, with the approval of the Secretary of Administration, is hereby authorized to transfer to any authorized projects unspent proceeds derived from the sale of State bonds or notes previously issued for projects previously authorized, and the State Treasurer is hereby further authorized to issue bonds or notes of the State to replenish such transferred funds for application to the original authorized capital projects.
(Added 1959, No. 24, § 4, eff. March 10, 1959; amended 1961, No. 157, eff. June 14, 1961; 1989, No. 276 (Adj. Sess.), § 24, eff. June 20, 1990; 1995, No. 185 (Adj. Sess.), § 41a, eff. May 22, 1996; 1999, No. 29, § 22, eff. May 19, 1999; 2001, No. 61, § 32, eff. June 16, 2001; 2001, No. 149 (Adj. Sess.), § 19, eff. June 21, 2002; 2009, No. 33, § 63; 2011, No. 63, § F.102, eff. June 2, 2011; 2011, No. 104 (Adj. Sess.), § 34, eff. May 7, 2012; 2021, No. 105 (Adj. Sess.), § 468, eff. July 1, 2022; 2025, No. 27, § F.170, eff. May 21, 2025.)
§ 955 Anticipation of proceeds
Pending the issue of said bonds, the State Treasurer, with the approval of the Governor, may use any available cash in the Treasury for the purposes for which the bonds were authorized and restore the same from the proceeds of said bonds. Also, the State Treasurer, with the approval of the Governor, may borrow upon notes of the State sums of money in anticipation of the proceeds of the bonds. Such notes shall be issued on such terms and at such times as they may determine. Each such note shall mature not more than two years from its date, provided that notes issued for a shorter period may be refunded from time to time by the issue of other such notes maturing within the required period of two years. The authority hereby granted is in addition to and not in limitation of any other authority.
(Added 1959, No. 24, § 5, eff. March 10, 1959; amended 1993, No. 19, § 3, eff. May 11, 1993.)
§ 956 Time available
Unless otherwise specifically provided as to any particular appropriation to be raised by the issue of bonds, provisions of law relating to the lapse of unexpended appropriations shall not apply.
(Added 1959, No. 24, § 6, eff. March 10, 1959.)
§ 957 Consolidation
The bonds authorized by one or more acts of the General Assembly may in the discretion of the officers issuing the bonds be combined upon their issue into one or more consolidated issues. The particular bonds of the consolidated issue issued under each authority may but need not be designated by number or otherwise. The bonds of the consolidated issues may be designated by titles as may be deemed appropriate by the officers, which shall be in substitution for any titles prescribed by the authorizing acts, and shall contain on their face the statement that they are issued for the purposes mentioned in, under the authority of, and in conformity with the authorizing acts instead of the statement prescribed above or in the authorizing act, and the statement shall be conclusive evidence of the liability of the State to any bona fide holder, and the bonds so issued shall be the lawful obligations of the State.
(Added 1959, No. 24, § 7, eff. March 10, 1959; amended 2021, No. 105 (Adj. Sess.), § 469, eff. July 1, 2022.)
§ 958 Expiration of office
Any bonds or notes issued pursuant to this subchapter, if properly executed by the officers of the State in office on the date of the signing or on the date of imprinting of the facsimile signature, as the case may be, shall be valid and binding according to their terms, notwithstanding that before their delivery and payment, any or all executing officers shall have for any reason ceased to hold office.
(Added 1959, No. 24, § 8, eff. March 10, 1959; amended 2021, No. 105 (Adj. Sess.), § 470, eff. July 1, 2022.)
§ 959 Repealed
[Repealed]
1989, No. 52, § 17(a), eff. May 17, 1989.
§ 960 Issuance of bonds
Issuance of bonds authorized by the General Assembly for a given fiscal year may, in the discretion of the State Treasurer with the approval of the Governor, be issued in the months of May or June preceding that fiscal year, or at any time thereafter and until such authorization is rescinded by the General Assembly prior to the issuance of such bonds.
(Added 1981, No. 233 (Adj. Sess.), § 14(c); amended 1999, No. 148 (Adj. Sess.), § 87, eff. May 24, 2000.)
§ 961 Refunding bonds
(a) The State Treasurer, with the approval of the Governor, is hereby authorized to issue general obligation bonds in order to refund all or any portion of one or more issues of outstanding general obligation bonds at any time after the issuance of the bonds to be refunded. The State Treasurer, with the approval of the Governor, is authorized to refinance outstanding certificates of participation or outstanding long-term lease purchase agreements through the issuance of general obligation bonds or notes of the State of Vermont or certificates of participation. To the extent available, any reduction in debt service coming from the refunding shall be used to offset General Fund debt service in the fiscal year of the reductions.
(b) The State Treasurer, prior to the issuance of refunding bonds, shall have authority to contract on behalf of the State with a bank or trust company authorized to do business in this State for the purpose of having the bank or trust company act as the escrow agent of the proceeds, inclusive of any premium, from the sale of the refunding bonds, together with all income derived from the investment of the proceeds, and any other monies to be provided by the State to effectuate the refunding.
(c) The proceeds, inclusive of any premium, from the sale of refunding bonds, immediately upon receipt, shall be placed in escrow with the escrow agent in accordance with the escrow contract. That portion of the proceeds required for the payment of the principal of and interest on or investment return or maturity value of the bonds to be refunded, including any redemption premiums, shall be irrevocably committed and pledged to that purpose and the holders of the bonds to be refunded shall have a lien upon the monies and investments held by the escrow holder. The pledge and lien provided for in this subsection shall become valid and binding upon the issuance of the refunding bonds and the monies and investments held by the escrow agent shall immediately be subject to the pledge and lien without any further act. The pledge and lien shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the State, irrespective of whether the parties have received notice. Neither the escrow contract, nor any other instrument relating to the pledges and liens, need be filed or recorded.
(d) The refunding bonds authorized by this section shall be issued in accordance with the provisions of this chapter, provided that installments on refunding bonds need not be payable in substantially equal or diminishing amounts and provided further that no notes may be issued in anticipation of the proceeds of the refunding bonds.
(e) [Repealed.]
(Added 1985, No. 125 (Adj. Sess.), § 2, eff. April 18, 1986; amended 1989, No. 276 (Adj. Sess.), §§ 25, 28, eff. June 20, 1990; 1995, No. 185 (Adj. Sess.), § 65, eff. May 22, 1996; 2021, No. 105 (Adj. Sess.), § 471, eff. July 1, 2022.)
§ 962 Private use compliance, notice, and approval
Any entity receiving an appropriation financed with proceeds of tax-exempt bonds of the State shall notify and receive approval from the State Treasurer and the Secretary of Administration at least 90 days prior to finalizing an agreement with a nonpublic or for-profit entity to rent, lease, sell, or otherwise dispose of property financed with those proceeds and also shall pay any cost related to compliance with the Internal Revenue Code of 1986, as amended, resulting from disposal of the property. This notification requirement shall not apply if the proceeds were included in the five percent allowance for private use prior to the issuance of bonds, or if the proceeds were provided, or the property was disposed of, as a grant or otherwise with no payment or repayment made or required to be made to the State or to the entity.
(Added 2011, No. 104 (Adj. Sess.), § 35, eff. May 7, 2012.)
Subchapter 4 Transportation Infrastructure Bonds
§ 971 Repealed
[Repealed]
1966, No. 32, § 3.
§ 972 Transportation Infrastructure Bonds
(a) The Treasurer may issue bonds pursuant to this subchapter from time to time in amounts authorized by the General Assembly in its annual transportation bill. Bonds issued under this section shall be referred to as “Transportation Infrastructure Bonds.”
(b) As used in this subchapter, the term “debt service obligations” is as defined in section 951a of this title.
(c) Debt service obligations of the bonds shall be fulfilled or satisfied in accordance with the terms of any trust agreement pertaining to the bonds from the Transportation Infrastructure Bonds Debt Service Fund.
(d) Funds raised from bonds issued under this section may be used to pay for or fund:
(1) the rehabilitation, reconstruction, or replacement of State bridges and culverts;
(2) the rehabilitation, reconstruction, or replacement of municipal bridges and culverts;
(3) the rehabilitation, reconstruction, or replacement of State roads, railroads, airports, and necessary buildings that after such work, have an estimated minimum remaining useful life of 30 years or more; and
(4) a permanent reserve required by a trust agreement entered into to secure the bonds.
(e) Pursuant to section 953 of this title, interest and the investment return on the bonds shall be exempt from taxation in this State.
(f) Bonds issued under this section shall be legal investments for all persons without limit as to the amount held, regardless of whether they are acting for their own account or in a fiduciary capacity. The bonds shall likewise be legal investments for all public officials authorized to invest in public funds.
(Added 2009, No. 50, § 28; amended 2011, No. 63, § F.103, eff. June 2, 2011.)
§ 973 Issuance of bonds
(a) Transportation Infrastructure Bonds may be issued at one time or in a series from time to time in any form permitted by law, in such manner and on such terms and conditions as the State Treasurer may determine to be in the best interests of the State, except that the State Treasurer shall determine the following with the approval of the Governor:
(1) date of issuance;
(2) place of payment;
(3) rate of interest (which may be fixed or variable) or the manner of determining such rate of interest;
(4) original stated value;
(5) investment returns or manner of determining the investment returns;
(6) maturity value, time of maturity, and provisions with respect to redemption prior to maturity;
(7) whether to issue the bonds at par, premium, or discount;
(8) sinking fund and reserve requirements;
(9) amount and manner of issuance; and
(10) other particulars as to the form of such bonds within the limitations of this subchapter.
(b) The State Treasurer shall determine the annual payment schedule for the bonds, including debt service and sinking fund payments, if any, as he or she may deem to be in the best interests of the State. However, any bond issued under this subchapter shall mature not later than 30 years after the date of issuance. Installments on the bonds need not be payable in substantially equal or diminishing amounts. The last bond payment shall be made not later than 30 years after the date of issuance.
(c) The State Treasurer may determine at the time of issuance to apply all or a portion of any net premium to the costs of issuance, other related financing costs, or the payment of the principal or interest to come due. If net premium is applied to costs of issuance, the amount of the premium shall not be included in the net proceeds of the issue. Net premium not applied to costs of issuance shall be included in the net proceeds of the issue and may be used for any of the authorized purposes of the bond proceeds.
(d) The debt service obligations of Transportation Infrastructure Bonds which require a cash payment shall be payable in lawful money of the United States or of the country in which the bonds are sold.
(e) Transportation Infrastructure Bonds shall be registered pursuant to section 981 of this title.
(Added 2009, No. 50, § 28; amended 2011, No. 63, § F.104, eff. June 2, 2011.)
§ 974 Security documents
(a) The State Treasurer is authorized to secure bonds authorized under this subchapter by a trust agreement that pledges or assigns monies in the Transportation Infrastructure Bond Fund, by additional security, insurance, or other forms of credit enhancement that may be secured with the bonds on a parity or subordinate basis, or by both.
(b) Any trust agreement or credit enhancement agreement entered into pursuant to this section shall be valid and binding from the time of the agreement without any physical delivery or further act and without any filing or recording under the Uniform Commercial Code or otherwise, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise, irrespective of whether such parties have notice thereof.
(c) Any trust agreement or credit enhancement agreement may establish provisions defining defaults and establishing remedies and other matters relating to the rights and security of the holders of the bonds or other secured parties as determined by the State Treasurer, including provisions relating to the establishment of reserves; the issuance of additional or refunding bonds, whether or not secured on a parity basis; the application of receipts, monies, or funds pledged pursuant to the agreement; and other matters deemed necessary or desirable by the State Treasurer for the security of the bonds, and may also regulate the custody, investment, and application of monies.
(d) For payment of debt service obligations of Transportation Infrastructure Bonds, the full faith and credit of the State is hereby pledged. However, if pledging of full faith and credit of the State is not necessary to market a Transportation Infrastructure Bond in the best interests of the State, the Treasurer shall enter into an agreement that establishes that the full faith and credit of the State is not pledged for payment of debt service obligations of the bond. In determining whether to pledge the full faith and credit of the State, the State Treasurer shall consider the anticipated effect of such a pledge on the credit standing of the State, the marketability of the Transportation Infrastructure Bond, and other factors he or she deems appropriate.
(Added 2009, No. 50, § 28; amended 2011, No. 63, § F.105, eff. June 2, 2011.)
§ 975 Proceeds
Proceeds from the sale of bonds may be expended for the authorized purposes of the bonds, including the expenses of preparing, issuing, and marketing the bonds; any notes issued under section 976 of this title; and amounts for any reserves. However, no purchasers of the bonds shall be bound to see to the proper application of the proceeds thereof.
(Added 2009, No. 50, § 28; amended 2011, No. 63, § F.106, eff. June 2, 2011.)
§ 975a Authority of Treasurer
The Treasurer may fulfill debt service obligations of bonds issued under this subchapter as they fall due without further order or authority. All such fulfillments shall be accounted for as a payment or provision made from the Transportation Infrastructure Bonds Debt Service Fund.
(Added 2011, No. 63, § F.107, eff. June 2, 2011.)
§ 975b Debt service appropriations
The General Assembly shall appropriate in the annual appropriations bill the amount necessary from the appropriate funds to pay the debt service obligations of Transportation Infrastructure Bonds that are due in the fiscal year covered by the appropriations bill.
(Added 2011, No. 63, § F.108, eff. June 2, 2011.)
§ 976 Anticipation of proceeds
(a) Pending the issue of Transportation Infrastructure Bonds, the State Treasurer, with the approval of the Governor, may use any available cash in the Transportation Infrastructure Bond Fund for the purposes for which the bonds were authorized, and shall restore the borrowed funds from the proceeds of the bonds.
(b) The State Treasurer, with the approval of the Governor, may borrow upon notes of the State sums of money in anticipation of the proceeds of the bonds. Notes issued under this subsection shall be issued on such terms and at such times as the Treasurer and Governor may determine, and shall mature not more than three years from the date of issuance, provided that notes issued for a shorter period may be refunded from time to time by the issue of other such notes maturing within the required period of three years.
(c) The authority granted under this section is in addition to and not in limitation of any other authority.
(Added 2009, No. 50, § 28.)
§ 977 Refunding bonds
The State Treasurer, with the approval of the Governor, is hereby authorized to issue Transportation Infrastructure Bonds in order to refund all or any portion of outstanding transportation bonds at any time after the issuance of the bonds to be refunded pursuant to subsections 961(b), (c), and (d) of this title.
(Added 2009, No. 50, § 28.)
§ 978 Pledge
The General Assembly hereby pledges and covenants with holders of the bonds issued under this subchapter that the State will fulfill the terms of any agreement made with the holders of Transportation Infrastructure Bonds and will not in any way impair the rights or remedies of the holders of the bonds until the bonds, interest, and all costs associated with the bonds are fully paid.
(Added 2009, No. 50, § 28.)
§ 979 Authorities
In addition to the provisions of this subchapter, the following provisions of this title shall apply to Transportation Infrastructure Bonds:
(1) sections 951a, 953, 956, 958, and 960;
(2) subsection 954(c), except that transfers shall be made only among projects to be funded with Transportation Infrastructure Bonds; and
(3) section 957, except that consolidation may be only among Transportation Infrastructure Bonds, and the bonds shall be the lawful obligation of the Transportation Infrastructure Bond Fund and not of the remaining revenues of the State unless the Treasurer has agreed to pledge the full faith and credit of the State pursuant to subsection 974(d) of this title.
(Added 2009, No. 50, § 28; amended 2011, No. 63, § F.109, eff. June 2, 2011.)
§ 980 Authority to issue Transportation Infrastructure Bonds
The State Treasurer is authorized to issue Transportation Infrastructure Bonds pursuant to section 972 of this title for the purpose of funding future appropriations only as approved by the General Assembly.
(Added 2009, No. 50, § 28.)
Subchapter 5 Form of Bonds and Notes
§ 981 Form of bonds or notes
Notwithstanding any general or special law to the contrary, the State may issue bonds or notes in coupon form payable to the bearer, in registered form without coupons, or in book entry form. Bonds or notes other than those in book entry form shall be signed by the manual or facsimile signature of the State Treasurer or the State Treasurer’s deputy and countersigned by the manual or facsimile signature of the Secretary of State or the Secretary of State’s deputy, and the interest coupons on the bonds or notes, if any, shall bear the facsimile signature of the State Treasurer. The Seal of the State shall be affixed or imprinted on the bonds or notes. The date of issuance; place of payment; rate of interest, which may be fixed or variable, or manner of determining the rate of interest; original stated value; investment returns or manner of determining the same; maturity value; time of maturity; provisions with respect to redemption prior to maturity, at par or at a premium; sinking fund and reserve requirements; and other particulars as to the form of the bonds within the limitations mentioned under this section, shall be determined by the State Treasurer with the approval of the Governor as the State Treasurer may deem for the best interests of the State.
(Added 1983, No. 15, eff. March 29, 1983; amended 1989, No. 276 (Adj. Sess.), § 26, eff. June 20, 1990; 1993, No. 19, § 4, eff. May 11, 1993; 2021, No. 105 (Adj. Sess.), § 472, eff. July 1, 2022.)
§ 982 Transfer agent
The State Treasurer shall act as transfer agent or registrar for the exchange or transfer of registered bonds or notes or maintain the records so that bonds or notes in book entry form may be effected or contract with or otherwise designate a bank, trust company, or other person to act as transfer agent or registrar for the bonds or notes or maintain the records so that bonds or notes in book entry form may be effected. Such bank, trust company, or other person, which may include the federal government or any of its agencies or instrumentalities, or any officer, agency, or instrumentality of the State, may be located or have its principal office inside or outside the State; provided, however, that any such transfer agent or registrar (other than the federal government or any of its agencies or instrumentalities) not domiciled in the State or having its principal business in the State, shall qualify and be authorized to do business in the State, or shall otherwise render itself amenable to personal service of process in the State and shall submit itself to personal jurisdiction in the courts of the State. Bonds or notes in book entry form shall be effected by means of entries on the records of the State Treasurer or his or her designee which shall reflect the description of the issue, the principal amount, maturity value, the interest rate, investment returns, the maturity date, the owner of the bonds or notes, and such other information as is deemed appropriate. The State Treasurer or other designated person may effect conversions between book entry bonds or notes and registered bonds or notes for owners of bonds or notes who request such a change. The State Treasurer or other designated transfer agent or registrar shall issue a confirmation of the transaction in the form of a written advice.
(Added 1983, No. 15, eff. March 29, 1983; amended 1989, No. 276 (Adj. Sess.), § 27, eff. June 20, 1990.)
§ 983 Confidential registry
The books of registry held by the State Treasurer or other designated registrar shall be confidential and the information contained in the books of registry shall not be available to the public.
(Added 1983, No. 15, eff. March 29, 1983; amended 2021, No. 105 (Adj. Sess.), § 473, eff. July 1, 2022.)
§ 984 Additional powers
The State Treasurer or his or her designee shall have such additional powers as are necessary to effectuate the purposes of this subchapter.
(Added 1983, No. 15, eff. March 29, 1983.)
§ 985 Application
This subchapter supersedes any existing general or special law of the State with respect to the matters contained under this subchapter as they apply to bonds or notes issued by the State, but shall not diminish or restrict any powers previously granted by law.
(Added 1983, No. 15, eff. March 29, 1983; amended 2021, No. 105 (Adj. Sess.), § 474, eff. July 1, 2022.)
Subchapter 6 Private Activity Bonds
§ 991 Definitions
As used in this subchapter:
(1) “Private activity bond” shall have the meaning ascribed to it in Section 141 of the Internal Revenue Code of 1986, as amended. The use of such term in this subchapter is for reference purposes only, and shall not imply that the State of Vermont agrees that any bond issued in accordance with such section is for a “private activity.”
(2) “Issuing authority” means any agency or governmental unit or instrumentality of the State, or any public corporation established by the State, authorized by law to issue private activity bonds, including municipal corporations. It shall include, without limiting the generality of the foregoing, the Vermont Economic Development Authority, the Vermont Housing Finance Agency, the Vermont Municipal Bond Bank, and the Vermont Student Assistance Corporation.
(Added 1985, No. 25, § 1; amended 1987, No. 36, § 1, eff. Jan. 1, 1988; 1993, No. 89, § 3(a), eff. June 15, 1993.)
§ 992 Allocation; authority
(a) The State of Vermont hereby elects, under Section 146 of the Internal Revenue Code of 1986, as amended, to establish its formula for allocating the State ceiling among the governmental units of a state having authority to issue “private activity bonds” the interest on which is not included in gross income of recipients thereof for federal income tax purposes. The State allocation formula established under this subchapter shall apply to all private activity bonds that all issuing authorities may issue in any calendar year.
(b)(1) One hundred percent of Vermont’s federally allocated State ceiling on the volume of private activity bonds that may be issued in any calendar year is hereby allocated to the State. The Emergency Board established by chapter 3 of this title shall be the duly authorized agency of the State having the power to apportion the State’s private activity bond ceiling to and among the constituted issuing authorities empowered to issue such bonds. The Emergency Board shall exercise this power on or before January 31 in each calendar year by apportioning the ceiling among issuing authorities, reserving such portion as the Board deems appropriate in the form of a contingency allocation to be available to all issuing authorities at the discretion of the Emergency Board, pursuant to policies and guidelines established by the Board.
(2) The Board may delegate the power and authority granted to it under this section to the Governor, subject to the Board’s policies and guidelines, for any assignments or reallocations of any unused portion of the ceiling made after December 20 in any calendar year. All assignments or reallocations of the private activity bond ceiling made pursuant to this section shall be made in writing in accordance with Section 146 of the Internal Revenue Code of 1986.
(Added 1985, No. 25, § 1; amended 1987, No. 36, § 2, eff. May 11, 1987; 2017, No. 74, § 135.)
§ 993 Public approval, out-of-state issuers
Notwithstanding any provision to the contrary in Title 9, the Governor, in consultation with the State Treasurer, shall have exclusive authority to grant any public approval required under Section 147(f)(2) of the Internal Revenue Code of 1986, as amended, pertaining to the proposed issuance of qualified private activity bonds when the purpose of the bonds is to finance or refinance purposes to be located within the State and the bonds are proposed by any issuers of qualified private activity bonds organized under the laws of a jurisdiction other than the State of Vermont. Approval shall not be withheld unless the Governor, in consultation with the State Treasurer, determines in good faith that the issuance is not financially sound.
(Added 2011, No. 104 (Adj. Sess.), § 36, eff. May 7, 2012.)
§ 994 Recommendation regarding private bond volume cap
The Treasurer shall, in coordination with the Secretary of Administration, the Secretary of Commerce and Community Development, and any bond issuing authority of the State or instrumentality of the State that is eligible to issue private activity bonds:
(1) annually survey the expected need for private activity bond allocations and provide recommendations to the Emergency Board prior to its meetings;
(2) maintain guidelines for allocation of private activity bonding capacity designed to maximize the availability of tax-exempt financing among various sectors of the Vermont economy with a focus on economic development, housing, education, redevelopment, public works, energy, waste management, waste and recycling collection, transportation, and other activities that benefit the citizens of Vermont which guidelines should support efforts and entities that increase the number of good-paying jobs in the State, promote economic development, support affordable housing, and affordable access to postsecondary education and training, and encourage the use of Vermont’s human and natural resources in endeavors that maximize Vermont’s comparative economic advantages, and be flexible enough to include new and innovative uses of private activity bonds, consistent with federal regulations and the Internal Revenue Code;
(3) on or before December 1 of each year, shall make recommendations to the Emergency Board on the allocation, including any amounts reserved for contingency allocations, of the State’s private activity bond ceiling for the following calendar year to and among the constituted issuing authorities empowered to issue such bonds; and
(4) as required, or at the request of the Governor or the Emergency Board, make recommendations to the Governor or Emergency Board concerning assignments or reallocation of any unused portion of the ceiling subsequent to an allocation by the Emergency Board in a given year.
(Added 2011, No. 110 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2013, No. 1, § 98; 2021, No. 105 (Adj. Sess.), § 475, eff. July 1, 2022; 2023, No. 53, § 139, eff. June 8, 2023.)
Subchapter 7 Federal Taxation of Interest
§ 995 Agreements for the exemption of interest
(a) It is hereby found and determined that proposed amendments to the Internal Revenue Code of 1986, including, particularly, 26 U.S.C. § 103, and the relevant regulations of the U.S. Treasury Department, require the State, municipal corporations, and agencies and instrumentalities thereof, collectively referred to as “Issuers,” to enter into agreements, make covenants with the holders of their respective obligations, or take other actions as a condition to the noninclusion of interest on their respective obligations in gross income of recipients for federal income tax purposes. It is hereby further found and determined that it is in the best interests of the issuers to leave no ambiguity as to whether the issuers have the authority to enter into such agreements, make the covenants, or take other actions.
(b) Issuers are hereby authorized and empowered to enter into any agreement, make any covenant, or take any other action required to assure that interest on their respective bonds is not included in gross income of the recipients for federal income tax purposes.
(c) Notwithstanding the provisions of 24 V.S.A. §§ 4648 and 1753 and section 954 of this title, or any other general, special, or local law to the contrary, issuers are hereby authorized to appropriate and pay to the U.S. Treasury Department, or any other agency of the United States, all or a portion of the income received by the issuers from the investment or reinvestment of the proceeds of their respective bonds, in the amount and to the extent necessary to assure that interest on their respective bonds is not included in gross income of the recipients for federal income tax purposes.
(Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, No. 36, § 3, eff. May 11, 1987; 2021, No. 105 (Adj. Sess.), § 476, eff. July 1, 2022.)
§ 996 Delegation authorized
The legislative branch of a municipality or county, however defined, may delegate to the treasurer or chief fiscal officer of a municipal corporation the power to enter into any agreement, make any covenant, or take any other action described in section 995 of this title. The State Treasurer may delegate to the treasurer or chief financial officer of any State instrumentality the power to enter into any agreement, make any covenant, or take any other action described in section 995 of this title.
(Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, No. 36, § 4, eff. May 11, 1987.)
§ 997 State covenant
To the extent that an issuer has entered into an agreement, covenanted, or acted to assure that interest on its obligations is not included in the gross income of the recipients for federal income tax purposes pursuant to this chapter, the State will not limit or alter the power to perform the agreement or covenant or take action or in any way impair the rights and remedies of any holders, until the bonds, together with the interest on the bonds, and all costs and expenses in connection with any action or proceeding by or on behalf of the holders, are fully paid and discharged. Issuers are hereby authorized to include this pledge and agreement of the State in any agreement with the holders of their respective obligations.
(Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, No. 36, § 5, eff. May 11, 1987; 2021, No. 105 (Adj. Sess.), § 477, eff. July 1, 2022.)
§ 998 Loans and grants
In the event the State Treasurer issues bonds the interest on which is not to be included in gross income for federal income tax purposes, to the extent that such funds are made available to any municipal corporation, any instrumentality thereof or of the State, or to any other person, the State Treasurer may require the recipients of the funds to enter into agreements regulating the use and investments of funds made available to them, requiring them to account to the State for the investment of such funds, and requiring them to pay to the State earnings on such funds which the State is required to rebate to the federal government. Recipients are authorized to enter into such agreements with the State which shall be valid and enforceable against them.
(Added 1987, No. 36, § 6, eff. May 11, 1987.)
§ 999 Interest remittance and payments
The State Treasurer may remit to the U.S. Treasury Department or any other agency of the United States funds earned on investments as necessary in order to maintain the noninclusion of interest on the General Fund obligations and the Transportation Fund obligations authorized by the General Assembly in the gross income of recipients thereof. Such remittances may be made from funds appropriated for debt service interest. If those appropriations become insufficient to meet interest and other related payments, subject to the approval of the Emergency Board, there is appropriated such amounts as may be necessary to eliminate the insufficiency in the State appropriations for interest.
(Added 1995, No. 178 (Adj. Sess.), § 267.)
Subchapter 8 Management of State Debt
§ 1000 Affordable amount of general obligation bond authorization
When the General Assembly authorizes the issuance of new long-term general obligation bonds, it shall consider the maximum amount of such bonds recommended as prudent for the fiscal year concerned by the Capital Debt Affordability Advisory Committee created for this purpose by this subchapter. This requirement shall apply to the authorizations of all State tax supported general obligation bonds, which are secured by the State General and Transportation Funds.
(Added 1989, No. 258 (Adj. Sess.), § 1.)
§ 1001 Capital Debt Affordability Advisory Committee
(a) Committee established. A Capital Debt Affordability Advisory Committee is hereby created with the duties and composition provided by this section.
(b) Committee duties.
(1) The Committee shall review annually the size and affordability of the net State tax-supported indebtedness and submit to the Governor and to the General Assembly an estimate of the maximum amount of new long-term net State tax-supported debt that prudently may be authorized for the next fiscal year. The estimate of the Committee shall be advisory and in no way bind the Governor or the General Assembly.
(2) The Committee shall conduct ongoing reviews of the amount and condition of bonds, notes, and other obligations of instrumentalities of the State for which the State has a contingent or limited liability or for which the General Assembly is permitted to replenish reserve funds, and, when deemed appropriate, recommend limits on the occurrence of such additional obligations to the Governor and to the General Assembly.
(3) The Committee shall conduct ongoing reviews of the amount and condition of the Transportation Infrastructure Bond Fund established in 19 V.S.A. § 11f and of bonds and notes issued against the Fund for which the State has a contingent or limited liability.
(c) Committee estimate of a prudent amount of net State tax-supported debt; affordability considerations. On or before September 30 of each year, the Committee shall submit to the Governor and the General Assembly the Committee’s estimate of net State tax-supported debt that prudently may be authorized for the next fiscal year, together with a report explaining the basis for the estimate. The Committee’s estimate shall not take into consideration the balance remaining at the end of each fiscal year in the subaccounts of the Cash Fund for Capital and Essential Investments, established pursuant to section 1001b of this title. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection. In developing its annual estimate, and in preparing its annual report, the Committee shall consider:
(1) The amount of net State tax-supported indebtedness that during the next fiscal year and annually for the following nine fiscal years:
(A) will be outstanding; and
(B) has been authorized but not yet issued.
(2) A projected schedule of affordable net State tax-supported bond authorizations for the next fiscal year and annually for the following nine fiscal years. The assessment of the affordability of the projected authorizations shall be based on all of the remaining considerations specified in this section.
(3) Projected debt service requirements during the next fiscal year, and annually for the following nine fiscal years, based upon:
(A) existing outstanding debt;
(B) previously authorized but unissued debt; and
(C) projected bond authorizations.
(4) The criteria that recognized bond rating agencies use to judge the quality of issues of State bonds, including:
(A) existing and projected total debt service on net tax-supported debt as a percentage of combined General and Transportation Fund revenues, excluding surpluses in these revenues that may occur in an individual fiscal year;
(B) existing and projected total net tax-supported debt outstanding as a percentage of total State personal income;
(C) existing and projected pension and other postemployment benefit liability metrics; and
(D) other metrics at the Committee’s discretion, including long-term liabilities not covered in subdivisions (A)–(C) of this subdivision (4).
(5) The principal amounts currently outstanding, and balances for the next fiscal year, and annually for the following nine fiscal years, of existing:
(A) obligations of instrumentalities of the State for which the State has a contingent or limited liability;
(B) any other long-term debt of instrumentalities of the State not secured by the full faith and credit of the State, or for which the General Assembly is permitted to replenish reserve funds; and
(C) to the maximum extent obtainable, all long-term debt of municipal governments in Vermont that is secured by general tax or user fee revenues.
(6) The impact of capital spending upon the economic conditions and outlook for the State.
(7) The cost-benefit of various levels of debt financing, types of debt, and maturity schedules.
(8) Any projections of capital needs authorized or prepared by the Agency of Transportation, the Joint Fiscal Office, or other agencies or departments.
(9) Any other factor that is relevant to:
(A) the ability of the State to meet its projected debt service requirements for the next five fiscal years; or
(B) the interest rate to be borne by, the credit rating on, or other factors affecting the marketability of State bonds.
(10) The effect of authorizations of new State debt on each of the considerations of this section.
(11) The capital asset depreciation ratio reflecting unfunded capital maintenance costs.
(d) Committee composition.
(1) Committee membership shall consist of:
(A) As ex officio members:
(i) the State Treasurer;
(ii) the Secretary of Administration; and
(iii) a representative of the Vermont Municipal Bond Bank chosen by the directors of the Bank.
(B) Two individuals with experience in accounting or finance, who are not officials or employees of State government appointed by the Governor for six-year terms.
(C) The Auditor of Accounts who shall be a nonvoting ex officio member.
(D) One person who is not an official or employee of State government with experience in accounting or finance appointed by the State Treasurer for a six-year term.
(E) The Legislative Economist or other designee of the Joint Fiscal Office, who shall be a nonvoting ex officio member.
(2) The State Treasurer shall be the Chair of the Committee.
(e) Other attendants of committee meetings. Staff of the Legislative Counsel and the Joint Fiscal Committee shall be invited to attend Committee meetings for the purpose of fostering a mutual understanding between the Executive and Legislative Branches on the appropriate statistics to be used in committee reviews, debt affordability considerations, and recommendations.
(f) Information. All public entities whose liabilities are to be considered by the Committee shall annually provide the State Treasurer with the information the Committee deems necessary for it to carry out the requirements of this subchapter.
(Added 1989, No. 258 (Adj. Sess.), § 1; amended 2007, No. 121 (Adj. Sess.), § 28; 2007, No. 200 (Adj. Sess.), § 25, eff. June 9, 2008; 2009, No. 50, § 31; 2013, No. 142 (Adj. Sess.), § 65; 2019, No. 42, § 26a, eff. May 30, 2019; 2021, No. 105 (Adj. Sess.), § 478, eff. July 1, 2022; 2023, No. 78, § C.107, eff. June 20, 2023; 2025, No. 27, § E.131.2, eff. July 1, 2025.)
§ 1001a Reports
(a) The Capital Debt Affordability Advisory Committee shall prepare and submit consistent with 2 V.S.A. § 20(a) a report on:
(1) general obligation debt, pursuant to subsection 1001(c) of this title; and
(2) how many, if any, Transportation Infrastructure Bonds have been issued and under what conditions.
(b) The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the reports to be made under this section.
(Added 2003, No. 122 (Adj. Sess.), § 294h; amended 2009, No. 50, § 32, eff. June 1, 2009; 2013, No. 142 (Adj. Sess.), § 66; 2017, No. 84, § 28, eff. June 16, 2017.)
§ 1001b Cash Fund for Capital and Essential Investments
(a) Creation. There is hereby created the Cash Fund for Capital and Essential Investments to be administered by the Commissioner of Finance and Management, in consultation with the State Treasurer. The Fund shall have the following two subaccounts:
(1) the Capital Infrastructure subaccount, to defray the costs of future capital expenditures that would otherwise be authorized in the capital construction act and paid for using the State’s general obligation bonding authority and debt service obligations or paid for as a direct associated cost of a capital project; and
(2) the Other Infrastructure, Essential Investments, and Reserves subaccount, to fund essential investments and infrastructure needs, create reserves for these expenditures and make contingent appropriations for other infrastructure investments, as authorized by the General Assembly.
(b) Fund Accounts.
(1) Capital Infrastructure subaccount. The Capital Infrastructure subaccount may consist of:
(A) transfers made by the General Assembly of four percent or less of the last completed fiscal year’s General Fund appropriations, less the amount necessary to fund the State’s general obligation debt service in the year for which the transfer is being made, as determined by the State Treasurer and the Commissioner of Finance and Management; and
(B) any interest earned by the subaccount.
(2) Other Infrastructure, Essential Investments, and Reserves subaccount. The Other Infrastructure, Essential Investments, and Reserves subaccount may consist of any appropriations or transfers made by the General Assembly; from the General Fund or any other State fund and any contingent transfers made by the General Assembly from the General Fund after satisfying the requirements of section 308 of the title but prior to satisfying the requirements of section 308c of this title in any fiscal year and any contingent transfers made by the General Assembly from other State funds.
(c) Use of funds. Monies in the Fund Accounts shall only be used as follows:
(1) Expenditures shall only be made by the General Assembly from the Capital Infrastructure subaccount for:
(A) tangible capital investments, as described in section 309 of this title, with an anticipated lifespan of 20 years or more; and
(B) engineering and architectural costs directly associated with a proposed capital project.
(2) Expenditures shall only be made by the General Assembly from the Other Infrastructure, Essential Investments, and Reserves subaccount for:
(A) any expenditure eligible under subdivision (1) of this subsection (c); and
(B) any other essential investments and infrastructure needs, including transportation-related projects and capitalization of revolving loan funds.
(d) Fund balance. All balances in the Fund accounts at the end of any fiscal year shall be carried forward and remain part of the Fund accounts. Notwithstanding section 511 of this title, the Commissioner of Finance and Management shall not anticipate receipts for the Fund accounts and issue warrants thereon.
(e) Spending authority. Any entity authorized to make expenditures from the Capital Infrastructure subaccount shall have not more than three years from the end of the legislative session in which the act authorizing the expenditure was enacted to encumber the funds. Any remaining unencumbered funds shall remain part of the Fund account.
(Added 2021, No. 185 (Adj. Sess.), § E.106.1, eff. June 9, 2022; amended 2023, No. 78, § C.105, eff. June 20, 2023; 2025, No. 33, § 22, eff. May 22, 2025.)
Chapter 15 Salaries and Fees
Subchapter 1 State Officers
§ 1001 Repealed
[Repealed]
1965, No. 125, § 23, eff. July 2, 1965.
§ 1002 Salary of Governor-Elect
(a) The person receiving the major number of votes for Governor as determined by the certificates transmitted to the Secretary of State under provisions of 17 V.S.A. § 2592 shall be designated the Governor-Elect.
(b) The Governor-Elect shall be entitled to receive a salary of 70 percent of the regular weekly salary of the Governor for the period before a new Governor qualifies for office. This amount shall be reduced by the amount the Governor-Elect receives from the State during this period for services performed in fulfilling the duties of any office to which he or she was elected or appointed.
(Added 1963, No. 121; amended 1987, No. 121, § 1; 2011, No. 3, § 91, eff. Feb. 17, 2011; 2015, No. 58, § B.1109.)
§ 1003 State officers
(a) Each elective officer of the Executive Department is entitled to an annual salary as follows:
| | | Annual | Annual | | --- | --- | --- | --- | | | | Salary | Salary | | | | as of | as of | | | | July 14, 2024 | July 13, 2025 | | | | | | | | (1) Governor | $222,371 | $234,379 | | | (2) Lieutenant Governor | $94,392 | $99,489 | | | (3) Secretary of State | $141,003 | $148,617 | | | (4) State Treasurer | $141,003 | $148,617 | | | (5) Auditor of Accounts | $141,003 | $148,617 | | | (6) Attorney General | $168,837 | $177,954 |
(b) The Governor may appoint each officer of the Executive Branch listed in this subsection at a starting salary ranging from the base salary stated for that position to a salary that does not exceed the maximum salary unless otherwise authorized by this subsection. The maximum salary for each appointive officer shall be 50 percent above the base salary. Annually, the Governor may grant to each of those officers an annual salary adjustment subject to the maximum salary. The annual salary adjustment granted to officers under this subsection shall not exceed the average rate of adjustment available to most classified employees under the collective bargaining agreement then in effect. In addition to the annual salary adjustment specified in this subsection, the Governor may grant a special salary increase subject to the maximum salary, or a bonus, to any officer listed in this subsection whose job duties have significantly increased, or whose contributions to the State in the preceding year are deemed especially significant. Special salary increases or bonuses granted to any individual shall not exceed the average rate of adjustment available to most classified employees under the collective bargaining agreement then in effect.
(1) Heads of the following Departments and Agencies:
| | | Base | Base | | --- | --- | --- | --- | | | | Salary | Salary | | | | as of | as of | | | | July 14, | July 13, | | | | 2024 | 2025 | | | | | | | | (A) Administration | $134,466 | $141,727 | | | (B) Agriculture, Food and Markets | $134,466 | $141,727 | | | (C) Financial Regulation | $125,706 | $132,494 | | | (D) Buildings and General Services | $125,706 | $132,494 | | | (E) Children and Families | $125,706 | $132,494 | | | (F) Commerce and Community Development | $134,466 | $141,727 | | | (G) Corrections | $125,706 | $132,494 | | | (H) Defender General | $125,706 | $132,494 | | | (I) Disabilities, Aging, and Independent Living | $125,706 | $132,494 | | | (J) Economic Development | $114,031 | $120,189 | | | (K) Education | $134,466 | $141,727 | | | (L) Environmental Conservation | $125,706 | $132,494 | | | (M) Finance and Management | $125,706 | $132,494 | | | (N) Fish and Wildlife | $114,031 | $120,189 | | | (O) Forests, Parks and Recreation | $114,031 | $120,189 | | | (P) Health | $125,706 | $132,494 | | | (Q) Housing and Community Development | $114,031 | $120,189 | | | (R) Human Resources | $125,706 | $132,494 | | | (S) Human Services | $134,466 | $141,727 | | | (T) Digital Services | $134,466 | $141,727 | | | (U) Labor | $125,706 | $132,494 | | | (V) Libraries | $114,031 | $120,189 | | | (W) Liquor and Lottery | $114,031 | $120,189 | | | (X) [Repealed.] | | | | | (Y) Mental Health | $125,706 | $132,494 | | | (Z) Military | $125,706 | $132,494 | | | (AA) Motor Vehicles | $114,031 | $120,189 | | | (BB) Natural Resources | $134,466 | $141,727 | | | (CC) Land Use Review Board Chair | $114,031 | $120,189 | | | (DD) Public Safety | $125,706 | $132,494 | | | (EE) Public Service | $125,706 | $132,494 | | | (FF) Taxes | $125,706 | $132,494 | | | (GG) Tourism and Marketing | $114,031 | $120,189 | | | (HH) Transportation | $134,466 | $141,727 | | | (II) Vermont Health Access | $125,706 | $132,494 | | | (JJ) Veterans’ Home | $125,706 | $132,494 |
(2) [Repealed.]
(3) If the Chair of the Land Use Review Board is employed on less than a full-time basis, the hiring and salary maximums for that position shall be reduced proportionately.
(4) When a permanent employee is appointed to an exempt position, the Governor may authorize such employee to retain the present salary even though it is in excess of any salary maximum provided in statute.
(c) The officers of the Judicial Branch named in this subsection shall be entitled to annual salaries as follows:
| | | Annual | Annual | | --- | --- | --- | --- | | | | Salary | Salary | | | | as of | as of | | | | July 14, | July 13, | | | | 2024 | 2025 | | | | | | | | (1) Chief Justice of Supreme Court | $214,024 | $225,581 | | | (2) Each Associate Justice | $204,264 | $215,294 | | | (3) Chief Superior Judge | $204,264 | $215,294 | | | (4) Each Superior Judge | $194,185 | $204,671 | | | (5) [Repealed.] | | | | | (6) Each Magistrate | $146,413 | $154,319 | | | (7) Each Judicial Bureau hearing | | | | | officer | $146,413 | $154,319 |
(d) Notwithstanding the maximum salary established in subsection (b) of this section, the Defender General shall not receive compensation in excess of the compensation established for the Attorney General in this section.
(e) Notwithstanding the maximum salary established in subsection (b) of this section, the maximum salary for the Commissioner of Health shall not exceed 100 percent above the base salary for this position.
(Added 1965, No. 125, § 1, eff. July 2, 1965; amended 1966, No. 53 (Sp. Sess.), § 1, eff. Jan. 5, 1966; 1967, No. 126, § 1, No. 200, § 1, eff. July 1, 1967, § 9, eff. Jan. 1, 1967; 1969, No. 294 (Adj. Sess.), Pt. IV, § 9, eff. at beginning of respective elective terms in 1971, Pt. V, § 10, eff. April 15, 1970; 1971, No. 191 (Adj. Sess.), §§ 14, 16; 1971, No. 242 (Adj. Sess.), § 2; 1973, No. 117, §§ 1, 2; 1973, No. 159 (Adj. Sess.), § 2, eff. March 15, 1974; 1973, No. 266 (Adj. Sess.), §§ 18, 19, eff. July 1, 1974; 1975, No. 1 (Sp. Sess.), § 27, eff. Oct. 22, 1975; 1975, No. 196 (Adj. Sess.), § 3; 1975, No. 206 (Adj. Sess.), § 1a; 1977, No. 105, § 19, eff. July 1, 1977; 1977, No. 109, § 15, eff. July 3, 1977; 1977, No. 204 (Adj. Sess.), § 2; 1977, No. 222 (Adj. Sess.), § 6, eff. July 2, 1978, and Jan. 4, 1979; 1977, No. 232 (Adj. Sess.), § 4; 1979, No. 59, § 2, eff. July 1, 1979; 1979, No. 141 (Adj. Sess.), § 10; 1981, No. 91, § 7, eff. July 5, 1981; § 13, eff. upon taking the oath of office in Jan. 1983; § 14, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), §§ 8, 8a-8c; 1983, No. 88, § 2, eff. July 3, 1983; 1983, No. 95, § 308; 1983, No. 130 (Adj. Sess.), § 4; 1983, No. 158 (Adj. Sess.), eff. April 13, 1984; 1983, No. 170 (Adj. Sess.), § 14(b), eff. April 19, 1984; 1983, No. 195 (Adj. Sess.), § 5(a); 1983, No. 243 (Adj. Sess.), §§ 2, 3, 5, 20; 1985, No. 93, §§ 1, 2; 1985, No. 225 (Adj. Sess.), §§ 2, 3, 4, 21; 1987, No. 76, § 18; 1987, No. 121, §§ 2, 3; 1987, No. 183 (Adj. Sess.), §§ 3, 4, 7; 1989, No. 67, §§ 1, 1a, 3; 1989, No. 187 (Adj. Sess.), § 5; 1989, No. 219 (Adj. Sess.), § 9(a); 1989, No. 225 (Adj. Sess.), § 25(a); 1989, No. 250 (Adj. Sess.), § 3; 1989, No. 256 (Adj. Sess.), § 10(a), eff. Jan. 1, 1991; 1989, No. 277 (Adj. Sess.), §§ 2, 3, 5, eff. July 8, 1990; 1991, No. 189 (Adj. Sess.), §§ 2, 5, eff. May 19, 1992; 1993, No. 227 (Adj. Sess.), §§ 1-3; 1995, No. 148 (Adj. Sess.), §§ 16, 17, eff. May 6, 1996; 1995, No. 174 (Adj. Sess.), § 3; 1995, No. 177 (Adj. Sess.), § 1; 1995, No. 180 (Adj. Sess.), § 38; 1995, No. 190 (Adj. Sess.), §§ 1, 11; 1997, No. 28, § 1, eff. May 15, 1997; 1997, No. 121 (Adj. Sess.), § 30; 1999, No. 40, § 1, eff. July 4, 1999; 1999, No. 147 (Adj. Sess.), § 4; 2001, No. 66, § 1; 2003, No. 66, § 315; 2003, No. 115 (Adj. Sess.), §§ 116, 117, eff. Jan. 31, 2005; 2003, No. 156 (Adj. Sess.), §§ 1-3, eff. July 11, 2004; 2005, No. 66, § 1; 2007, No. 47, § 1; 2007, No. 65, § 116; 2007, No. 206 (Adj. Sess.), § 1; 2011, No. 130 (Adj. Sess.), §§ 4, 5; 2013, No. 50, § E.802.1; 2013, No. 56, § 14, retroactively eff. Jan. 2, 2013; 2013, No. 160 (Adj. Sess.), §§ 3, 4; 2015, No. 58, § B.1110, eff. June 11, 2015; 2015, No. 172 (Adj. Sess.), § F3; 2015, No. 172 (Adj. Sess.), § F4; 2017, No. 191 (Adj. Sess.), §§ 3, 5; 2017, No. 191 (Adj. Sess.), §§ 4, 8, eff. July 1, 2019; 2019, No. 73, § 42; 2021, No. 74, §§ F.104, F.105; 2021, No. 185 (Adj. Sess.), §§ F.103, F.104, eff. July 1, 2022; 2023, No. 6, § 372, eff. July 1, 2023; 2023, No. 113 (Adj. Sess.), §§ G.103, G.104, eff. July 1, 2024; 2025, No. 64, § 19, eff. June 12, 2025.)
§ 1004 Repealed
[Repealed]
1965, No. 125, § 23, eff. July 2, 1965.
§ 1005 Repealed
[Repealed]
1985, No. 225 (Adj. Sess.), § 21.
§ 1006 Executive clerk and Executive messenger
The Executive clerk shall be paid weekly compensation and expenses at the rates allowed to members of the General Assembly during a session of the General Assembly, such compensation and expenses to be paid from the appropriation for the Executive Office of the Governor; and the Executive messenger shall be paid the same compensation and reimbursement for expenses as pages of the General Assembly under 2 V.S.A. § 64, such compensation and expenses to be paid out of the appropriation for legislative expenses.
(Amended 1963, No. 115, § 1, eff. April 3, 1963; 1966, No. 53 (Sp. Sess.), § 3, eff. Jan. 5, 1966; 1973, No. 117, § 18, eff. retroactively from Jan. 1, 1973; 1979, No. 141 (Adj. Sess.), § 2; 1981, No. 91, § 4, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), § 9, eff. July 4, 1982.)
§ 1007 Lieutenant Governor
(a) The Lieutenant Governor shall be paid his or her expenses when away from Montpelier or his or her home in the interest of the State.
(b) During any session of the General Assembly, the Lieutenant Governor is entitled to receive the same expenses authorized for members of the General Assembly by subsection 1052(b) of this title.
(Amended 1961, No. 285, § 3; 1969, No. 86, § 2.)
§ 1008 Repealed
[Repealed]
1985, No. 225 (Adj. Sess.), § 21.
§ 1009 Repealed
[Repealed]
1961, No. 285, § 5, eff. Aug. 1, 1961.
§ 1010 Members of certain boards
(a) Except for those members serving ex officio or otherwise regularly employed by the State, the members of the following boards shall be entitled to receive per diem compensation:
(1) Board of Bar Examiners
(2) Board of Libraries
(3) Vermont Milk Commission
(4) Board of Education
(5) [Repealed.]
(6) Emergency Board
(7) Board of Liquor and Lottery
(8) Human Services Board
(9) State Fish and Wildlife Board
(10) State Board of Mental Health
(11) Vermont Employment Security Board
(12) Capitol Complex Commission
(13) Natural Gas and Oil Resources Board
(14) Transportation Board
(15) Vermont Veterans’ Home Board of Trustees
(16) Advisory Council on Historic Preservation
(17) The Electricians’ Licensing Board
(18) [Repealed.]
(19) Emergency Personnel Survivors Benefit Review Board
(20) Community High School of Vermont Board
(21) Parole Board
(b)(1) Notwithstanding any other provision of law, members of professional or occupational licensing boards or commissions, advisory boards or commissions, appeals boards, promotional boards, interstate boards, supervisory boards and councils, or any other boards, commissions, or similar entities that are not listed in subsection (a) of this section but are otherwise entitled by act of the General Assembly to receive per diem compensation shall be entitled to receive per diem compensation for each day devoted to official duties.
(2) “Per diem” means the amount of compensation to which a member of a statutory board or commission is entitled for:
(A) attendance at a regular or special meeting of such board or commission or any committee thereof; or
(B) performance of other duties directly related to the efficient conduct of necessary board business as assigned and approved by the chairperson, provided that payment for such duties shall be at the per diem rate prorated for actual time spent performing duties. Proration shall be calculated based on an eight-hour day. Under no circumstances shall the daily payment exceed the per diem amount.
(c) The members of the boards and commissions, including those members serving ex officio or otherwise regularly employed by the State, shall be entitled to receive their actual and necessary expenses when away from home or office upon their official duties.
(d) Notwithstanding the provisions of subsections (a) and (b) of this section, a member shall not be entitled to receive State per diem compensation for any meeting or other official duty for which specific compensation is provided by another source.
(e) Per diem compensation authorized under this section for members of boards, commissions, councils, and committees and all other management, policymaking, or advisory bodies, including temporary study commissions, of the Executive Branch, whether appointed by the Governor or not, shall be not less than $50.00 per day and shall be approved pursuant to this subsection.
(1) The annual budget report of the Governor submitted to the General Assembly as required by section 306 of this title shall contain a separate schedule, by entity, that provides the per diem compensation rate established for the current fiscal year and the per diem rate proposed for the next fiscal year of any per diem that will be increased from its current fiscal year rate. This schedule shall also provide, by entity, the total per diem amounts paid and total expenses reimbursed for all members of the entity in the most recently ended fiscal year. Prior to submitting this schedule, the Governor shall consult with each elective officer or State officer who administers per diems that are not funded by the General Fund.
(2) In the annual budget documentation submitted to the House and Senate Committees on Appropriations, any agency or department that administers funds for a board, commission, council, and committee and all other management, policymaking, or advisory bodies, including temporary study commissions, shall provide a list of the entities and the current and projected per diem rate and expense reimbursement for each entity. The agency or department shall include within its annual budget documentation the justification for any current or projected per diem rate that is greater than $50.00, including the justification for authorizing a per diem rate of greater than $50.00 for a board, commission, council, or committee created by executive order pursuant to subsection (g) of this section.
(f) [Repealed.]
(g) The Governor may authorize per diem compensation and expense reimbursement in accordance with this section for members of boards, commissions, councils, and committees and all other management, policymaking, or advisory bodies, including temporary study commissions, created by executive order. Per diems and expense reimbursement authorized under this subsection shall be effective as of the effective date of the executive order but shall subsequently be reviewed and approved pursuant to the approval process of subsection (e) of this section during the next budgetary cycle.
(Amended 1959, No. 329 (Adj. Sess.), §§ 19(b), 22, 42, 46(b), eff. March 1, 1961; 1963, No. 193, § 16, eff. June 28, 1963; 1964, No. 22 (Sp. Sess.), § 1, retroactive to July 1, 1963; 1967, No. 115; 1967, No. 319 (Adj. Sess.), §§ 4, 5, eff. March 22, 1968; 1969, No. 226 (Adj. Sess.), § 3, eff. March 31, 1970; 1973, No. 101, § 1; 1973, No. 154 (Adj. Sess.), § 5, eff. March 15, 1974; 1973, No. 174 (Adj. Sess.), § 1; 1973, No. 258 (Adj. Sess.), § 1; 1973, No. 266 (Adj. Sess.), §§ 17, 27, eff. July 1, 1974; 1981, No. 91, § 24, eff. July 5, 1981; 1981, No. 240 (Adj. Sess.), § 9, eff. April 28, 1982; 1981, No. 249 (Adj. Sess.), § 10, eff. May 4, 1982; 1983, No. 158 (Adj. Sess.), eff. April 13, 1984; 1983, No. 188 (Adj. Sess.), § 5; 1983, No. 230 (Adj. Sess.), § 4; 1985, No. 6, § 3; 1985, No. 242 (Adj. Sess.), § 313b; 1985, No. 245 (Adj. Sess.), § 2; 1985, No. 248 (Adj. Sess.), § 2; 1985, No. 249 (Adj. Sess.), § 2; 1985, No. 257 (Adj. Sess.), § 1; 1985, No. 269 (Adj. Sess.), § 3; 1987, No. 94, §§ 1, 2; 1987, No. 96, § 20; 1987, No. 121, § 19; 1987, No. 183 (Adj. Sess.), § 17, eff. May 7, 1988; 1987, No. 229 (Adj. Sess.), § 2; 1987, No. 243 (Adj. Sess.), § 64, eff. June 13, 1988; 1987, No. 274 (Adj. Sess.), § 23; 1989, No. 253 (Adj. Sess.), § 17; 1989, No. 264 (Adj. Sess.), § 3; 1989, No. 288 (Adj. Sess.), § 3; 1991, 1989, No. 17, § 8(a), eff. April 4, 1991; 1991, No. 236 (Adj. Sess.), § 5; 1993, No. 201 (Adj. Sess.), § 2; 1995, No. 79 (Adj. Sess.), § 4; 1997, No. 40, § 75; 1997, No. 66 (Adj. Sess.), § 67b, eff. Feb. 20, 1998; 1997, No. 145 (Adj. Sess.), § 30; 1999, No. 49, §§ 51(a), (b); 2001, No. 119 (Adj. Sess.), § 2; 2001, No. 149 (Adj. Sess.), § 37, eff. June 21, 2002; 2003, No. 122 (Adj. Sess.), § 78b; 2005, No. 63, § 12; 2009, No. 135 (Adj. Sess.), § 25; 2011, No. 139 (Adj. Sess.), § 34, eff. May 14, 2012; 2013, No. 34, § 22; 2018, No. 1 (Sp. Sess.), § 107; 2019, No. 61, § 4; 2019, No. 128 (Adj. Sess.), § 12; 2021, No. 134 (Adj. Sess.), § 8, eff. July 1, 2023; 2023, No. 53, § 128, eff. June 8, 2023.)
§ 1011 Repealed
[Repealed]
1971, No. 191 (Adj. Sess.), § 16.
§ 1012 Public Utility Commission
The Chair of the Public Utility Commission shall be entitled to an annual salary that is the same annual salary to which each Superior Court judge is entitled. The other members of the Public Utility Commission, each of whom shall serve on a part-time basis, shall be entitled to an annual salary equal to two-thirds of the annual salary to which the Chair is entitled. The annual salary of the clerk of the Commission shall be fixed by the Commission with the approval of the Governor.
(Amended 1959, No. 329 (Adj. Sess.), § 39, eff. March 1, 1961; 1967, No. 206, eff. April 27, 1967; 1969, No. 303 (Adj. Sess.), § 1, eff. April 10, 1970; 1973, No. 247 (Adj. Sess.), § 2; 1977, No. 222 (Adj. Sess.), § 14, eff. July 2, 1978; 1979, No. 141 (Adj. Sess.), § 17; 1979, No. 204 (Adj. Sess.), § 33, eff. Feb. 1, 1981; 1987, No. 121, § 18; 1995, No. 182 (Adj. Sess.), § 26, eff. May 22, 1996; 1995, No. 182 (Adj. Sess.), § 26a, eff. July 1, 1998; 2015, No. 58, § B.1111, eff. June 11, 2015.)
§§ 1013, 1014 Repealed
[Repealed]
1971, No. 191 (Adj. Sess.), § 16.
§§ 1015-1017 Repealed
[Repealed]
1985, No. 225 (Adj. Sess.), § 21.
§ 1018 Chair and Executive Secretary of Transportation Board
(a) The annual salary of the Chair of the Transportation Board shall be fixed by the Governor.
(b) The Transportation Board shall have the authority to hire an Executive Secretary to the Board, who shall be an exempt employee. The annual salary of the Executive Secretary shall be fixed by the Board with the approval of the Governor.
(Added 1975, No. 120, § 2, eff. date set out in note below; amended 1977, No. 263 (Adj. Sess.), § 9, eff. April 19, 1978.)
§ 1019 Repealed
[Repealed]
1971, No. 191 (Adj. Sess.), § 16.
§ 1020 Salary adjustment; approval of Governor
(a) Compensation to be paid any officer or employee within the Executive Branch of State government shall be determined at the time the officer or employee is hired by the Governor or such person as the Governor shall designate, subject to any applicable statutory limits, other than:
(1) an employee in the classified service;
(2) a member of the uniformed State Police within the Department of Public Safety; or
(3) an officer or employee whose compensation is specifically fixed by statute.
(b)(1) Annually, subject to any applicable statutory salary limits, the Governor may grant annual salary adjustments to exempt employees who are deputies or executive assistants to department heads or are deputies or executive assistants to agency secretaries. The annual salary adjustment granted to any officer under this subsection shall not exceed the average rate of adjustment available to classified employees under the collective bargaining agreement then in effect.
(2) In addition to the annual salary adjustment specified in this subsection, the Governor may grant a special salary increase or a bonus to any such officer whose job duties have significantly increased, or whose contributions to the State in the preceding year are deemed especially significant. Special salary increases or bonuses granted to any individual shall not exceed the average rate of adjustment available to classified employees under the collective bargaining agreement then in effect.
(c)(1) The Governor may establish one or more compensation plans for other exempt employees that provide for adjustments in salary based on changes in the duties performed, seniority, or other objective factors that the Governor finds to be appropriate.
(2) The Governor may extend to such employees any adjustments to compensation not to exceed those available to classified employees provided under the collective bargaining agreement then in effect.
(Added 1969, No. 294 (Adj. Sess.), § 20, eff. April 9, 1970; amended 1971, No. 191 (Adj. Sess.), § 15; 1973, No. 106, § 9, eff. 30 days from April 25, 1973; 1975, No. 1 (Sp. Sess.), § 28, eff. Oct. 22, 1975; 1975, No. 196 (Adj. Sess.), § 4; 1979, No. 59, § 9, eff. July 1, 1979; 1985, No. 225 (Adj. Sess.), § 6; 1993, No. 227 (Adj. Sess.), § 18; 2021, No. 74, § F.103.)
Subchapter 2 General Assembly
§ 1051 Speaker of the House and President Pro Tempore of the Senate; compensation and expense reimbursement
(a) The Speaker of the House and the President Pro Tempore of the Senate shall be entitled to receive annual compensation of $10,080.00 for the 2005 Biennial Session and thereafter, to be paid in biweekly payments, provided that, beginning on January 1, 2007, the annual compensation shall be adjusted annually thereafter by the cost of living adjustment negotiated for State employees under the most recent collective bargaining agreement, except that, beginning on July 1, 2021 and annually thereafter on January 1, the annual compensation shall be adjusted consistent with the compensation increases provided to other constitutional officers. In addition to the annual compensation, the Speaker and President Pro Tempore shall be entitled to receive:
(1) $652.00 a week for the 2005 Biennial Session and thereafter, to be paid in biweekly payments during the regular and adjourned sessions of the General Assembly, provided that, beginning on January 1, 2007, the weekly compensation shall be adjusted annually thereafter by the cost of living adjustment negotiated for State employees under the most recent collective bargaining agreement, except that, beginning on July 1, 2021 and annually thereafter on January 1, the weekly compensation shall be adjusted consistent with the compensation increases provided to other constitutional officers;
(2) an amount equal to one-fifth of the annually adjusted weekly compensation set forth in subdivision (1) of this subsection, rounded up to the nearest dollar, per day during a special session of the General Assembly; and
(3) mileage, meals, and lodging expenses as provided to members of the General Assembly under subsection 1052(b) of this title during the biennial, adjourned, and special sessions of the General Assembly and in addition such other actual and necessary expenses incurred while engaged in duties imposed by law.
(b), (c) [Repealed.]
(Amended 1963, No. 31, § 1, eff. April 3, 1963; 1966, No. 53 (Sp. Sess.), § 2, eff. Jan. 5, 1966; 1971, No. 189 (Adj. Sess.), eff. Jan. 1, 1973; 1973, No. 266 (Adj. Sess.), § 15, eff. April 16, 1974; 1979, No. 59, § 27, eff. July 1, 1979; 1981, No. 249 (Adj. Sess.), § 11; 1983, No. 243 (Adj. Sess.), § 16; 1985, No. 93, § 11; 1987, No. 121, § 15; 1989, No. 67, § 11; 1993, No. 140 (Adj. Sess.), § 103, eff. April 15, 1994; 1997, No. 28, § 1a; 2003, No. 156 (Adj. Sess.), § 6, eff. Jan. 1, 2005; 2005, No. 66, § 1a; 2011, No. 3, § 92, eff. Feb. 17, 2011; 2015, No. 58, § B.1112, eff. June 11, 2015; 2015, No. 172 (Adj. Sess.), § E.126.2, eff. Jan. 1, 2017; 2019, No. 120 (Adj. Sess.), § B.3, eff. July 1, 2021.)
§ 1052 Members of the General Assembly; compensation and expense reimbursement
(a)(1) Each member of the General Assembly, other than the Speaker of the House and the President Pro Tempore of the Senate, is entitled to a weekly salary of $589.00 for the 2005 Biennial Session and thereafter, provided that, beginning on January 1, 2007, the weekly compensation shall be adjusted annually thereafter by the cost of living adjustment negotiated for State employees under the most recent collective bargaining agreement, except that, beginning on July 1, 2021 and annually thereafter on January 1, the weekly compensation shall be adjusted consistent with the compensation increases provided to other constitutional officers. The salary of members shall be paid in biweekly installments.
(2) During a special session, a member is entitled to an amount equal to one-fifth of the annually adjusted weekly compensation set forth in subdivision (1) of this subsection, rounded up to the nearest dollar, for each day of a special session on which the House of which he or she is a member shall sit.
(b) During any session of the General Assembly, each member is entitled to receive reimbursement of expenses as set forth in this subsection.
(1) Mileage reimbursement. Each member shall be entitled to receive reimbursement in an amount equal to the actual mileage traveled for each day of session in which the member travels between Montpelier and the member’s home or from Montpelier or from the member’s home to another site on officially sanctioned legislative business. Reimbursement of actual mileage traveled under this subdivision shall be at the rate per mile determined by the federal Office of Government-wide Policy and published in the Federal Register for the year of the session.
(2) Meals. Each member shall receive either a meals allowance or reimbursement of actual meals expenses. A member shall be presumed to have elected to receive the meals allowance unless the member informs the Office of Legislative Operations by a date established by the Office of Legislative Operations that the member wishes to receive reimbursement of actual meals expenses. A member’s election to receive reimbursement of actual meals expenses shall remain in effect through the remainder of that session unless the member notifies the Office, in writing, that the member needs to change to the meals allowance due to a change in circumstances or for another compelling reason.
(A) Meals allowance. A member who elects to receive a meals allowance shall receive an amount equal to the daily amount for meals determined for Montpelier, Vermont, by the federal Office of Government-wide Policy and published in the Federal Register for the year of the session for each day the House in which the member serves shall sit.
(B) Meals reimbursement. A member who elects to receive reimbursement of expenses shall receive reimbursement equal to the actual amounts expended by the member for meals for each day that the House in which the member serves shall sit; provided, however, that the total amount of the weekly reimbursement available pursuant to this subdivision (B) shall not exceed the amount the member would have received for the same week if the member had elected the meals allowance pursuant to subdivision (A) of this subdivision (2). The member shall provide meal receipts or otherwise substantiate the amounts expended to the Office of Legislative Operations in the form and manner prescribed by the Director of Legislative Operations.
(3) Lodging. Each member shall receive either a lodging allowance or reimbursement of actual lodging expenses. A member shall be presumed to have elected to receive the lodging allowance unless the member informs the Office of Legislative Operations by a date established by the Office of Legislative Operations that the member wishes to receive reimbursement of actual lodging expenses. A member’s election to receive reimbursement of actual lodging expenses shall remain in effect through the remainder of that session unless the member notifies the Office, in writing, that the member needs to change to the lodging allowance due to a change in circumstances or for another compelling reason.
(A) Lodging allowance. A member who elects to receive a lodging allowance shall receive an amount equal to the daily amount for lodging determined for Montpelier, Vermont, by the federal Office of Government-wide Policy and published in the Federal Register for the year of the session for each day the House in which the member serves shall sit.
(B) Lodging reimbursement. A member who elects to receive reimbursement of expenses shall receive reimbursement equal to the actual amounts expended by the member for lodging for each day that the House in which the member serves shall sit; provided, however, that the total amount of the weekly reimbursement available pursuant to this subdivision (B) for each week shall not exceed the amount the member would have received for the same week if the member had elected the lodging allowance pursuant to subdivision (A) of this subdivision (3). The member shall provide lodging receipts or otherwise substantiate the amounts expended to the Office of Legislative Operations in the form and manner prescribed by the Director of Legislative Operations.
(4) Absences. If a member is absent for reasons other than sickness or legislative business for one or more entire days while the House in which the member sits is in session, the member shall notify the Office of Legislative Operations of that absence, and the member shall not be entitled to receive or be reimbursed for mileage, meals, or lodging expenses incurred during the period of that absence, except that lodging expenses associated with a lease or rental agreement may be received or reimbursed upon approval of either the Speaker of the House or the President Pro Tempore of the Senate.
(c) For attending a meeting of the Joint Fiscal Committee when a member is not receiving compensation as a member of the General Assembly, a member of the Joint Fiscal Committee shall be entitled to the same per diem compensation and reimbursement for necessary expenses as provided members of the General Assembly for attendance at sessions of the General Assembly.
(d) If a member of the General Assembly dies while the General Assembly is in session, the estate of the deceased member shall be entitled to receive compensation for the entire pay period in which the death occurred.
(Added 1963, No. 31, § 2, eff. April 3, 1963; amended 1966, No. 1 (Sp. Sess.), eff. Jan. 5, 1966; 1967, No. 162, eff. April 15, 1967; 1969, No. 303 (Adj. Sess.), § 2, eff. Jan. 1, 1971; 1973, No. 77, § 50; 1973, No. 134 (Adj. Sess.), § 1, eff. date, see note set out below; 1973, No. 262 (Adj. Sess.), § 50, eff. April 11, 1974; 1975, No. 163 (Adj. Sess.), § 6, eff. March 18, 1976; 1977, No. 109, § 29, eff. July 3, 1977, § 29a, eff. Jan. 3, 1979; 1979, No. 59, §§ 20, 26, eff. July 1, 1979; 1979, No. 141 (Adj. Sess.), § 23; 1981, No. 249 (Adj. Sess.), §§ 11a, 12; 1983, No. 243 (Adj. Sess.), §§ 17, 17a; 1985, No. 93, § 12; 1987, No. 121, § 16; 1989, No. 67, § 12; 1993, No. 140 (Adj. Sess.), § 104, eff. April 15, 1994; 1993, No. 227 (Adj. Sess.), § 36; 1997, No. 28, § 1b; 2003, No. 156 (Adj. Sess.), § 5, eff. Jan. 1, 2005; 2005, No. 66, § 1b; 2015, No. 172 (Adj. Sess.), § E.126.3, eff. Jan. 1, 2017; 2019, No. 14, § 75, eff. April 30, 2019; 2019, No. 120 (Adj. Sess.), § B.4, eff. July 1, 2021; 2019, No. 144 (Adj. Sess.), § 30; 2021, No. 179 (Adj. Sess.), § 17, eff. January 1, 2022; 2023, No. 113 (Adj. Sess.), § E.126, eff. July 1, 2024.)
§ 1053 Officers of the General Assembly
The Clerk of the House, the First Assistant Clerk of the House, the Second Assistant Clerk of the House, the Secretary of the Senate, and the Assistant Secretary of the Senate shall be entitled to their necessary expenses and salaries as determined by the Rules Committee of the House or Senate, as the case may be.
(Amended 1961, No. 140, eff. May 24, 1961; 1963, No. 205, § 1, eff. April 3, 1963; 1965, No. 72, § 1, eff. May 26, 1965; 1969, No. 294 (Adj. Sess.), § 17, eff. April 5, 1970; 1971, No. 116, § 1, eff. April 26, 1971; 1973, No. 266 (Adj. Sess.), § 25, eff. April 16, 1974; 1979, No. 59, § 24; 1979, No. 141 (Adj. Sess.), § 16; 1981, No. 91, § 18, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), § 13, eff. July 4, 1982; 1983, No. 243 (Adj. Sess.), § 15; 1985, No. 225 (Adj. Sess.), § 17, eff. June 2, 1986; 2013, No. 50, § E.126.2, eff. May 28, 2013.)
§ 1053a Legislative pages
Legislative pages shall be entitled to a weekly compensation of $130.00 effective July 8, 2007, and a weekly expense allowance of $60.00 for those who commute and $95.00 for those who rent a room in the Montpelier area. Pages will be paid in the same manner as members of the General Assembly.
(Added 1989, No. 67, § 13, eff. Jan. 1, 1990; amended 1993, No. 227 (Adj. Sess.), § 19; 1997, No. 28, § 2, eff. July 6, 1997; 1999, No. 40, § 2, eff. July 4, 1999; 2001, No. 66, § 2; 2003, No. 156 (Adj. Sess.), § 4, eff. Jan. 1, 2005; 2005, No. 66, § 2; 2007, No. 47, § 8.)
§ 1054 Repealed
[Repealed]
1965, No. 81, § 11, eff. July 1, 1965.
§§ 1055-1057 Repealed
[Repealed]
1977, No. 109, § 33(e), eff. July 3, 1977.
§ 1058 Repealed
[Repealed]
1963, No. 129, § 2, eff. April 3, 1963.
§ 1059 Repealed
[Repealed]
2009, No. 33, § 83(m)(6).
§ 1060 Repealed
[Repealed]
1997, No. 150 (Adj. Sess.), § 22.
§ 1061 Journals of the General Assembly
After the close of the session of the General Assembly, the Secretary of the Senate and the Clerk of the House of Representatives shall each be entitled for each day for services rendered to one-fifth of the weekly salary to which each respectively shall be entitled under the provisions of section 1053 of this title and the necessary expenses in preparing to be printed and bound with an adequate appendix and index the journals of their respective houses. They may each procure necessary competent assistance in the preparation thereof at the expense of the State, and, in the case of the Secretary of the Senate, with the approval of the Rules Committee of the Senate and, in the case of the Clerk of the House, with the approval of the Rules Committee of the House of Representatives.
(Amended 1963, No. 205, § 3, eff. April 3, 1963; 1965, No. 72, § 2, eff. May 26, 1965; 1969, No. 294 (Adj. Sess.), § 18, eff. April 9, 1970, retroactive to Jan. 4, 1970; 1977, No. 109, § 27, eff. July 3, 1977.)
§ 1062 Omitted.
§ 1063 Repealed
[Repealed]
1979, No. 59, § 31(b).
Subchapter 3 Boards of Registration
§ 1101 Board of Medical Practice
Each member of the State Board of Medical Practice shall receive $15.00 a day. The Secretary of the Board shall annually receive $400.00 additional.
(Amended 1963, No. 193, § 21, eff. June 28, 1963.)
§§ 1102-1108 Repealed
[Repealed]
2005, No. 27, § 117(3).
§ 1109 Expenses for Board members
Each member of the boards mentioned in sections 1101-1108 of this title, shall be paid his or her reasonable and necessary expenses to be approved by the Chair of the Board.
§ 1110 Repealed
[Repealed]
1987, No. 243 (Adj. Sess.), § 66, eff. June 13, 1988.
§ 1111 Exemption from licensing renewal fees; persons 80 years of age or older
Notwithstanding any provision of law to the contrary, licensees who are 80 years of age or older shall be exempt from payment of a renewal fee required under any provision of Title 26 or any of the following statutes:
(1) 18 V.S.A. chapter 46 (nursing home administrators); and
(2) 26 V.S.A. chapter 109 (boxing).
(3) [Repealed.]
(Added 1991, No. 167 (Adj. Sess.), § 62a; amended 2019, No. 131 (Adj. Sess.), § 293; 2021, No. 105 (Adj. Sess.), § 479, eff. July 1, 2022.)
Subchapter 4 Judges and Court Appointees
§ 1141 Assistant judges
(a)(1) Each assistant judge of the Superior Court shall be entitled to receive compensation in the amount of $224.47 a day as of July 14, 2024 and $236.59 a day as of July 13, 2025 for time spent in the performance of official duties and necessary expenses as allowed to classified State employees. Compensation under this section shall be based on a two-hour minimum and hourly thereafter.
(2)(A) The compensation paid to an assistant judge pursuant to this section shall be paid by the State except as provided in subdivision (B) of this subdivision (2).
(B) The compensation paid to an assistant judge pursuant to this section shall be paid by the county at the State rate established in subdivision (a)(1) of this section when an assistant judge is sitting with a presiding Superior judge in the Civil or Family Division of the Superior Court.
(b) Assistant judges of the Superior Court shall be entitled to receive pay for such days as they attend court when it is in actual session or during a court recess when engaged in the special performance of official duties.
(Amended 1961, No. 239, § 2, eff. July 31, 1961; 1965, No. 138, § 1; 1973, No. 117, § 19; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1975, No. 118, § 88; 1977, No. 109, § 20, eff. July 3, 1977; 1977, No. 222 (Adj. Sess.), § 16, eff. July 2, 1978; 1979, No. 59, § 21, eff. July 1, 1979; 1979, No. 141 (Adj. Sess.), § 9; 1981, No. 91, § 6, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), § 14; 1983, No. 88, § 3, eff. July 3, 1983; 1983, No. 243 (Adj. Sess.), § 7; 1985, No. 93, § 9; 1985, No. 225 (Adj. Sess.), § 7; 1987, No. 121, § 4; 1987, No. 183 (Adj. Sess.), § 9; 1989, No. 67, § 4; 1989, No. 277 (Adj. Sess.), § 6, eff. July 8, 1990; 1991, No. 189 (Adj. Sess.), § 6; 1993, No. 227 (Adj. Sess.), § 5; 1995, No. 177 (Adj. Sess.), § 4; 1997, No. 28, § 4, eff. May 15, 1997; 1999, No. 40, § 3, eff. July 4, 1999; 2001, No. 66, § 3; 2003, No. 66, § 317; 2003, No. 156 (Adj. Sess.), § 8, eff. July 11, 2004; 2005, No. 66, § 3; 2007, No. 47, § 2; 2009, No. 154 (Adj. Sess.), § 198; 2011, No. 130 (Adj. Sess.), § 6; 2013, No. 160 (Adj. Sess.), § 5; 2015, No. 58, § B.1113, eff. June 11, 2015; 2015, No. 172 (Adj. Sess.), § F5; 2017, No. 191 (Adj. Sess.), § 6; 2017, No. 191 (Adj. Sess.), § 9, eff. July 1, 2019; 2021, No. 74, § F.106; 2021, No. 185 (Adj. Sess.), § F.105, eff. July 1, 2022; 2023, No. 113 (Adj. Sess.), § G.105, eff. July 1, 2024.)
§ 1142 Probate judges
(a) The Probate judges in the several Probate Districts shall be entitled to receive the following annual salaries, which shall be paid by the State in lieu of all fees or other compensation:
| | | Annual | Annual | | --- | --- | --- | --- | | | | Salary | Salary | | | | as of | as of | | | | July 14, 2024 | July 13, | | | | 2025 | | | | (1) Addison | $76,555 | $80,689 | | | (2) Bennington | $96,776 | 102,002 | | | (3) Caledonia | $67,891 | $71,557 | | | (4) Chittenden | $161,506 | $170,227 | | | (5) Essex | $18,966 | $19,990 | | | (6) Franklin | $76,555 | $80,689 | | | (7) Grand Isle | $18,966 | $19,990 | | | (8) Lamoille | $53,443 | $56,329 | | | (9) Orange | $63,554 | $66,986 | | | (10) Orleans | $62,110 | $65,464 | | | (11) Rutland | $137,221 | $144,631 | | | (12) Washington | $105,441 | $111,135 | | | (13) Windham | $85,221 | $89,823 | | | (14) Windsor | $115,555 | $121,795 |
(b) Probate judges shall be entitled to be paid by the State for their actual and necessary expenses under the rules pertaining to classified State employees. The compensation for the Probate judge of the Chittenden District shall be for full-time service.
(c) All Probate judges, regardless of the number of hours worked annually, shall be eligible to participate in all employee benefits that are available to exempt employees of the Judicial Department.
(Amended 1961, No. 278, § 1, eff. Aug. 1, 1961; 1965, No. 195, § 2; 1967, No. 339 (Adj. Sess.), § 1; 1969, No. 294 (Adj. Sess.), § 14; 1971, No. 105, § 2; 1973, No. 117, § 5; 1973, No. 154 (Adj. Sess.), § 2, eff. March 15, 1974; 1973, No. 266 (Adj. Sess.), § 20; 1975, No. 118, § 94, eff. April 30, 1975; 1977, No. 109, § 19, eff. July 3, 1977; 1977, No. 222 (Adj. Sess.), § 7, eff. July 2, 1978; 1979, No. 59, § 3; 1979, No. 141 (Adj. Sess.), § 11; 1981, No. 91, § 8, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), § 15, eff. July 4, 1982; 1983, No. 88, § 4, eff. July 3, 1983; 1983, No. 243 (Adj. Sess.), § 8; 1985, No. 93, § 4; 1985, No. 225 (Adj. Sess.), § 8; 1987, No. 121, § 6; 1987, No. 183 (Adj. Sess.), § 10; 1989, No. 67, § 5; 1989, No. 277 (Adj. Sess.), § 7, eff. July 8, 1990; 1991, No. 189 (Adj. Sess.), § 8, eff. May 19, 1992; 1993, No. 171 (Adj. Sess.), § 2, eff. June 1, 1994; 1993, No. 227 (Adj. Sess.), § 4; 1995, 1993, No. 177 (Adj. Sess.), § 3; 1997, No. 28, § 3, eff. May 15, 1997; 1999, No. 40, § 4, eff. July 4, 1999; 2001, No. 66, § 4; 2001, No. 116 (Adj. Sess.), § 1, eff. May 28, 2002; 2003, No. 66, § 318; 2003, No. 156 (Adj. Sess.), § 9, eff. July 11, 2004; 2005, No. 66, § 5; 2007, No. 47, § 3; 2009, No. 4, § 119, eff. April 29, 2009; 2009, No. 4, § 123, eff. Feb. 1, 2011; 2009, No. 154 (Adj. Sess.), § 199, eff. Feb. 1, 2011; 2011, No. 1, § 6, eff. Feb. 2, 2011; 2011, No. 130 (Adj. Sess.), § 7; 2013, No. 160 (Adj. Sess.), § 6; 2015, No. 58, § B.1114, eff. June 11, 2015; 2015, No. 172 (Adj. Sess.), § F6; 2017, No. 191 (Adj. Sess.), § 7; 2017, No. 191 (Adj. Sess.), § 10, eff. July 1, 2019; 2021, No. 74, § F.107; 2021, No. 105 (Adj. Sess.), § 480, eff. July 1, 2022; 2021, No. 185 (Adj. Sess.), § F.106, eff. July 1, 2022; 2023, No. 113 (Adj. Sess.), § G.106, eff. July 1, 2024.)
§ 1143 Compensation of appointees
Persons acting under the authority of the Probate Division of the Superior Court shall be paid as follows:
(1) for each day’s attendance by executor, administrator, trustee, agent, or guardian, on the business of their appointment, $4.00;
(2) for each day’s attendance of commissioners, appraisers, or committee, $4.00; and
(3) the Probate Division of the Superior Court may allow in cases of unusual difficulty or responsibility such further sum as it judges reasonable.
(Amended 2009, No. 154 (Adj. Sess.), § 200, eff. Feb. 1, 2011.)
§ 1144 Repealed
[Repealed]
2009, No. 154 (Adj. Sess.), § 201, effective February 1, 2011.
§ 1145 Illegal fees
A judge or register of Probate who directly or indirectly accepts or receives, under color of his or her office, money or other valuable thing, by way of fees, remuneration, or compensation for the performance of an act as such judge or register, except as provided in this title, shall be fined not more than $500.00 nor less than $200.00.
§ 1146 Repealed
[Repealed]
2009, No. 154 (Adj. Sess.), § 238.
§ 1147 Courtroom expenses
The expense of providing a suitable courtroom, without the county courthouse, including rent, heat, and light, with office furniture for the use of the court, shall be paid by the State if the contract for the same is approved by the Commissioner of Buildings and General Services.
(Amended 1961, No. 30, eff. March 17, 1961; 1995, No. 148 (Adj. Sess.), § 4(c)(2), eff. May 6, 1996; 2021, No. 105 (Adj. Sess.), § 481, eff. July 1, 2022.)
Subchapter 5 County Officers
§ 1181 Repealed
[Repealed]
2009, No. 154 (Adj. Sess.), § 238.
§ 1181a Passport fees; retention by clerk
Notwithstanding the provisions of sections 502 and 503 of this title, a county clerk may retain for the benefit of the county the execution fee paid pursuant to the issuance of a passport.
(Added 1977, No. 247 (Adj. Sess.), § 196; amended 1999, No. 135 (Adj. Sess.), § 3.)
§ 1182 Sheriffs
(a) The sheriffs of all counties except Chittenden shall be entitled to receive salaries in the amount of $104,010.00 as of July 14, 2024 and $109,627.00 as of July 13, 2025. The Sheriff of Chittenden County shall be entitled to an annual salary in the amount of $110,070.00 as of July 14, 2024 and $116,014.00 as of July 13, 2025.
(b) Compensation under subsection (a) of this section shall be reduced by 10 percent for any sheriff who has Level II but not obtained Level III law enforcement officer certification under 20 V.S.A. § 2358.
(c) Compensation under subsection (a) of this section shall be reduced by 20 percent for any sheriff who has Level I but not obtained Level II law enforcement officer certification under 20 V.S.A. § 2358.
(d) Compensation under subsection (a) of this section shall be reduced by 30 percent for any sheriff who does not possess a law enforcement officer certification under 20 V.S.A. § 2358.
(Amended 1961, No. 242, eff. Aug. 1, 1961; 1966, No. 49 (Sp. Sess.), § 1; 1967, No. 345 (Adj. Sess.), § 28, eff. April 1, 1969; 1973, No. 117, § 7; 1973, No. 266 (Adj. Sess.), § 22; 1975, No. 196 (Adj. Sess.), § 5; 1977, No. 109, § 17, eff. July 3, 1977; 1977, No. 222 (Adj. Sess.), § 9, eff. July 2, 1978; 1979, No. 59, § 5; No 141 (Adj. Sess.), § 13; 1981, No. 91, § 10, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), § 17, eff. July 4, 1982; 1983, No. 88, § 6, eff. July 3, 1983; 1983, No. 243 (Adj. Sess.), § 10; 1985, No. 93, § 6; 1985, No. 225 (Adj. Sess.), § 10; 1987, No. 121, § 8; 1987, No. 183 (Adj. Sess.), § 12; 1989, No. 67, § 7; 1989, No. 277 (Adj. Sess.), § 9, eff. July 8, 1990; 1991, No. 189 (Adj. Sess.), § 10, eff. May 19, 1992; 1991, No. 257 (Adj. Sess.), § 6; 1993, No. 227 (Adj. Sess.), § 7; 1995, No. 177 (Adj. Sess.), § 6; 1997, No. 28, § 6, eff. May 15, 1997; 1999, No. 40, § 6, eff. July 4, 1999; 2001, No. 66, § 6; 2003, No. 66, § 320; 2003, No. 156 (Adj. Sess.), § 11, eff. July 11, 2004; 2005, No. 66, § 7; 2007, No. 47, § 5; 2011, No. 130 (Adj. Sess.), § 9; 2013, No. 141 (Adj. Sess.), § 22, eff. July 1, 2015; 2013, No. 160 (Adj. Sess.), § 7; 2015, No. 58, § B.1115, eff. June 11, 2015; 2015, No. 172 (Adj. Sess.), § F7; 2017, No. 191 (Adj. Sess.), § 11; 2017, No. 191 (Adj. Sess.), § 12, eff. July 1, 2019; 2021, No. 74, § F.108; 2021, No. 185 (Adj. Sess.), § F.107, eff. July 1, 2022; 2023, No. 113 (Adj. Sess.), § G.107, eff. July 1, 2024; 2023, No. 130 (Adj. Sess.), § 6, eff. July 1, 2024.)
§ 1183 State’s attorneys
(a) The State’s Attorneys shall be entitled to receive annual salaries as follows:
| | Annual | Annual | | --- | --- | --- | | | Salary | Salary | | | as of | as of | | | July 14, | July 13, | | | 2024 | 2025 | | (1) Addison County | $140,691 | $148,288 | | (2) Bennington County | $140,691 | $148,288 | | (3) Caledonia County | $140,691 | $148,288 | | (4) Chittenden County | $147,087 | $155,030 | | (5) Essex County | $105,521 | $111,219 | | (6) Franklin County | $140,691 | $148,288 | | (7) Grand Isle County | $105,521 | $111,219 | | (8) Lamoille County | $140,691 | $148,288 | | (9) Orange County | $140,691 | $148,288 | | (10) Orleans County | $140,691 | $148,288 | | (11) Rutland County | $140,691 | $148,288 | | (12) Washington County | $140,691 | $148,288 | | (13) Windham County | $140,691 | $148,288 | | (14) Windsor County | $140,691 | $148,288 |
(b) In settlement of their accounts, the Commissioner of Finance and Management shall allow the State’s Attorneys the expense of printing briefs in cases in which the State’s Attorney has represented the State and their necessary and actual expenses under the rules pertaining to classified State employees.
(Added 1971, No. 260 (Adj. Sess.), § 34; amended 1973, No. 154 (Adj. Sess.), § 3, eff. March 15, 1974; 1973, No. 266 (Adj. Sess.), § 23, eff. Jan. 1, 1975; 1975, No. 118, § 96, eff. April 30, 1975; 1975, No. 196 (Adj. Sess.), §§ 6, 7; 1977, No. 109, § 18, eff. July 3, 1977; 1977, No. 222 (Adj. Sess.), § 10, eff. July 2, 1978; 1979, No. 59, § 6; 1979, No. 141 (Adj. Sess.), § 14; 1981, No. 91, § 12, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), § 18, eff. July 4, 1982; 1983, No. 88, § 7, eff. July 3, 1983; 1983, No. 195 (Adj. Sess.), § 5(b); 1983, No. 243 (Adj. Sess.), § 12; 1985, No. 93, § 7; 1985, No. 225 (Adj. Sess.), § 11; 1987, No. 121, § 11; 1987, No. 183 (Adj. Sess.), § 15; 1989, No. 67, § 8; 1989, No. 277 (Adj. Sess.), § 10, eff. July 8, 1990; 1991, No. 189 (Adj. Sess.), § 11, eff. July 5, 1992; 1993, No. 227 (Adj. Sess.), § 8; 1995, No. 123 (Adj. Sess.), § 8, eff. June 6, 1996; 1995, No. 177 (Adj. Sess.), § 7; 1997, No. 28, § 7, eff. May 15, 1997; 1999, No. 40, § 7, eff. July 4, 1999; 2001, No. 66, § 7; 2003, No. 66, § 321; 2003, No. 156 (Adj. Sess.), § 12, eff. July 11, 2004; 2003, No. 156 (Adj. Sess.), § 15; 2005, No. 66, § 8; 2007, No. 7, § 7; 2007, No. 47, § 6; 2011, No. 130 (Adj. Sess.), § 10; 2013, No. 160 (Adj. Sess.), § 8; 2015, No. 58, § B.1116, eff. June 11, 2015; 2015, No. 172 (Adj. Sess.), § F8; 2017, No. 191 (Adj. Sess.), § 13; 2017, No. 191 (Adj. Sess.), § 14, eff. July 1, 2019; 2021, No. 74, § F.109; 2021, No. 105 (Adj. Sess.), § 482, eff. July 1, 2022; 2021, No. 185 (Adj. Sess.), § F.108, eff. July 1, 2022; 2023, No. 113 (Adj. Sess.), § G.108, eff. July 1, 2024.)
§ 1183a Repealed
[Repealed]
1971, No. 260 (Adj. Sess.), § 37.
§ 1184 Repealed
[Repealed]
1973, No. 266 (Adj. Sess.), § 27, eff. April 16, 1974.
§ 1185 Office expenses
(a) In settlement of their accounts, the Commissioner of Finance and Management shall allow State’s Attorneys their expenses for secretarial assistance; office expenses, including rent, supplies, equipment, maintenance, legal forms and stationery, telephone service, professional liability insurance, the expense of printing briefs in cases in which the State’s Attorney has represented the State, books, advance copies of the Vermont reports, advertising, dues, and subscriptions; tuitions; and stipends for professional training and their necessary expense when away from home on official business.
(b)(1) Secretaries shall be hired by and shall serve at the pleasure of the State’s Attorney unless otherwise modified by a collective bargaining agreement entered into pursuant to 3 V.S.A. chapter 27. Secretaries shall be State employees paid by the State, and shall receive those benefits available to other classified State employees who are similarly situated, but they shall not be subject to the rules provided for under 3 V.S.A. chapter 13. The compensation of each secretary shall be determined by the Commissioner of Human Resources with the approval of the Governor unless otherwise determined through collective bargaining pursuant to 3 V.S.A. chapter 27. In fixing compensation, there shall be taken into consideration, among other things, the volume of work requiring the services of the secretary and whether the services are on a full- or part-time basis.
(2) Nothing in this subsection shall be construed to limit the subjects for bargaining pursuant to 3 V.S.A. § 904.
(Added 1971, No. 260 (Adj. Sess.), § 36; amended 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 67, eff. June 13, 1988; 2003, No. 156 (Adj. Sess.), § 15; 2017, No. 81, § 11, eff. June 15, 2017.)
Subchapter 6 City, Town, and Other Officers
§ 1221 Electors of President and Vice President
Electors of President and Vice President shall receive for their services, in attending their meetings, the sum of $10.00 and their actual expenses.
§ 1222 Repealed
[Repealed]
1961, No. 283, § 3, eff. Aug. 1, 1961.
§ 1223 Repealed
[Repealed]
2017, No. 93 (Adj. Sess.), § 24.
§ 1224 Town clerks
Town clerks shall receive such salaries as the town may vote, to be paid by their respective towns each year. A town may vote a salary in addition to fees retained under section 1401 of this title or a salary in lieu of fees. If a town votes a salary in lieu of fees, those fees shall be charged and collected by the clerk and at least quarterly turned over to the town treasurer and credited to the town general fund.
(Amended 1979, No. 161 (Adj. Sess.), § 14, eff. date, see note set out below.)
§ 1225 Town road commissioner
The compensation of a town road commissioner shall be fixed by the selectboard.
(Amended 1981, No. 87, § 4; 2017, No. 130 (Adj. Sess.), § 18.)
§ 1226 Repealed
[Repealed]
1989, No. 200 (Adj. Sess.), § 7.
§ 1227 Appraisers for unorganized towns and gores
An appraiser for unorganized towns and gores shall receive $50.00 a day and necessary expenses for time actually spent in the performance of his or her duties.
(Amended 1965, No. 138, § 2; 1985, No. 264 (Adj. Sess.), § 2.)
§ 1228 Repealed
[Repealed]
2017, No. 98 (Adj. Sess.), § 4, eff. April 11, 2018.
§ 1229 Supervisors for unorganized towns and gores
A supervisor for unorganized towns and gores shall receive $15.00 a day for time actually spent in the performance of his or her duties, except for his or her services as collector of taxes. On all taxes collected after the expiration of 90 days from mailing of his or her tax notice, such supervisor shall be allowed to tax and collect from the taxpayer a commission of eight percent in the amount of the tax, which commission shall be paid into the State Treasury as provided in section 4967 of this title.
(Amended 1963, No. 193, § 31, eff. June 28, 1963.)
Subchapter 7 Expenses
§ 1261 Personal expenses when away from home
(a) Unless otherwise provided, all persons in the employ of the State when away from home and office on official duties shall be reimbursed for expenses necessarily incurred for travel, subsistence, postage, telephone, telegraph, express, and incidentals, which shall be paid out of the biennial appropriation made for the support of their respective departments. Nothing contained in this section shall authorize payment to an administrative official or employee, except the Governor, for travel between the person’s place of residence and office, or subsistence at that place except for mileage reimbursement when an employee is called in and required to work at any time other than continuously into the employee’s normally scheduled shift. Compensation for subsistence, travel, and other expenses occurring while conducting business for the State shall be the subject of collective bargaining as defined in 3 V.S.A. § 904(a). Whenever it shall be necessary to effect the transfer of an employee of the State from one official station to another by direction of the head of a department, the employee shall be reimbursed for the employee’s reasonable and necessary moving expenses actually incurred. However, the reasonableness of the expense shall be determined by the Commissioner of Human Resources and no expense shall be allowed unless the transfer is made for the convenience of the State and in no event where it is effected for the convenience or at the request of the employee. The expense, when allowed, shall be paid out of the biennial appropriation made for the support of the respective departments. When an administrative official or employee works out of the official’s or employee’s home in the usual course of employment rather than out of an office, the official or employee shall be reimbursed for expenses in the same manner as though the official or employee were working out of an office, and for the purposes of this section, the official’s or employee’s home shall be considered as the official’s or employee’s office.
(b) The Secretary of Administration shall prescribe standards to limit reimbursement for personal expenses and to require approval of specific exceptions prior to the date of travel. These standards shall apply equally to all categories of State employees, subject to the collective bargaining agreement.
(c) Nothing in this section shall be taken to limit the authority of the Commissioner of Public Safety to approve reimbursement for personal expenses in accordance with 20 V.S.A. § 1881.
(Amended 1959, No. 161, § 1, eff. July 1, 1960; 1959, No. 328 (Adj. Sess.), § 8(c); 1961, No. 214, eff. July 11, 1961; 1975, No. 85; 1961, No. 86, § 2, eff. April 28, 1975; 1977, No. 109, § 31, eff. July 1, 1979; 1981, No. 249 (Adj. Sess.), § 27, eff. May 4, 1982; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 68, eff. June 13, 1988; 1995, No. 123 (Adj. Sess.), § 8, eff. June 6, 1996; 2003, No. 156 (Adj. Sess.), § 15; 2007, No. 7, § 7; 2015, No. 172 (Adj. Sess.), § E.108.2, eff. June 8, 2016; 2021, No. 105 (Adj. Sess.), § 483, eff. July 1, 2022.)
§ 1262 Repealed
[Repealed]
1967, No. 148, § 2.
§ 1263 Repealed
[Repealed]
1959, No. 161, § 2, eff. July 1, 1960.
§§ 1264, 1265 Repealed
[Repealed]
1959, No. 328 (Adj. Sess.), § 35(j).
§ 1266 Clerical assistance
Each department, board, or commission, unless otherwise specifically provided, is empowered to employ assistance, clerical or otherwise, as the Governor deems necessary and, subject to the Governor’s approval, to fix the compensation to be paid for the assistance.
(Amended 2021, No. 105 (Adj. Sess.), § 484, eff. July 1, 2022.)
§ 1267 Mileage; reimbursement
Reimbursement for mileage shall be a subject of collective bargaining as defined in 3 V.S.A. § 904(a).
(Added 1975, No. 118, § 97; amended 1977, No. 109, § 32, eff. July 1, 1979.)
Subchapter 8 Termination Notice
§ 1271 Fair notice
Employees as defined by subsection 1020(a) of this title who fill permanent positions, have been continuously employed more than six months, and whose employment is otherwise in good standing shall be provided with fair notice of separation from a position from the Governor or the Governor-Elect. Fair notice shall be no greater than that provided to classified employees. For the purpose of this section, fair notice shall be at least 30 days. The Governor may provide pay in lieu of notice for a maximum of 30 days.
(Added 1991, No. 189 (Adj. Sess.), § 15, eff. May 19, 1992.)
Subchapter 9 Compensation and Benefits Adjustments
§ 1281 Adjustments to compensation and benefits of Executive and Judicial Branch employees
(a) The process described in this section shall apply to any requests for increased funding that arise during a biennium when the State and the collective bargaining representative for State employees have agreed to a two-year collective bargaining agreement that begins in the first year of the legislative biennium.
(b) During the first year of the legislative biennium, the General Assembly shall hear testimony from representatives of the Departments of Human Resources and of Finance and Management, the Office of the Defender General, the Court Administrator, and the collective bargaining representative before introducing a bill that increases funding for pay and benefits for employees of the Executive or Judicial Branches of the State of Vermont.
(c) Prior to the second year of the legislative biennium, if there are any requests to increase funding beyond what has already been agreed to as a result of the collective bargaining process, the request shall be presented to the Chairs of the House Committees on Appropriations and on Government Operations and Military Affairs, after consultation with the Secretary of Administration, not later than November 1 of the year preceding the beginning of the second year of the biennium. If the Committee Chairs request a review, the proposal to increase funding for pay and benefits shall be submitted for study to a Committee that shall be known as the Pay Act Committee. The Pay Act Committee shall consist of two members of the House Committee on Appropriations and three members of the House Committee on Government Operations and Military Affairs. The Pay Act Committee shall meet not more than twice before the beginning of the legislative session to hear testimony from interested parties. The Pay Act Committee shall present a report on the proposal to the House Committees on Appropriations and on Government Operations and Military Affairs not later than January 15 for further consideration.
(Added 2001, No. 116 (Adj. Sess.), § 7, eff. May 28, 2002; amended 2021, No. 105 (Adj. Sess.), § 485, eff. July 1, 2022.)
§ 1282 Officer compensation; voluntary decrease
An officer whose compensation is established by this chapter may choose to be compensated at a lower rate.
(Added 2015, No. 58, § B.1108.)
Chapter 17 Fees and Costs
Subchapter 1 General Provisions
§ 1401 Disposition of fees
All lawful fees received by any State, county, or municipal official shall belong to the official, unless other provision for the disposition of the fees is made by law.
(Amended 2021, No. 105 (Adj. Sess.), § 486, eff. July 1, 2022.)
§ 1402 Receipt for fees
Unless otherwise provided, any person or official lawfully entitled to charge, demand, and receive fees for services rendered shall deliver to any person paying the fees a receipt for payment, if so requested, and the receipt shall show the items of the fees, the sum of the fees, the date when the services were rendered, and the date of payment.
(Amended 2021, No. 105 (Adj. Sess.), § 487, eff. July 1, 2022.)
§ 1403 Justices to make rules for fees
(a) The Justices of the Supreme Court, under their general rulemaking power, shall establish uniform rules to govern the allowance of fees not specified by law for services and expenses in the courts of the State. The Court Administrator shall recommend to the Justices such alterations in the rules as he or she finds necessary. The Court Administrator shall endeavor to secure uniform allowances in the several counties and to correct deviations from the prescribed rules.
(b) [Repealed.]
(Amended 1959, No. 328 (Adj. Sess.), § 8; 1969, No. 222 (Adj. Sess.), § 1; 1971, No. 185 (Adj. Sess.), § 216, eff. March 29, 1972; 1975, No. 118, § 98; 1987, No. 1, § 3, eff. Jan. 30, 1987; 1991, No. 257 (Adj. Sess.), § 7; 2017, No. 160 (Adj. Sess.), § 5(3), eff. July 1, 2019.)
§ 1404 Justices and judges not to receive special fees
A Justice of the Supreme Court or a Superior judge shall not demand or receive fees for special services performed by him or her either as a Justice or judge.
(Amended 1971, No. 185 (Adj. Sess.), § 236(a), (b), eff. March 29, 1972.)
§ 1405 Names—Typewritten
When an instrument is left for recording, any public official required by law to record it may require that the names be typed, stamped, or printed under the signatures. An additional recording fee of $2.00 may be charged by the recorder for those instruments that fail in this requirement.
(Amended 1993, No. 170 (Adj. Sess.), § 12.)
§ 1406 Illegible
An instrument shall not be invalid because of the illegibility of the signatures, nor shall such illegibility affect the time in which the instrument is received for record.
(Added 1965, No. 101, § 2.)
§ 1407 Costs to be borne by the State
(a) As described in this section, the State shall cover the costs of certain medical care for victims of crime committed in this State without health insurance or whose health insurance does not pay for all of the care provided.
(b) The State shall bear the costs of forensic medical and psychological examinations administered to victims of crime committed in this State, in instances where that examination is requested by a law enforcement officer or a prosecuting authority of the State or any of its subdivisions and the victim does not have health coverage or the victim’s health coverage does not cover the entire cost of the examination. The State shall also bear the costs of sexual assault examinations, as defined in 8 V.S.A. § 4083, administered to victims in cases of alleged sexual assault where the victim obtains such an examination prior to receiving such a request if the victim does not have health coverage or the victim’s health coverage does not cover the entire cost of the examination. If, as a result of a sexual assault examination, the alleged victim has been referred for mental health counseling, the State shall bear any costs of such examination not covered by the victim’s health coverage. These costs may be paid from the Victims’ Compensation Fund from funds appropriated for that purpose.
(c)(1) Health care facilities and health care providers shall bill the victim’s health insurance plan, Medicaid, Medicare, or another health benefit plan, as applicable, for the services described in subsection (b) of this section. If the victim does not have health coverage or if the victim’s health benefit plan denies the claim, the Fund shall reimburse health care facilities and health care providers located in Vermont as defined in 18 V.S.A. § 9402 at 60 percent of the billed charges for these claims, and the health care provider or facility shall not bill any balance to the crime victim.
(2) If the victim’s health coverage does not cover all of the medical care provided pursuant to this section and the victim would otherwise be responsible for any co-payment, coinsurance, deductible, or other cost-sharing, the Fund shall pay the victim’s share directly to the health care facility or provider.
(d) A victim, at his or her own expense, may obtain copies of the results of an examination under this section.
(Added 1981, No. 1 (Sp. Sess.), § 13, eff. July 17, 1981; amended 1993, No. 60, § 51; 2005, No. 215 (Adj. Sess.), § 75b; 2007, No. 173 (Adj. Sess.), § 4; 2015, No. 34, § 3, eff. Oct. 1, 2015; 2025, No. 11, § 26, eff. September 1, 2025.)
§ 1408 Guardians ad litem; expense reimbursement
The Court Administrator shall reimburse guardians ad litem for necessary and actual expenses incurred in the performance of their duties.
(Added 1987, No. 222 (Adj. Sess.), § 3.)
Subchapter 2 State Fees in Judicial Proceedings
§ 1431 Fees in Supreme and Superior Courts
(a) Prior to the entry of any cause in the Supreme Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $295.00 in lieu of all other fees not otherwise set forth in this section.
(b)(1) Except as provided in subdivisions (2)-(7) of this subsection, prior to the entry of any cause in the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $295.00 in lieu of all other fees not otherwise set forth in this section.
(2) Prior to the entry of any divorce or annulment proceeding in the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $295.00 in lieu of all other fees not otherwise set forth in this section. If the divorce or annulment complaint is filed with a stipulation for a final order, the fee shall be $90.00 if one or both of the parties are residents and $180.00 if neither party is a resident, except that if the stipulation is not acceptable to the court or if a matter previously agreed to becomes contested, the difference between the full fee and the reduced fee shall be paid to the court prior to the issuance of a final order.
(3) Prior to the entry of any parentage or desertion and support proceeding brought under 15 V.S.A. chapter 5 in the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $120.00 in lieu of all other fees not otherwise set forth in this section. If the parentage or desertion and support complaint is filed with a stipulation for a final order acceptable to the court, the fee shall be $35.00, except that if the stipulation is not acceptable to the court or if a matter previously agreed to becomes contested, the difference between the full fee and the reduced fee shall be paid to the court prior to the issuance of a final order.
(4) Prior to the entry of any motion or petition to enforce a final order for parental rights and responsibilities, parent-child contact, property division, or maintenance in the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $90.00 in lieu of all other fees not otherwise set forth in this section. Prior to the entry of any motion or petition to vacate or modify a final order for parental rights and responsibilities, parent-child contact, or maintenance in the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $120.00 in lieu of all other fees not otherwise set forth in this section. However, if the motion or petition is filed with a stipulation for an order, the fee shall be $35.00, except that if the stipulation is not acceptable to the court or if a matter previously agreed to becomes contested, the difference between the full fee and the reduced fee shall be paid to the court prior to the issuance of a final order. All motions or petitions filed by one party under this subsection at one time shall be assessed one fee equal to the highest of the filing fees associated with the motions or petitions involved. There are no filing fees for prejudgment motions or petitions filed before a final divorce, legal separation, dissolution of civil union, parentage, desertion, or nonsupport judgment issued.
(5) Prior to the entry of any motion or petition to vacate or modify an order for child support in the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $45.00 in lieu of all other fees not otherwise set forth in this section. If the motion or petition is filed with a stipulation for an order, there shall be no fee, except that if the stipulation is not acceptable to the court or if a matter previously agreed to becomes contested, the difference between the full fee and the reduced fee shall be paid to the court prior to the issuance of a final order. A motion or petition to enforce an order for child support shall require no fee. All motions or petitions filed by one party at one time shall be assessed one fee; if a simultaneous motion is filed by a party under subdivision (4) of this subsection, the fee under subdivision (4) shall be the only fee assessed. There are no filing fees for prejudgment motions or petitions filed before a final divorce, legal separation, dissolution of civil union, parentage, desertion, or nonsupport judgment has issued.
(6) Prior to the registration in Vermont of a child custody determination issued by a court of another state, there shall be paid to the clerk of the court for the benefit of the State a fee of $90.00 unless the request for registration is filed with a simultaneous motion for enforcement or modification, in which event the fee for registration shall be $40.00 in addition to the fee for the motion as provided in subdivision (4) of this subsection.
(7) Prior to the filing of any appeal from the Probate Division of the Superior Court to the Civil Division of the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $295.00 in lieu of all other fees not otherwise set forth in this section.
(c)(1) Prior to the entry of a small claims action, there shall be paid to the clerk in lieu of all other fees not otherwise set forth in this section a fee of $90.00 if the claim is for more than $1,000.00 and $65.00 if the claim is for $1,000.00 or less. Prior to the entry of any postjudgment motion in a small claims action, there shall be paid to the clerk a fee of $65.00. The fee for every counterclaim in small claims proceedings shall be $35.00, payable to the clerk, if the counterclaim is for more than $500.00, and $25.00 if the counterclaim is for $500.00 or less.
(2)(A) Except as provided in subdivision (B) of this subdivision (2), fees paid to the clerk pursuant to this subsection (c) shall be divided as follows: 50 percent of the fee shall be for the benefit of the county and 50 percent of the fee shall be for the benefit of the State.
(B) In a county where court facilities are provided by the State, all fees paid to the clerk pursuant to this subsection (c) shall be for the benefit of the State.
(d) Prior to the entry of any subsequent pleading that sets forth a claim for relief in the Supreme Court or the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $120.00 for every cross-claim or third-party claim and a fee of $90.00 for every counterclaim in the Superior Court in lieu of all other fees not otherwise set forth in this section. The fee for an appeal of a magistrate’s decision or the appeal of a small claims decision in the Superior Court shall be $120.00. The filing fee for civil suspension proceedings filed pursuant to 23 V.S.A § 1205 shall be $90.00, which shall be taxed in the bill of costs in accordance with sections 1433 and 1471 of this title. This subsection does not apply to filing fees in the Family Division, except with respect to the fee for an appeal of a magistrate’s decision.
(e) Prior to the filing of any postjudgment motion in the Civil, Criminal, or Environmental Division of the Superior Court, including motions to reopen civil suspensions or motions to reopen existing cases in the Probate Division of the Superior Court, there shall be paid to the clerk of the court for the benefit of the State a fee of $90.00 except for small claims actions, estates, and motions to confirm the sale of property in foreclosure. A filing fee of $90.00 shall be paid to the clerk of the court for a civil petition for minor settlements. The $90.00 filing fee shall only apply for a motion to seal a criminal history record of a violation of 23 V.S.A. § 1201(a) pursuant to 13 V.S.A. § 7602(a)(1)(C), but shall not apply for any other motion to seal or expunge a criminal history record pursuant to 13 V.S.A. § 7602, 33 V.S.A. § 5119(g), or other applicable records clearance provisions.
(f) The filing fee for all actions filed in the Judicial Bureau shall be $65.00; the State or municipality shall not be required to pay the fee; however, if the respondent denies the allegations on the ticket, the fee shall be taxed in the bill of costs in accordance with sections 1433 and 1471 of this title and shall be paid to the clerk of the Bureau for the benefit of the State.
(g) Prior to the filing of any postjudgment motion in the Judicial Bureau, there shall be paid to the clerk of the Bureau, for the benefit of the State, a fee of $45.00. Prior to the filing of any appeal from the Judicial Bureau to the Superior Court, there shall be paid to the clerk of the court, for the benefit of the State, a fee of $120.00.
(h) Pursuant to Vermont Rules of Civil Procedure 3.1 or Vermont Rules of Appellate Procedure 24(a), part or all of the filing fee may be waived if the court finds that the applicant is unable to pay it. The clerk of the court or the clerk’s designee shall establish the in forma pauperis fee in accordance with procedures and guidelines established by administrative order of the Supreme Court. If, during the course of the proceeding and prior to a final judgment, the court determines that the applicant has the ability to pay all or a part of the waived fee, the court shall require that payment be made prior to issuing a final judgment. If the applicant fails to pay the fee within a reasonable time, the court may dismiss the proceeding.
(Amended 1967, No. 119, § 3; 1969, No. 125, § 14; 1975, No. 206 (Adj. Sess.), § 2, eff. date; 1985, No. 54, § 2; 1989, No. 221 (Adj. Sess.), § 9; 1995, No. 77 (Adj. Sess.), § 1, eff. March 21, 1996; 1997, No. 121 (Adj. Sess.), § 22; 2003, No. 70 (Adj. Sess.), § 20, eff. March 1, 2004; 2007, No. 153 (Adj. Sess.), § 19; 2009, No. 154 (Adj. Sess.), §§ 203, 203a; 2009, No. 154 (Adj. Sess.), § 203b, eff. Feb. 1, 2011; 2011, No. 92 (Adj. Sess.), § 5a; 2013, No. 67, § 3; 2013, No. 191 (Adj. Sess.), § 23; 2015, No. 57, § 33; 2017, No. 76, § 1; 2019, No. 32, § 10; 2019, No. 70, § 27; 2019, No. 175 (Adj. Sess.), § 25, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 488, eff. July 1, 2022; 2021, No. 147 (Adj. Sess.), § 7, eff. May 31, 2022.)
§ 1432 Repealed
[Repealed]
1989, No. 221 (Adj. Sess.), § 21(b).
§ 1433 Exemption of State from payment of fees
In judicial proceedings initiated in the name of the State by public officials authorized so to do, the State may not be required to pay the State fees set forth in sections 1431 and 1432 of this title. However, if the State prevails in the proceedings, the fees shall be taxed in the bill of costs under sections 1471 and 1474 of this title.
(Added 1961, No. 29, eff. March 17, 1961.)
§ 1434 Probate cases
(a) The following entry fees shall be paid to the Probate Division of the Superior Court for the benefit of the State, except for subdivisions (18) and (19) of this subsection, which shall be for the benefit of the county in which the fee was collected:
| (1) | Estates of $10,000.00 or less | $50.00 | | --- | --- | --- | | (2) | Estates of more than $10,000.00 to not more than $50,000.00 | $110.00 | | (3) | Estates of more than $50,000.00 to not more than $150,000.00 | $265.00 | | (4) | Estates of more than $150,000.00 to not more than $500,000.00 | $500.00 | | (5) | Estates of more than $500,000.00 to not more than $1,000,000.00 | $1,000.00 | | (6) | Estates of more than $1,000,000.00 to not more than $5,000,000.00 | $1,750.00 | | (7) | Estates of more than $5,000,000.00 to not more than $10,000,000.00 | $2,500.00 | | (8) | Estates of more than $10,000,000.00 | $3,250.00 | | (9) | For all petitions, other than those described in subdivision (11) of this subsection to modify or terminate a trust, to remove or substitute a trustee or trustees, or seeking remedies for breach of trust: | | | | (A) Trusts of $10,000.00 or less | $50.00 | | | (B) Trusts of $10,001.00 to not more than $50,000.00 | $110.00 | | | (C) Trusts of $50,001.00 to not more than $150,000.00 | $265.00 | | | (D) Trusts of $150,001.00 to not more than $500,000.00 | $500.00 | | | (E) Trusts of $500,001.00 to not more than $1,000,000.00 | $1,000.00 | | | (F) Trusts of $1,000,001.00 to not more than $5,000,000.00 | $1,750.00 | | | (G) Trusts of $5,000,001.00 to not more than $10,000,000.00 | $2,500.00 | | | (H) Trust of more than $10,000,000.00 | $3,250.00 | | (10) | [Repealed.] | | | (11) | Annual accounts on trusts | $85.00 | | (12) | Annual accounts on decedents’ estates filed for any period ending more than one year following the appointment of the administrator or executor | $85.00 | | (13) | Adoptions and relinquishments as part of an adoption proceeding | $150.00 | | (14) | Relinquishments, separate from adoptions | $100.00 | | (15) | Guardianships for minors | $150.00 | | (16) | Guardianships for adults | $150.00 | | (17) | Petitions for change of name | $150.00 | | (18) | Filing of a will for safekeeping | $30.00 | | (19) | Filing of subsequent will for safekeeping, same Probate Division or transfer to another Probate Division | $30.00 | | (20) | Corrections for vital records | $40.00 | | (21) | Orders of authorization pursuant to 18 V.S.A. § 5144(a)(2)(C) | $50.00 | | (22) | Conveyances of title to real estate pursuant to 14 V.S.A. § 1801, including petitions to clear title and release or discharge of mortgage | $100.00 | | (23) | Petitions concerning advance directives pursuant to 18 V.S.A. § 9718 | $100.00 | | (24) | Civil actions brought pursuant to 18 V.S.A. chapter 107, subchapter 3. | $100.00 | | (25) | Petitions for partial decree | $105.00 | | (26) | Petitions for license to sell or convey real estate | $100.00 | | (27) | Petitions for license to sell or convey personal property | $100.00 | | (28) | [Repealed.] | | | (29) | Motion to reopen estate for newly discovered asset fee based on the value of the newly discovered asset, pursuant to sub- divisions (1)-(8) of this subsection. | | | (30) | Affidavit procedure for small estates pursuant to Rule 80.3(h) of the Vermont Rules of Probate Procedure | $50.00 | | (31) | [Repealed.] | | | (32) | Petitions to obtain a birth order pursuant to 15C V.S.A. § 708(a) or § 804(a) | $100.00 | | (33) | Petitions to appeal the State Registrar’s denial of an application to amend a birth or death certificate pursuant to 18 V.S.A. § 5073(b) | $150.00 | | (34) | Registration of foreign guardianship order | $90.00 |
(b) Pursuant to Rule 3.1 of the Vermont Rules of Civil Procedure, part of the filing fee may be waived if the court finds the applicant is unable to pay it. The court shall use procedures established in subsection 1431(h) of this title to determine the fee. No fee shall be charged for necessary documents pertaining to the opening of estates, trusts, and guardianships, including the issuance of two certificates of appointment and respective letters. No fee shall be charged for the issuance of two certified copies of adoption decree and two certified copies of instrument changing name.
(c) A fee of $5.00 shall be paid for each additional certification of appointment of a fiduciary.
(Amended 1969, No. 207 (Adj. Sess.), §§ 14-16, eff. March 24, 1970; 1971, No. 105, § 4, eff. July 1, 1971; 1981, No. 33, § 1; 1985, No. 54, § 4; 1989, No. 221 (Adj. Sess.), § 10; 1995, No. 77 (Adj. Sess.), §§ 2, 3, eff. March 21, 1996; 2003, No. 70 (Adj. Sess.), § 21, eff. March 1, 2004; 2005, No. 213 (Adj. Sess.), § 3; 2007, No. 56, § 4; 2007, No. 153 (Adj. Sess.), § 20; 2009, No. 20, § 30; 2009, No. 154 (Adj. Sess.), § 204, eff. February 1, 2011; 2013, No. 67, § 4; 2013, No. 191 (Adj. Sess.), § 24; 2015, No. 57, § 32; 2017, No. 76, § 2; 2017, No. 96 (Adj. Sess.), § 3, eff. April 11, 2018; 2019, No. 70, § 28; 2019, No. 167 (Adj. Sess.), § 21, eff. Oct. 7, 2020; 2021, No. 65, § 8, eff. June 7, 2021.)
§ 1434a Repealed
[Repealed]
by its own terms.
§ 1435 Repealed
[Repealed]
1981, No. 33, § 3.
§ 1436 Repealed
[Repealed]
2017, No. 160 (Adj. Sess.), § 5(4).
Subchapter 3 Taxation of Costs
§ 1471 Taxation of costs
(a) There shall be taxed in the bill of costs to the recovering party in the Supreme and Superior Courts or the Judicial Bureau a fee equal to the entry fees, the cost of service fees incurred, and the total amount of the certificate of witness fees paid.
(b) Any costs taxed to the respondent in any action filed by the Office of Child Support shall be paid to the clerk of the court for deposit in the General Fund.
(Amended 1973, No. 106, § 11, eff. 30 days from April 25, 1973; 1977, No. 235 (Adj. Sess.), § 9; 1995, No. 77 (Adj. Sess.), § 4, eff. March 21, 1996; 1997, No. 121 (Adj. Sess.), § 24; 2009, No. 154 (Adj. Sess.), § 206.)
§ 1472 Plaintiff’s travel
In an action in favor of several plaintiffs, fees for their travel shall not be taxed but from that plaintiff’s residence that is nearest the place of trial, unless the others personally attend the trial, in which case the court shall tax such further sum for travel as is equitable.
§ 1473 Repealed
[Repealed]
1969, No. 131, § 36, eff. April 23, 1969.
§ 1474 Repealed
[Repealed]
2009, No. 154 (Adj. Sess.), § 238, effective June 3, 2010.
§ 1475 Repealed
[Repealed]
1969, No. 131, § 36, eff. April 23, 1969.
§ 1476 Repealed
[Repealed]
1977, No. 190 (Adj. Sess.).
Subchapter 4 Jurors' Fees
§ 1511 Grand and petit jurors in Superior Court
There shall be allowed to grand and petit jurors in the Superior Court the following fees and expenses:
(1) for attendance, $30.00 a day, on request, unless the jurors were otherwise compensated by their employer;
(2) for each talesman, $30.00 a day, on request, unless the talesmen were otherwise compensated by their employer; and
(3) upon request and upon a showing of hardship, reimbursement for expenses necessarily incurred for travel from home to court, and return, at the rate of reimbursement allowed State employees for travel under the terms of the prevailing collective bargaining agreement.
(Amended 1969, No. 294 (Adj. Sess.), § 21, eff. April 9, 1970; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1977, No. 222 (Adj. Sess.), § 22, eff. July 2, 1978; 1987, No. 222 (Adj. Sess.), § 1; 1987, No. 222 (Adj. Sess.), § 1; 1993, No. 24, § 3, eff. May 19, 1993; 2009, No. 154 (Adj. Sess.), § 207.)
§ 1512 When per diem allowed
Grand and petit jurors shall be allowed per diem pay only for the days when they appear in court.
§ 1513 Excused jurors
When jurors are excused to a day certain or subject to call, they shall be allowed per diem only for time actually and necessarily spent in going to and returning from their homes and for mileage. The clerk of the court shall record the name of jurors thus excused, and compute their debentures in accordance herewith.
§ 1514 Board and lodging of jurors
When in a grand jury investigation or in the trial of a criminal or civil cause jurors are kept together by order of the court, their board and lodging and that of the officers having such jurors in charge shall be paid by the State.
(Amended 1959, No. 59, eff. March 25, 1959; 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 208.)
§ 1515 Repealed
[Repealed]
1987, No. 222 (Adj. Sess.), § 2.
§§ 1516, 1517 Repealed
[Repealed]
1977, No. 190 (Adj. Sess.).
§ 1518 Repealed
[Repealed]
2017, No. 93 (Adj. Sess.), § 25.
§ 1519 Repealed
[Repealed]
2017, No. 93 (Adj. Sess.), § 26.
Subchapter 5 Witness Fees
§ 1551 Attendance fees
There shall be allowed to witnesses the following fees:
(1) For attendance before a court or to give a deposition before a notary public, $30.00 a day.
(2) For attendance before an appraiser appointed by the Commissioner of Taxes, $30.00 a day, such fees to be apportioned as the appraiser may direct.
(3) For attendance on other courts or tribunals, $30.00 a day.
(4) For travel in the State, all witnesses shall receive mileage at the rate of reimbursement allowed State employees for travel under the terms of the prevailing collective bargaining agreement.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1969, No. 294 (Adj. Sess.), § 22, eff. April 9, 1970; 1971, No. 185 (Adj. Sess.), § 236(a), (b), eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1973, No. 249 (Adj. Sess.), § 94, eff. April 9, 1974; 2003, No. 70 (Adj. Sess.), § 22, eff. March 1, 2004; 2009, No. 154 (Adj. Sess.), § 210.)
§ 1552 Criminal causes
Unless otherwise provided, witnesses in attendance before the grand jury or any court in criminal causes shall be allowed the sum of $10.00 per day for the days on which they attend, together with $0.08 a mile each way for each day of such attendance. The witness fee shall be paid by the party who calls the witness.
(Amended 1969, No. 294 (Adj. Sess.), § 23, eff. April 9, 1970; 1991, No. 245 (Adj. Sess.), § 94(c).)
§ 1553 Witness certificates for bill of costs
A party who produces a witness in Superior Court shall procure a certificate signed and sworn to by such witness, specifying the number of miles from his or her usual place of abode to the place of trial, and the number of days he or she attended as a witness, before the travel and attendance of the witness shall be allowed such party in his or her bill of costs.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§§ 1554, 1555 Repealed
[Repealed]
1991, No. 245 (Adj. Sess.), § 94(b)(3).
§ 1556 Witnesses before General Assembly
A committee of either House or a committee, board, or commission appointed pursuant to an act or joint resolution of the General Assembly, when so authorized, may summon witnesses to appear before it and call for the production of persons and papers. The Sergeant at Arms shall require under oath from each witness a voucher giving the miles travelled and the days he or she attends. Such witnesses and the officer summoning them shall receive the same fees as in Superior Court. A member of the General Assembly shall not receive such fees during a session thereof.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 1557 Payment
When the Commissioner of Finance and Management receives such subpoenas and witness vouchers, he or she shall issue his or her warrant for such sum as he or she finds due to the Sergeant at Arms.
(Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1983, No. 195 (Adj. Sess.), § 5(b).)
§ 1558 Repealed
[Repealed]
2010, No. 154 (Adj; Sess.), § 238, effective February 1, 2011.
§ 1559 Compensation of law enforcement officers for attendance at proceedings
(a) No full time State Police officer, municipal police officer, game warden, or other State employee shall be paid or accept any compensation as a witness in any civil or criminal proceeding to which the State is a party.
(b) In any civil proceeding in the State in which a full time State Police officer, municipal police officer, game warden, or other State employee is subpoenaed as a witness either because of his or her expert knowledge with regard to his or her employment area or because of his or her past official actions, the fees due him or her as a witness shall be paid by the party summoning the witness to the clerk of the court to be paid to the State, the county, or the municipality, depending upon which governmental unit employs the individual.
(c) These persons shall be compensated for such attendance by their employer according to the terms of their employment.
(Added 1969, No. 294 (Adj. Sess.), § 24, eff. April 9, 1970; amended 1983, No. 106 (Adj. Sess.).)
Subchapter 6 Sheriffs and Other Officers
§ 1591 Sheriffs and other officers
There shall be paid to sheriffs’ departments and constables in civil causes and to sheriffs, deputy sheriffs, and constables for the transportation and care of prisoners, juveniles, and patients with a mental condition or psychiatric disability the following fees:
(1) Civil process:
(A) For serving each process, the fees shall be as follows:
(i) $10.00 for each reading or copy in which the officer is directed to make an arrest;
(ii) $75.00 upon presentation of each return of service for the service of papers relating to divorce, annulments, separations, or support complaints;
(iii) $75.00 upon presentation of each return of service for the service of papers relating to civil suits except as provided in subdivision (vii) of this subdivision (1)(A);
(iv) $75.00 upon presentation of each return of service for the service of a subpoena and shall be limited to that one fee for each return of service;
(v) for each arrest, $15.00;
(vi) for taking bail, $15.00;
(vii) on levy of execution or order of foreclosure: for each mile of actual travel in making a demand, sale, or adjournment, the rate allowed State employees under the terms of the prevailing contract between the State and the Vermont State Employees’ Association, Inc.; for making demand, $15.00 for posting notices, $15.00 each, and the rate per mile allowed State employees under the terms of the prevailing contract between the State and the Vermont State Employees’ Association, Inc. for each mile of necessary travel; for notice of continuance, $15.00;
(viii) for sale on each execution, or order of foreclosure amounting to $350.00, or under, 10 percent thereof, with a minimum fee of $35.00 and up to an additional two percent on amounts exceeding $350.00; for each deed of land sold on execution or order of foreclosure, $100.00; for return on execution or report of sale on foreclosure, $15.00, and the additional amount required to be paid the town clerk; be allowed reasonable attorney’s fees of drawing the deed of sale to the purchaser and for drawing the Vermont property tax return form connected therewith, and shall be allowed the fees and recording costs in connection with the procuring and recording of any necessary certified copies, orders, certificates, and reports of sale connected with the execution or foreclosure sales; and
(ix) for securing property attached on mesne process, a sheriff or other officer shall be allowed a reasonable sum as fees, subject to the provision and allowance of the court.
(B) For each mile of actual travel in the necessary performance of duty in civil matters, the rate allowed State employees under the terms of the prevailing contract between the State and the Vermont State Employees’ Association, Inc.
(C) All civil process to be served by a sheriff or deputy sheriff shall be directed to their respective sheriff’s department for service. The sheriff shall assign civil process to personnel within the department to ensure that process is completed in a timely and orderly manner. All payments for service of civil process shall be made to the sheriff’s department. A sheriff or deputy sheriff shall not be entitled to fees paid for service of process nor shall a sheriff receive fees or payment in lieu of fees for civil process, except payment for actual and necessary expenses. A sheriff may appoint deputy sheriffs and establish compensation for service of civil process.
(D) The Executive Director of the Department of State’s Attorneys and Sheriffs shall develop a uniform reporting system to reflect:
(i) civil process received by a sheriff’s department;
(ii) payments made to a sheriff’s department for service, including fees and reimbursements;
(iii) payments made by the sheriff’s department to deputy sheriffs for serving process; and
(iv) disbursements for other necessary expenses.
(E) Quarterly, 15 percent of the gross civil process fees received by a sheriff’s department or constable during that quarter shall be forwarded to the State Treasurer for deposit in the State’s General Fund.
(2) For the transportation and care of prisoners, juveniles, and patients with a mental condition or psychiatric disability:
(A) For necessary assistance in arresting or transporting prisoners, juveniles, or persons with mental illness, the State’s Attorneys and Sheriffs Executive Director shall annually set the per hour chargeable rate for each deputy sheriff or assistant so required to assist in the transport. The Executive Director shall consult with the Sheriffs Association before setting the per hour chargeable rate. The sheriff shall provide the documentation required by the Department. The deputy sheriff or assistant shall not receive compensation under this subdivision if otherwise compensated from any other funding source for the same hours during which such transportation is performed.
(B) For board and keeping, such sum as is actually expended shall be allowed for each prisoner when in charge of an officer who cannot reasonably place the prisoner in a jail or lockup for safekeeping.
(C) For each mile of actual travel, for transporting prisoners, juveniles, and patients with a mental condition or psychiatric disability:
(i) $0.05 more per mile than the rate allowed State employees under the terms of the prevailing contract between the State and the Vermont State Employees’ Association, Inc.; or
(ii) $0.20 more per mile than the rate allowed State employees under the terms of the prevailing contract between the State and the Vermont State Employees’ Association, Inc. when four or more prisoners, juveniles, or patients receiving mental health services are transported in a single vehicle designed to carry six or more passengers in addition to the driver.
(D) The amount actually awarded under chapter 13, subchapter 2 of this title in a small claims proceeding pursuant to 12 V.S.A. chapter 187 for which the law enforcement personnel or agency have not otherwise been compensated from insurance or other source for damages caused to a law enforcement agency’s vehicle or to a law enforcement officer’s personal vehicle by a prisoner, juvenile, or mental health patient while being transported by the officer in the performance of the officer’s duty.
(Amended 1973, No. 117, §§ 11, 17; 1973, No. 266 (Adj. Sess.), § 7; 1977, No. 218 (Adj. Sess.), § 7; 1977, No. 222 (Adj. Sess.), § 11, eff. July 2, 1978; 1979, No. 141 (Adj. Sess.), § 18; 1981, No. 91, § 11, eff. July 5, 1981; 1981, No. 249 (Adj. Sess.), § 21; 1983, No. 243 (Adj. Sess.), § 11; 1985, No. 225 (Adj. Sess.), § 12; 1987, No. 121, § 9; 1987, No. 183 (Adj. Sess.), §§ 13a, 14; 1989, No. 277 (Adj. Sess.), § 18a; 1995, No. 31, § 1; 1997, No. 28, § 8, eff. May 15, 1997; 1999, No. 62, § 56a; 2003, No. 70 (Adj. Sess.), § 24, eff. March 1, 2004; 2005, No. 72, § 4; 2007, No. 153 (Adj. Sess.), § 5; 2013, No. 50, § E.207; 2013, No. 96 (Adj. Sess.), § 195; 2021, No. 105 (Adj. Sess.), § 489, eff. July 1, 2022; 2021, No. 147 (Adj. Sess.), § 35, eff. May 31, 2022; 2021, No. 185 (Adj. Sess.), § E.205.1, eff. July 1, 2022; 2023, No. 46, § 16, eff. June 5, 2023.)
§ 1592 Repealed
[Repealed]
1993, No. 227 (Adj. Sess.), § 21.
§ 1593 Service outside the State
An officer required to serve a requisition or execute process outside the State shall receive $3.00 a day and necessary expenses.
(Amended 2021, No. 105 (Adj. Sess.), § 490, eff. July 1, 2022.)
§ 1594 Repealed
[Repealed]
1991, No. 257 (Adj. Sess.), § 9.
§ 1595 Mileage in criminal causes
In criminal causes, the officer shall make oath to the mileage in excess of one mile charged by him or her as correct before an account thereof is allowed, and the Commissioner of Finance and Management shall not allow for travel in excess of one mile unless actually made, and mileage shall cover transportation when furnished in executing the order of a court for commitment to jail.
(Amended 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b).)
§ 1596 Fees forbidden
Fees shall not be allowed to an officer for the service of a capias, bench warrant, or other writ for the arrest of a person who is under a recognizance taken before an officer authorized by law to take such recognizance, requiring the appearance of such person before the Superior Court.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1973, No. 249 (Adj. Sess.), § 96, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 211.)
§ 1597 Returns
All officers serving criminal process shall make return with bill of fees thereon.
(Amended 1969, No. 131, § 21, eff. April 23, 1969.)
Subchapter 7 Trustees, Appraisers, Election Officers, and Jailers
§ 1631 Trustees’ fees
The person summoned as trustee shall be allowed $0.06 a mile for his or her travel and $1.50 for each day’s attendance before the Superior Court; the same for travel and $0.75 for each day’s attendance before a commissioner.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974, No. 249 (Adj. Sess.), § 97, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 212.)
§ 1632 Costs allowed trustee
When costs are allowed to a trustee in a cause tried by a commissioner, such sum shall be allowed for the travel and attendance of witnesses and for his or her counsel before the commissioner, as in case of witnesses and counsel before a master.
§ 1633 Appraisers of attached or replevied property
The fees of persons appointed to appraise personal property attached, or to be replevied, shall be at the rate of $0.20 for each hour actually spent in such appraisal.
§ 1634 Repealed
[Repealed]
(Repealed by 2021, No. 105 (Adj. Sess.), § 491, eff. July 1, 2022.)
§ 1635 Repealed
[Repealed]
1959, No. 328 (Adj. Sess.), § 35(j).
§ 1636 Repealed
[Repealed]
1967, No. 345 (Adj. Sess.), § 32, eff. April 1, 1969.
§ 1637 Commissioners of jail delivery
(a) The fees of commissioners of jail delivery shall be as follows:
(1) for each citation, $0.34;
(2) for two certificates to a person admitted to the poor debtor’s oath, $0.25; and
(3) for attending a court of jail delivery, $2.00 a day to each commissioner who attends, and for travel, $0.10 a mile one way.
(b) The fees of the commissioners shall be allowed by the Commissioner of Finance and Management and paid by the State.
(Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1983, No. 195 (Adj. Sess.), § 5(b).)
Subchapter 8 Town Officers
§ 1671 Town clerk
(a) For the purposes of this section, a “page” is defined as a single side of a leaf of paper on which is printed, written, or otherwise placed information to be recorded or filed. The maximum covered area on a page shall be 7 1/2 inches by 14 inches. All letters shall be at least one-sixteenth inch in height or in at least eight-point type. Unless otherwise provided by law, the fees to town clerks shall be as follows:
(1) For recording a trust mortgage deed as provided in 24 V.S.A. § 1155, $15.00 per page.
(2) For filing or recording a copy of a complaint to foreclose a mortgage as provided in 12 V.S.A. § 4932(b), $15.00 per page.
(3) For examination of records by town clerk, a fee of $5.00 per hour may be charged but not more than $25.00 for each examination on any one calendar day.
(4) For examination of records by others, a fee of $4.00 per hour may be charged.
(5) Town clerks may require fees for all filing, recording, and copying to be paid in advance.
(6) For the recording or filing, or both, of any document that is to become a matter of public record in the town clerk’s office, a fee of $15.00 per page shall be charged; for any certified copy of such document, a fee of $10.00 per page shall be charged; for the recording or filing, or both, of a property transfer return, a fee of $15.00 shall be charged.
(7) For uncertified copies of records and documents on file, or recorded, a fee of $1.00 per page shall be charged, with a minimum fee of $2.00; however, copies of minutes of municipal meetings or meetings of local boards and commissions, copies of grand lists and checklists, and copies of any public records that any agency of that political subdivision has deposited with the clerk shall be available to the public at actual cost.
(8) For survey plats filed in accordance with 27 V.S.A. chapter 17, a fee of $25.00 per 11 inch by 17 inch sheet, $25.00 per 18 inch by 24 inch sheet, and $25.00 per 24 inch by 36 inch sheet shall be charged.
(b) A schedule of all fees shall be posted in the town clerk’s office.
(c)(1) The legislative body shall create a Restoration and Preservation Reserve Fund of not less than $4.00 per page from the per page recording fees established under this section.
(2) The Restoration and Preservation Reserve Fund shall be used solely for restoration, preservation, digitization, storage, and conservation of municipal records.
(3) Notwithstanding subdivision (1) of this subsection, a municipality may allocate less than $4.00 per page from recording fees if the clerk of the municipality annually certifies that the municipality has sufficient dedicated reserve funds to provide for the uses described in subdivision (2) of this subsection. On or before the third Monday of each year, the clerk shall submit a copy of the certification to the House Committee on Government Operations and Military Affairs.
(d) Nothing in this section shall preclude a municipality from committing funds to a Restoration and Preservation Reserve Fund in addition to those funds in subsection (c) of this section.
(e) Unspent funds in the Restoration and Preservation Reserve Fund shall carry over to subsequent fiscal years and shall be available as needed for the purposes described in subsection (c) of this section.
(f) When more than one previously recorded instrument is affected by the terms of a new instrument submitted for recording, the per page fee established in this section shall be assessed for each document affected by the terms of the new instrument.
(Amended 1959, No. 171, §§ 1-9; 1965, No. 128; 1967, No. 146, § 2, eff. Jan. 1, 1968; 1969, No. 40, § 3, eff. April 4, 1969; 1971, No. 84, § 14; 1979, No. 161 (Adj. Sess.), § 13; 1981, No. 190 (Adj. Sess.), § 1, eff. April 22, 1982; 1985, No. 204 (Adj. Sess.), § 1; 1993, No. 170 (Adj. Sess.), § 13; 1993, No. 171 (Adj. Sess.), § 17; 1995, 1993, No. 109 (Adj. Sess.), § 1; 1993, No. 159 (Adj. Sess.), § 4; 1997, No. 59, § 89a, eff. June 30, 1997; 1997, No. 155 (Adj. Sess.), § 66a; 1999, No. 155 (Adj. Sess.), § 12b; 2007, No. 76, § 33f; 2007, No. 121 (Adj. Sess.), § 29; 2009, No. 47, § 13; 2009, No. 3 (Sp. Sess.), § 22c, eff. June 1, 2009; 2019, No. 38, § 2; 2021, No. 105 (Adj. Sess.), § 492, eff. July 1, 2022.)
§ 1672 Town treasurer’s fee for receiving taxes
Town treasurers shall be allowed one percent on all sums paid by the taxpayers to them, computed on actual cash receipts after deduction of discounts taken, unless the town by vote fixes their compensation otherwise.
(Amended 1959, No. 171, § 10.)
§ 1673 Repealed
[Repealed]
1979, No. 177 (Adj. Sess.), § 3.
§ 1674 Delinquent tax commission and collection costs
The fees and penalties collected by collectors of taxes shall be as follows:
(1) Where a municipality does not vote to collect its taxes by its treasurer, the collector shall not tax or collect of the taxpayer any commission or fees on taxes paid within the time established in the notice required by section 4772 of this title.
(2) On all taxes collected after the expiration of the time established in the notice required by section 4772 or 4792 of this title, the collector may charge and collect from the taxpayer a commission of eight percent on the amount of the tax, unless a municipality votes otherwise pursuant to subdivision (3) of this section.
(3) For all taxes collected after the expiration of the time established in the notice required by section 4772 or 4792 of this title, voters of a municipality may adopt by a majority vote of the municipality’s members present and voting at an annual or special meeting:
(A) The percent of the amount of the tax collected that shall be charged as a commission, provided that the adopted percent does not exceed eight percent.
(B) A grace period or graduated commission schedule for taxes paid within a defined time frame after the established time of payment.
(4) Whenever it is necessary to levy on persons or personal estate, the collector shall be allowed to tax and collect from the taxpayer, as further compensation, such fees as sheriffs are allowed for levying executions.
(Amended 1993, No. 68, § 1; 1997, No. 26, § 1; 2003, No. 100 (Adj. Sess.), § 1.)
§ 1675 Fence viewers
Fence viewers shall receive $6.00 for each day’s service. At the time of performing such service, they shall adjudge the proportion of their fees and expenses to be paid by the parties interested. Any of such parties paying the same may recover of each other party the portion so adjudged to be paid by him or her, with full costs, in a civil action under this section.
(Amended 1971, No. 185 (Adj. Sess.), § 236(d), eff. March 29, 1972.)
§ 1676 Inspector of lumber, shingles, and wood
The fees of an inspector of lumber, shingles, and wood shall be $0.04 a cord for the first ten cords and $0.01 for each additional cord, and $0.25 for each 1,000 feet of lumber, to be paid by the person applying for the measurement.
§ 1677 Weigher of coal
The fees of a weigher of coal shall be $0.10 for the first ton and $0.04 for each additional ton, to be paid by the person applying for the weighing.
§ 1678 Impounders and poundkeepers
Impounders and poundkeepers shall receive the following fees: for all horse kind and neat cattle, $0.12 a head; for sheep, $0.02 a head; for swine, $0.08 a head; three-fourths to the impounder and one-fourth to the poundkeeper.
§ 1679 Persons taking up estrays
A person taking up an estray shall receive for notifying the town clerk, $0.25 and for each advertisement posted, $0.25.
§ 1680 Tree warden
When a town or incorporated village fails to fix the compensation of a tree warden or his or her deputies, they shall receive such compensation as the selectboard or trustees determine.
§ 1681 Building inspector
A building inspector shall receive such compensation for his or her services as the board of alders, selectboard, or trustees determine, payable as the salary of other municipal officials.
Subchapter 9 Vital Registration
§ 1711 County clerks
County clerks shall receive the same fees as town clerks in the matter of vital registrations.
§ 1712 Town clerks
Town clerks shall receive the following fees for issuing marriage licenses and vital event certificates:
(1) For issuing and recording a civil marriage license, $80.00 to be paid by the applicant, $15.00 of which sum shall be retained by the town clerk as a fee, $50.00 of which shall be deposited in the Domestic and Sexual Violence Special Fund created by 13 V.S.A. § 5360, and $15.00 of which sum shall be paid by the town clerk to the State Treasurer in a return filed quarterly upon forms furnished by the State Treasurer and specifying all fees received by the town clerk during the quarter. Such quarterly period shall be as of the first day of January, April, July, and October.
(2)-(4) [Repealed.]
(5) Fees for vital event certificates shall be charged as specified in 18 V.S.A. § 5017.
(Amended 1959, No. 171, §§ 11-14; 1971, No. 84, § 15; 1979, No. 142 (Adj. Sess.), § 19; 1981, No. 123 (Adj. Sess.), § 1; 1985, No. 204 (Adj. Sess.), § 2; 1993, No. 170 (Adj. Sess.), § 14; 1997, No. 59, § 8a, eff. June 30, 1997; 1999, No. 91 (Adj. Sess.), § 19; 2001, No. 65, § 32c; 2005, No. 202 (Adj. Sess.), § 9a; 2007, No. 76, § 33e, eff. June 7, 2007; 2007, No. 174 (Adj. Sess.), § 21; 2009, No. 3, § 12a, eff. Sept. 1, 2009; 2009, No. 91 (Adj. Sess.), § 14, eff. May 6, 2010; 2011, No. 162 (Adj. Sess.), § E.220.3; 2015, No. 149 (Adj. Sess.), § 35; 2017, No. 46, § 61, eff. July 1, 2019; 2017, No. 113 (Adj. Sess.), § 186; 2023, No. 19, § 4, eff. July 1, 2023.)
§ 1713 Repealed
[Repealed]
1975, No. 16, § 1, eff. March 21, 1975.
§ 1714 Burial certificates
Persons issuing certificates giving permission to bury a dead body shall receive $5.00 for each permit to be paid by the applicant. Persons issuing certificates giving permission to entomb or move a dead body that has already been issued a certificate giving permission to bury shall receive $1.00 to be paid by the applicant.
(Amended 1963, No. 102, § 7, eff. May 22, 1963; 1999, No. 49, § 225.)
§ 1715 Vital records search; copies search
(a) Upon payment of the fee established under 18 V.S.A. § 5017, the Office of Vital Records or the Vermont State Archives and Records Administration shall provide a certified copy of a vital event certificate, or shall ascertain and certify what the vital event certificate shows, except that the word “illegitimate” shall be redacted from any birth certificate furnished. The fee for the search of the vital records is $3.00, which is credited toward the fee for the first certified copy based upon the search.
(b) Fees collected under this section shall be credited to special funds established and managed pursuant to chapter 7, subchapter 5 of this title, and shall be available to the charging departments to offset the costs of providing those services.
(Added 1967, No. 278 (Adj. Sess.), § 26; amended 1975, No. 8, § 2; 1979, No. 56, § 11; 1975, No. 142 (Adj. Sess.), § 20; 1985, No. 224 (Adj. Sess.), § 4; 1995, No. 148 (Adj. Sess.), § 4(c)(2), eff. May 6, 1996; 1997, No. 59, § 8, eff. June 30, 1997; 2001, No. 143 (Adj. Sess.), § 63, eff. June 21, 2002; 2003, No. 163 (Adj. Sess.), § 9a; 2007, No. 76, § 21; 2007, No. 153 (Adj. Sess.), § 27; 2011, No. 3, § 93, eff. Feb. 17, 2011; 2017, No. 46, § 62, eff. July 1, 2019.)
Subchapter 10 Miscellaneous Fees
§ 1751 Fees when not otherwise provided
(a)(1) Officers and persons whose duty it is to record deeds, proceedings, depositions, or make copies of records, proceedings, docket entries, or minutes in their offices, when no other provision is made, shall be allowed:
(A) the sum of $0.60 a folio with a minimum fee of $1.00;
(B) the sum of $2.00 for each official certificate;
(C) for the authentication of documents, $2.00; and
(D) for other services, the sum as is in proportion to the fees established by law.
(2) Provided, however, that no fees shall be charged to honorably discharged veterans of the U.S. Armed Forces, or to their dependents or beneficiaries, for copies of records required in the prosecution of any claim for benefits from the U.S. government, or any State agency, and fees for copies of records so furnished at the rates provided by law shall be paid the officers by the town or city in which the record is maintained.
(b)(1) Whenever court officers and employees or officers and employees of the Judicial Bureau furnish copies or certified copies of records, the following fees shall be collected for the benefit of the State:
(A) the sum of $0.60 a folio with a minimum fee of $1.00 when a copy is reproduced by typewriter or hand;
(B) the sum of $0.25 a page with a minimum fee of $1.00 when a copy is reproduced photographically;
(C) for each official certificate, $5.00; however, one conformed copy of any document issued by a court shall be furnished without charge to a party of record to the action;
(D) for the authentication of documents, $5.00;
(E) for a response to a request for a record of criminal history of a person based upon name and date of birth, $30.00;
(F) for appointment as an acting judge pursuant to 4 V.S.A § 22(b) for the purpose of performing a civil marriage, $100.00; and
(G) for exemplified certificates, $10.00.
(2) However, the fees provided for in this subsection shall not be assessed by these officers and employees in furnishing copies or certified copies of records to any agency of any municipality, State, or federal government or to veterans honorably discharged from the Armed Forces of the United States, their dependents, or beneficiaries, in the prosecution of any claim for benefits from the U.S. government, or any State agency.
(Amended 1959, No. 171, § 16; 1963, No. 37, § 20; 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1971, No. 105, § 5, eff. July 1, 1971; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1973, No. 266 (Adj. Sess.), § 9, eff. July 1, 1974; 1981, No. 33, § 2; 1995, No. 77 (Adj. Sess.), § 5, eff. March 21, 1996; 1997, No. 121 (Adj. Sess.), § 25; 2003, No. 70 (Adj. Sess.), § 23, eff. March 1, 2004; 2003, No. 163 (Adj. Sess.), § 32; 2007, No. 153 (Adj. Sess.), § 21; 2009, No. 3, § 12a, eff. Sept. 1, 2009; 2009, No. 154 (Adj. Sess.), § 213; 2017, No. 76, § 3; 2021, No. 105 (Adj. Sess.), § 493, eff. July 1, 2022.)
§ 1752 Tax appeals
If under the provisions of section 4467 of this title the Director of the Division of Property Valuation and Review or the court reduces the appraisal value of the taxpayer’s property by more than 20 percent of the appraisal value, then the appeal fee shall be returned to the taxpayer.
(Amended 1959, No. 158, § 4, eff. May 5, 1959; 1969, No. 253 (Adj. Sess.), § 2; 1997, No. 59, § 14, eff. June 30, 1997.)
§ 1753 Inquests
The fees and expenses of inquests on the dead and buildings burned shall be the same as in criminal causes before a court.
(Amended 1973, No. 249 (Adj. Sess.), § 98, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 214.)
§ 1754 Entry and detainer
On trial for entry and detainer, there shall be allowed $0.50 each warrant, $1.00 to each of the justices, $2.00 to the party recovering, and $1.00 to each juror.
§ 1755 Travel expenses in causes tried before auditors, etc
A party finally recovering in an action tried by an auditor, referee, or commissioner shall recover $0.06 a mile for his or her travel in this State and $0.75 a day for his or her attendance at the hearing.
§§ 1756, 1757 Repealed
[Repealed]
1977, No. 190 (Adj. Sess.).
§ 1758 Masters, auditors, referees, and commissioners
(a) Unless otherwise provided, the pay and the expense allowance for commissioners, masters, auditors, and referees shall be fixed by the court or by the presiding judge thereof and paid by the State.
(b) The Superior Court may order that the cost of a master be shared by the parties, with the shares specified in the order, if:
(1) the distribution of property is contested and governed by 15 V.S.A. § 751 and the value of the property to be distributed exceeds $500,000.00; or
(2) one or both parties seek an award of maintenance under 15 V.S.A. § 752 and the parties have non-wage income of $150,000.00 or more, excluding up to $500,000.00 of income from the sale of a primary residence or jointly owned business.
(Amended 1971, No. 185 (Adj. Sess.), § 236(a), (b), eff. March 29, 1972; 2015, No. 58, § E.204.10.)
§ 1759 Repealed
[Repealed]
2017, No. 160 (Adj. Sess.), § 5(5).
§ 1760 Fees of county clerks for index of deeds and index of records
The county clerks shall receive from the county, for making the general index of existing land records under 27 V.S.A. § 401, $1.00 for each 100 entries upon such index; and for making an index as provided in 4 V.S.A. § 656, such sum as the assistant judges certify to be reasonable, to be allowed by the Commissioner of Finance and Management in the accounts of the clerks.
(Amended 1959, No. 328 (Adj. Sess.), § 8; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1983, No. 195 (Adj. Sess.), § 5(b); 2009, No. 154 (Adj. Sess.), § 215.)
§ 1761 Supervisors of unorganized towns and gores
A supervisor of unorganized towns and gores shall receive in addition to his or her per diem the following fees:
(1) for collecting taxes, he or she shall receive five percent of the amount collected by him or her;
(2) upon the sale of lands of nonresidents, he or she shall receive the same fees as the collector of town taxes in like cases; and
(3) in the performance of his or her duties relating to dogs, he or she shall receive the same fees as town clerks.
§ 1762 Miscellaneous fees
The Secretary of State shall fix and alter fees for copies, statements, filing, and other services where the amount of the fee is not otherwise fixed by law.
(Added 1967, No. 278 (Adj. Sess.), § 28, eff. July 1, 1968.)
§ 1763 Stenographic services; transcripts
An agency, department, board, or commission may retain the services of stenographic reporters to furnish verbatim and certified transcripts of evidence of proceedings before it, including quasi-judicial proceedings.
(Added 1987, No. 120, § 1; amended 1995, No. 178 (Adj. Sess.), § 418, eff. May 22, 1996.)
Chapter 101 Construction
§ 3001 Taxation
(a) “Person” as used in Parts 2, 4, and 5 of this subtitle shall include a partnership, association, corporation, or limited liability company.
(b) “Party to a civil union” is defined for purposes of this title as under 15 V.S.A. § 1201(5).
(c) “Laws of the United States,” “federal tax laws,” and other references to U.S. tax law shall mean U.S. tax law applied as if federal law recognized a civil union in the same manner as Vermont law.
(Amended 1997, No. 50, § 8, eff. June 26, 1997; 1999, No. 91 (Adj. Sess.), § 20; 2001, No. 140 (Adj. Sess.), § 18, eff. June 21, 2002.)
§ 3002 Taxable property construed
The words “taxable property” as used in this subtitle shall include taxable estate, both real and personal.
§ 3003 Commissioner
The word “Commissioner” as used in this subtitle with reference to matter of taxation shall mean the Commissioner of Taxes, appointed under section 3101 of this title.
§ 3004 Sunday; time extended
When an act under this subtitle is required to be done on or before a date that falls on Sunday, such act shall be valid if done on the following Monday.
§ 3005 Temporary removal
The residence of a person for the purpose of taxation shall not be changed by a temporary removal from a town to avoid taxation.
§ 3006 Actions against nonresidents
The officers responsible for the collection of any tax due any state, commonwealth, or territory of the United States of America, or any political subdivision thereof, shall have the right to bring and maintain an action or suit in the courts of this State to recover any unpaid tax against a person subject to the jurisdiction of the courts of this State, when the same or a similar right is accorded to the proper officer of this State or any of its political subdivisions by such state, commonwealth, or territory either by law or comity.
(Added 1971, No. 73, § 43, eff. April 16, 1971.)
§ 3007 Director
The word “Director” as used in Parts 1 and 2 of this subtitle and chapter 211, subchapter 2, article 4 of this title means the Director of the Division of Property Valuation and Review.
(Added 1977, No. 105, § 11.)
Chapter 103 Department of Taxes; Commissioner of Taxes
Subchapter 1 General Provisions
§ 3101 Powers and duties of Commissioner
(a) The Department of Taxes shall be administered by a Commissioner of Taxes.
(b) The Commissioner shall:
(1) Report biennially to the General Assembly. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subdivision.
(2) Provide for the security of information required by law to be kept confidential.
(3) Coordinate and integrate the work of the Department of Taxes with other agencies and departments responsible for the administration of taxes.
(4) Advise the Secretary of Administration and the General Assembly on matters relating to tax policy, as requested.
(5) Provide assistance and instruction to taxpayers and tax preparers, within the limits of available resources; provided, however, that in his or her communication with taxpayers, the Commissioner shall educate taxpayers about the available opportunities for resolving tax disputes through abatement, payment plans, offers in compromise, or any other possibilities for informal resolution before a final administrative decision on the merits of the dispute.
(6) Design and make available to all who request them appropriate returns for reporting tax information.
(7) Establish procedures for handling taxpayer appeals.
(8) Establish and maintain a record of tax returns and other data furnished to the Department of Taxes.
(9) Prepare and provide at a reasonable fee to all who request them copies of relevant tax statutes and rules.
(10) Administer and enforce all taxes within the Commissioner’s jurisdiction.
(11) From time to time prepare and publish statistics reasonably available with respect to the operation of this title, including amounts collected, classification of taxpayers, tax liabilities, and other facts as the Commissioner or the General Assembly considers pertinent.
(12) [Repealed.]
(13) From time to time provide municipalities with recommended methods for determining, for municipal tax purposes, the fair market value of renewable energy plants that are subject to taxation under section 8701 of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 41, eff. March 1, 1961; 1987, No. 243 (Adj. Sess.), § 69, eff. June 13, 1988; 1991, No. 186 (Adj. Sess.), §§ 1, 2, eff. May 7, 1992; 2001, No. 114 (Adj. Sess.), § 7a, eff. May 28, 2002; 2005, No. 14, § 10; 2007, No. 33, § 1, eff. May 18, 2007; 2011, No. 127 (Adj. Sess.), § 6, eff. Jan. 1, 2013; 2013, No. 142 (Adj. Sess.), § 67; 2015, No. 57, § 44; 2015, No. 131 (Adj. Sess.), § 34; 2021, No. 105 (Adj. Sess.), § 494, eff. July 1, 2022.)
§ 3102 Confidentiality of tax records
(a) No present or former officer, employee, or agent of the Department of Taxes shall disclose any return or return information to any person who is not an officer, employee, or agent of the Department of Taxes except in accordance with the provisions of this section. A person who violates this section shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both; and if the offender is an officer or employee of this State, the offender shall, in addition, be dismissed from office and be incapable of holding any public office for a period of five years thereafter.
(b) The following definitions shall apply for purposes of this chapter:
(1) “Person” shall include any individual, firm, partnership, association, joint stock company, corporation, trust, estate, or other entity.
(2) “Return” means any tax return, declaration of estimated tax, license application, report, or similar document, including attachments, schedules, and transmittals, filed with the Department of Taxes.
(3) “Return information” includes a person’s name, address, date of birth, Social Security or federal identification number or any other identifying number; information as to whether or not a return was filed or required to be filed; the nature, source, or amount of a person’s income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liabilities, tax payments, deficiencies, or over-assessments; and any other data, from any source, furnished to or prepared or collected by the Department of Taxes with respect to any person.
(4) “Tax administration” means the verification of a tax return or claim for credit, rebate, or refund; the investigation, assessment, determination, litigation, or collection of a tax liability of any person; the investigation or prosecution of a tax-related crime; or the enforcement of a tax statute.
(5) “Commissioner” means the Commissioner of Taxes appointed under section 3101 of this title or any officer, employee, or agent of the Department of Taxes authorized by the Commissioner (directly or indirectly by one or more redelegations of authority) to perform any function of the Commissioner.
(6) “State” means any sovereign body politic, including the United States, any state or territory thereof, and any foreign country or state or province thereof.
(7) “Authorized representative” means any person who would be considered a designee of the taxpayer under 26 U.S.C. § 6103(c). The signature of a notary public shall not be required for a person to be considered an “authorized representative.”
(c) The Commissioner shall disclose a return or information appearing on a return:
(1) to the person who filed the return with the Department of Taxes or any authorized representative of that person; and
(2) to any one of the several persons filing a joint, partnership, or consolidated return with the Department of Taxes, or any authorized representative of those persons.
(d) The Commissioner shall disclose a return or return information:
(1) to any person, in compliance with a judicial order directing disclosure; provided, however, that nothing in this section shall be construed to preclude the Commissioner from contesting the issuance of a judicial order;
(2) to any officer, employee, or agent of any law enforcement authority, if pursuant to a warrant issued in accordance with the provisions of Rule 41 of the Vermont Rules of Criminal Procedure; provided, however, that nothing in this section shall be construed to preclude the Commissioner from contesting the issuance of a warrant;
(3) to any person who inquires, provided that the information is limited to whether a person is registered to collect Vermont income withholding, sales and use, meals and rooms, or cannabis excise tax; whether a person is in good standing with respect to the payment of these taxes; whether a person is authorized to buy or sell property free of tax; or whether a person holds a valid license under chapter 205 or 239 of this title or 10 V.S.A. § 1942;
(4) to any other person specifically authorized by law to receive such information;
[Subdivision (d)(5) effective until July 1, 2026; see also subdivision (d)(5) effective July 1, 2026 set out below.]
(5) to the Attorney General, if such return or return information relates to chapter 205 of this title or 33 V.S.A. chapter 19, subchapters 1A and 1B, for purposes of investigating potential violations of and enforcing 7 V.S.A. chapter 40, 20 V.S.A. chapter 173, subchapter 2A, 33 V.S.A. chapter 19, subchapters 1A and 1B, and 21 V.S.A. §§ 346, 387, 712, and 1379;
[Subdivision (d)(5) effective July 1, 2026; see also subdivision (d)(5) effective until July 1, 2026 set out above.]
(5) to the Attorney General, if such return or return information relates to chapter 205 of this title or 33 V.S.A. chapter 19, subchapters 1A and 1B, for purposes of investigating potential violations of and enforcing 7 V.S.A. chapter 40, 20 V.S.A. chapter 173, subchapter 2A, and 33 V.S.A. chapter 19, subchapters 1A and 1B;
(6) to the Vermont Economic Progress Council, provided that the disclosure relates to a successful business applicant under chapter 105, subchapter 2 of this title and the incentive it has claimed is reasonably necessary for the Council to perform its duties under that subchapter;
(7) to the Joint Fiscal Office pursuant to subsection 10503(e) of this title and subject to the conditions and limitations specified in that subsection; and
(8) to the Attorney General; the Data Clearinghouse established in the October 2017 Non-Participating Manufacturer Adjustment Settlement Agreement, which the State of Vermont joined in 2018; the National Association of Attorneys General; and counsel for the parties to the Agreement as required by the Agreement and to the extent necessary to comply with the Agreement and only as long as the State is a party to the Agreement.
(e) The Commissioner may, in the Commissioner’s discretion and subject to such conditions and requirements as the Commissioner may provide, including any confidentiality requirements of the Internal Revenue Service, disclose a return or return information:
(1) To any person, provided that the information appears in records that are otherwise available to the general public; it shall not be an abuse of discretion to deny disclosure on the grounds that the information is of the type available at a town clerk’s office.
(2) To any person, provided that such disclosure is reasonably necessary for purposes of Vermont tax administration.
(3) To any officer, employee, or agent of any other state or Vermont municipality that administers its own local option sales tax or meals and rooms tax or gross receipts tax under its charter, provided that the information will be used by that state or municipality for tax administration and that state or municipality grants substantially similar disclosure privileges to this State and provides for the secrecy of records in terms substantially similar to those provided by this section.
(4) To any officer, employee, or agent of any law enforcement authority pursuant to a judicial order issued ex parte upon application by the Commissioner for the purpose of determining the location of a fugitive from justice or under circumstances involving an imminent danger of death or serious bodily injury to an individual. Information disclosed under this subdivision shall be used exclusively for the purpose for which disclosure was granted.
(5) To the person whose return information is sought, or any duly authorized representative of that person.
(6) To any person who shall use such return or return information solely in connection with the processing of such a return or return information or in connection with the audit of the books, records, and accounts of the Department of Taxes.
(7) To any person, or that person’s duly authorized representative, provided that the information is necessary to determine that person’s liability for a tax administered by the Commissioner and cannot reasonably be obtained from another source.
(8) To the Commissioner of Labor for the purpose of establishing the identity or liability of employers for unemployment compensation.
(9) To any person, provided that the disclosure is reasonably necessary to investigate or discipline employee misconduct relating to the failure of an employee of the Department of Taxes to comply with federal or State tax laws.
(10) To any person, provided that the disclosure is reasonably necessary to investigate the truthfulness of a statement made pursuant to section 3113 of this title that a contractor, licensee, or person authorized by the State to conduct a trade or business is in good standing with respect to or in full compliance with a plan to pay any and all taxes due as of the date such statement is made, or to discipline or prosecute any person making a false statement.
(11) To the Joint Fiscal Office or its agent, provided that the disclosure relates to a successful business applicant under chapter 105, subchapter 2 of this title and the incentive it has claimed and is reasonably necessary for the Joint Fiscal Office or its agent to perform the duties authorized by the Joint Fiscal Committee or a standing committee of the General Assembly under that subchapter; to the Auditor of Accounts for the performance of duties under section 163 of this title; and to the Department of Economic Development for the purposes of subsection 5922(f) of this title.
(12) [Repealed.]
(13) To the Center for Crime Victim Services for the purpose of determining or verifying a defendant’s assets and income pursuant to 13 V.S.A. § 7043.
(14) To the Office of the State Treasurer, only in the form of mailing labels, with only the last address known to the Department of Taxes of any person identified to the Department by the Treasurer by name and Social Security number, for the Treasurer’s use in notifying owners of unclaimed property.
(15) To the Division of Liquor Control, provided that the information is limited to information concerning the sales and use tax and meals and rooms tax filing history with respect to the most recent five years of a person seeking a liquor license or a renewal of a liquor license.
(16) To the Commissioner of Financial Regulation and the Commissioner of Vermont Health Access, if such return or return information relates to obligations of health insurers under chapter 243 of this title.
(17) To the Department of Financial Regulation, if such return or return information relates to the tax on premiums of captive insurance companies contained in 8 V.S.A. chapter 141, to the tax on surplus lines under 8 V.S.A. § 5035, to the tax on the direct placement of insurance under 8 V.S.A. § 5036, or to the tax on insurance premiums under section 8551 of this title.
(18) To the Agency of Natural Resources, if such return or return information relates to the tax on hazardous waste under chapter 237 of this title or to the franchise tax on waste facilities under chapter 151, subchapter 13 of this title.
(19) To the Vermont Student Assistance Corporation, if such return or return information is necessary to verify eligibility for the matching allocation required by 16 V.S.A. § 2880d(c).
(20) To a publicly traded partnership as defined in subdivision 5920(h)(1) of this title and to lower-tier pass-through entities of a publicly traded partnership as defined in subdivision 5920(h)(4) of this title for the purpose of reviewing, granting, or denying exemption requests from the requirements of section 5920 of this title.
(21) To the Department of Vermont Health Access for purposes of providing outreach to Vermont residents without minimum essential coverage pursuant to section 10454 of this title.
(22) To the Agency of Natural Resources and the Department of Public Service, provided that the disclosure relates to the sales and use tax for aviation jet fuel and natural gas under chapter 233 of this title or to the fuel tax under 33 V.S.A. chapter 25 and is subject to any confidentiality requirements of the Internal Revenue Service and the disclosure exemption provisions of 1 V.S.A. § 317.
(23) To the Public Utility Commission and the Department of Public Service, provided the disclosure relates to the fuel tax under 33 V.S.A. chapter 25 and is used for the purposes of auditing compliance with the Clean Heat Standard under 30 V.S.A. chapter 94. The Commissioner shall, at a minimum, provide the names of any new businesses selling heating fuel in any given year and the names of any businesses that are no longer selling heating fuel.
(24) To the Division of Emergency Management at the Department of Public Safety for the purposes of emergency management and communication, and to the Department of Housing and Community Development and any organization then under contract with the Department of Housing and Community Development to carry out a statewide housing needs assessment for the purpose of the statewide housing needs assessment, provided that the disclosure relates to the information collected on the landlord certificate pursuant to subsection 6069(c) of this title.
(f) Notwithstanding the provisions of this section, information obtained from the Commissioner for Children and Families under 33 V.S.A. § 112(c), the Vermont Student Assistance Corporation under 16 V.S.A. § 2843, or the Dental Health Program under 33 V.S.A. § 4507shall be confidential, and it shall be unlawful for anyone to divulge such information except in accordance with a judicial order or as provided under another provision of law.
(g) Nothing in this section shall be construed to prohibit the publication of statistical information, rulings, determinations, reports, opinions, policies, or other information so long as the data is disclosed in a form that cannot identify or be associated with a particular person.
(h) If any provision of Vermont law authorizes or requires the Commissioner to divulge or make known in any manner any return or return information, the person or persons receiving such return or return information (other than information disclosed under subsection (i) of this section) shall be subject to the provisions of subsection (a) of this section as if such person were the agent of the Commissioner. Nothing in this subsection shall be construed to restrict the disclosure of a return or return information by the person to whom it relates.
(i) The Commissioner may, for the purpose of notifying the public of the revocation of a meals and rooms tax license or sales and use tax certificate, disclose the name of the taxpayer and name of the business, the business address, and the license or certificate number.
[Subsection (j) effective until contingency met; see also subsection (j) effective July 1, 2028 if contingency met, set out below.]
(j) Tax bills prepared by a municipality under subdivision 5402(b)(1) of this title showing only the amount of total tax due shall not be considered confidential return information under this section. For the purposes of calculating credits under chapter 154 of this title, information provided by the Commissioner to a municipality under subsection 6066a(a) of this title and information provided by the municipality to a taxpayer under subsection 6066a(f) shall be considered confidential return information under this section.
[Subsection (j) effective July 1, 2028 if contingency met; see also subsection (j) effective until contingency met, set out above.]
(j) Tax bills prepared by a municipality under subdivision 5402(b)(1) of this title showing only the amount of total tax due shall not be considered confidential return information under this section. For the purposes of calculating the homestead property tax exemption and the municipal property tax credit under chapter 154 of this title, information provided by the Commissioner to a municipality under subsection 6066a(a) of this title and information provided by the municipality to a taxpayer under subsection 6066a(f) shall be considered confidential return information under this section.
(k) Notwithstanding subsection (j) of this section, the Commissioner or a municipal official acting as the Commissioner’s agent may provide the information in subsection 6066a(f) of this title to the following persons without incurring liability under this section:
(1) an escrow agent, the owner of the property to which the credit applies, a town auditor, or a person hired by the town to serve as an auditor;
(2) a lawyer, including a paralegal or assistant of the lawyer; an employee or agent of a financial institution as that term is defined in 8 V.S.A. § 11101; an employee or agent of a credit union as that term is defined in 8 V.S.A. § 30101; a realtor; or a certified public accountant as that term is defined in 26 V.S.A. § 13(12), who represents that the individual has a need for the information as it pertains to a real estate transaction or to a client or customer relationship; and
(3) any other person as long as the taxpayer has filed a written consent to such disclosure with the municipality.
(l)(1) The Commissioner of Taxes and the Chief Fiscal Officer of the Joint Fiscal Office shall enter into a memorandum of understanding in order to provide the Joint Fiscal Office with State returns and return information necessary for the Joint Fiscal Office or its agents to perform its duties, including conducting its own statistical studies, forecasts, and fiscal analysis.
(2) The memorandum of understanding shall provide for:
(A) mechanisms to prevent the identification of individual taxpayers, including the redaction of any information that identifies a particular taxpayer;
(B) protocols for handling and transmitting returns and return information;
(C) the designation of specific employees of the Joint Fiscal Office with access to the information provided by the Department of Taxes; and
(D) the incorporation of penalties for unauthorized disclosures under subsections (a) and (h) of this section.
(m) Notwithstanding any other provision of law, the Commissioner may publish the names, addresses, and amounts of tax liability for the 100 individual taxpayers and 100 business taxpayers with the greatest unresolved tax liability under this title. The Commissioner shall send a notice of intent to publish a taxpayer’s name, tax liability, and address to the taxpayer before publication. A taxpayer’s information may only be published pursuant to this subsection if he or she has been delinquent for more than 90 days after the end of any applicable administrative appeal periods.
(n) Data reported to the Commissioner of Taxes by a deposit initiator under 10 V.S.A. § 1530 shall not be considered confidential return or return information under this section, provided that the Commissioner may only disclose the data in summary or aggregated form that does not directly or indirectly identify individual deposit initiators except when the Commissioner discloses data regarding individual deposit initiators to the Secretary of Natural Resources in relation to the administration of 10 V.S.A. chapter 53.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1987, No. 278 (Adj. Sess.), § 2, eff. June 21, 1988; 1989, No. 222 (Adj. Sess.), § 3, eff. May 31, 1990; 1991, No. 186 (Adj. Sess.), §§ 38, 39, eff. May 7, 1992; 1993, No. 49, §§ 1, 22, eff. May 28, 1993; 1995, No. 29, § 3, eff. April 14, 1995; 1999, No. 147 (Adj. Sess.), § 4; 1999, No. 159 (Adj. Sess.), § 16; 2001, No. 114 (Adj. Sess.), § 7b, eff. May 28, 2002; 2001, No. 134 (Adj. Sess.), § 8, eff. June 21, 2002; 2001, No. 138 (Adj. Sess.), § 2, eff. June 21, 2002; 2003, No. 14, § 2; 2003, No. 57, § 12, eff. July 1, 2004; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 174 (Adj. Sess.), § 63; 2005, No. 184 (Adj. Sess.), § 10, eff. Jan. 1, 2007; 2007, No. 190 (Adj. Sess.), §§ 38, 39, eff. June 6, 2008; 2009, No. 22, § 7; 2011, No. 45, § 31, eff. May 24, 2011; 2011, No. 143 (Adj. Sess.), §§ 4, 5, eff. May 15, 2012; 2013, No. 73, § 6; 2013, No. 73, § 49, eff. July 1, 2013; 2013, No. 174 (Adj. Sess.), § 31, eff. June 4, 2014; 2015, No. 97 (Adj. Sess.), § 83; 2015, No. 134 (Adj. Sess.), § 1, eff. May 25, 2016; 2015, No. 157 (Adj. Sess.), § H.4, eff. Jan. 1, 2017; 2017, No. 69, § A.2, eff. June 28, 2017; 2017, No. 73, § 3, eff. June 13, 2017; 2017, No. 73, § 17, eff. Jan. 1, 2018; 2019, No. 51, §§ 1, 11, eff. June 10, 2019; 2019, No. 63, § 2, eff. Jan. 1, 2020; 2019, No. 73, § 43; 2019, No. 85 (Adj. Sess.), § 7, eff. Feb. 20, 2020; 2019, No. 85 (Adj. Sess.), § 14, eff. July 1, 2026; 2019, No. 99 (Adj. Sess.), § 1, eff. April 28, 2020; 2019, No. 99 (Adj. Sess.), § 2, eff. Jan. 15, 2021; 2019, No. 164 (Adj. Sess.), § 14a, eff. March 1, 2022; 2019, No. 175 (Adj. Sess.), § 20, eff. Oct. 8, 2020; 2021, No. 3, § 60, eff. Jan. 15, 2021; 2021, No. 3, § 61, eff. July 1, 2021; 2021, No. 3, § 62, eff. July 1, 2024; 2021, No. 105 (Adj. Sess.), § 495, eff. July 1, 2022; 2023, No. 3, § 102, eff. March 20, 2023; 2023, No. 142 (Adj. Sess.), § 12, eff. May 30, 2024; 2023, No. 181 (Adj. Sess.), § 99, eff. June 17, 2024; 2025, No. 57, § 19, eff. July 1, 2025; 2025, No. 73, § 55, contingently eff. July 1, 2028.)
§§ 3103-3105 Repealed
[Repealed]
1987, No. 243 (Adj. Sess.), § 70, eff. June 13, 1988.
§§ 3106, 3107 Repealed
[Repealed]
1961, No. 217, § 10, eff. July 13, 1961.
§ 3108 Establishment of interest rate
(a) Not later than December 15 of each year, the Commissioner shall establish an annual rate of interest applicable to unpaid tax liabilities and tax overpayments that shall be equal to the average prime rate charged by banks during the immediately preceding 12 months commencing on October 1 of the prior year, rounded upwards to the nearest quarter percent. The rate established hereunder shall be effective on January 1 of the immediately following year. As used in this section, the term “prime rate charged by banks” shall mean the average predominate prime rate quoted by commercial banks to large businesses as determined by the Board of Governors of the Federal Reserve Board.
(b) Whenever the Commissioner is authorized or directed to pay interest on an overpayment of any taxes, nevertheless no interest shall be paid on such overpayment:
(1) where the Commissioner finds that such overpayment was made with the intention or expectation of receiving a payment of interest thereon and for no other reason;
(2) for any period of time prior to 45 days after the date the return other than a corporate income tax return was due, including any extensions of time or 45 days after the return was filed, whichever is the later date, and with respect to corporate income tax returns, for any period of time prior to 90 days after the date the return was due or 90 days after the return was filed, whichever is the later date;
(3) in the case of overpayments that result from carrybacks, for a period of time prior to 45 days after the end of the tax year in which the event giving rise to the carryback occurred; or
(4) to the extent the overpayment is paid at the direction of the taxpayer to a municipality for credit against the taxpayer’s homestead property tax liabilities.
(c)(1) For the purposes of subsection (b) of this section, a return shall not be treated as filed until it is filed in processible form, which means that the return is filed on a permitted form and the return contains the taxpayer’s name, address, identifying number, the required signature, and sufficient information, whether on the return or on required attachments, to permit the mathematical verification of the tax liability shown on the return.
(2) The provisions of subsection (b) of this section shall apply notwithstanding any other provision of law to the contrary.
(Added 1981, No. 191, (Adj. Sess.), § 1; amended 1983, No. 59, § 2, eff. April 22, 1983; 1999, No. 49, § 75, eff. June 2, 1999; 2005, No. 185 (Adj. Sess.), § 4, eff. Jan. 1, 2007; 2011, No. 143 (Adj. Sess.), § 15, eff. May 15, 2012; 2019, No. 51, § 2, eff. June 10, 2019; 2019, No. 175 (Adj. Sess.), § 28, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 496, eff. July 1, 2022.)
§ 3109 Sheriffs and collection agencies; contracts for the collection of taxes; the use of bank or credit cards for the payment of delinquent taxes
(a) The Commissioner may contract with one or more sheriffs or constables for the collection of taxes by the sheriff’s or constable’s performance of services authorized by law, for compensation that may be in lieu of any statutory fees. The compensation terms of such contracts shall be uniform throughout the State unless the Commissioner certifies that differential terms are required because of unusual circumstances in a particular case, and recites such circumstances in the contract. When contracting with the Commissioner under this subsection, constables are authorized to avail themselves of all statutory remedies available to sheriffs to collect taxes. Notwithstanding section 502 of this title, the Commissioner may charge against such collections an agreed-upon fixed rate or percentage of collections.
(b) The Commissioner may also contract with private collection agencies for the collection of taxes owed to the State by taxpayers. The Commissioner may agree to pay such agencies a fixed rate for services rendered or a percentage of the amount actually collected by such agencies and remitted to the Commissioner. Notwithstanding section 502 of this title, the Commissioner may charge against such collections an agreed-upon fixed rate or percentage of collections.
(c) If the Commissioner determines that an employee of a private collection agency has violated any provision of section 3102 of this title, such employee shall, in addition to any other sanctions under section 3102, be barred from acting under any contract with the State and shall be incapable of acting as an agent, employee, or public officer of the State for a period of five years thereafter.
(d) As used in this section, the word “taxes” shall include all tax liabilities, license fees, interest, penalties, fees, and any other charges or amounts arising from any tax liability owed to the State.
(e) As used in this section, the word “Commissioner” shall include the Commissioner of Motor Vehicles.
(Added 1983, No. 178 (Adj. Sess.), eff. April 20, 1984; amended 1985, No. 266 (Adj. Sess.), § 5, eff. June 4, 1986; 1987, No. 278 (Adj. Sess.), § 13, eff. June 21, 1988; 1991, No. 186 (Adj. Sess.), §§ 4, 6, eff. May 7, 1992; 1993, No. 60, §§ 24a, 24b eff. May 28, 1993; 1995, No. 63, §§ 24a, 24b, eff. May 4, 1995; 1995, No. 82 (Adj. Sess.), § 1, eff. Feb. 21, 1996; 2003, No. 109 (Adj. Sess.), § 14; 2021, No. 105 (Adj. Sess.), § 497, eff. July 1, 2022.)
§ 3109a Repealed
[Repealed]
2003, No. 70 (Adj. Sess.), § 32, eff. March 1, 2004.
§ 3110 Payments accepted by the Commissioner
Notwithstanding section 583 of this title and any other provision of law to the contrary, the Commissioner may accept payment of taxes, license fees, penalties, interest, fees, or other charges by any means that the Commissioner deems necessary for the effective administration of taxes. When accepting payment by bank credit cards, the Commissioner may charge the taxpayer an additional amount that approximates the cost of providing the service and that is approved by the Secretary of Administration for each payment made by credit card. Notwithstanding section 502 of this title, the Commissioner may charge against collections paid using a bank credit card a percentage of collections and any service fee imposed.
(Added 1991, No. 186 (Adj. Sess.), § 5, eff. May 7, 1992; amended 2003, No. 61, § 3; 2021, No. 73, § 4.)
§ 3111 Internal Revenue Service charges
Notwithstanding section 502 of this title, the Commissioner may charge against any State tax liability a fee agreed to by the Department and paid to the U.S. Department of the Treasury for participation in a Debt Setoff Program.
(Added 2001, No. 144 (Adj. Sess.), § 14, eff. June 21, 2002.)
§ 3112 Allocation of payments
(a) Any payment received by the Commissioner from any taxpayer may, notwithstanding any direction by the taxpayer to the contrary, be applied to the taxpayer’s liability for any tax administered by the Commissioner and for any period. Any payment may, with respect to any taxable period, be applied first to the amount of any interest, next to the amount of any penalty, next to the amount of any fee, and finally to the amount of any unpaid tax liability for that period.
(b) The Commissioner may treat any refund payment owed by the Commissioner to a taxpayer as if it were a payment received from the taxpayer and may apply the payment in accordance with subsection (a) of this section.
(c) The provisions of this section shall apply notwithstanding any appeal by the taxpayer.
(Added 1985, No. 263 (Adj. Sess.), § 3, eff. June 4, 1986.)
§ 3113 Requirement for obtaining license, governmental contract, or employment
(a) As used in this section, “agency” means any unit of State government, including agencies, departments, boards, commissions, authorities, or public corporation.
(b) No agency of the State shall grant, issue, or renew any license or other authority to conduct a trade or business (including a license to practice a profession) to, or enter into, extend, or renew any contract for the provision of goods, services, or real estate space with any person unless the person shall first sign a written declaration under the pains and penalties of perjury that the person is in good standing with respect to or in full compliance with a plan to pay any and all taxes due as of the date the declaration is made, except that the Commissioner may waive this requirement as the Commissioner deems appropriate to facilitate the Department of Financial Regulation’s participation in any national licensing or registration systems for persons required to be licensed or registered by the Commissioner of Financial Regulation under Title 8, Title 9, or 18 V.S.A. chapter 221.
(c) Every agency shall, upon request of the Commissioner, furnish a list of licenses and contracts issued or renewed by the agency during the reporting period; provided, however, that the Secretary of State shall, with respect to certificates of authority to transact business issued to foreign corporations, furnish to the Commissioner only those certificates originally issued by the Secretary of State during the reporting period and not renewals of such certificates. The lists shall include the name, address, Social Security or federal identification number of the licensee or provider, and other information as the Commissioner may require.
(d) If the Commissioner determines that any person who has agreed to furnish goods, services, or real estate space to any agency has neglected or refused to pay any tax administered by the Commissioner and that the person’s liability for such tax is not under appeal, or if under appeal, the Commissioner has determined that the tax or interest or penalty is in jeopardy, the Commissioner shall notify the agency and the person in writing of the amount owed by the person. Upon receipt of such notice, the agency shall thereafter transfer to the Commissioner any amounts that would otherwise be payable by the agency to the taxpayer, up to the amount certified by the Commissioner. The Commissioner may treat any payment as if it were a payment received from the taxpayer. As used in this section, “any person who has agreed to furnish goods, services, or real estate space to any agency” includes a provider of Medicaid services that receives reimbursement from the State under Title 33.
(e) No agency of the State shall make final payment of any amount owed under a contract that contemplates the employment of any person within the State or the use of any property within the State, or otherwise release any person from the obligations of any contract, unless the person shall first obtain a certificate issued by the Commissioner that the person is in good standing with respect to or in full compliance with a plan to pay any and all taxes due as of the date of issuance of the certificate.
(f) Upon written request by the Commissioner and after notice and hearing to the licensee as required under any applicable provision of law, an agency shall revoke or suspend any license or other authority to conduct a trade or business (including a license to practice a profession) issued to any person if the agency finds that taxes administered by the Commissioner have not been paid and that the taxpayer’s liability for the taxes is not under appeal. For purposes of the findings, the written representation to that effect by the Commissioner to the agency shall constitute prima facie evidence thereof. The Commissioner shall have the right to intervene in any hearing conducted with respect to the license revocation or suspension. Any findings made by the agency with respect to the license revocation or suspension shall be made only for the purposes of the proceeding and shall not be relevant to or introduced in any other proceeding at law, except for any appeal from the license revocation or suspension. Any license or certificate of authority suspended or revoked under this section shall not be reissued or renewed until the agency receives a certificate issued by the Commissioner that the licensee is in good standing with respect to any and all taxes payable to the Commissioner as of the date of issuance of the certificate. Any person aggrieved by the decision of the agency may appeal the decision in accordance with the provisions of 3 V.S.A. chapter 25.
(g) For the purposes of this section, a person is in good standing with respect to any and all taxes payable if:
(1) no taxes are due and payable and all returns have been filed;
(2) the liability for any taxes due and payable is on appeal;
(3) the person is in compliance with a payment plan approved by the Commissioner; or
(4) in the case of a licensee, the agency finds that requiring immediate payment of taxes due and payable would impose an unreasonable hardship. If the agency finds an unreasonable hardship, it may condition renewal on terms that will place the person in good standing with respect to any and all taxes as soon as reasonably possible.
(h) Any person who knowingly makes or subscribes any return, statement, or other document under this title that contains or is verified by an unsworn written declaration that is made under the pains and penalties of perjury and that is not true and correct as to every material matter shall be fined not more than $10,000.00 and imprisoned not more than 15 years, or both.
(i) No agency of the State shall hire any person as a full-time, part-time, temporary, or contractual employee unless the person shall first sign a written declaration under the pains and penalties of perjury that the person is in good standing with respect to or in full compliance with a plan to pay any and all taxes due as of the date the declaration is made. This requirement applies only to the initial hire of an individual into a position that is paid using the State of Vermont federal taxpayer identification number, other than as a county employee, and not to an employee serving in the position or who returns to any position in State government as a result of a placement right or reduction in force recall right.
(Added 1985, No. 263 (Adj. Sess.), § 4, eff. June 4, 1986; amended 1991, No. 67, §§ 1, 2, eff. June 19, 1991; 1997, No. 50, § 9, eff. June 26, 1997; 1999, No. 49, § 42, eff. June 2, 1999; 2003, No. 70 (Adj. Sess.), § 33, eff. March 1, 2004; 2009, No. 1 (Sp. Sess.), § H.19, eff. June 2, 2009; 2013, No. 73, § 59; 2015, No. 57, § 47; 2021, No. 105 (Adj. Sess.), § 498, eff. July 1, 2022.)
§ 3113a Abandoned property; satisfaction of tax liabilities
The Commissioner may request from the Office of the Treasurer the names and Social Security or federal identification numbers of apparent owners of presumed abandoned property prior to notice being given pursuant to 27 V.S.A. chapter 18, subchapter 5. If any apparent owner owes taxes to the State, the Commissioner, after notice to the owner, may request and the Treasurer shall transfer the abandoned property of the owner to the Department for setoff of the taxes owed. The notice shall advise the owner of the action being taken and the right to appeal the setoff if the tax debt is not the owner’s debt, or if the debt has been paid, or if the tax debt was appealed within 60 days from the date of the assessment and the appeal has not been finally determined, or if the debt was discharged in bankruptcy.
(Added 2009, No. 1 (Sp. Sess.), § H.20, eff. June 2, 2009; amended 2021, No. 105 (Adj. Sess.), § 499, eff. July 1, 2022.)
§ 3113b Lottery winnings; satisfaction of tax liabilities
For all Vermont Lottery games, the Commissioner of Liquor and Lottery may, before issuing prize money to a winner, determine whether the winner has an outstanding tax liability payable to the Department of Taxes. If any such winner owes taxes to the State, the Commissioner of Taxes, after notice to the owner, may request and the Department of Liquor and Lottery shall transfer the amount of the tax liability to the Department for setoff of the taxes owed. The notice shall advise the winner of the action being taken and the right to appeal the setoff if the tax debt is not the winner’s debt, or if the debt has been paid, or if the tax debt was appealed within 60 days from the date of the assessment and the appeal has not been finally determined, or if the debt was discharged in bankruptcy. Any offset of Lottery winnings for taxes shall be third in priority to the offset of Lottery winnings to the Office of Child Support pursuant to 15 V.S.A. § 792 and the offset of Lottery winnings for restitution pursuant to 13 V.S.A. § 7043.
(Added 2011, No. 45, § 1, eff. May 24, 2011; amended 2019, No. 73, § 44.)
§ 3114 Bonding requirements
(a) When the Commissioner, in the Commissioner’s discretion, deems it necessary to protect the revenues collectible by the Commissioner, the Commissioner may require any person required to collect, withhold, remit, or pay any tax administered by the Commissioner, other than the personal income tax, to file with the Commissioner a bond, issued by a surety company authorized to transact business in this State and approved by the Commissioner of Financial Regulation of this State as to solvency and responsibility, in an amount fixed by the Commissioner, to secure the payment of any tax or penalties or interest due or that may become due from that person. In determining whether a person should be required to obtain a bond, the Commissioner is specifically authorized to consider the filing and payment history, with respect to any tax administered by the Commissioner, of such person or any individual, corporation, partnership, or other legal entity with which the person is or was associated as principal, partner, officer, director, employee, agent, or incorporator.
(b) In the event that the Commissioner determines that the person is to file a bond, the Commissioner shall give notice to that effect, specifying the amount of the bond required and the period for which such bond is required. That person shall file a bond within five days after the giving of the notice unless within those five days the person shall request in writing a hearing before the Commissioner at which the necessity, propriety, and amount of the bond shall be determined by the Commissioner. The determination of the Commissioner shall be complied with within 15 days after the giving of notice. Any person aggrieved by a determination of the Commissioner may appeal from the determination in accordance with section 5885 of this title, but the determination of the Commissioner may be overturned on appeal only for abuse of discretion.
(c) Notwithstanding any appeal to the Commissioner or to the courts, no person shall operate any trade or business with respect to which a bond has been demanded during any period for which the bond is not in effect. In case of operation in violation of this section, the Commissioner may cause to be posted, at every public entrance of the vendor’s premises, a notice identifying the person and the location and informing the public that the person has not filed a bond and that no business may be conducted at that location. No person shall cover or deface the posted notice, and the posted notice may not be removed until the bond is posted or removal is otherwise authorized by the Commissioner or a court.
(d) In lieu of a bond, securities approved by the Commissioner or cash in an amount as the Commissioner may prescribe may be deposited, which shall be kept in the custody of the State Treasurer who may at any time upon instructions from the Commissioner without notice to the depositor apply them to any tax or interest or penalties due, and for that purpose the securities may be sold by the Commissioner at public or private sale without notice to the depositor.
(Added 1985, No. 263 (Adj. Sess.), § 5, eff. June 4, 1986; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2005, No. 14, § 11, eff. May 3, 2005; 2011, No. 78 (Adj. Sess.), § 2; 2021, No. 105 (Adj. Sess.), § 500, eff. July 1, 2022.)
§ 3115 [Repealed.]
Subchapter 2 Administration
§ 3201 Administration of taxes
(a) Commissioner authority. In the administration of taxes, the Commissioner may:
(1) Adopt, amend, and enforce reasonable rules and orders in administering the taxes within the Commissioner’s jurisdiction.
(2) Delegate to any officer or employee in the Department powers the Commissioner deems necessary to carry out efficiently the tax provisions within the Commissioner’s jurisdiction.
(3) Hold hearings, administer oaths, and examine under oath any person relating to that person’s business or relating to any matter within the Commissioner’s jurisdiction.
(4) For the purpose of ascertaining the correctness of any return or making a determination of the tax liability of any taxpayer, examine or cause to be examined by any agent or representative designated by the Commissioner for that purpose any books, papers, records, or memoranda of the taxpayer bearing upon the matters required to be included in any return. The Commissioner or the Commissioner’s designated officers may require the attendance of the taxpayer or of any other person having knowledge in the premises at any place in the county where the taxpayer or person resides or has a place of business or in Washington County if the taxpayer is a nonresident individual, estate, or trust, or is a corporation or business entity not having a place of business in this State; may take testimony and require proof material; and may administer oaths or take acknowledgment in respect of any return or other information required by this title or the rules and decisions of the Commissioner. If an individual, estate, trust, corporation, or other business entity fails after request to provide books, records, or memoranda at either its place of business within the State or Washington County, the Commissioner may charge the person a reasonable per diem fee and expenses for the auditor making the examination out of state. The charges shall be payable within 30 days after the date billed and may be collected in the manner provided for the collection of taxes in this title.
(5) Upon making a record of the reasons therefor, waive, reduce, or compromise any of the taxes, penalties, interest, or other charges or fees within the Commissioner’s jurisdiction.
(6) Determine the form in which returns and reports shall be filed and what shall constitute a signature on returns and reports, including those filed in other than paper form, such as electronically or over telephone lines.
(7) Assess, determine, revise, and readjust the taxes imposed in this title.
(8) In cases in which payment of taxes is allowed or required by electronic funds transfer, allow up to six additional days for payment.
(9) Attach property pursuant to section 3207 of this title for payment of an amount collectible by the Commissioner under this title any time after 90 days have run from the end of any applicable administrative appeal period on the underlying tax liability.
(10) Garnish earnings pursuant to section 3208 of this title for payment of an amount collectible by the Commissioner under this title any time after 90 days have run from the end of any applicable administrative appeal period on the underlying tax liability.
(b) Reciprocal enforcement.
(1) At the request of the Commissioner, the Attorney General may bring suit in the name of this State in the appropriate court of any other state to collect any tax legally due this State.
(2) The courts of this State shall recognize and enforce liabilities for taxes lawfully imposed by any other state that extends a like comity to this State, and the duly authorized officer of that state may sue for the collection of such a tax in the courts of this State. A certificate by the Secretary of State of the other state that an officer suing for collection of such a tax is duly authorized to collect it shall be conclusive proof of this authority.
(3) As used in this section, the words “tax” and “taxes” include interest, fees, and penalties due under any taxing statute, and liability for the interest, fees, and penalties due under a taxing statute of another state shall be recognized and enforced by the courts of this State to the same extent that the laws of the other state permit the enforcement in its courts of liability for the interest, fees, and penalties due under a taxing statute of this State.
(c) Reciprocal tax agreements. The Commissioner may enter into reciprocal agreements with the taxing authorities of other states, territories, provinces of Canada, countries, or the District of Columbia regarding the administration of taxes.
(d) Tax return due dates. When the due date for the filing of a return falls on a federal or State holiday, the due date shall be the next business day after such holiday. A return that is filed by mail shall be accepted as timely filed if:
(1) it is received by the Department within three business days after the due date; or
(2) the taxpayer provides proof satisfactory to the Commissioner that the return was mailed by the due date.
(e) Agreements with certified service providers. The Commissioner may enter into agreements with certified service providers, sellers using certified automated systems, and voluntary sellers for monetary allowances. The tax required to be paid to the Department shall be net of monetary allowances.
(1) The allowance for a certified service provider shall be funded entirely from money collected by the provider and shall be either a base rate applied to taxable transactions processed by the provider or, for a period not to exceed 24 months following a voluntary seller’s registration through the streamlined sales tax agreement central registration process, a percentage of tax revenue generated for the State for which the seller does not have a requirement to register to collect the tax, or both.
(2) The allowance for a seller using a certified automated system shall be for a period not to exceed 24 months following a seller’s voluntary registration and may include a base rate applied to taxable transactions and a percentage of tax revenue generated for the State for which the seller does not have a requirement to register to collect the tax.
(3) The allowance for a voluntary seller shall be for a period not to exceed 24 months following a seller’s voluntary registration and shall be based on a percentage of tax revenue generated for the State for which the seller does not have a requirement to register to collect the tax.
(Added 1991, No. 186 (Adj. Sess.), § 7, eff. May 7, 1992; amended 1993, No. 49, § 2, eff. May 28, 1993; 1995, No. 169 (Adj. Sess.), §§ 1, 2, eff. May 15, 1996; 1999, No. 49, §§ 41, 43, eff. June 2, 1999; 2003, No. 152 (Adj. Sess.), § 21, eff. date, see note below; 2007, No. 81, § 3, eff. July 1, 2008; 2009, No. 160 (Adj. Sess.), § 4, eff. June 4, 2010; 2015, No. 57, § 41; 2019, No. 14, § 76, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 501, eff. July 1, 2022; 2023, No. 6, § 373, eff. July 1, 2023.)
§ 3202 Interest and penalties
(a) Failure to pay; interest. When a taxpayer fails to pay a tax liability imposed by this title (except the motor vehicle purchase and use tax) on the prescribed date of payment, the Commissioner may assess and the taxpayer shall then pay a sum of interest computed at the rate per annum established by the Commissioner pursuant to section 3108 of this title on the unpaid amount of that tax liability for the period from the prescribed date to the date of full payment of the liability.
(b) Penalties.
(1) Failure to file. When a taxpayer fails to file a tax return required by this title (other than a return required by chapter 151, subchapter 5 of this title for estimation of nonwithheld income tax), on the prescribed date of payment or the date as extended pursuant to section 5868 of this title, unless the taxpayer affirmatively shows that the failure is due to reasonable cause and not due to willful neglect, then in addition to any interest payable pursuant to subsection (a) of this section, the Commissioner may assess and the taxpayer shall then pay a penalty that shall be equal to five percent of the outstanding tax liability for each month, or portion thereof, that the tax return is not filed; provided, however, that in no event shall the amount of any penalty imposed under this subdivision exceed 25 percent of the tax liability unpaid on the prescribed date of payment. If the return is not filed within 60 days after the prescribed date of payment, there shall be assessed a minimum penalty of $50.00 regardless of whether there is a tax liability.
(2) Failure to pay estimated tax. When a taxpayer fails to make payments as required by chapter 151, subchapter 5 or 5A of this title (estimations of nonwithheld income tax and quarterly filing and payment), the Commissioner may assess and the taxpayer shall then pay a penalty that shall be equal to one percent of the outstanding tax liability for each month, or portion thereof, that the tax liability is not paid in full; provided, however, that in no event shall the amount of any penalty assessed under this subdivision exceed 25 percent of the tax liability unpaid on the prescribed date of payment.
(3) Failure to pay. When a taxpayer fails to pay a tax liability imposed by this title (other than a return required by chapter 151, subchapter 5 or 5A of this title for estimation of nonwithheld income tax and quarterly filing and payment) on the prescribed date of payment, then in addition to any interest payable pursuant to subsection (a) of this section, the Commissioner may assess and the taxpayer shall then pay a penalty that shall be equal to, for income tax under chapter 151, subchapters 2 and 3 of this title, one percent and, for all other taxes, five percent of the outstanding tax liability for each month, or portion thereof, that the tax liability is not paid in full; provided, however, that in no event shall the amount of any penalty assessed under this subdivision exceed 25 percent of the tax liability unpaid on the prescribed date of payment.
(4) Negligent failure to pay. When a taxpayer fails to pay a tax liability imposed by this title and the failure is due to negligence or constitutes a substantial understatement of tax, in addition to any interest payable pursuant to subsection (a) of this section, the Commissioner may assess and the taxpayer shall then pay a penalty that shall be equal to 25 percent of that portion of the underpayment. For purposes of this subdivision, “negligence” means any failure to make a reasonable attempt to comply with the provisions of the tax code and “substantial understatement” means an understatement of 20 percent or more of the tax.
(5) Fraudulent failure to pay. When a taxpayer fraudulently or with willful intent to defeat or evade a tax liability imposed by this title fails to pay a tax liability on the prescribed date of payment, requests and receives a refund of a tax liability, or requests but does not receive a refund of a tax liability, then, in addition to any interest payable pursuant to subsection (a) of this section, the Commissioner may assess and the taxpayer shall then pay a penalty equal to the amount of the tax liability unpaid on the prescribed date of payment, the amount received as a refund subsequent to that date, or the amount requested but not received as a refund.
(6) Violation based on income from illegal activity. The penalties provided in subdivisions (1)–(5) of this subsection shall be doubled if the violation is based on income derived from illegal activity. The penalty provided in this subdivision shall be in addition to any other civil or criminal penalties provided by law.
(7) Penalty limitation. A failure to pay shall not be subject to more than one of the penalties set forth in subdivisions (3), (4), and (5) of this subsection.
(Added 1997, No. 156 (Adj. Sess.), § 35, eff. April 29, 1998; amended 2001, No. 140 (Adj. Sess.), §§ 9, 11, eff. June 21, 2002; 2013, No. 76, § 6; 2019, No. 175 (Adj. Sess.), § 22, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 502, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 4, eff. January 1, 2022; 2023, No. 6, § 374, eff. July 1, 2023.)
§ 3203 Notice of deficiencies; assessment of penalties and interest; denial of refund
If the Commissioner finds that any taxpayer has failed to discharge in full the amount of any tax liability incurred under this title or has claimed a refund in error or that a penalty or interest should be assessed under this title, the Commissioner shall notify the taxpayer of the deficiency or denial of refund or assess the penalty or interest, as the case may be, by mail. The mailing of the notice shall be presumptive evidence of its receipt by the person to whom it is addressed. Any period of time that is determined under this chapter by the giving of notice shall commence to run from the date of mailing of the notice.
(Added 1997, No. 156 (Adj. Sess.), § 36, eff. April 29, 1998; amended 2007, No. 190 (Adj. Sess.), § 20, eff. June 6, 2008.)
§ 3204 Processing fee
A manual processing fee of $25.00 may be assessed against any taxpayer who files or on whose behalf is filed an unacceptable return or against any paid preparer who files an unacceptable return on behalf of a taxpayer. An unacceptable return is one that is not on a form issued by or approved by the Commissioner or that requires the Department to take steps in addition to its normal processing procedures to process. The Department may reduce any refund due the taxpayer by the amount of the fee.
(Added 1997, No. 156 (Adj. Sess.), § 38, eff. April 29, 1998.)
§ 3205 Taxpayer Advocate
(a) There is established within the Department of Taxes an Office of the Taxpayer Advocate.
(b) The Taxpayer Advocate shall have the following functions and duties:
(1) identify subject areas where taxpayers have difficulties interacting with the Department of Taxes;
(2) identify classes of taxpayers or specific business sectors who have common problems related to the Department of Taxes;
(3) propose solutions, including administrative changes to practices and procedures of the Department of Taxes;
(4) recommend legislative action as may be appropriate to resolve problems encountered by taxpayers;
(5) educate taxpayers concerning their rights and responsibilities under Vermont’s tax laws;
(6) educate tax professionals concerning the Department of Taxes’ rules and interpretations by issuing bulletins and other written materials; and
(7) assist individual taxpayers in resolving disputes with the Department of Taxes.
(c) The Taxpayer Advocate shall prepare an annual report detailing the actions the Taxpayer Advocate has taken to improve taxpayer services and the responsiveness of the Department of Taxes. The report shall identify the problems encountered by taxpayers in interacting with the Department of Taxes and include specific recommendations for administrative and legislative actions to resolve those problems. The report shall identify any problems that span an entire class of taxpayer or specific industry and propose class- or industry-wide solutions. The report of the Taxpayer Advocate shall be submitted to the Senate Committee on Finance and the House Committee on Ways and Means on or before January 15 of each year. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the required report to be made under this subsection.
(d) [Repealed.]
(Added 2011, No. 45, § 36e, eff. May 24, 2011; amended 2011, No. 143 (Adj. Sess.), § 6, eff. May 15, 2012; 2015, No. 131 (Adj. Sess.), § 8; 2021, No. 20, § 263; 2021, No. 105 (Adj. Sess.), § 503, eff. July 1, 2022.)
§ 3206 Recommendation for extraordinary relief
(a) The Taxpayer Advocate may make a written recommendation for extraordinary relief to the Commissioner under the provisions of this section. A recommendation for extraordinary relief may be made only in response to a request from a taxpayer and after a thorough investigation of the taxpayer’s circumstances by the Taxpayer Advocate that results in findings by the Taxpayer Advocate that:
(1) Vermont tax laws apply to the taxpayer’s circumstances in a way that is unfair and unforeseen or that results in significant hardship; and
(2) the taxpayer has no available appeal rights or administrative remedies to correct the issue that led to such unfair result or hardship.
[Subsection (b) effective until contingency met; see also subsection (b) effective July 1, 2028 if contingency met, set out below.]
(b) As used in this section, “extraordinary relief” means a remedy that is within the power of the Commissioner to grant under this title, a remedy that compensates for the result of inaccurate classification of property as homestead or nonhomestead pursuant to section 5410 of this title through no fault of the taxpayer, or a remedy that makes changes to a taxpayer’s property tax credit or renter credit claim necessary to remedy the problem identified by the Taxpayer Advocate.
[Subsection (b) effective July 1, 2028 if contingency met; see also subsection (b) effective until contingency met, set out above.]
(b) As used in this section, “extraordinary relief” means a remedy that is within the power of the Commissioner to grant under this title, a remedy that compensates for the result of inaccurate classification of property as homestead or nonhomestead pursuant to section 5410 of this title through no fault of the taxpayer, or a remedy that makes changes to a taxpayer’s homestead property tax exemption, municipal property tax credit, or renter credit claim necessary to remedy the problem identified by the Taxpayer Advocate.
(c) Notwithstanding any other provision of law, if, in response to the Taxpayer Advocate’s recommendation, the Commissioner determines that the taxpayer should receive a refund or other monetary adjustment, the Commissioner shall certify that amount to the Commissioner of Finance and Management who shall issue his or her warrant in favor of the taxpayer for payment by the Treasurer from the appropriate fund.
(d) A recommendation for extraordinary relief shall be in writing, shall be addressed to the Commissioner, and shall include a description of the problem sought to be remedied along with specific recommendations to the Commissioner. The Taxpayer Advocate’s decision to make or not make a recommendation for extraordinary relief shall be final and not subject to review.
(e) The Commissioner may choose to act on the recommendation of the Taxpayer Advocate, not act on the recommendation, or act on part of the Taxpayer Advocate’s recommendation, and the Commissioner’s decision shall be final and not subject to any further review. Nothing in this section shall be construed to limit any other power or authority granted to the Commissioner in this title.
(Added 2011, No. 143 (Adj. Sess.), § 8; amended 2019, No. 160 (Adj. Sess.), § 8, eff. Jan. 1, 2021; 2025, No. 73, § 56, contingently eff. July 1, 2028.)
§ 3207 Administrative attachment
(a) Notwithstanding other statutes that provide for levy of execution, trustee process, and attachment, the Commissioner, pursuant to this section, may attach tangible and intangible property of a taxpayer to satisfy amounts collectible by the Commissioner under this title by transmitting a notice of attachment to a financial institution or person holding property belonging to or owed to a taxpayer.
(b) The Commissioner may contact a financial institution to obtain verification of the account number, the names, and Social Security numbers listed for an account, and account balances of accounts held by a delinquent taxpayer. A financial institution is immune from any liability for release of this information to the Commissioner.
(c) At least 30 days prior to attaching a taxpayer’s property, the Commissioner shall demand payment from the taxpayer together with notice that the taxpayer is subject to attachment of property under this section. This notice shall be sent by first-class mail to the taxpayer’s last known address. The mailing of the notice shall be presumptive evidence of its receipt.
(d) A notice of attachment shall direct the financial institution or person to transmit all or a portion of the property in the taxpayer’s accounts or owed to the taxpayer to the Commissioner up to the amount owed to the Commissioner. The notice shall identify the taxpayer by Social Security number or federal employer identification number. Upon receipt of the notice, the financial institution or person forthwith shall remit the amount stated in the notice or the amount held or owned by such financial institution or person, whichever is less, to the Commissioner. Notwithstanding the foregoing, any financial institution shall surrender any deposits in such bank only after 21 days after transmittal of the notice of attachment. During the 21-day hold period, the financial institution shall not release the attached funds to the taxpayer unless the Commissioner releases the attachment. A financial institution is immune from any liability due to compliance with the Commissioner’s notice of attachment.
(e) A copy of the notice of attachment transmitted to the financial institution or person holding property due to the taxpayer shall be sent by certified mail to the taxpayer at the time it is transmitted to the financial institution or person. The taxpayer may, within 15 days of mailing, petition the Commissioner in writing for a hearing under this section. The Commissioner shall grant a hearing on the matter as provided in subsection 5885(a) of this title at which the taxpayer bears the burden of proof. The Commissioner shall notify the taxpayer in writing of his or her decision concerning the attachment and the taxpayer may appeal in the manner provided in subsection 5885(b) of this title, which shall be the taxpayer’s exclusive remedy with respect to an attachment under this section.
(f) At a hearing under this section, the taxpayer may raise the following claims relating to the proposed attachment:
(1) whether the notice of attachment has identified the wrong taxpayer;
(2) whether the proposed attachment includes property that would be exempt from attachment and levy under 12 V.S.A. § 2740 in a judicial attachment;
(3) the statute of limitations to collect the liability expired before the notice of attachment was sent; and
(4) the taxpayer may propose a collection alternative, including a payment plan or offer in compromise, but only if there has been a change in the taxpayer’s Vermont tax liability based on a change in his or her federal tax liability since the Vermont liability was assessed.
(g) The hearing under this section shall be conducted by an officer or employee who is not an employee of the Compliance Division of the Department of Taxes.
(h) If a hearing is requested in a timely manner under this section, the attachment shall be suspended and the financial institution shall not release the attached funds for the period during which the appeal is pending.
(i) After a hearing, the taxpayer may propose a collection alternative, including a payment plan or offer in compromise, but only if there has been a change in the taxpayer’s federal tax liability or on a change in the amount that is subject to attachment as a result of the hearing.
(j) Attachment under this section and other collection measures provided by law are cumulative.
(k) The Commissioner forthwith shall notify the financial institution in writing and the financial institution shall cease attachment:
(1) upon full payment of the amounts collectible by the Commissioner; or
(2) when the attachment exceeds the amount permissible under 12 V.S.A. § 2740.
(l) A determination under subdivision 5888(1) of this title will be reflected in the amounts collectible by the Commissioner.
(m) As used in this section:
(1) “Financial institution” includes financial institutions as defined in 8 V.S.A. § 11101(32) and credit unions as defined in 8 V.S.A. § 30101(5).
(2) “Intangible property” means property that has no intrinsic value but is merely the representative of value, such as cash, accounts, rents, stocks, bonds, promissory notes, or other instruments that create a payment obligation.
(3) “Person” has the same meaning as in section 3001 of this title.
(n) The Commissioner shall contract with an outside independent organization or enter into a memorandum of understanding with a different State agency to provide advocate services to taxpayers subject to the provisions of this section. The organization or agency providing the services shall be independent of the Department of Taxes. The advocate services provided under this subsection shall include technical assistance and representation in the administrative processes and hearings under this section.
(Added 2015, No. 57, § 42.)
§ 3208 Administrative garnishment
(a) Notwithstanding other statutes that provide for levy or execution, trustee process, or attachment, the Commissioner may garnish a taxpayer’s earnings pursuant to this section to satisfy amounts collectible by the Commissioner under this title, subject to the exemptions provided in 12 V.S.A. § 3170(a) and (b)(1).
(b) The Commissioner may contact an employer to obtain verification of a delinquent taxpayer’s employment, earnings, deductions, and payment frequency as necessary to determine disposable earnings. The employer shall be immune from any liability for release of this information to the Commissioner.
(c) At least 30 days prior to initiating wage garnishment, the Commissioner shall demand payment from the taxpayer and notify the taxpayer that he or she is subject to garnishment under this section. This notice shall be sent by first-class mail to the taxpayer’s last known address. The mailing of notice shall be presumptive evidence of receipt.
(d) After 30 days, a notice of garnishment shall be sent by certified mail to the taxpayer, and the taxpayer may, within 15 days of mailing, petition the Commissioner in writing for a hearing under this section. The Commissioner shall grant a hearing on the matter as provided in subsection 5885(a) of this title at which the taxpayer bears the burden of proof. The Commissioner shall notify the taxpayer in writing of his or her decision concerning the garnishment and the taxpayer may appeal in the manner provided in subsection 5885(b) of this title. This shall be the taxpayer’s exclusive remedy with respect to a garnishment under this section.
(e) If, after 15 days, the taxpayer has not petitioned for a hearing, a notice of garnishment shall direct an employer to transmit a specified portion of the taxpayer’s disposable earnings to the Commissioner from each periodic payment that is due to the taxpayer until the taxpayer’s obligation is paid in full. The notice shall identify the taxpayer by Social Security number. An employer is immune from any liability due to compliance with the Commissioner’s notice of garnishment.
(f) If a hearing is requested in a timely manner under this section, the garnishment that is the subject of the requested hearing shall be suspended for the period during which such appeal is pending. Fifteen days after an appeal is resolved, the notice of garnishment shall direct an employer to transmit a specified portion of the taxpayer’s disposable earnings to the Commissioner from each periodic payment that is due to the taxpayer until the taxpayer’s obligation is paid in full. The notice shall identify the taxpayer by Social Security number.
(g) At a hearing under this section, the taxpayer may raise any relevant issue relating to the unpaid tax or the proposed attachment:
(1) whether the notice of garnishment has identified the wrong taxpayer;
(2) whether the garnishment exceeds the exemption amount, which shall be 80 percent of the debtor’s weekly disposable earnings or 40 times the federal minimum hourly wage, whichever is greater;
(3) whether the garnishment exceeds the amount permissible under 12 V.S.A. § 3170(a); or
(4) the statute of limitations to collect the liability expired before the notice of attachment was sent.
(h) The hearing under this section shall be conducted by an officer or employee who is not an employee of the Compliance Division of the Department of Taxes.
(i) An employer’s obligation to transmit garnished wages to the Commissioner shall begin with the first periodic payment of earnings following receipt of the notice of garnishment unless the notice is withdrawn by the Commissioner. An employer who fails to withhold and transmit the garnished earnings to the Commissioner shall be liable for such amounts and may be assessed in the same manner as withholding taxes are assessed under chapter 151 of this title. As soon as reasonably practicable, the employer shall notify the Commissioner of the termination of the taxpayer’s employment. No taxpayer may be discharged from employment on account of garnishment under this section against the taxpayer’s wages.
(j) The Commissioner forthwith shall notify the employer in writing and the employer shall cease withholding from the earnings of the taxpayer:
(1) upon full payment of the amounts collectible by the Commissioner; or
(2) when the garnishment exceeds the amount permissible under 12 V.S.A. § 3170(a) and (b)(1).
(k) Wage garnishment under this section and other collection measures provided by law are cumulative.
(l) A determination under subdivision 5888(1) of this title will be reflected in the amounts collectible by the Commissioner.
(m) As used in this section:
(1) “Disposable earnings” means that part of the earnings of any individual remaining after the deduction from those earnings of any amounts required by law to be withheld and the amount of any wage garnishment payable to the Office of Child Support.
(2) “Earnings” means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension or retirement program and proceeds from the sale of milk with respect to an individual engaged in the occupation of farming, but does not include payments from sources that by law are exempt from attachment.
(n) The Commissioner shall contract with an outside independent organization or enter into a memorandum of understanding with a different State agency to provide advocate services to taxpayers subject to the provisions of this section. The organization or agency providing the services shall be independent of the Department of Taxes. The advocate services provided under this subsection shall include technical assistance and representation in the administrative processes and hearings under this section.
(Added 2015, No. 57, § 43; amended 2015, No. 134 (Adj. Sess.), § 2, eff. May 25, 2016.)
§ 3209 Tax Computer System Modernization Fund
(a) The Tax Computer System Modernization Fund #21909, as established in the State Treasury per 2007 Acts and Resolves No. 65, Sec. 282 as amended, is a special fund to support information technology improvements and initiatives of the Department of Taxes. Balances in the Fund shall be administered by the Department of Taxes and used exclusively for the purposes prescribed in subsection (c) of this section. Balances in the Fund at the end of each fiscal year shall be carried forward and remain part of the Fund. Interest earned by the Fund shall be deposited into the Fund.
(b) The Fund shall receive annual transfers from the General Fund and the Education Fund in amounts not to exceed 0.21 percent of total revenue collected in the prior fiscal year by the Department of Taxes. The fund may receive other receipts as directed or authorized by the General Assembly.
(c) The Fund shall be used for the development, implementation, enhancement, and maintenance of information technology systems and services for the administration of taxes and programs administered by the Department. This shall include requests for proposal, business requirements, analysis, implementation of new tax types, enhancements to existing systems, and payments due to vendors of information technology systems and services.
(d) The Commissioner of Taxes shall submit an annual report on the receipts, expenditures, and balances in the Tax Computer System Modernization Fund to the Joint Fiscal Committee each year at or prior to the Committee’s November meeting each year.
(Added 2023, No. 78, § E.111.1, eff. July 1, 2023.)
Subchapter 6 Enforcement
§ 3260 Bulk sales
(a) Whenever a person (transferor) required to collect or withhold a trust tax pursuant to chapter 151, 207, 225, or 233 of this title shall make any sale, transfer, long-term lease, or assignment (transfer) in bulk of any part or the whole of the assets of a business, otherwise than in the ordinary course of the business, the purchaser, transferee or assignee (transferee) shall, at least 10 days before taking possession of the subject of the transfer or before payment therefore if earlier, notify the Commissioner in writing of the proposed sale and of the price, terms, and conditions thereof whether or not the transferor has represented to or informed the transferee that the transferor owes any trust tax pursuant to chapter 151, 207, 225, or 233 and whether or not the transferee has knowledge that such taxes are owed, and whether any taxes are in fact owed.
(b) Whenever the transferee shall fail to give notice to the Commissioner as required by subsection (a) of this section, or whenever the Commissioner shall inform the transferee that a possible claim for tax exists, any sums of money, property, or choses in action, or other consideration, which the transferee is required to transfer over to or for the transferor, shall be subject to a first priority right and lien for any taxes theretofore or thereafter determined to be due from the transferor to the State, and the transferee is forbidden to transfer the consideration to or for the transferor to the extent of the amount of the State’s claim.
(c) For failure to comply with this section, the transferee shall be personally liable for the payment to the State of any taxes theretofore or thereafter determined to be due to the State from the transferor and the liability may be assessed and enforced in the same manner as the liability for tax under chapter 151, 207, 225, or 233.
(Added 1991, No. 186 (Adj. Sess.), § 9; amended 2003, No. 70 (Adj. Sess.), § 34, eff. March 1, 2004; 2025, No. 56, § 13, eff. July 1, 2025.)
§ 3261 [Reserved for future use]
§ 3262 Lien fees; service of process costs; electronic filing of liens
(a) Notwithstanding section 502 of this title, the Commissioner may charge against any collection of any liability any related lien fees specified in subdivision 1671(a)(6) or subsection 1671(c) of this title and any related service of process costs awarded to the Department and paid by the Commissioner. Fees and costs collected under this section shall be credited to a special fund established and managed pursuant to chapter 7, subchapter 5 of this title and shall be available as payment for the fees of the clerk of the municipality and the costs of service.
(b) The Commissioner may file notice of any lien arising in favor of the State due to nonpayment of taxes with the clerk of a municipality in which the property subject to lien is located in electronic format, and such lien shall have the same force and effect as a lien filed in paper form.
(Added 1991, No. 234 (Adj. Sess.), § 3; amended 1997, No. 59, § 9, eff. June 30, 1997; 2007, No. 190 (Adj. Sess.), § 1, eff. June 6, 2008; 2013, No. 73, § 7.)
Subchapter 7 Collections
§ 3301 Collections Unit
(a) There is established within the Department of Taxes a Collections Unit. The primary purpose of the Collections Unit is to enforce and collect debt owed the State, including tax debts and debts certified to the Department of Taxes from other branches, agencies, or subdivisions of government under this subchapter.
(b) The Collections Unit shall:
(1) employ such staff as is necessary, subject to the approval of the Commissioner of Taxes;
(2) adopt rules under 3 V.S.A. chapter 25 to provide for the uniform administration of the collection of State debt;
(3) collect tax deficiencies owed the State, including those under chapter 151, subchapters 8 and 9 of this title;
(4) administer the system of tax debt setoff in chapter 151, subchapter 12 of this title;
(5) administer the system of tax intercepts under section 3113 of this title; and
(6) collect debts referred from agencies or from other branches or subdivisions of State government under this subchapter.
(Added 2015, No. 57, § 45, eff. July 1, 2016.)
§ 3302 Debt referral
(a) An agency or any other branch or subdivision of State government may enter into an agreement with the Department of Taxes to collect any debt, other than debts related to property taxes under chapters 123 through 135 of this title, of $50.00 or more under the procedures established by this subchapter.
(b) Any agreement shall contain the following provisions:
(1) a process for ensuring that the debt is final, and not subject to any negotiation for settlement;
(2) a process for providing the Department with information necessary to identify each debtor and for certifying in writing the amount of each debt submitted to the Department for collection, along with any other information as the Commissioner shall require;
(3) a hierarchy of payments made from debts collected; and
(4) any other provisions necessary to allow the Department of Taxes to collect the referred debt.
(Added 2015, No. 57, § 45, eff. July 1, 2016.)
§ 3303 Collection powers and process
The Collections Unit in collecting debt required under this chapter shall have the following enforcement powers at its disposal:
(1) any enforcement tool available to the referring agency, in the name of that agency; and
(2) any enforcement tools for collection of tax debts under this title.
(Added 2015, No. 57, § 45, eff. July 1, 2016.)
Chapter 105 Vermont Employment Growth Incentive Program
Subchapter 1 Vermont Economic Progress Council
§ 3325 Vermont Economic Progress Council
(a) Creation. The Vermont Economic Progress Council is created to exercise the authority and perform the duties assigned to it, including its authority and duties relating to:
(1) the Vermont Employment Growth Incentive Program pursuant to subchapter 2 of this chapter;
(2) tax increment financing districts pursuant to 24 V.S.A. chapter 53, subchapter 5 and section 5404a of this title; and
(3) the Community and Housing Infrastructure Program pursuant to 24 V.S.A. chapter 53, subchapter 7.
(b) Membership.
(1) The Council shall have 11 voting members:
(A) nine residents of the State appointed by the Governor with the advice and consent of the Senate who are knowledgeable and experienced in the subjects of community development and planning, education funding requirements, economic development, State fiscal affairs, property taxation, or entrepreneurial ventures and represent diverse geographical areas of the State and municipalities of various sizes;
(B) one member of the Vermont House of Representatives appointed by the Speaker of the House; and
(C) one member of the Vermont Senate appointed by the Senate Committee on Committees.
(2)(A) The Council shall have two regional members from each region of the State, one appointed by the regional development corporation of the region and one appointed by the regional planning commission of the region.
(B) A regional member shall be a nonvoting member and shall serve during consideration by the Council of an application from the member’s region.
(3) Exclusively for purposes of reviewing and approving housing infrastructure project applications under the Community and Housing Infrastructure Program, the Council shall additionally have three nonvoting members:
(A) the Executive Director of the Vermont Housing Finance Agency or designee;
(B) the Executive Director of the Vermont Housing and Conservation Board or designee; and
(C) the Commissioner of Housing and Community Development or designee.
(c) Terms.
(1) Members of the Council appointed by the Governor shall serve initial staggered terms with five members serving four-year terms, and four members serving two-year terms.
(2) After the initial term expires, a member’s term is four years and a member may be reappointed.
(3) A term commences on April 1 of each odd-numbered year.
(d) Compensation.
(1) For attendance at a meeting and for other official duties, a member appointed by the Governor shall be entitled to compensation for services and reimbursement of expenses as provided in section 1010 of this title, except that a member who is a member of the General Assembly shall be entitled to compensation for services and reimbursement of expenses as provided in 2 V.S.A. § 23.
(2) A regional member who does not otherwise receive compensation and reimbursement of expenses from his or her regional development or planning organization shall be entitled to compensation and reimbursement of expenses for attendance at meetings and for other official duties as provided in section 1010 of this title.
(e) Operation.
(1) The Governor shall appoint a chair from the Council’s members.
(2) The Council shall receive administrative support from the Agency of Commerce and Community Development and the Department of Taxes.
(3) The Council shall have:
(A) an executive director appointed by the Governor with the advice and consent of the Senate who is knowledgeable in subject areas of the Council’s jurisdiction and who is an exempt State employee; and
(B) administrative staff.
(f) Rulemaking authority. The Council shall have the authority to adopt policies and procedures as necessary, and to adopt rules under 3 V.S.A. chapter 25, to implement the provisions of this chapter.
(g) Decisions not subject to review. A decision of the Council to approve or deny an application under subchapter 2 of this chapter; to approve or deny a tax increment financing district pursuant to 24 V.S.A. chapter 53, subchapter 5 and section 5404a of this title; or to approve or deny a housing infrastructure project pursuant to 24 V.S.A. chapter 53, subchapter 7 is an administrative decision that is not subject to the contested case hearing requirements under 3 V.S.A. chapter 25 and is not subject to judicial review.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2025, No. 69, § 21, eff. July 1, 2025.)
§ 3326 Cost-benefit model
(a) The Council shall adopt and maintain a cost-benefit model for assessing and measuring the projected net fiscal cost and benefit to the State of proposed economic development activities.
(b) The Council shall not modify the cost-benefit model without the prior approval of the Joint Fiscal Committee.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.)
Subchapter 2 Vermont Employment Growth Incentive Program
§ 3330 Purpose; form of incentives; enhanced incentives; eligible applicant
(a) Purpose. The purpose of the Vermont Employment Growth Incentive Program is to generate net new revenue to the State by encouraging a business to add new payroll, create new jobs, and make new capital investments and sharing a portion of the revenue with the business.
(b) Form of incentives; enhanced incentives.
(1) The Vermont Economic Progress Council may approve an incentive under this subchapter in the form of a direct cash payment in annual installments.
(2) The Council may approve the following enhanced incentives:
(A) an enhanced incentive for a business in a labor market area with higher than average unemployment or lower than average wages pursuant to section 3334 of this title; and
(B) an enhanced incentive for an environmental technology business pursuant to section 3335 of this title.
(C) [Repealed.]
(c) Eligible applicant. Only a business may apply for an incentive pursuant to this subchapter.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2021, No. 105 (Adj. Sess.), § 504, eff. July 1, 2022.)
§ 3331 Definitions
As used in this subchapter:
(1) “Award period” means the consecutive five years during which a business may apply for an incentive under this subchapter.
(2) “Base employment” means the number of full-time Vermont jobs held by non-owner employees as of the date a business with an approved application commences its proposed economic activity.
(3) “Base payroll” means the Vermont gross salaries and wages paid as compensation to full-time Vermont jobs held by non-owner employees as of the date a business with an approved application commences its proposed economic activity.
(4) “Capital investment performance requirement” means the minimum value of additional investment in one or more capital improvements.
(5) “Jobs performance requirement” means the minimum number of qualifying jobs a business must add.
(6) “Labor market area” means a labor market area as designated by the Vermont Department of Labor.
(7) “Non-owner” means a person with no more than 10 percent ownership interest, including attribution of ownership interests of the person’s spouse, parents, spouse’s parents, siblings, and children.
(8) “Payroll performance requirement” means the minimum value of Vermont gross salaries and wages a business must pay as compensation for one or more qualifying jobs.
(9) “Qualifying job” means a new, permanent position in Vermont that meets each of the following criteria:
(A) The position is filled by a non-owner employee who regularly works at least 35 hours each week.
(B) The business provides compensation for the position that equals or exceeds the wage threshold.
(C) The business provides for the position at least three of the following:
(i) health care benefits with 50 percent or more of the premium paid by the business;
(ii) dental assistance;
(iii) paid vacation;
(iv) paid holidays;
(v) child care;
(vi) other extraordinary employee benefits;
(vii) retirement benefits; and
(viii) other paid time off, excluding paid sick days.
(D) The position is not an existing position that the business transfers from another facility within the State.
(E) When the position is added to base employment, the business’s total employment exceeds its average annual employment during the two preceding years, unless the Council determines that the business is establishing a significantly different, new line of business and creating new jobs in the new line of business that were not part of the business prior to filing its application.
(10) “Utilization period” means each year of the award period and the four years immediately following each year of the award period.
(11) “Vermont gross wages and salaries” means Medicare wages as reported on Federal Tax Form W-2 to the extent those wages are Vermont wages, excluding income from nonstatutory stock options.
(12) “Wage threshold” means the minimum amount of annualized Vermont gross wages and salaries a business must pay for a qualifying job, as required by the Council in its discretion, but not less than:
(A) 60 percent above the State minimum wage at the time of application; or
(B) for a business located in a labor market area in which the average annual unemployment rate is higher than the average annual unemployment rate for the State, 40 percent above the State minimum wage at the time of application.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.)
§ 3332 Application; approval criteria
(a) Application.
(1) A business may apply for an incentive in one or more years of an award period by submitting an application to the Council in the format the Council specifies for that purpose.
(2) For each award year the business applies for an incentive, the business shall:
(A) specify a payroll performance requirement;
(B) specify a jobs performance requirement or a capital investment performance requirement, or both; and
(C) provide any other information the Council requires to evaluate the application under this subchapter.
(b) Mandatory criteria. The Council shall not approve an application unless it finds:
(1) Except as otherwise provided for an enhanced incentive for a business in a qualifying labor market area under section 3334 of this title, the new revenue the proposed activity would generate to the State would exceed the costs of the activity to the State.
(2) The host municipality welcomes the new business.
(3) Pursuant to a self-certification or other documentation the Council requires by rule or procedure, the business attests to the best of its knowledge:
(A) the business is not a named party to an administrative order, consent decree, or judicial order issued by the State or a subdivision of the State, or if a named party, that the business is in compliance with the terms of such an order or decree;
(B) the business complies with applicable State laws and rules; and
(C) the proposed economic activity would conform to applicable town and regional plans and with applicable State laws and rules.
(4) If the business proposes to expand within a limited local market, an incentive would not give the business an unfair competitive advantage over other Vermont businesses in the same or similar line of business and in the same limited local market.
(5) But for the incentive, the proposed economic activity:
(A) would not occur; or
(B) would occur in a significantly different manner that is significantly less desirable to the State.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69, § A.1, eff. June 28, 2017; 2021, No. 105 (Adj. Sess.), § 505, eff. July 1, 2022.)
§ 3333 Calculating the value of an incentive
Except as otherwise provided for an enhanced incentive for a business in a qualifying labor market area under section 3334 of this title or an enhanced incentive for an environmental technology business under section 3335 of this title, the Council shall calculate the value of an incentive for an award year as follows:
(1) Calculate new revenue growth. To calculate new revenue growth, the Council shall use the cost-benefit model created pursuant to section 3326 of this title to determine the amount by which the new revenue generated by the proposed economic activity to the State exceeds the costs of the activity to the State.
(2) Calculate the business’s potential share of new revenue growth. Except as otherwise provided for an environmental technology business in section 3335 of this title, to calculate the business’s potential share of new revenue growth, the Council shall multiply the new revenue growth determined under subdivision (1) of this subsection by 80 percent.
(3) Calculate the incentive percentage. To calculate the incentive percentage, the Council shall divide the business’s potential share of new revenue growth by the sum of the business’s annual payroll performance requirements.
(4) Calculate qualifying payroll. To calculate qualifying payroll, the Council shall subtract from the payroll performance requirement the projected value of background growth in payroll for the proposed economic activity.
(5) Calculate the value of the incentive. To calculate the value of the incentive, the Council shall multiply qualifying payroll by the incentive percentage.
(6) Calculate the amount of the annual installment payments. To calculate the amount of the annual installment payments, the Council shall:
(A) divide the value of the incentive by five; and
(B) adjust the value of the first installment payment so that it is proportional to the actual number of days that new qualifying employees are employed in the first year of hire.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2021, No. 105 (Adj. Sess.), § 506, eff. July 1, 2022.)
§ 3334 Enhanced incentive for a business in a qualifying labor market area
(a) The Council may increase the value of an incentive for a business that is located in a labor market area in which:
(1) the average annual unemployment rate is greater than the average annual unemployment rate for the State; or
(2) the average annual wage is less than the average annual wage for the State.
(b) In each calendar year, the amount by which the Council may increase the value of all incentives pursuant to this section is:
(1) $1,500,000.00 for one or more initial approvals; and
(2) $1,000,000.00 for one or more final approvals.
(c) The Council may increase the cap imposed in subdivision (b)(2) of this section by not more than $500,000.00 upon application by the Governor to, and approval of, the Joint Fiscal Committee.
(d) In evaluating the Governor’s request, the Committee shall consider the economic and fiscal condition of the State, including recent revenue forecasts and budget projections.
(e) The Council shall provide the Committee with testimony, documentation, company-specific data, and any other information the Committee requests to demonstrate that increasing the cap will create an opportunity for return on investment to the State.
(f) The purpose of the enhanced incentive for a business in a qualifying labor market area is to increase job growth in economically disadvantaged regions of the State, as provided in subsection (a) of this section.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69, § A.1, eff. June 28, 2017.)
§ 3335 Enhanced incentive for environmental technology business
(a) As used in this section, an “environmental technology business” means a business that:
(1) is subject to income taxation in Vermont; and
(2) seeks an incentive for economic activity in Vermont that the Secretary of Commerce and Community Development certifies is primarily research, design, engineering, development, or manufacturing related to one or more of the following:
(A) waste management, including waste collection, treatment, disposal, reduction, recycling, and remediation;
(B) natural resource protection and management, including water and wastewater purification and treatment, air pollution control and prevention or remediation, soil and groundwater protection or remediation, and hazardous waste control or remediation;
(C) energy efficiency or conservation;
(D) clean energy, including solar, wind, wave, hydro, geothermal, hydrogen, fuel cells, waste-to-energy, or biomass.
(b) The Council shall consider and administer an application from an environmental technology business pursuant to the provisions of this subchapter, except that:
(1) the business’s potential share of new revenue growth shall be 90 percent; and
(2) to calculate qualifying payroll, the Council shall:
(A) determine the background growth rate in payroll for the applicable business sector in the award year;
(B) multiply the business’s full-time payroll for the award year by 20 percent of the background growth rate; and
(C) subtract the product from the payroll performance requirement for the award year.
(c) The purpose of the enhanced incentive for an environmental technology business is to promote the growth of businesses in Vermont that both create and sustain high-quality jobs and improve the natural environment.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69, § A.1, eff. June 28, 2017.)
§ 3336 Repealed
[Repealed]
2019, No. 80, § 16.
§ 3337 Earning an incentive
(a) Earning an incentive; installment payments.
(1) A business with an approved application earns the incentive specified for an award year if, within the applicable time period provided in this section, the business:
(A) maintains or exceeds its base payroll and base employment;
(B) meets or exceeds the payroll performance requirement specified for the award year; and
(C) meets or exceeds the jobs performance requirement specified for the award year or the capital investment performance requirement specified for the award year, or both.
(2) A business that earns an incentive specified for an award year is eligible to receive an installment payment for the year in which it earns the incentive and for each of the next four years in which the business:
(A) maintains or exceeds its base payroll and base employment;
(B) maintains or exceeds the payroll performance requirement specified for the award year; and
(C) if the business earns an incentive by meeting or exceeding the jobs performance target specified for the award year, maintains or exceeds the jobs performance requirement specified for the award year.
(b) Award year one.
(1) For award year one, a business has from the date it commences its proposed economic activity through December 31 of that year, plus two additional years, to meet the performance requirements specified for award year one.
(2) A business that does not meet the performance requirements specified for award year one within this period becomes ineligible to earn incentives for the award year and for all remaining award years in the award period.
(c) Award years two and three.
(1) For award year two and award year three, beginning on January 1 of the award year, a business has three years to meet the performance requirements specified for the award year.
(2) A business that does not meet the performance requirements specified for award year two or for award year three within three years becomes ineligible to earn incentives for the award year and for all remaining award years in the award period.
(d) Extending the earning period in award years one and two. Notwithstanding subsections (b)-(c) of this section:
(1) Upon request, the Council may extend the period to earn an incentive for award year one or award year two if it determines:
(A) a business did not earn the incentive for the award year due to facts or circumstances beyond its control; and
(B) there is a reasonable likelihood the business will earn the incentive within the extended period.
(2) The Council may extend the period to earn an incentive:
(A) for award year one, by two years, reviewed annually; or
(B) for award year two, by one year.
(3) If the Council extends the period to earn an incentive, it shall recalculate the value of the incentive using the cost-benefit model and shall adjust the amount of the incentive as is necessary to account for the extension.
(e) Award year four.
(1) Beginning on January 1 of award year four, a business that remains eligible to earn incentives has two years to meet the performance requirements specified for award year four.
(2) A business that does not meet the performance requirements specified for award year four within two years becomes ineligible to earn incentives for award year four and award year five.
(f) Award year five.
(1) Beginning on January 1 of award year five, a business that remains eligible to earn incentives has one year to meet the performance requirements specified for award year five.
(2) A business that does not meet the performance requirements specified for award year five by the end of that award year becomes ineligible to earn the incentive specified for that award year.
(g) Carrying forward growth that exceeds targets. Carrying forward growth that exceeds targets. If a business exceeds one or more of the payroll performance requirement, the jobs performance requirement, or the capital investment performance requirement specified for an award year, the business may apply the excess payroll, excess jobs, and excess capital investment toward the performance requirement specified for a future award year, provided that the business maintains the excess payroll, excess jobs, or excess capital investment into the future award year.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.)
§ 3338 Claiming an incentive; annual filing with Department of Taxes
(a) On or before April 30 following each year of the utilization period, a business with an approved application shall submit an incentive claim to the Department of Taxes.
(b) A business shall include:
(1) the information the Department requires, including the information required in section 5842 of this title and other documentation concerning payroll, jobs, and capital investment necessary to determine whether the business earned the incentive specified for an award year and any installment payment for which the business is eligible; and
(2) a self-certification or other documentation the Department requires by rule or procedure, by which the business attests to the best of its knowledge that:
(A) the business is not a named party to an administrative order, consent decree, or judicial order issued by the State or a subdivision of the State, or if a named party, that the business is in compliance with the terms of such an order or decree; and
(B) the business complies with applicable State laws and regulations.
(c) The Department may consider an incomplete claim to be timely filed if the business files a complete claim within the additional time allowed by the Department in its discretion.
(d) Upon finalizing its review of a complete claim, the Department shall:
(1) notify the business and the Council whether the business is entitled to an installment payment for the applicable year; and
(2) make an installment payment to which the business is entitled.
(e) The Department shall not pay interest on any amounts it holds or pays for an incentive or installment payment pursuant to this subchapter.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69, § A.1, eff. June 28, 2017.)
§ 3339 Recapture; reduction; repayment
(a) Recapture.
(1) The Department of Taxes may recapture the value of one or more installment payments a business has claimed, with interest, if:
(A) the business fails to file a claim as required in section 3338 of this title;
(B) during the utilization period, the business experiences:
(i) a 90 percent or greater reduction from base employment; or
(ii) if it had no jobs at the time of application, a 90 percent or greater reduction from the sum of its job performance requirements; or
(C) the Department determines that during the application or claims process the business knowingly made a false attestation that the business:
(i) was not a named party to, or was in compliance with, an administrative order, consent decree, or judicial order issued by the State or a subdivision of the State; or
(ii) was in compliance with State laws and rules.
(2) If the Department determines that a business is subject to recapture under subdivision (1) of this subsection, the business becomes ineligible to earn or claim an additional incentive or installment payment for the remainder of the utilization period.
(3) Notwithstanding any other statute of limitations, the Department may commence a proceeding to recapture amounts under subdivision (1) of this subsection as follows:
(A) under subdivision (1)(A) of this subsection (a), not later than three years from the last day of the utilization period; and
(B) under subdivision (1)(B) of this subsection (a), not later than three years from date the business experiences the reduction from base employment, or three years from the last day of the utilization period, whichever occurs first.
(b) Reduction; recapture. If a business fails to make capital investments that equal or exceed the sum of its capital investment performance requirements by the end of the award period:
(1) The Department shall:
(A) calculate a reduced incentive by multiplying the combined value of the business’s award period incentives by the same proportion that the business’s total actual capital investments bear to the sum of its capital investment performance requirements; and
(B) reduce the value of any remaining installment payments for which the business is eligible by the same proportion.
(2) If the value of the installment payments the business has already received exceeds the value of the reduced incentive, then:
(A) the business becomes ineligible to claim any additional installment payments for the award period; and
(B) the Department shall recapture the amount by which the value of the installment payments the business has already received exceeds the value of the reduced incentive.
(c) Tax liability.
(1) A person who has the duty and authority to remit taxes under this title shall be personally liable for an installment payment that is subject to recapture under this section.
(2) For purposes of this section, the Department of Taxes may use any enforcement or collection action available for taxes owed pursuant to chapter 151 of this title.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69, § A.1, eff. June 28, 2017; 2021, No. 105 (Adj. Sess.), § 507, eff. July 1, 2022.)
§ 3340 Reporting
(a) On or before September 1 of each year, the Vermont Economic Progress Council and the Department of Taxes shall submit a joint report on the incentives authorized in this subchapter to the House Committees on Ways and Means, on Commerce and Economic Development, and on Appropriations, to the Senate Committees on Finance, on Economic Development, Housing and General Affairs, and on Appropriations, and to the Joint Fiscal Committee.
(b) The Council and the Department shall include in the joint report:
(1) the total amount of incentives authorized during the preceding year;
(2) with respect to each business with an approved application:
(A) the date and amount of authorization;
(B) the calendar year or years in which the authorization is expected to be exercised;
(C) whether the authorization is active; and
(D) the date the authorization will expire; and
(3) the following aggregate information:
(A) the number of claims and incentive payments made in the current and prior claim years;
(B) the number of qualifying jobs; and
(C) the amount of new payroll and capital investment.
(c) The Council and the Department shall present data and information in the joint report in a searchable format.
(d) Notwithstanding any provision of law to the contrary, an incentive awarded pursuant to this subchapter shall be treated as a tax expenditure for purposes of chapter 5 of this title.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.)
§ 3341 Confidentiality of proprietary business information
(a) The Vermont Economic Progress Council and the Department of Taxes shall use measures to protect proprietary financial information, including reporting information in an aggregate form.
(b) Information and materials submitted by a business concerning its income taxes and other confidential financial information shall not be subject to public disclosure under the State’s public records law in 1 V.S.A. chapter 5, but shall be available to the Joint Fiscal Office or its agent upon authorization of the Joint Fiscal Committee or a standing committee of the General Assembly, and shall also be available to the Auditor of Accounts in connection with the performance of duties under section 163 of this title; provided, however, that the Joint Fiscal Office or its agent and the Auditor of Accounts shall not disclose, directly or indirectly, to any person any proprietary business information or any information that would identify a business except in accordance with a judicial order or as otherwise specifically provided by law.
(c) Nothing in this section shall be construed to prohibit the publication of statistical information, rulings, determinations, reports, opinions, policies, or other information so long as the data are disclosed in a form that cannot identify or be associated with a particular business.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.)
§ 3342 Annual program cap
(a) In each calendar year the Vermont Economic Progress Council may approve one or more incentives under this subchapter, the total value of which shall not exceed:
(1) $15,000,000.00 for one or more initial approvals; and
(2) $10,000,000.00 for one or more final approvals.
(b) The Council may increase the cap imposed in subdivision (a)(2) of this section by not more than $5,000,000.00 upon application by the Governor to, and approval of, the Joint Fiscal Committee.
(c) In evaluating the Governor’s request, the Committee shall consider the economic and fiscal condition of the State, including recent revenue forecasts and budget projections.
(d) The Council shall provide the Committee with testimony, documentation, company-specific data, and any other information the Committee requests to demonstrate that increasing the cap will create an opportunity for return on investment to the State.
(Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.)
Chapter 121 General Provisions
Subchapter 1 Duties of Director
§ 3401 Powers and duties of Director
The Director may examine any inventory in the hands of listers, shall from time to time confer and advise with them touching their official duties, shall furnish them printed instructions and directions relating to their official duties, and shall issue any bulletins as in the Director’s judgment will aid in enforcing the law. When a board of listers or members requests, the Director shall furnish any information as the Director shall deem pertinent.
(Amended 1977, No. 105, § 14(a); 2021, No. 105 (Adj. Sess.), § 508, eff. July 1, 2022.)
§ 3402 Director to collect data
The Director shall collect such data and information touching methods of taxation and exemption and the work of listers in the various towns as the Director shall deem advisable.
(Amended 1977, No. 105, § 14(a); 2021, No. 105 (Adj. Sess.), § 509, eff. July 1, 2022.)
§ 3403 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 426, eff. May 22, 1996.
§ 3404 Repealed
[Repealed]
(Added 1995, No. 186 (Adj. Sess.), § 1, eff. May 22, 1996; amended 1997, No. 59, § 10, eff. June 30, 1997; 2023, No. 72, § 9, eff. June 19, 2023.)
§§ 3405-3408 Repealed
[Repealed]
1975, No. 118, § 91, eff. July 1, 1975.
§ 3409 Repealed
[Repealed]
2015, No. 57, § 98, eff. June 11, 2015.
§ 3410 Repealed
[Repealed]
(Added 1967, No. 146, § 4, eff. July 1, 1968; amended 1977, No. 105, § 14(a); 1987, No. 243 (Adj. Sess.), § 72, eff. June 13, 1988; 2023, No. 72, § 10, eff. June 19, 2023.)
§ 3411 Powers of the Division of Property Valuation and Review
The Division of Property Valuation and Review shall through its Director:
(1) employ such staff as is necessary, subject to the approval of the Commissioner of the Department of Taxes;
(2) cooperate fully with the Commissioner in any matter in which he or she requires assistance in connection with his or her duties, including the valuation of property for any tax administered and collected by the Commissioner;
(3) adopt rules under 3 V.S.A. chapter 25 to provide for the uniform administration of the property tax;
(4) maintain any information obtained by the Director from any local official subject to the same rules as to public access and confidentiality as apply to such information in the possession of a local official, as contained in section 4009 of this title;
(5) provide technical assistance and instruction to the listers in a uniform appraisal system and provide other related assistance within the limits of available resources;
(6) prepare and provide to towns at a reasonable fee form books, other required forms and copies of relevant statutes in booklet form;
(7) to the extent of available resources, prepare and provide tax maps for all municipalities not having the same;
(8) from time to time, develop and recommend to the General Assembly improved methods for standardizing property assessment procedures and to administer the current use program in accordance with chapter 124 of this title;
(9) annually publish the report described in section 3412 of this title;
(10) assist municipalities in administration of property taxes, including the appraisal of classes of property difficult to appraise, such as industrial and utility properties; and
(11) appraise property required by law to be appraised by the Director, including railroad property under chapter 211 of this title.
(Added 1977, No. 105, § 12, eff. July 1, 1977; amended 1985, No. 74, § 299; 1987, No. 243 (Adj. Sess.), § 73, eff. June 13, 1988; 1999, No. 49, § 4, eff. June 2, 1999; 2021, No. 105 (Adj. Sess.), § 510, eff. July 1, 2022.)
§ 3412 Annual report
Before January 15 of each year, the Director shall deliver to the Speaker of the House of Representatives and to the President Pro Tempore of the Senate copies of an annual report including in that report all rules issued in the preceding year. The report shall include the rate per dollar and the amount of all taxes assessed in each and all of the towns, gores, school and fire districts, and villages for and during the year ending with June 30 preceding, and the value of all exempt property on each grand list as required by subsection 4152(a) of this title. The report shall also include an analysis of the appraisal practices and methods employed through the State. The Director shall include recommendations for statutory changes as he or she feels necessary. Copies of the annual report shall be forwarded to the Chair of the Selectboard of each town. The presiding officer shall refer the report to the appropriate committees of the General Assembly for their review and recommendation. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.
(Added 1977, No. 105, § 13; amended 1995, No. 178 (Adj. Sess.), § 427, eff. May 22, 1996; 1997, No. 50, § 10, eff. June 26, 1997; 2005, No. 38, § 21, eff. Jan. 1, 2007; 2013, No. 142 (Adj. Sess.), § 68.)
Subchapter 1A Statewide and Regional Property Assessment [effective January 1, 2029]
§ 3415 Legislative intent [Effective January 1, 2029]
It is the intent of the General Assembly in adopting this subchapter to create regional assessment districts so that:
(1) properties on grand lists are regularly reappraised;
(2) property data collection is consistent and standardized across the State; and
(3) property valuation is conducted by trained and certified individuals and firms.
(Added 2025, No. 73, § 62, eff. January 1, 2029.)
§ 3416 Regional assessment districts; establishment [Effective January 1, 2029]
(a) There are hereby established 12 regional assessment districts, whose member municipalities shall fully and jointly reappraise their grand lists every six years pursuant to subsection 3417(b) of this subchapter. Member municipalities shall contract jointly with one or more third parties to conduct reappraisals.
(b) Each county shall constitute one regional assessment district, except that Franklin and Grand Isle Counties shall constitute one district and Essex and Orleans Counties shall constitute one district.
(Added 2025, No. 73, § 62, eff. January 1, 2029.)
§ 3417 Standard guidelines; procedures; rulemaking [Effective January 1, 2029]
(a) The Director of Property Valuation and Review shall establish standard guidelines and procedures, and may adopt rules, for regional assessment districts, including:
(1) guidelines for contracting with third parties to conduct or assist with reappraisals, including standard reappraisal contract terms;
(2) standards for the collection and recordation of parcel data;
(3) requirements relating to information technology, including standards for data software contracts and computer-assisted mass appraisal systems; and
(4) standardized practices for a full reappraisal, including cases in which physical inspections are unnecessary and how technology is to be utilized.
(b) The Director of Property Valuation and Review shall establish a schedule for each regional assessment district to fully reappraise every six years. The Director, at the Director’s discretion, may alter the reappraisal schedule for a regional assessment district or for one or more of a regional assessment district’s member municipalities.
(Added 2025, No. 73, § 62, eff. January 1, 2029.)
Subchapter 2 Duties of Listers
§ 3431 Lister’s oath
(a) Each lister shall take and subscribe and file in the town clerk’s office, before entering upon the duties of his or her office, the following oath; and the oath as subscribed shall be recorded in the town clerk’s office:
“I, _______ , do solemnly swear (or affirm) that I will appraise all the personal and real property subject to taxation in the town (or city) of ____________ , so far as required by law, at its fair market value, will list the same without discrimination on a proportionate basis of such value for the grand list of such town (or city), will set the same in the grand list of such town (or city) at one per cent of the listed value and will faithfully discharge all the duties imposed upon me by law. So help me God.” (or, “under the pains and penalties of perjury.”)
(b) When the listers violate such oath, they shall each be guilty of perjury and punished accordingly.
§ 3432 Duties of listers
Listers shall render such assistance, give such information, and make such returns to the Director in relation to the subject of taxation as he or she may require.
(Amended 1977, No. 105, § 14(a).)
§ 3433 Duties upon taking up inventories
A lister who takes up an inventory as provided by section 4041 of this title, at the time he or she receives the same, shall indorse thereon his or her name and the date of its receipt. When a lister accepts the inventory of a person not made out and sworn to as provided in this chapter, or willfully neglects or refuses to indorse thereon his or her name and the date of receipt thereof, or willfully neglects or refuses to appraise and set in the list, as required by law, each item described in an inventory filled out as provided in this chapter, he or she shall be fined not more than $100.00 for each inventory so received, and for each such willful refusal or neglect.
§ 3434 Meetings for instruction
The Director shall call meetings of the listers to be held at such places and at such times as he or she shall designate for the purpose of instruction touching the requisites of a legal tax inventory, a valid grand list, the law governing their official duties, and concerning the appraisal and listing of the various classes of taxable property.
(Amended 1977, No. 105, § 14(a).)
§ 3435 Listers to attend meetings for instructions
Except as otherwise provided in this section, at least one lister, or more if the town so votes, shall attend all meetings or schools for instruction to which they are summoned in writing by the Director. When a lister is unable to attend, the lister shall immediately notify the Director, stating the cause of the lister’s inability to attend. In the Director’s discretion, the Director may summon the lister to attend another meeting as the Director shall designate. Listers who attend the meetings shall receive for their attendance from their respective towns the per diem voted for listers or $10.00 per day, whichever is the greater, and their necessary expenses.
(Amended 1959, No. 16, eff. March 5, 1959; 1977, No. 105, § 14(a); 2021, No. 105 (Adj. Sess.), § 511, eff. July 1, 2022.)
§ 3436 Assessment education
(a) The Director shall certify assessment education programs for municipal listers and assessors at convenient times and places during the year and is authorized to contract with one or more persons to provide part or all of the assessment instruction. Certified programs shall include education on racial disparities in property valuation outcomes in the United States, with a focus on Vermont in particular, and on-going bias reduction training. Certified programs may include instruction in lister duties, property inspection, data collection, valuation methods, mass appraisal techniques, property tax administration, or such other subjects as the Director deems beneficial to listers and both mandatory and optional certified programs may be presented by Property Valuation and Review or a person pursuant to a contract with Property Valuation and Review, the International Association of Assessing Officials, the Vermont Assessors and Listers Association, or the Vermont League of Cities and Towns.
(b) The Director shall establish designations recognizing levels of achievement and the necessary course work or evaluation of equivalent experience required to attain each designation. Designation for any one level shall be for a period of three years.
(c) Designation obtained under subsection (b) of this section may be renewed for three-year periods upon completion of requirements as determined by the Director.
(d) The Director shall also notify all towns annually of any new approaches that the Division of Property Valuation and Review is aware of for obtaining or performing mass reappraisals and for grand list maintenance.
(e) A sum not to exceed $100,000.00 each year shall be paid from the Education Fund to the Division of Property Valuation and Review for the purpose of providing assessment education for municipal listers and assessors. The Director is authorized to establish guidelines and requirements for education programs to be provided using the funds described in this section. Education programs provided using funds described in this section shall be provided at no cost or minimal cost to the municipal listers and assessors. In addition to providing the annual education programs described in this section, up to 20 percent of the amount available for education programs may be reserved as a scholarship fund to permit municipal listers and assessors to attend national programs providing education opportunities on advanced assessment topics. All applications for scholarships shall be submitted to and approved by the Director.
(Added 2005, No. 38, § 3, eff. June 2, 2005; amended 2013, No. 174 (Adj. Sess.), § 15, eff. June 4, 2014; 2015, No. 57, § 39, eff. June 11, 2015; 2023, No. 68, § 6, eff. July 1, 2023.)
Subchapter 3 Statistical Information
§ 3461 Report by village clerk
Annually, on or before July 15, school and fire district clerks and clerks of incorporated villages shall make and deliver to the town clerk a statement of taxes assessed by such districts and villages during the year ending June 30 preceding, giving the amount of the grand list, the rate per dollar, and the amount of taxes assessed in such districts and villages.
§ 3462 Repealed
[Repealed]
2001, No. 63, § 283(c).
§ 3463 Repealed
[Repealed]
2009, No. 33, § 83(m)(7).
§ 3464 Failure to file reports
An appraiser; town, school, or fire district clerk; or county treasurer who fails to perform the duties imposed upon him or her by this subchapter shall be fined $20.00.
§ 3465 Public records; CAPTAP
Notwithstanding any provision to the contrary in 1 V.S.A. § 317, section 3102 of this title, this chapter, or any other provision of law, information maintained by the Division of Property Valuation and Review obtained from local governments participating in the Computer Assisted Property Tax Administration Program (CAPTAP) shall be public records subject to public inspection and copying under 1 V.S.A. chapter 5, subchapter 3.
(Added 1985, No. 242 (Adj. Sess.), § 312; amended 2003, No. 158 (Adj. Sess.), § 3.)
Subchapter 4 Miscellaneous
§ 3481 Definitions
The following definitions shall apply in this Part and chapter 101 of this title, pertaining to the listing of property for taxation:
(1)(A) “Appraisal value” shall mean, with respect to property enrolled in a use value appraisal program, the use value appraisal as defined in subdivision 3752(12) of this title, multiplied by the common level of appraisal, and with respect to all other property, except for owner-occupied housing identified in subdivision (C) of this subdivision (1), the estimated fair market value. The estimated fair market value of a property is the price that the property will bring in the market when offered for sale and purchased by another, taking into consideration all the elements of the availability of the property, its use both potential and prospective, any functional deficiencies, and all other elements such as age and condition that combine to give property a market value. Those elements shall include the effect of any State or local law or regulation affecting the use of land, including 10 V.S.A. chapter 151 or any land capability plan established in furtherance or implementation thereof, rules adopted by the Department of Health, and any local or regional zoning ordinances or development plans. In determining estimated fair market value, the sale price of the property in question is one element to consider, but is not solely determinative.
(B) For residential rental property that is subject to a housing subsidy covenant or other legal restriction, imposed by a governmental, quasi-governmental, or public purpose entity, on rents that may be charged, fair market value shall be determined by an income approach using the following elements:
(i) market rents with utility allowance adjustments for the geographic area in which the property is located as determined by the federal office of Housing and Urban Development or in the case of properties authorized under 42 U.S.C. § 1437, 12 U.S.C. § 1701q, 42 U.S.C. § 1485, 12 U.S.C. § 1715z-1, 42 U.S.C. § 1437f, and 24 CFR Part 882 Subpart D and E, the higher of contract rents (meaning the amount of federal rental assistance plus any tenant contribution) and HUD market rents;
(ii) actual expenses incurred with respect to the property that shall be provided by the property owner in a format acceptable to the Commissioner and certified by an independent third party, such as a certified public accounting firm or public or quasi-public funding agency;
(iii) a vacancy rate that is 50 percent of the market vacancy rate as determined by the U.S. Census Bureau with local review by the Vermont Housing Finance Agency; and
(iv) a capitalization rate that is typical for the geographic area determined and published annually prior to April 1 by the Division of Property Valuation and Review after consultation with the Vermont Housing Finance Agency.
(C) For owner-occupied housing that is subject to a housing subsidy covenant, as defined in 27 V.S.A. § 610, imposed by a governmental, quasi-governmental, or public purpose entity, that limits the price for which the property may be sold, the housing subsidy covenant shall be deemed to cause a material decrease in the value of the owner-occupied housing, and the appraisal value means not less than 60 and not more than 70 percent of what the fair market value of the property would be if it were not subject to the housing subsidy covenant. Every five years, starting in 2019, the Commissioner of Taxes, in consultation with the Vermont Housing Conservation Board, shall report to the House Committee on Ways and Means on whether the percentage of appraised valued used in this subdivision should be altered and the reasons for his or her determination.
(D)(i) For real and personal property comprising a renewable energy plant generating electricity from solar power, except land and property that is exempt under subdivision 3802(17) of this title, the appraisal value shall be determined by an income capitalization or discounted cash flow approach that includes the following:
(I) an appraisal model identified and published by the Director employing appraisal industry standards and inputs;
(II) a discount rate determined and published annually by the Director;
(III) the appraisal value shall be 70 percent of the value calculated using the model published by the Director based on an expected 25-year project life and shall be set in the grand list next lodged after the plant is commissioned and each subsequent grand list for the lesser of the remaining life of the project or 25 years;
(IV) for the purposes of calculating appraisal value for net metered systems receiving a credit specified in 30 V.S.A. § 219a(h)(1)(K), the model used to calculate value will not incorporate a factor for electricity rate escalation; and
(V) for plants operating as a net-metered system as described in 30 V.S.A. § 219a with a capacity of 50 kW or greater, the plant capacity used to determine value in the model shall be reduced by 50 kW and the appraisal value shall be calculated only on additional capacity in excess of 50 kW.
(ii) The owner of a project shall respond to a request for information from the municipal assessing officials by returning the information sheet describing the project in the form specified by the Director not later than 45 days after the request for information is sent to the owner. If the owner does not provide a complete and timely response, the municipality shall determine the appraisal value using the published model and the best estimates of the inputs to the model available to the municipality at the time, and the provisions of section 4006 of this title shall apply to the information form in the same manner as if the information form were an inventory as described in that section. Nothing in this subdivision (1)(D) shall affect the availability of the exemption set forth in the provisions of section 3845 of this title or availability of a contract under the provisions of 24 V.S.A. § 2741.
(E) For real and personal property comprising an energy storage facility, except land and property that is exempt under subdivision 3802(19) of this title, the appraisal value shall be $0.25 per kWh of plant energy rating.
(2) “Listed value” shall be an amount equal to 100 percent of the appraisal value. The ratio shall be the same for both real and personal property.
(Amended 1959, No. 175, eff. Jan. 1, 1960; 1965, No. 126, § 1, eff. Jan. 1, 1967; 1973, No. 85, § 11, eff. July 1, 1973; 1977, No. 105, § 6; 1995, No. 178 (Adj. Sess.), § 285; 1997, No. 60, § 64, eff. June 26, 1997; 2005, No. 38, § 1; 2005, No. 75, § 6; 2007, No. 81, § 10; 2013, No. 174 (Adj. Sess.), §§ 27, 54, eff. Jan. 1, 2015; 2017, No. 154 (Adj. Sess.), § 10, eff. May 21, 2018; 2021, No. 54, § 19; 2023, No. 53, § 129, eff. June 8, 2023.)
§ 3482 Property listed at one percent
Except as otherwise provided, all real and personal estate shall be set in the list at one percent of its listed value on April 1, of the year of its appraisal.
§ 3483 False statement, perjury
A person who willfully swears falsely or who willfully makes a false statement under the pains and penalties of perjury in violation of any of the provisions of this Part shall be guilty of perjury and punished accordingly.
§ 3484 Furnishing names to listers
(a) On application of a lister in the performance of his or her duties, keepers of hotels, boarding, and dwelling houses shall give the names of all persons residing in their respective houses. When such keeper refuses to give such information, or knowingly gives false information, he or she shall be fined $10.00.
(b) On application of a lister in the performance of his or her duties, a person who refuses to give the names of the persons in his or her employ or knowingly gives false information shall be fined $10.00.
§ 3485 Records to be kept relating to deeds and mortgages
(a) Annually on April 1, town clerks shall furnish the listers with copies of the property tax returns filed by the clerk under section 9610 of this title relating to deeds that were filed for record during the year ending on the first day of such month. However, upon request in writing by the listers, on or before the 15th day of each month, town clerks shall furnish the listers with copies of the property transfer tax returns to deeds that were filed for record during the next preceding calendar month.
(b) Failure on the part of the town clerk to furnish the copies required under subsection (a) of this section shall not render the town liable in damages to any person. A town clerk who willfully fails to furnish the copies required under subsection (a) of this section shall be fined $10.00 for each offense.
(Amended 1959, No. 21, eff. March 6, 1959; 1995, No. 109 (Adj. Sess.), § 2; 2021, No. 105 (Adj. Sess.), § 512, eff. July 1, 2022.)
§ 3486 Repealed
[Repealed]
1971, No. 41, § 2, eff. April 7, 1971.
Chapter 123 How, Where, and to Whom Property Is Taxed
Subchapter 1 Subjects and Manner of Taxation
§ 3601 Repealed
[Repealed]
§ 3602 Manufacturing machinery
Engines and boilers, electric motors, air compressors, traveling cranes, and machinery, so fitted and attached as to be a part of a manufacturing or other plant and kept and used as such, shall be set in the grand list as real estate.
§ 3602a Facilities used in the generation, transmission, or distribution of electric power
All structures, machinery, poles, wires, and fixtures of all kinds and descriptions used in the generation, transmission, or distribution of electric power that are so fitted and attached as to be part of the works or facilities used to generate, transmit, or distribute electric power shall be set in the grand list as real estate. Nothing in this section shall alter the scope of the exemptions in subdivisions 3803(2) and 3802(19) of this title, nor shall it alter the taxation of municipally owned improvements accorded by section 3659 of this title.
(Added 1999, No. 49, § 24, eff. June 2, 1999; amended 2021, No. 71, § 14.)
§ 3602b Communications property [Effective July 1, 2026]
(a) All communications property shall be set in the grand list as real estate.
(b) Communications property owned by a nonmunicipal communications service provider shall be taxed at appraisal value as defined in section 3481 of this title.
(c) As used in this section, “communications property” means tangible personal property used to enable the real-time, two-way, electromagnetic transmission of information, such as audio, video, and data, that is so fitted and attached as to be part of a local, state, national, or international communications network, as well as facilities that are part of a cable television system as defined in 30 V.S.A. § 501(2). The term includes wires, cables, conduit, pipes, antennas, poles, and wireless towers.
(d)(1) On or before May 1 of each year, the Division of Property Valuation and Review of the Department of Taxes shall provide the listers in each municipality with the valuation of all taxable communications property of any communications service provider situated therein as reported by such provider to the Division.
(2) On or before March 31 of each year, each communications service provider shall submit to the Division a sworn inventory of all its taxable communications property in a form that identifies the valuation of its property in each municipality.
(3) The Division shall prescribe the form of the inventory required under subdivision (2) of this subsection and the officer or officers who shall submit the sworn inventory.
(4) The valuations provided to the listers pursuant to this section shall be used by the listers in determining and fixing the valuations of communications property for the purposes of property taxation.
(Added 2023, No. 145 (Adj. Sess.), § 10, eff. July 1, 2026.)
§ 3603 Construction equipment
(a) Construction equipment and other personal estate used in the construction or repair of highways, dams, reservoirs, public utilities, or buildings shall be listed and taxed on the same basis as other personal estate in the town in which it is located on April 1. Such equipment brought into the State after April 1 and prior to December 15 of any year shall be taxed as other personal estate for that year in the town in which it is first used for a normal full work shift. The owner or person in charge of any equipment enumerated in this section shall, upon request of the Treasurer or tax collector of any municipality, present evidence that it has been listed for tax purposes in a municipality in this State. The Transportation Board and other State agencies shall insert in all contracts for construction a term by which the contractor agrees to pay taxes assessed under this section and section 4151 of this title.
(b) Nothing in this section shall be construed to tax as personal property registered automobiles or motor vehicles owned or used by public utilities authorized to do business in the State in the maintenance or construction of their properties nor shall this section be construed to amend section 3802 of this title.
(Amended 1963, No. 92, §§ 1, 2, eff. May 14, 1963; 1977, No. 23, § 1, eff. March 29, 1977; 2021, No. 105 (Adj. Sess.), § 513, eff. July 1, 2022.)
§ 3604 Mines and quarries
The interest of a grantee in severance from surface ownership in mines, quarries, or the right of mining and quarrying, shall be set in the list as real estate, but this section shall not apply to leases named in section 3609 of this title.
§ 3605 Water rights
The interest of an owner in water rights, power rights, and flowage rights, or any of such rights, owned by severance from real estate interests set in the grand list to another and in connection with which such rights exist, shall be appraised and set in the grand list as real estate to the owner of such rights. This section shall not be construed so as to affect any exemptions from taxation granted under any existing statute.
§ 3606 Standing timber
The sale or conveyance of standing timber shall not affect the valuation of the underlying land.
(Amended 1997, No. 71 (Adj. Sess.), § 7c, eff. Jan. 1, 1998.)
§ 3607 Orchard lands
When the owner of land, cultivated or uncultivated, has planted the same to fruit trees, such land shall continue to be set in the list at the same valuation as similar land not so planted, but that is used for general agricultural purposes. Increase in the valuation of such land for taxation shall not be made for 15 years on account of trees growing thereon.
§ 3607a Barns, silos, and other farm structures
Barns, silos, sugarhouses, and bunkers used for silage storage shall be entered in the grand list at fair market value as defined in subdivision 3481(1) of this title, except that by a majority vote of those present and voting at an annual or special meeting warned for the purpose, a municipality may elect to exempt, or to appraise at less than fair market value, barns, silos, sugarhouses, and bunkers used for silage storage located within the municipality that are owned or leased by a farmer as defined in subdivision 3752(7) of this title and used by the farmer as part of a farming operation. An election to exempt or to reduce appraisals made under this section shall remain in effect for future tax years until amended or repealed by a similar vote of the municipality.
(Added 1983, No. 215 (Adj. Sess.), § 3, eff. May 10, 1984; amended 1987, No. 249 (Adj. Sess.).)
§ 3608 Buildings on leased land
Buildings on leased land or on land not owned by the owner of the buildings shall be set in the list as real estate.
§ 3609 Perpetual or redeemable leases
Perpetual or redeemable leases upon which rent is reserved, except of lands exempt from taxation, shall have an appraisal value as personal estate at a sum of which the rent is six percent.
(Amended 1965, No. 45.)
§ 3610 Taxation of perpetual leased lands
(a) The term “perpetual lease” as used in this section includes every leasehold interest in land located in Vermont, and every estate in Vermont land other than fee simple absolute, arising out of or created by an instrument of lease that conveys to a person designated as lessee, the lessee’s heirs, executors, administrators, and assigns, the right to possess, enjoy, and use the land in perpetuity or substantially in perpetuity, whether or not the instrument of lease contains restrictions on the use of the subject land by the person designated as lessee and whether or not the subject land may be repossessed by the owner because of nonpayment of rent or of other default under the instrument of lease. The term “lessee” as used in this section means the person entitled to possess, enjoy, and use land subject to a perpetual lease.
(b) The listers of each town and the appraisers of each unorganized town and gore shall list every perpetual lease in a separate record in which shall be shown as to each lease a brief description of the leased land, the fair market value of the land as appraised by them, the name of the lessor, the annual rental payable under the lease, and as of April 1 of each year the name and address of the lessee. If for any reason the lease is exempt under subsection (d) of this section, the reason for the exemption shall be noted.
(c) For purposes of section 3481 of this title, the appraised value of each perpetual lease not exempt under subsection (d) of this section shall be its market value as determined by the listers or appraisers, taking into consideration all limitations upon the use of the land by the lessee that substantially diminish the value of the lessee’s right to occupy, use, or enjoy the land; but in no event is the appraised value of a perpetual lease to be in excess of the fair market value of the subject land as determined by the listers or appraisers.
(d) A perpetual lease is exempt from taxation against the lessee if so provided by an express term of the original grant of the subject land by the State of Vermont, or by a statute in effect at the time of the grant providing for exemption in perpetuity of the leases, or if the subject land would be exempt under chapter 125 of this title if the lessee were the owner of the land.
(e) Except as provided in subsection (d) of this section, every perpetual lease, whether or not the subject land is exempt from taxation, shall be set in the grand list as real estate against the lessee.
(f) The annual rental payable under a perpetual lease shall be credited in each year against the tax payable in respect of that lease to the town in which the subject land is located.
(g) Any tax levied by authority of this section shall be collected in the same manner as real estate taxes. The selectboard, treasurer, and collector of taxes have the same authority and are subject to the same duties, requirements and penalties with respect to the collection of the tax as is provided in the case of real estate taxes. A town may vote to collect interest on overdue taxes and for the payment of the taxes by installments as in the case of real estate taxes.
(h) Commencing with the date of the filing by the listers of the grand list in the office of the town clerk, taxes lawfully assessed upon a perpetual lease shall be a first lien thereon, underlying all mortgages, assignments, attachments, liens, or other encumbrances thereon, and all subleases for the term of a natural life or lives, for a term of years or for any other duration. The tax lien shall remain in full force and effect for a period of 15 years, and it may be enforced separately against the perpetual lease in each parcel of the subject real estate. Notice to all parties having an interest in the perpetual lease shall be given as provided by law or as directed by courts. Courts of law may issue execution, as the facts warrant, to impress the tax lien upon the perpetual lease.
(i) A perpetual lease is subject to sale in the same manner and subject to the same procedures, notices, defenses, and statutes of limitations as in the case of tax sales of real estate. Any person acquiring a perpetual lease, under the authority of this section, is subject to the person’s portion of the annual rental due the grantee.
(Added 1967, No. 366 (Adj. Sess.), § 1; amended 2021, No. 105 (Adj. Sess.), § 514, eff. July 1, 2022.)
§ 3611 Assessment against State easements for flood control projects
Lands over which the State has acquired or reserved an easement of flowage in the completion of its flood control projects shall be set in the grand list of the town to the owners thereof subject to such easement of flowage. The difference between the grand list so fixed and the grand list based on the appraisal next preceding the acquisition of such flowage rights by the State of Vermont, shall be set in the grand list to the State of Vermont. Taxes assessed thereon shall be paid out of the General Fund.
(Amended 1957, No. 219, § 2, eff. July 1, 1961.)
§ 3612 Owner’s improvements
In the event improvements shall be put on such land after acquisition of an easement of flowage by the State of Vermont in the completion of its flood control projects, such improvements shall be set in the grand list to the then owner of the land but shall not alter or change the grand list of the State on such flowage easements.
§ 3613 Appeal
The State of Vermont shall have the same right to appeal from the appraisal of the listers and from the decision of the Board of Civil Authority as is given to any interested individual as provided by chapter 131 of this title.
§ 3614 Property on federal land
Property of a railway or other corporation having a right-of-way over or location upon lands acquired by the United States shall be taxed as other similar property.
§§ 3615, 3616 Repealed
[Repealed]
1979, No. 203 (Adj. Sess.), § 5, eff. May 7, 1980.
§ 3617 Repealed
[Repealed]
1991, No. 203 (Adj. Sess.), § 1, eff. May 27, 1992.
§ 3618 Business personal property
(a) If a town does not vote to exempt business personal property under section 3849 of this title, such property shall be appraised at fair market value; or, subject to a majority vote of those present and voting at an annual or special meeting warned for the purpose, a town may provide that business personal property shall be appraised for any taxable year according to either of the following methods, which may be elected at the option of the taxpayer:
(1) At 50 percent of its cost during the time that it has not been fully depreciated for federal income tax purposes under the laws of the United States. After the property has been thus depreciated, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost;
(2) At its net book value during the time that it has not been depreciated to 10 percent of its cost or less for federal income tax purposes under the laws of the United States. After the property has been depreciated to 10 percent of its cost or less, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost. Business personal property manufactured by the taxpayer for his or her own use, shall be valued at the net book value for federal income tax purposes under the laws of the United States. After the property has been depreciated to 10 percent of its cost or less, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost.
(b) The taxpayer may elect either of the methods set forth in subsection (a) of this section in the first year for which this election is effective. In any subsequent year the taxpayer may not change the method elected in the previous year except with the prior permission of the board of listers. All of the taxpayer’s business personal property shall be valued for any year according to only one of the two methods. Adjustments by the taxpayer or the federal authorities of the depreciation allowed or allowable on the property, for federal income tax purposes, shall not affect or change the appraisal of the property under this section for any year as to which, at the time of the adjustment in depreciation, the grand list has been lodged as required by section 4151 of this title.
(c) As used in this section:
[Subdivision (c)(1) effective until July 1, 2026; see also subdivision (c)(1) effective July 1, 2026 set out below.]
(1) “Business personal property” means tangible personal property of a depreciable nature used or held for use in any trade, business, professional practice, transaction, activity, or occupation conducted for profit, including all furniture and fixtures, apparatus, tools, implements, books, machines, boats, construction devices, and all personal property used or intended to be used for the production, processing, fabrication, assembling, handling, or transportation of anything of value, or for the production, transmission, control, or disposition of power, energy, heat, light, water, or waste. “Business personal property” does not include inventory, or goods and chattels so affixed to real property as to have become part thereof, and that are therefore not severable or removable without material injury to the real property, nor does it include poles, lines, and fixtures that are taxable under sections 3620 and 3659 of this title.
[Subdivision (c)(1) effective July 1, 2026; see also subdivision (c)(1) effective until July 1, 2026 set out above.]
(1) “Business personal property” means tangible personal property of a depreciable nature used or held for use in any trade, business, professional practice, transaction, activity, or occupation conducted for profit, including all furniture and fixtures, apparatus, tools, implements, books, machines, boats, construction devices, and all personal property used or intended to be used for the production, processing, fabrication, assembling, handling, or transportation of anything of value, or for the production, transmission, control, or disposition of power, energy, heat, light, water, or waste. “Business personal property” does not include inventory, or goods and chattels so affixed to real property as to have become part thereof, and that are therefore not severable or removable without material injury to the real property, nor does it include poles, lines, and fixtures that are taxable under sections 3620 and 3659 of this title, nor does it include communications property taxable under section 3602b of this title.
(2) “Net book value” of property means the cost less depreciation of the property as shown on the federal income tax return required to be filed with the federal authorities on or nearest in advance of April 1 in any year.
(Added 1975, No. 101, § 2, eff. April 30, 1975; amended 1985, No. 169 (Adj. Sess.), § 3, eff. May 5, 1986; 1991, No. 203 (Adj. Sess.), § 4, eff. May 27, 1992; 2023, No. 145 (Adj. Sess.), § 11, eff. July 1, 2026.)
§ 3619 Time-share projects
(a) As used in this section, a time-share project means a project involving real property containing time-share estates. A “time-share estate” is a right to occupy a unit or any of several units in a time-share project during separated time periods coupled with a freehold estate or an estate for years in a time-share property or a specified portion thereof.
(b) With respect to property taxes, both real and personal, on time-share projects, each property owner of a time-share estate shall be liable for the payment thereof to the town. However, the owners’ association, corporation, or whatever entity is authorized by the project instruments to manage the common property, shall be the agent of the time-share estate owners for the payment of property taxes from the individual owners to the town. The town shall set in the grand list as real estate the units and common property of the project of which the time-share estates are a part and shall list the entire property to the association, corporation, or whatever entity is authorized by the project instruments to manage the common property, which entity assumes the rights and liabilities of any owner of property in the grand list. However, with respect to each other, each owner of a time-share estate shall be responsible only for a fraction of such assessments, property taxes, both real and personal, and charges proportionate to the magnitude of his or her undivided interest in the fee to the whole estate of which he or she is a part, as covered in the association’s, corporation’s, or entity’s bylaws or other project instruments.
(c) A lien by the town for the collection of taxes owed by an owner of a time-share estate shall be imposed upon the entire property composing the time-share project. With respect to notification and sale for collection of taxes under chapter 133 of this title, the owners’ association, corporation, or whatever entity is authorized by the project instruments to manage the common property, and not the town, is responsible for notifying all time-share estate owners of any delinquency or other notice required under chapter 133 of this title, and for payment of the delinquent tax together with interest and penalties.
(Added 1983, No. 18, eff. March 31, 1983.)
§ 3620 Electric utility poles, lines, and fixtures
Electric utility poles, lines, and fixtures owned by nonmunicipal utilities shall be taxed at appraisal value as defined by section 3481 of this title, except as provided under subdivision 3802(19) of this title.
(Added 1985, No. 169 (Adj. Sess.), § 1, eff. May 5, 1986; amended 2021, No. 71, § 15.)
§ 3621 Petroleum and natural gas infrastructure
For purposes of the statewide education property tax in chapter 135 of this title, the Director shall determine the appraised value of all property and fixtures composing and underlying a petroleum or natural gas facility, petroleum or natural gas transmission line, or petroleum or natural gas distribution line located entirely within this State. The Director shall value such property at its fair market value, an assessment it shall reach by the cost approach to value by employing an actual cost-based methodology, adjusting that actual cost using a cost factor from industry-specific inflation indexes, and depreciating the resulting present cost using a depreciation schedule based on the property’s estimated remaining life; provided, however, that after the property has been depreciated to 30 percent of its present cost or less, exclusive of salvage value, the property shall be appraised at 30 percent of its cost. The Director shall inform the local assessing officials of his or her appraised value under this section on or before May 1 of each year, and the local assessing officials shall use the Director’s appraised value for purposes of assessing and collecting the statewide education property tax under chapter 135 of this title.
(Added 2013, No. 174 (Adj. Sess.), § 32, eff. Jan. 1, 2015.)
Subchapter 2 Where and to Whom Real Estate Taxed
§ 3651 General rule
Taxable real estate shall be set in the list to the last owner or possessor thereof on April 1 in each year in the town, village, school, and fire district where it is situated.
§ 3652 Mortgagor deemed owner
When real estate is mortgaged, the mortgagor shall be deemed the owner thereof for the purpose of taxation, until the mortgagee takes possession, after which the mortgagee shall be deemed the owner.
§ 3653 Unoccupied and owner unknown
When the owner of unoccupied real estate is unknown to the listers, it shall be set in the list in the name of the original grantee or by such other description as in their judgment will best designate it. When a division of the original rights of grantees is made in whole or in part, each lot of every division shall be set apart in the list from other lots of the same right.
§ 3654 Undivided estate of deceased person
Undivided real estate of a deceased person shall be assessed to such person’s estate or to his or her executor or administrator, or to the possessor thereof, until notice is given to the listers of the sale or division of the same and the names of the persons to whom it is transferred. When such estate is assessed to the estate, the executor or administrator shall pay the taxes assessed.
§ 3655 Facilities not within town limits
For the purpose of taxation:
(1) Wharves erected in Lake Champlain and not within the limits of a town shall be considered as being in the towns adjoining such wharves.
(2) Utility lines, including submarine cables or pipelines, constructed or maintained in Lake Champlain and not otherwise within the limits of the towns of South Hero and Grand Isle shall be considered as being in whichever of those towns adjoin those facilities as if the northerly and southerly lines of those towns were extended easterly and westerly to the county lines.
(Amended 1961, No. 244, eff. July 26, 1961.)
§ 3656 Repealed
[Repealed]
1997, No. 60, § 55.
§§ 3657, 3658 Repealed
[Repealed]
1979, No. 203 (Adj. Sess.), § 5, eff. May 7, 1980.
§ 3659 Municipal lands [Effective July 1, 2026; see also 32 V.S.A. § 3659 effective until July 1, 2026]
Land and buildings of a municipal corporation, whether acquired by purchase or condemnation and situated outside its territorial limits shall be taxed by the municipality in which such land is situated. Said land shall be set to such municipal corporation in the grand list of the town or city in which such real estate is located at the value fixed in the appraisal next preceding the date of acquisition of such property and taxed on such valuation. The value fixed on such property at each appraisal thereafter shall be the same per acre as the value fixed on similar property in the town or city. Improvements made subsequent to the acquisition of the land shall not be taxed; except that an additional tax not to exceed 75 percent of the appraisal of the land may be levied in lieu of a personal property tax. Electric utility poles, lines, and pole fixtures owned by a municipal utility lying beyond its boundaries shall be taxed at appraisal value as defined in section 3481 of this title. Communications property, as defined in section 3602b of this title, owned by a municipality lying beyond its boundaries shall be taxed at appraisal value as defined in section 3481 of this title.
(Amended 1957, No. 219, § 2, eff. July 1, 1961; 1985, No. 169 (Adj. Sess.), § 2, eff. May 5, 1986; 1987, No. 195 (Adj. Sess.), eff. April 1, 1988; 2023, No. 145 (Adj. Sess.), § 12, eff. July 1, 2026.)
§ 3660 Repealed
[Repealed]
1997 (Adj. Sess.), No. 71, § 22, eff. Jan. 1, 1998.
Subchapter 3 Where and to Whom Personal Property Taxed
§ 3691 General rule
Taxable tangible personal estate shall be set in the list to the last owner thereof on April 1 in each year, in the town, village, school, and fire district where such property is situated, with the exception that such personal estate situated within this State owned by persons residing outside the State or by persons unknown to the listers shall be set in the list to the person having the same in charge, in the town, village, school, and fire district where the same is situated and shall be holden for all taxes assessed on such list. However, tangible personal estate owned by nonresident persons or corporation, and used in this State by the State or a department or institution thereof, under lease, contract or other agreement, written or oral, may be set in the list in the town where so used, to such nonresident owner.
§ 3692 Taxation of boats, outboard motors, and trailer coaches
(a) Except as otherwise provided, snowmobiles, trailer coaches as defined by 23 V.S.A. § 4 registered yearly for use on the highways and designed and used for recreational purposes except as provided by subsection (b) of this section, canoes, skiffs, sailboats, motor or power boats, boats, outboard motors, or any combination of boat and outboard motor, shall be taxed as personal property only when held as stock in trade, manufacturer’s inventory, or when used for income producing purposes, and in such cases shall be set in the list in accordance with section 3691 of this title.
(b) A trailer coach shall be taxed as real property by the town in which it is located notwithstanding subsection (a) of this section if it is situated in the town on the same trailer site or camp site for more than 180 days during the 365 days prior to April 1. A trailer coach shall not be taxed as real property if it is stored on property on which the owner resides in another dwelling as a permanent residence.
(Amended 1959, No. 70, eff. April 1, 1959; 1961, No. 127, eff. April 1, 1961; 1971, No. 73, § 5, eff. for tax years beginning after December 31, 1970; 1983, No. 162 (Adj. Sess.), eff. April 20, 1984.)
Subchapter 4 State Payment in Lieu of Property Taxes
§ 3701 Definitions
As used in this subchapter:
(1) “State-owned property” means
(A) State-owned buildings, including buildings of the Vermont State Colleges that are tax-exempt under 16 V.S.A. § 2178; buildings of the University of Vermont and State Agricultural College used for educational and not commercial purposes; and buildings of the Agency of Transportation and the Department of the Military; but excluding the value of land on which the buildings are located, and excluding all highways and bridges and any land pertaining to them; and
(B) State-owned lands that pertain to State correctional facilities.
(2) “Assessed value of State buildings” means the estimation of the current cost of replacing a building, maintained for insurance purposes by the State agency or other entity responsible for insuring the building, depreciated by the age and condition of the building.
(3) “Assessed value of State lands” means the fair market value of lands that pertain to State correctional facilities, as determined by the Division of Property Valuation and Review, subject to the provision of subsection 3704(b) of this title.
(4) “Adjusted municipal grand list” means the total assessed value of any State-owned property located in a municipality, multiplied by the common level of appraisal for the municipality as determined by the Division of Property Valuation and Review, multiplied by one percent, and added to the grand list of the municipality as determined pursuant to chapter 129 of this title.
(5) “Adjusted municipal tax rate” means the total sum of money voted by a municipality for all noneducational expenses pursuant to 17 V.S.A. § 2664 or 24 V.S.A. § 1309, divided by the adjusted municipal grand list of the municipality.
(6) “Municipality” means an incorporated city, town, village, or unorganized town, grant, or gore in which a tax is assessed for noneducational purposes.
(Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), §§ 23, 24, eff. July 1, 1997; 1999, No. 1, § 106a, eff. March 31, 1999; 2005, No. 207 (Adj. Sess.), § 7; 2021, No. 105 (Adj. Sess.), § 515, eff. July 1, 2022.)
§ 3702 Payment of grants authorized
The Secretary of Administration shall determine annually the amount of payment due, as a State grant in lieu of property taxes, to each municipality in the State in which is located any State-owned property, in accordance with the provisions of this subchapter.
(Added 1997, No. 60, § 53.)
§ 3703 Grant formula
(a) The amount of a grant to a municipality authorized by this subchapter shall be based on the total assessed value of any State-owned property located in the municipality, multiplied by the common level of appraisal for the municipality as determined by the Division of Property Valuation and Review, multiplied by one percent, and multiplied by the adjusted municipal tax rate for the municipality in which the property is located.
(b) [Repealed.]
(c) The total of any grants under subsection (a) of this section for buildings owned by the University of Vermont and State Agricultural College shall be limited to a maximum of $750,000.00.
(d) [Repealed.]
(e) The Secretary of Administration shall have authority to reduce any payments under this subchapter to avoid multiple payments to a municipality in the same year in lieu of taxes with respect to the same property.
(Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), § 26, eff. July 1, 1997; 1999, No. 1, § 106b, eff. March 31, 1999.)
§ 3704 Determination of assessed values; appeal
(a) Prior to August 1, 1997, and to May 1 of each taxable year thereafter, the Secretary of Administration shall provide assessed values of State buildings and lands, as defined under this subchapter, to every municipality to which a grant is payable under this subchapter.
(b) Any municipality aggrieved by the action of the Secretary under this section may, within 30 days of receipt of the assessed values, appeal to the Superior Court of the district in which the municipality is located.
(Added 1997, No. 60, § 53.)
§ 3705 Adjusted municipal grand list and adjusted municipal tax rate
(a) Prior to October 1 in each taxable year, the Division of Property Valuation and Review shall provide the Secretary of Administration with the following:
(1) the adjusted municipal grand list for the prior assessment year, with the assessed values of all State-owned property shown separately, together with a statement of the common level of appraisal used to weight the assessed values of State-owned property;
(2) the adjusted municipal tax rate to be used in assessing taxes on the prior adjusted municipal grand list; and
(3) the total sum of money voted by the municipality for all noneducational expenses, pursuant to 17 V.S.A. § 2664.
(b) Prior to issuing a grant under this subchapter, the Secretary of Administration may substitute his or her calculations of the adjusted municipal grand list or the adjusted municipal tax rate for a municipality if the Secretary finds that those calculations provided by the municipality under this section are in error or are inconsistent with assessed values as determined pursuant to section 3704 of this title.
(Added 1997, No. 60, § 53; amended 1997, No. 71 (Adj. Sess.), § 25, eff. July 1, 1997.)
§ 3706 Payment to municipalities
Grants under this subchapter shall be made annually by the Secretary of Administration to each eligible municipality on or before December 1, 1997, and on or before October 31 in years thereafter. Nothing in this subchapter shall be construed or permitted to affect the tax exempt status of the University of Vermont and State Agricultural College, as provided by statute and guaranteed by that institution’s charter.
(Added 1997, No. 60, § 53.)
§ 3707 Rules
The Secretary of Administration may adopt rules under 3 V.S.A. chapter 25 to carry out the provisions of this subchapter.
(Added 1997, No. 60, § 53.)
Subchapter 4A Agency of Natural Resources Land
§ 3708 Payments in lieu of taxes for lands held by the Agency of Natural Resources
(a) As used in this subchapter:
(1) “ANR land” means lands held by the Agency of Natural Resources.
(2) “Fair market value” shall be based upon the value of the land at its highest and best use determined without regard to federal conservation restrictions on the parcel or any conservation restrictions under a State agreement made with respect to the parcel.
(3) “Municipality” means an incorporated city, town, village, or unorganized town, grant, or gore in which a tax is assessed for noneducational purposes.
(b) The State shall annually pay to each municipality a payment in lieu of taxes (PILOT) that shall be the base payment as set forth under this section, for all ANR land, excluding buildings or other improvements thereon, as of April 1 of the current year.
(c) The State shall establish the base payment for all ANR land, excluding buildings or other improvements thereon, as follows;
(1) On parcels acquired before April 1, 2016, 0.60 percent of the fair market value as appraised by the Director of Property Valuation and Review as of April 1 of fiscal year 2015;
(2) On parcels acquired on or after April 1, 2016, the municipal tax rate of the fair market value as assessed on April 1 in the year of acquisition by the municipality in which it is located.
(d) Beginning in fiscal year 2023, and thereafter in periods of not less than three years and not greater than five years, the Secretary of Natural Resources shall recommend an adjustment to update the base payments established under subsection (c) of this section consistent with the statewide municipal tax rate or other appropriate indicators. For years that the Secretary of Natural Resources recommends an adjustment under this subsection, a request for funding the adjustment shall be included as part of the budget report required under section 306 of this title.
(e) Any adjustment to the acreage of any existing ANR parcel will result in the change of the base payment for the year in which the change occurs. A per acre payment will be determined for the parcel. This per acre payment will be either added or subtracted from the base payment as necessary for the number of acres that need to be adjusted.
(f) The selectboard of a town aggrieved by the appraisal of property by the Division of Property Valuation and Review under subdivision (c)(1) of this section may, within 21 days after the receipt by the town listers of notice of the appraisal of its property by the Division of Property Valuation and Review in fiscal year 2017 only, appeal that appraisal to the Superior Court of the district in which the property is situated.
(Added 1999, No. 1, § 106c, eff. March 31, 1999; amended 2005, No. 38, § 19, eff. June 2, 2005; 2015, No. 58, § E.701.1, eff. July 1, 2016; 2015, No. 172 (Adj. Sess.), § E.701, eff. June 8, 2016; 2019, No. 154 (Adj. Sess.), § E.701, eff. Oct. 2, 2020; 2021, No. 105 (Adj. Sess.), § 516, eff. July 1, 2022.)
Subchapter 4B Pilot Special Fund
§ 3709 PILOT Special Fund
(a) There is hereby established a PILOT Special Fund consisting of local option tax revenues paid to the State Treasurer pursuant to 24 V.S.A. § 138. This Fund shall be managed by the Commissioner of Taxes pursuant to chapter 7, subchapter 5 of this title. Notwithstanding subdivision 588(3) of this title, all interest earned on the Fund shall be retained in the Fund for use in meeting future obligations. The Fund shall be exclusively for payments required under chapter 123, subchapters 4 and 4C of this title, and for any additional State payments in lieu of taxes for correctional facilities. The Commissioner of Finance and Management may draw warrants for disbursements from this Fund in anticipation of receipts.
(b) If the PILOT Special Fund is insufficient to pay the full amount of all payments in lieu of taxes under subchapter 4 of this chapter, then, after application of the cap in subsection 3703(c) of this title, payments determined under section 3703 of this subchapter shall be reduced proportionately.
(Added 2005, No. 215 (Adj. Sess.), § 287; amended 2007, No. 192 (Adj. Sess.), § 6.011.1, eff. June 7, 2008; 2025, No. 27, § E.142.1, eff. July 1, 2025.)
Subchapter 4C Municipal Grand List Stabilization Program
§ 3710 Municipal Grand List Stabilization Program
(a) There is established the Municipal Grand List Stabilization Program within the Department of Taxes to reimburse municipalities for municipal property taxes assessed under chapter 133 of this title for flood-prone properties acquired by a municipality through a voluntary buyout program operated by the Division of Emergency Management.
(b) On or before September 1 of each year, the Commissioner of Public Safety shall certify to the Commissioner of Taxes the properties eligible for the Municipal Grand List Stabilization Program and shall submit any other information required by the Commissioner of Taxes. To be eligible for the Program under this subchapter, a municipality must have acquired an eligible property on or after July 1, 2023 and preserved the property as open space with a deed restriction or covenant prohibiting development of the property. The Commissioner of Public Safety shall first certify properties to the Commissioner of Taxes pursuant to this subsection on or before September 1, 2025.
(c) Upon notification by the Commissioner of Public Safety, the Commissioner of Taxes shall certify the payment amounts and make an annual payment to each municipality for each eligible property to compensate for the loss of municipal property tax. The payment shall be calculated using the grand list value of the acquired property for the year during which the property was either damaged by flooding or identified as flood-prone by the Commissioner of Public Safety, multiplied by the municipal tax rate, including any submunicipal tax rates, in effect each year. This payment shall be made on or before January 1 of each year for five years.
(d) A property shall not be eligible for reimbursement payments for more than 10 years. The Commissioner shall make an annual payment for the full amount calculated under subsection (c) of this section for five years. After a municipality has received payments for an eligible property for five consecutive years, the Commissioner shall make an annual payment to the municipality for any subsequent year of eligibility in an amount equal to one-half of the amount calculated under subsection (c) of this section.
(e) Payment under this section shall be calculated and issued from the PILOT Special Fund under section 3709 of this title only after all other grants under subchapter 4 of this chapter are calculated and issued. If the PILOT Special Fund balance is insufficient to pay the full amount of all payments authorized under this subchapter, then payments calculated under this section and due to each municipality for each property shall be reduced proportionately.
(Added 2025, No. 27, § E.142.2, eff. July 1, 2025.)
Chapter 124 Agricultural Lands and Forestlands
Subchapter 1 Agricultural Land and Managed Forestland Use Value Appraisal Program
§ 3750 Statutory purposes
The statutory purpose of the Vermont Use Value Appraisal Program in chapter 124 of this title is to preserve the working landscape, preserve the rural character of Vermont, and protect the natural ecological systems and natural resources of the forestland of Vermont.
(Added 2013, No. 200 (Adj. Sess.), § 14; amended 2021, No. 146 (Adj. Sess.), § 2, eff. July 1, 2023.)
§ 3751 Statement of purpose
The purpose of this subchapter is to encourage and assist the maintenance of Vermont’s productive agricultural land and forestland; to encourage and assist in their conservation and preservation for future productive use and for the protection of natural ecological systems and services, including air and water quality, wildlife habitat and wildlife corridors, enhanced biodiversity, and forest health and integrity; to prevent the accelerated conversion of these lands to more intensive use by the pressure of property taxation at values incompatible with the productive capacity of the land; to achieve more equitable taxation for undeveloped lands; to encourage and assist in the preservation and enhancement of Vermont’s scenic natural resources; to assist in climate adaptation and mitigation; and to enable the citizens of Vermont to plan its orderly growth in the face of increasing development pressures in the interests of the public health, safety, and welfare.
(Added 1977, No. 236 (Adj. Sess.), § 1; amended 2021, No. 105 (Adj. Sess.), § 518, eff. July 1, 2022; amended 2021, No. 146 (Adj. Sess.), § 2, eff. July 1, 2023.)
§ 3752 Definitions
As used in this subchapter:
(1) “Agricultural land” means any land, exclusive of any housesite, in active use to grow hay or cultivated crops, pasture livestock, cultivate trees bearing edible fruit, or produce an annual maple product, and that is 25 acres or more in size, except as provided in this subdivision (1). Agricultural land shall include buffer zones as defined and required in the Agency of Agriculture, Food and Markets’ Required Agricultural Practices rule adopted under 6 V.S.A. chapter 215. There shall be a presumption that the land is used for agricultural purposes if:
(A) it is owned by a farmer and is part of the overall farm unit;
(B) it is used by a farmer as part of the farmer’s operation under written lease for at least three years; or
(C) it has produced an annual gross income from the sale of farm crops in one of two, or three of the five, calendar years preceding of at least:
(i) $2,000.00 for parcels of up to 25 acres; and
(ii) $75.00 per acre for each acre over 25, with the total income required not to exceed $5,000.00.
(iii) Exceptions to these income requirements may be made in cases of orchard lands planted to fruit-producing trees, bushes, or vines that are not yet of bearing age. As used in this section, the term “farm crops” also includes animal fiber, cider, wine, and cheese, produced on the enrolled land or on a housesite adjoining the enrolled land, from agricultural products grown on the enrolled land.
(2) “Assessing officials” means the listers or other assessing authority of the municipality or the State of Vermont.
(3) “Board” means the Current Use Advisory Board established in section 3753 of this chapter.
(4) “Commissioner” means the Commissioner of Taxes.
(5)(A) “Development” means, for the purposes of determining whether a land use change tax is to be assessed under section 3757 of this chapter, the construction of any building, road, or other structure, or any mining, excavation, or landfill activity.
(B) “Development” also means the subdivision of a parcel of land into two or more parcels, regardless of whether a change in use actually occurs, where one or more of the resulting parcels contains less than 25 acres each; but if subdivision is solely the result of a transfer to one or more of a spouse, ex-spouse in a divorce settlement, parent, grandparent, child, grandchild, niece, nephew, or sibling of the transferor, or to the surviving spouse of any of the foregoing, then “development” shall not apply to any portion of the newly created parcel or parcels that qualify for enrollment and for which, within 30 days following the transfer, each transferee or transferor applies for reenrollment in the Use Value Appraisal Program.
(C) “Development” also means the cutting of timber on property appraised under this chapter at use value in a manner contrary to a forest or conservation management plan as provided for in subsection 3755(b) of this title during the remaining term of the plan, or contrary to the minimum acceptable standards for forest management if the plan has expired; or a change in the parcel or use of the parcel in violation of the conservation management standards established by the Commissioner of Forests, Parks and Recreation.
(D) “Development” also means notification of the Director by the Secretary of Agriculture, Food and Markets under section 3756 of this title that the owner or operator of agricultural land or a farm building is violating the water quality requirements of 6 V.S.A. chapter 215 or is failing to comply with the terms of an order issued under 6 V.S.A. chapter 215, subchapter 10.
(E) The term “development” does not include the construction, reconstruction, structural alteration, relocation, or enlargement of any building, road, or other structure for farming, logging, forestry, or conservation purposes, but shall include the subsequent commencement of a use of that building, road, or structure for other than farming, logging, or forestry purposes.
(F) The term “development” shall not include the location of any solar generation facility that is, in the aggregate, on 0.1 of an acre of land or less, provided that the underlying land qualifies under this chapter as agricultural land or open land that qualifies as managed forestland in accordance with standards established by the Commissioner of Forests, Parks and Recreation.
(6) “Director” means the Director of the Division of Property Valuation and Review created by 3 V.S.A. § 2289.
(7) “Farmer” means a person:
(A) who earns at least one-half of the farmer’s annual gross income from the business of farming as that term is defined in Regulation 1.175-3 issued under the Internal Revenue Code of 1986; or
(B)(i) who produces farm crops that are processed in a farm facility situated on land enrolled by the farmer in a use value appraisal program or on a housesite adjoining the enrolled land;
(ii) whose gross income from the sale of the processed farm products pursuant to subdivision (i) of this subdivision (B), when added to other gross income from the business of farming as used in subdivision (A) of this subdivision (7), equals at least one-half of the farmer’s annual gross income; and
(iii) who produces on the farm a minimum of 75 percent of the farm crops processed in the farm facility.
(C) The Agency of Agriculture, Food and Markets shall assist the Director in making determinations of eligibility pursuant to subdivision (B) of this subdivision (7).
(8) “Housesite” means the two acres of land surrounding a dwelling. More than one dwelling may share the same housesite, provided the dwellings are contained within a two-acre area.
(9) “Managed forestland” means:
(A) Any land, exclusive of any house site, that is at least 25 acres in size and that is under active long-term forest management for the purpose of growing and harvesting repeated forest crops or attaining old forest values and functions in accordance with minimum acceptable standards for forest management. Such land may include the following in accordance with minimum acceptable standards for forest management and as approved by the Commissioner:
(i) eligible ecologically significant treatment areas; or
(ii) reserve forestland; or
(B) Any land, exclusive of any house site, that is:
(i) certified under 10 V.S.A. § 6306(b);
(ii) owned by an organization that was certified by the Commissioner of Taxes as a qualified organization as defined in 10 V.S.A. § 6301a and for at least five years preceding its certification was determined by the Internal Revenue Service to qualify as a Section 501(c)(3) organization that is not a private foundation as defined in 26 U.S.C. § 509(a); and
(iii) under active conservation management in accord with standards established by the Commissioner of Forests, Parks and Recreation.
(10) “Owner” means the person who is the owner of any land or the lessee under a perpetual lease as defined in subsection 3610(a) of this title, provided the term of the lease is for a minimum of 999 years exclusive of renewals. When enrolled land is mortgaged, the mortgagor shall be deemed the owner of the land for the purposes of this subchapter until the mortgagee takes possession, either by voluntary act of the mortgagor or foreclosure, after which the mortgagee shall be deemed the owner.
(11) “Person” means any individual, firm, corporation, partnership, or other form of organization or group of individuals.
(12) “Use value appraisal” means, with respect to land, the price per acre that the land would command if it were required to remain henceforth in agricultural or forest use, as determined in accordance with the terms and provisions of this subchapter. With respect to farm buildings, “use value appraisal” means zero percent of fair market value.
(13) “Minimum acceptable standards for forest management” refer to certain standards established by the Commissioner of Forests, Parks and Recreation.
(14) “Farm buildings” means all farm buildings and other farm improvements that are actively used by a farmer as part of a farming operation, are owned by a farmer or leased to a farmer under a written lease for a term of three years or more, and are situated on land that is enrolled in a use value appraisal program or on a housesite adjoining enrolled land. “Farm buildings” shall include up to $100,000.00 of the value of a farm facility processing farm crops, a minimum of 75 percent of which are produced on the farm and shall not include any dwelling, other than a dwelling in use during the prior 12 months exclusively to house one or more farm employees, as defined in 9 V.S.A. § 4469a, and their families, as a nonmonetary benefit of the farm employment. This subdivision shall not affect the application of the definition of “farming” in 10 V.S.A. § 6001(22) or the definition of “farm structure” in 24 V.S.A. § 4413(d)(1).
(15) “Active use” of agricultural land includes that portion of otherwise eligible land that is enrolled in a Conservation Reserve Enhancement Program for agricultural lands through a contract with the State or federal government.
(16) “Ecologically significant treatment areas” means lands within a parcel of managed forestland that will be managed using protective or conservation management strategies and are not required to be managed for timber, including old forests; State-significant natural communities; rare, threatened, and endangered species; riparian areas; forested wetlands; and vernal pools.
(17) “Reserve forestland” means land that is managed for the purpose of attaining old forest values and functions in accordance with minimum acceptable standards for forest management and as approved by the Commissioner of Forests, Parks and Recreation. On parcels of up to 100 acres, 50 percent or more of the enrolled parcel acres shall be composed of significant and sensitive conditions in accordance with the minimum acceptable standards established by the Commissioner. On parcels of 100 acres or more, 30 percent of the enrolled parcel acres shall be composed of significant and sensitive conditions in accordance with the minimum acceptable standards established by the Commissioner.
(Added 1977, No. 236 (Adj. Sess.), § 1; 1981, No. 14, eff. Jan. 1, 1981; amended 1981, No. 14, eff. Jan. 1, 1981; 1983, No. 220 (Adj. Sess.), §§ 1, 2; 1987, No. 57, § 1, eff. May 16, 1987; 1987, No. 130 (Adj. Sess.), § 1; 1995, No. 29, § 39, eff. April 14, 1995; 1995, No. 178 (Adj. Sess.), § 286; 1997, No. 60, § 60, eff. Jan. 1, 1998; 1997, No. 60, § 68d; 1999, No. 49, § 86, eff. June 2, 1999; 2001, No. 140 (Adj. Sess.), §§ 31, 41, eff. June 21, 2002; 2003, No. 66, §§ 286, 286a; 2003, No. 149 (Adj. Sess.), § 11, eff. June 3, 2004; 2005, No. 76, §§ 1-3; 2007, No. 205 (Adj. Sess.), § 9, eff. June 10, 2008; 2009, No. 160 (Adj. Sess.), § 12, eff. June 4, 2010; 2011, No. 143 (Adj. Sess.), § 41, retroactively effective July 1, 2011; 2011, No. 143 (Adj. Sess.), § 45, eff. May 15, 2012; 2013, No. 34, § 23; 2013, No. 73, §§ 12, 14; 2013, No. 159 (Adj. Sess.), § 16c; 2015, No. 57, § 51; 2015, No. 64, § 25; 2017, No. 75, § 11; 2019, No. 51, § 34, eff. June 10, 2019; 2019, No. 158 (Adj. Sess.), § 1, eff. Jan. 1, 2021; 2019, No. 175 (Adj. Sess.), § 5, eff. Oct. 8, 2020; 2021, No. 20, § 264; 2021, No. 43, § 2; 2021, No. 105 (Adj. Sess.), § 519, eff. July 1, 2022; 2021, No. 146 (Adj. Sess.), § 2, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 466, eff. July 1, 2024.)
§ 3753 Current Use Advisory Board; members; Chair
(a) There is hereby established a Current Use Advisory Board.
(b) The membership of the Board shall consist of:
(1) The following persons or their designees:
(A) Commissioner of Taxes;
(B) Director of the Division of Property Valuation and Review;
(C) Secretary of Agriculture, Food and Markets;
(D) Commissioner of Forests, Parks and Recreation;
(E) [Repealed.]
(F) [Repealed.]
(2) Eight additional members to be appointed by the Governor with the advice and consent of the Senate. Two of these members shall represent the private agricultural sector, two shall represent the private forestry sector, one shall be experienced in agricultural and forestry property appraisal and valuation techniques, one shall be a representative of local government, one shall be a selectboard member, and one shall be a lister. Fifty-one percent or more of the Board membership shall be persons who do not own enrolled land and have no spouse, child, or parent who owns enrolled land. These members shall be appointed for three-year terms, beginning February first of the year in which the appointment is made, except that the initial appointment of three of the members shall be for a two-year term. Vacancies shall be filled in the same manner as the original appointment for the unexpired portion of the term vacated.
(c) A Chair shall be designated biennially by the Governor from among the members of the Board and any vacancy in the office of Chair shall be filled by designation of the Governor.
(d) Members of the Board who are not State employees shall be paid $50.00 a day, each, for each day that they are actually engaged in the work of the Board. All members shall be paid their actual expenses incurred as a result of that work.
(e) The Board shall be attached for administrative purposes to the Division of Property Valuation and Review of the Department of Taxes of the Agency of Administration.
(Added 1977, No. 236 (Adj. Sess.), § 1; amended 1985, No. 74, § 297; 1987, No. 57, § 2, eff. May 16, 1987; 1987, No. 130 (Adj. Sess.), § 2; 1989, No. 256 (Adj. Sess.), § 10(a), eff. Jan. 1, 1991; 1997, No. 60, § 67, eff. June 26, 1997; 2003, No. 42, § 2, eff. May 27, 2003; 2011, No. 143 (Adj. Sess.), § 46, eff. May 15, 2012.)
§ 3754 Powers and duties of Board
(a) The Board shall meet at least annually, prior to February 1, to review all past current use land values for agricultural land and managed forestland recommended by past boards, to review the criteria for lands previously established, and to establish new criteria and values as legislation and land management practices may indicate, to establish a schedule of criteria and values to be recommended for the current tax year, and to recommend such changes and improvement in the administration of this subchapter as experience and public reaction may recommend. The Board’s criteria and recommended values may reflect the class, type, grade, and location of the land, together with its productive capacity and the income-producing capability of agricultural land and forestland.
(b) Annually, on or before October 15, the Board shall hold a public hearing and such other hearings as they deem necessary to receive public testimony on the criteria and values for use value appraisals in the coming tax year and on the administration of this subchapter.
(c) Prior to February 15 each year, the Board shall submit to the Director its recommended schedule of criteria and values for use value appraisals for the current tax year. The Director shall then distribute the valuations to all municipalities, towns, and gores, and the assessing officials shall appraise qualifying agricultural and managed forestland at these use values.
(d) The Board may adopt rules under the authority granted to agencies by 3 V.S.A. chapter 25, subchapter 1 to interpret and carry out the provisions of this subchapter.
(e) A member of the Board shall not vote on any issue on which the member, or when applicable the member’s agency, has a conflict of interest.
(Added 1977, No. 236 (Adj. Sess.), § 1; amended 1983, No. 220 (Adj. Sess.), §§ 3, 14; 1987, No. 57, § 3, eff. May 16, 1987; 2015, No. 134 (Adj. Sess.), § 3, eff. May 25, 2016; 2021, No. 105 (Adj. Sess.), § 520, eff. July 1, 2022.)
§ 3755 Eligibility for use value appraisals
(a) Except as modified by subsection (b) of this section, any agricultural land, managed forestland, and farm buildings that meet the criteria contained in this subchapter and in the rules adopted by the Board shall be eligible for use value appraisal.
(b) Managed forestland shall be eligible for use value appraisal under this chapter only if:
(1) The land is subject to a forest management plan, subject to a conservation management plan in the case of lands certified under 10 V.S.A. § 6306(b), that is filed in the manner and form required by the Department of Forests, Parks and Recreation and that:
(A) Is signed by the owner of the parcel.
(B) Complies with subdivision 3752(9) of this title.
(C) Is approved by the Department of Forests, Parks and Recreation.
(D) Provides for continued conservation management, reserve forestland management, or forest crop production on the parcel for 10 years. An initial forest management plan or conservation management plan must be filed with the Department of Forests, Parks and Recreation on or before October 1 and shall be effective for a 10-year period beginning the following April 1. Prior to expiration of a 10-year plan and on or before April 1 of the year in which the plan expires, the owner shall file a new conservation or forest management plan for the next succeeding 10 years to remain in the program.
(E) The Department may approve a forest management plan that provides for the maintenance and enhancement of the tract’s wildlife habitat where clearly consistent with timber production and with minimum acceptable standards for forest management as established by the Commissioner of Forests, Parks and Recreation.
(F) The Department, upon giving due consideration to resource inventories submitted by applicants, may approve a conservation management plan, consistent with conservation management standards, so as to include appropriate provisions designed to preserve areas with special ecological values; fragile areas; rare or endangered species; significant habitat for wildlife; significant wetlands; outstanding resource waters; rare and irreplaceable natural areas; areas with significant historical value; public water supply protection areas; areas that provide public access to public waters; and open or natural areas located near population centers or historically frequented by the public. In approving a plan, the Department shall give due consideration to the need for restricted public access where required to protect the fragile nature of the resource; public accessibility where restricted access is not required; facilitation of appropriate, traditional public usage; and opportunities for traditional or expanded use for educational purposes and for research.
(2) A management report of whatever activity has occurred, signed by the owner, has been filed with the Department of Taxes’ Director of Property Valuation and Review on or before February 1 of the year following the year when the management activity occurred.
(3) There has not been filed with the Director an adverse inspection report by the Department stating that the management of the tract is contrary to the forest management plan, conservation management plan, or contrary to the minimum acceptable standards for forest or conservation management. The management activity report shall be on a form prescribed by the Commissioner of Forests, Parks and Recreation in consultation with the Commissioner of Taxes and shall be signed by all the owners and shall contain the tax identification numbers of all the owners. All information contained within the management activity report shall be forwarded to the Department of Forests, Parks and Recreation, except for any tax identification number included in the report. If any owner satisfies the Department that he or she was prevented by accident, mistake, or misfortune from filing an initial or revised management plan that is required to be filed on or before October 1, or a management plan update that is required to be filed on or before April 1 of the year in which the plan expires, or a management activity report that is required to be filed on or before February 1 of the year following the year when the management activity occurred, the owner may submit that management plan or management activity report at a later date; provided, however, no initial or revised management plan shall be received later than December 31, and no management plan update shall be received later than one year after April 1 of the year the plan expires, and no management activity report shall be received later than March 1.
(c) The Department of Forests, Parks and Recreation shall periodically review the management plans and each year review the management activity reports that have been filed.
(1) At intervals not to exceed 10 years, the Department shall inspect each parcel of managed forestland qualified for use value appraisal to verify that the terms of the management plan have been carried out in a timely fashion.
(2) The Department shall have the ability to enter parcels of managed forestland for the purpose of inspections. The Department may bring any other staff from the Agency of Natural Resources that have the expertise to evaluate compliance with this chapter or staff that may be required to ensure the safety of the Department while conducting the inspections.
(3) If the Department finds that the management of the tract is contrary to the conservation plan or forest management plan, or contrary to the minimum acceptable standards for conservation or forest management, it shall file with the owner, the assessing officials, and the Director an adverse inspection report within 30 days after the conclusion of the inspection process.
(d) After managed forestland has been removed from use value appraisal due to an adverse inspection report under subdivision 3756(i)(1) of this title, a new application for use value appraisal shall not be considered for a period of five years, and then the forest management plan shall be approved by the Department of Forests, Parks and Recreation only if a compliance report has been filed with the new forest management plan, certifying that appropriate measures have been taken to bring the parcel into compliance with minimum acceptable standards for forest or conservation management.
(e) Any applicant for appraisal under this subchapter bears the burden of proof as to the applicant’s qualification. Any documents submitted by an applicant as evidence of income shall be held in confidence by any person accepting or reviewing them pursuant to provisions of this subchapter, and shall not be made available for public examination, whether or not such person is subject to the provisions of 1 V.S.A. § 317(c)(6).
(f) To maintain eligibility for use value appraisal under this subchapter, on or before November 1 of each year, the owner of agricultural land or buildings enrolled in the use value program as agricultural land or buildings shall certify in writing under oath to the Commissioner that the agricultural land or buildings enrolled by that owner continue to meet the requirements for enrollment in the use value program at the time of the certification. In the event the owner of agricultural land or buildings enrolled in the use value program fails to certify on or before November 1 of each year as required under this subsection, the Commissioner may waive the certification requirement, provided the Commissioner obtains, through other means, satisfactory information that the agricultural land continues or agricultural buildings continue to meet the other requirements for enrollment. The form of the certification shall be made on a form specified by the Director of Property Valuation and Review.
(g) Any applicant for a use value appraisal or any beneficiary of a use value appraisal must be in good standing with the Department of Taxes pursuant to subsection 3113(g) of this title to be eligible or to maintain eligibility for use value appraisal under this subchapter.
(Added 1977, No. 236 (Adj. Sess.), § 1; amended 1983, No. 220 (Adj. Sess.), §§ 4, 5; 1987, No. 57, § 4, eff. July 1, 1988; 1987, No. 76, § 18; 1993, No. 49, § 26; 1995, No. 169 (Adj. Sess.), § 3, eff. May 15, 1996; 1995, No. 178 (Adj. Sess.), § 287; 1997, No. 60, § 68e; 2001, No. 140 (Adj. Sess.), § 32, eff. June 21, 2002; 2007, No. 205 (Adj. Sess.), § 5, eff. June 10, 2008; 2011, No. 59, § 10; 2011, No. 143 (Adj. Sess.), § 47, eff. May 15, 2012; 2013, No. 159 (Adj. Sess.), § 16d; 2015, No. 134 (Adj. Sess.), § 4, eff. May 25, 2016; 2017, No. 75, § 12; 2017, No. 194 (Adj. Sess.), § 24; 2019, No. 158 (Adj. Sess.), § 2, eff. Jan. 1, 2021; 2021, No. 43, § 1; 2021, No. 105 (Adj. Sess.), § 521, eff. July 1, 2022; 2021, No. 146 (Adj. Sess.), § 2, eff. July 1, 2023.)
§ 3756 Qualification for use value appraisal
(a) The owner of eligible agricultural land, farm buildings, or managed forestland shall be entitled to have eligible property appraised at its use value, provided the owner shall have applied to the Director on or before September 1 of the previous tax year, on a form provided by the Director. A farmer whose application has been accepted on or before December 31 by the Director of the Division of Property Valuation and Review of the Department of Taxes for enrollment for the use value program for the current tax year shall be entitled to have eligible property appraised at its use value if the farmer was prevented from applying on or before September 1 of the previous year due to the severe illness of the farmer.
(b) [Repealed.]
(c) The Director shall notify the applicant not later than April 15 of the Director’s decision to classify or refusal to classify the applicant’s property as eligible for use value appraisal. In the case of a refusal, the Director shall state the reasons therefor in the notification.
(d) The assessing officials shall appraise qualifying agricultural and managed forestland and farm buildings at use value appraisal as defined in subdivision 3752(12) of this title. If the land to be appraised is a portion of a parcel, any portion not receiving a use value appraisal shall be valued at its fair market value as a stand-alone parcel, and, for the purposes of the payment under section 3760 of this chapter, the entire parcel shall be valued at its fair market value as other similar parcels in the municipality.
(e) Once a use value appraisal has been applied for and granted under this section, such appraisal shall remain in effect for subsequent tax years pursuant to the provisions of subsection (f) of this section and until the property concerned is transferred to another owner or is no longer eligible under provisions of section 3752 or 3755 of this chapter, or due to a change of use, or as otherwise provided in section 3757 of this chapter. If enrolled property is transferred to another owner, the new owner shall be entitled to continue to have the eligible property appraised at its use value, provided the property remains eligible and provided the new owner shall elect the continuation of use value appraisal on the property transfer tax return at the time of transfer and, within 30 days after the property transfer tax return has been received by the municipality for recording, has applied to the Director and paid the fees described in this subsection. The grant of use value appraisals of agricultural forestland and farm buildings shall be recorded in the land records of the municipality by the clerk of the municipality. Applications shall include the fees specified in subdivision 1671(a)(6) or subsection 1671(c) of this title, and a fee of $70.00 for deposit in a special fund established and managed pursuant to chapter 7, subchapter 5 of this title. The Fund shall be available as payment for the fees of the clerk of the municipality and to offset the costs of administering the application and managing the program.
(f) Each year the Director shall determine whether previously classified property is still eligible for use value appraisal and whether the amount of the previous appraisal is still valid. If the Director determines that previously classified property is no longer eligible, or that the property has undergone a change in use such that the use change tax may be levied in accordance with section 3757 of this chapter, or that the use value appraisal should be fixed at a different amount than the previous year, the Director shall thereafter notify the property owner of that determination.
(g) The Director shall execute and provide other forms and the Board shall adopt other procedures and regulations as are needed to ensure a fair opportunity for owners to qualify under this subchapter and to ensure compliance with the provisions of this chapter.
(h) On or before March 15, the Director shall provide to each municipality a list of property in the municipality that is to be taxed based on its use value appraisal. The list shall include the owners’ names, a grand list number or description of each parcel of land to be appraised at use value, the acreage to be taxed on the basis of use value, the use values to be used for land, and the number and type of farm buildings to be appraised by the assessing officials at use value. The assessing officials shall determine the listed value of the land to be taxed at use value and its estimated fair market value and fill in these values and the difference between them on the form. This form shall be used by the Treasurer or the collector of current taxes to make up tax bills such that the owner is billed only for taxes due on the owner’s property not enrolled in the program, plus taxes due on the use value of property enrolled in the program. The assessing officials shall submit the completed form to the Director on or before July 5.
(i)(1) After providing 30 days’ notice to the owner, the Director shall remove from use value appraisal an entire parcel of managed forestland and notify the owner when the Commissioner of Forests, Parks and Recreation has not received a required management activity report or has received an adverse inspection report, unless the lack of conformance consists solely of the failure to make prescribed planned cutting. In that case, the Director may delay removal from use value appraisal for a period of one year at a time to allow time to bring the parcel into conformance with the plan.
(2)(A) The Director shall remove from use value appraisal an entire parcel or parcels of agricultural land and farm buildings identified by the Secretary of Agriculture, Food and Markets as being used by a person:
(i) found, after administrative hearing, or contested judicial hearing or motion, to be in violation of water quality requirements established under 6 V.S.A. chapter 215, or any rules adopted or any permit or certification issued under 6 V.S.A. chapter 215; or
(ii) who is not in compliance with the terms of an administrative or court order issued under 6 V.S.A. chapter 215, subchapter 10 to remedy a violation of the requirements of 6 V.S.A. chapter 215 or any rules adopted or any permit or certification issued under 6 V.S.A. chapter 215.
(B) The Director shall notify the owner that agricultural land or a farm building has been removed from use value appraisal by providing notification of removal to the owner. After removal of agricultural land or a farm building from use value appraisal under this section, the Director shall not consider a new application for use value appraisal for the agricultural land or farm building until the Secretary of Agriculture, Food and Markets submits to the Director a certification that the owner or operator of the agricultural land or farm building is complying with the water quality requirements of 6 V.S.A. chapter 215 or an order issued under 6 V.S.A. chapter 215. After submission of a certification by the Secretary of Agriculture, Food and Markets, an owner or operator shall be eligible to apply for enrollment of the agricultural land or farm building according to the requirements of this section.
(j) The Commissioner may exempt a farmer-owner of agricultural land and farm buildings located within the municipality and otherwise eligible under this subchapter for use value appraisal from the terms of the definition of a “farmer” contained in subdivision 3752(7) of this chapter, for a year at a time, because of personal hardship created by personal or family disability or death, by economic disaster such as loss of farm buildings, equipment, or livestock due to fire or disease, or by natural disaster such as flood or drought. The agricultural land and farm buildings concerned shall continue in this instance to be taxed on the basis of use value appraisal.
(Added 1977, No. 236 (Adj. Sess.), § 1; amended 1983, No. 220 (Adj. Sess.), §§ 6-10; 1985, No. 35, § 1; 1987, No. 57, § 5, eff. July 1, 1988; 1987, No. 200 (Adj. Sess.), § 60; 1995, No. 29, § 4, eff. April 14, 1995; 1995, No. 178 (Adj. Sess.), § 288; 1997, No. 59, § 11, eff. June 30, 1997; 2001, No. 140 (Adj. Sess.), § 33, eff. June 21, 2002; 2007, No. 190 (Adj. Sess.), § 2, eff. June 6, 2008; 2007, No. 205 (Adj. Sess.), §§ 2, 6, eff. June 10, 2008; 2013, No. 191 (Adj. Sess.), § 2; 2015, No. 57, § 50, eff. Oct. 2, 2015; 2015, No. 57, § 52; 2015, No. 64, § 23; 2021, No. 43, § 3; 2023, No. 72, § 11, eff. June 19, 2023.)
§ 3757 Land use change tax
(a) Land that has been classified as agricultural land or managed forestland pursuant to this chapter shall be subject to a land use change tax upon the development of that land, as defined in section 3752 of this chapter. The tax shall be at the rate of 10 percent of the full fair market value of the changed land determined without regard to the use value appraisal. If changed land is a portion of a parcel, the fair market value of the changed land shall be the fair market value of the changed land as a separate parcel, divided by the common level of appraisal. Such fair market value shall be determined as of the date the land is no longer eligible for use value appraisal. This tax shall be in addition to the annual property tax imposed upon such property. Nothing in this section shall be construed to require payment of an additional land use change tax upon the subsequent development of the same land, nor shall it be construed to require payment of a land use change tax merely because previously eligible land becomes ineligible, provided no development of the land has occurred.
(b) Any owner of eligible land who wishes to withdraw land from use value appraisal shall notify the Director, who shall in turn notify the local assessing official. In the alternative, if the Director determines that development has occurred, the Director shall notify the local assessing official of his or her determination. Thereafter, land that has been withdrawn or developed shall be appraised and listed at its full fair market value in accordance with the provisions of chapter 121 of this title and subsection 3756(d) of this title, according to the appraisal model and land schedule of the municipality.
(c) For the purposes of the land use change tax, the determination of the fair market value of the land shall be made by the local assessing officials in accordance with the provisions of subsection (b) of this section and divided by the municipality’s most recent common level of appraisal as determined by the Director. The determination shall be made within 30 days after the Director notifies the local assessing officials of the date that the owner has petitioned for withdrawal from use value appraisal or that the Director or local assessing official has determined that development has occurred. The local assessing officials shall notify the Director and the owner of their determination, and the provisions for appeal relating to property tax assessments in chapter 131 of this title shall apply.
(d) The land use change tax shall be due and payable by the owner 30 days after the tax notice is mailed to the taxpayer. The tax shall be paid to the Commissioner, who shall remit to the municipality the lesser of one-half the tax paid or $2,000.00. The Director shall deposit three-quarters of the remainder of the tax paid in the Education Fund, and one-quarter of the remainder of the tax paid in the General Fund. The Commissioner shall issue a form to the assessing officials that shall provide for a description of the land developed, the amount of tax payable, and the fair market value of the land at the time of development or withdrawal from use value appraisal. The owner shall fill out the form and shall sign it under the penalty of perjury. After receipt of the completed and signed form, the Commissioner shall furnish the owner with one copy, shall retain one copy, and shall forward one copy to the local assessing officials, one copy to the register of deeds of the municipality in which the land is located, and one copy to the Secretary of Agriculture, Food and Markets if the land is agricultural land and in all other cases to the Commissioner of Forests, Parks and Recreation.
(e) The owner of any classified land receiving use value appraisal under this subchapter shall immediately notify the Director, who in turn shall notify the local assessing officials and the Secretary of Agriculture, Food and Markets if the land is agricultural land, and in all other cases the Commissioner of Forests, Parks and Recreation, of:
(1) The development of the land, as defined in section 3752 of this chapter.
(2) Any change or discontinuance of use of the classified land so that it is no longer eligible for use value appraisal or is eligible for a different use value appraisal under this subchapter.
(3) Any transfer of ownership. A transfer of ownership, alone, will not affect eligibility of the parcel, and no new maps will be required solely because of a transfer, but failure to provide maps, a new application, or transfer information to the Division of Property Valuation and Review within 30 days of a request being sent by certified mail by the Director will result in removal of the parcel from the program.
(f)(1)(A) When the application for use value appraisal of agricultural land and forestland has been approved by the State, the State shall record a notice of contingent lien against the enrolled land in the land records of the municipality.
(B) The landowner shall bear the recording cost.
(C) The notice of contingent lien shall constitute notice to all interested parties that a lien against the enrolled land will be created upon the recording in the land records of a determination that development of that land, as defined in section 3752 of this title, has occurred.
(D) The lien created by the recording of the notice of development shall be for the amount of the land use change tax then due as specified in the notice of development.
(E) A lien recorded in the land records of a municipality under this section on or after April 17, 1978 shall be deemed to be a contingent lien.
(2) The land use change tax and any obligation to repay benefits paid in error shall not constitute a personal debt of the person liable to pay the same but shall constitute a lien that shall run with the land. All of the administrative provisions of chapter 151 of this title, including those relating to collection and enforcement, shall apply to the land use change tax. The Director shall release the lien when notified that:
(A) the land use change tax is paid;
(B) the land use change tax is abated pursuant to this section;
(C) the land use change tax is abated pursuant to subdivision 3201(5) of this title;
(D) the land is exempt from the levy of the land use change tax pursuant to this section and the owner requests release of the lien; or
(E) the land is exempt from the levy of the land use change tax pursuant to this section and the land is developed.
(3) Any fees related to the release of a lien under this subsection shall be the responsibility of the owner of the land subject to the lien.
(g) Upon application, the Commissioner may abate a use change tax levy concerning agricultural land found eligible for use value appraisal under subdivision 3752(1)(A) of this title, in the following cases:
(1) If a disposition of such property resulting in a change of use of it takes place within five years of the initial assessment at use value because of the permanent physical incapacity or death of the individual farmer-owner or farmer-operator of the property.
(2) If a disposition of the property was necessary in order to raise funds to continue the agriculture operation of the seller. In this case, the Commissioner shall consider the financial gain realized by the sale of the land and whether, in respect to that gain, payment of the use change tax would significantly reduce the ability of the seller to continue using the remaining property, or any part thereof, as agricultural land.
(h) Land condemned as a result of eminent domain or sold voluntarily to a condemning authority in anticipation of eminent domain proceedings is exempt from the levy of a land use change tax under this section.
(i) Nothing in this section shall be construed as permitting an owner to engage in the development of land in violation of any conservation restriction in effect on said land.
(j)(1) Land transferred to the U.S. Forest Service is exempt from the levy of a use change tax under this section, provided one of the following applies:
(A) land transferred is eligible for use value appraisal at the time of the transfer;
(B) the transfer is in consideration for the receipt from the U.S. Forest Service of land of approximately equal value, as determined by the Commissioner; or
(C) the landowner has submitted to the Commissioner in writing a binding document that would substitute the land received for the land transferred to the Forest Service, for the purposes of this chapter.
(2) Land acquired by the Green Mountain National Forest for public use is exempt from the levy of a use change tax under this section.
(k) Conservation and preservation rights and interests held by an agency of the United States or by a qualified holder, as defined in 10 V.S.A. chapter 34, shall be exempt from the levy of a use change tax. Upon request of the agency or qualified holder, the Commissioner may petition the Director to release the conservation and preservation rights and interests from any lien recorded pursuant to this chapter.
(l) Land acquired by the Agency of Natural Resources; the Department of Forests, Parks and Recreation; the Department of Fish and Wildlife; or the Department of Environmental Conservation for public uses, as authorized by 10 V.S.A. § 6303(a)(1)-(4), is exempt from the levy of a land use change tax under this section.
(m) Land owned or acquired by a Native American tribe or a nonprofit organization that qualifies for an exemption under subdivision 3802(21) of this title shall be exempt from the levy of a land use change tax under this section.
(Added 1977, No. 236 (Adj. Sess.), § 1; amended 1983, No. 19; 1983, No. 241 (Adj. Sess.); 1987, No. 57, § 6, eff. July 1, 1988; 1987, No. 130 (Adj. Sess.), § 3, eff. March 31, 1988; 1989, No. 222 (Adj. Sess.), § 43, eff. May 31, 1990; 1995, No. 29, § 40, eff. April 14, 1995; 1995, No. 178 (Adj. Sess.), § 289; 1997, No. 60, § 61, eff. June 26, 1997; 1999, No. 49, § 85, eff. June 2, 1999; 2001, No. 140 (Adj. Sess.), § 29, eff. June 21, 2002; 2003, No. 68, § 86, eff. June 18, 2003; 2005, No. 14, § 5, eff. July 1, 2006; 2005, No. 14, § 8, eff. May 3, 2005; 2007, No. 190 (Adj. Sess.), § 3, eff. June 6, 2008; 2007, No. 205 (Adj. Sess.), § 3, eff. June 10, 2008; 2011, No. 45, § 13a, eff. May 24, 2011; 2011, No. 143 (Adj. Sess.), § 42, retroactively eff. July 1, 2011; 2013, No. 73, § 14; 2015, No. 57, § 48, eff. Oct. 2, 2015; 2015, No. 57, § 49, eff. July 1, 2016; 2015, No. 134 (Adj. Sess.), § 5, eff. May 25, 2016; 2015, No. 171 (Adj. Sess.), § 20; 2019, No. 20, § 108; 2019, No. 20, § 109, eff. July 1, 2020; 2021, No. 73, § 9, eff. July 1, 2020; 2023, No. 72, § 12, eff. June 19, 2023.)
§ 3758 Appeals
(a) Whenever the Director denies in whole or in part any application for classification as agricultural land or managed forestland or farm buildings, or grants a different classification than that applied for, or the Director or assessing officials fix a use value appraisal or determine that previously classified property is no longer eligible or that the property has undergone a change in use, the aggrieved owner may appeal the decision of the Director to the Commissioner within 30 days of the decision, and from there to Superior Court in the county in which the property is located.
(b) Any owner who is aggrieved by the determination of the fair market value of classified land for the purpose of computing the land use change tax may appeal in the same manner as an appeal of a grand list valuation.
(c) Whenever the Director denies a request for an exemption from the terms of the definition of a “farmer” as provided in subsection 3756(j) of this title, the aggrieved person may appeal the decision of the Director to the Commissioner within 30 days of the decision, and from there to the Superior Court in the county in which the property is located.
(d) Any owner who is aggrieved by a decision of the Department of Forests, Parks and Recreation concerning the filing of an adverse inspection report, a denial of approval of a management plan, or a certification to the Director with respect to land for which a wastewater permit is issued may appeal to the Commissioner of Forests, Parks and Recreation within 60 days of the filing of the adverse inspection report, the decision to deny approval, or the certification to the Director. An appeal of this decision of the Commissioner may be taken to the Superior Court in the same manner and under the same procedures as an appeal from a decision of a Board of Civil Authority, as set forth in chapter 131, subchapter 2 of this title.
(e) When the Director removes agricultural land or a farm building pursuant to notification from the Secretary of Agriculture, Food and Markets under section 3756 of this title, the exclusive right of appeal shall be as provided in 6 V.S.A. § 4996(a).
(Added 1977, No. 236 (Adj. Sess.), § 1; amended 1983, No. 220 (Adj. Sess.), §§ 11, 12; 1987, No. 57, § 7, eff. July 1, 1988; 1987, No. 130 (Adj. Sess.), § 4; 1995, No. 178 (Adj. Sess.), § 290; 2007, No. 190 (Adj. Sess.), § 4, eff. June 6, 2008; 2011, No. 143 (Adj. Sess.), § 43, retroactively eff. July 1, 2011; 2013, No. 73, §§ 13, 14; 2015, No. 64, § 24.)
§ 3759 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(1).
§ 3760 Payment to municipalities
(a)(1) Annually, the State shall pay to each municipality the amount necessary to limit its tax rate increase in the prior year due to the loss of municipal property tax revenue for that year based on use value of enrolled property as compared to municipal property tax revenue for that year based on fair market value of enrolled property, to zero.
(2) The Director of Property Valuation and Review shall determine the amount of the available funds under this section to be paid to each municipality, and a municipality may appeal the Director’s decision in the same manner and under the same procedures as an appeal from a decision of a Board of Civil Authority, as set forth in chapter 131, subchapter 2 of this title.
(3) On November 1 of each year, the Director of Property Valuation and Review shall pay to each municipality the amount calculated as described in this section. If the appropriation for the year is insufficient to pay the full amount due to every municipality under this subsection, payments in that year shall be made to such towns proportionately.
(4) If the appropriation for the year is insufficient to pay the full amount due to any municipality for enrolled property owned by another municipality, the municipality in which the property is located may assess the other municipality and the other municipality shall pay the difference.
(5) The Director’s calculation of payment amounts to municipalities shall be based on grand list values and total tax appropriations as submitted to the Director for the prior year.
(b) Assessing officials shall appraise property enrolled in the program at fair market value consistent with other appraisals. On or before July 5, the assessing officials shall provide the Director with the listed value of all enrolled property in the municipality. If the Director certifies that the value set by the assessing officials is significantly above the fair market value or is not equitable with other assessments, the Director’s estimate of the fair market value shall be substituted for that of the assessing officials.
(c) A town aggrieved by the Director’s decision under this section may appeal that decision under the same procedures as an appeal from a decision of the Board of Civil Authority.
(Added 1995, No. 178 (Adj. Sess.), § 292a; amended 1997, No. 60, § 63, eff. June 26, 1997; 2003, No. 66, § 287; 2007, No. 205 (Adj. Sess.), § 10, eff. June 10, 2008.)
§ 3760a Valuation audits
(a) Annually, the Director shall conduct an audit of three towns with enrolled land to ensure that parcels with a use value appraisal are appraised by the local assessing officials consistent with the appraisals for nonenrolled parcels.
(b) In determining which towns to select for an audit, the Director shall consider factors that demonstrate a deviation from consistent valuations, including the following:
(1) the fair market value per acre of enrolled land in each town;
(2) the fair market value of enrolled land versus unenrolled land in the same town;
(3) the fair market value of enrolled farm buildings in each town; and
(4) the fair market value of enrolled farm buildings in relation to the fair market value of the associated land.
(c) For each town selected for an audit, the Director shall:
(1) conduct an independent appraisal of enrolled parcels and enrolled farm buildings in that town;
(2) compare the appraisals reached by the Director for each enrolled parcel with the appraisal reached by the local assessing officials; and
(3) review the land schedule and appraisal model applied by the town.
(d) If, as a result of an audit, the Director determines that an appraisal reached by the Director differs from the appraisal reached by the local assessing officials by more than 10 percent, then the Director shall substitute his or her appraisal of fair market value for the appraisal reached by the local assessing officials. A substitution of a fair market appraisal under this subsection shall be treated as a substitution by the Director under subsection 3760(b) of this title.
(Added 2015, No. 57, § 56, eff. June 11, 2015.)
§ 3761 Notice to property taxpayers
Each year prior to June 1, the Director shall prepare a notice of the Current Use Value Appraisal Program established by this subchapter describing its pertinent provisions, the manner in which taxpayers may apply to participate, and the dates and deadlines for application. Such notice shall be printed by the Director and supplied in sufficient number to each town in the State for inclusion in property tax bills. The town Treasurer or collector of taxes shall include such notice in each tax bill, where applicable. Towns that use envelopes or mailers not able to accommodate notices describing the Current Use Value Appraisal Program may distribute such notices in an alternative manner.
(Added 1985, No. 212 (Adj. Sess.), eff. June 2, 1986; amended 1995, No. 29, § 5, eff. April 14, 1995.)
§ 3762 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.) § 291(3).
§ 3763 Public records
Notwithstanding any provision to the contrary in 1 V.S.A. § 317, section 3102 of this title, or any other provision of law, the names and addresses of taxpayers, the description of eligible property, the current use valuation of such property participating in the Current Use Value Appraisal Program under this chapter and the amount reimbursed by the State to the town with respect to the eligible property shall be public records subject to public inspection and copying under 1 V.S.A. chapter 5, subchapter 3.
(Added 1985, No. 242 (Adj. Sess.), § 311; amended 1995, No. 169 (Adj. Sess.), § 4, eff. May 15, 1996.)
§ 3763a Repealed
[Repealed]
2003, No. 70 (Adj. Sess.), § 35, eff. March. 1, 2004.
Subchapter 2 [repealed]
§ 3764 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(4).
§ 3765 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(5).
§ 3766 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(6).
§ 3767 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(7).
§ 3768 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(8).
§ 3769 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(9).
§ 3770 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(10).
§ 3771 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(11).
§ 3772 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(12).
§ 3773 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(13).
§ 3774 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(14).
§ 3775 Repealed
[Repealed]
1995, No. 178 (Adj. Sess.), § 291(15).
§ 3776 Fee hunting prohibition
(a) As of September 1, 1997, no person may charge or receive a fee, consideration or other thing of value in exchange for the right to hunt or fish on land enrolled in a Use Value Appraisal Program under this chapter.
(b) Upon a finding by the Secretary that there has been a violation of the provisions of this section, the land in question shall be removed from the Use Value Appraisal Program. Upon development, the land shall be subject to the land use change tax.
(Added 1997, No. 60, § 68, eff. June 26, 1997.)
§ 3777 Repealed
[Repealed]
2021, No. 73, § 10, effective July 1, 2020.
Chapter 125 Exemptions
Subchapter 1 Exemptions
§ 3800 Statutory purposes
(a) The statutory purpose of the exemption for congressionally chartered organizations in subdivision 3802(2) of this title is to support certain organizations with a patriotic, charitable, historical, or educational purpose.
(b) The statutory purpose of the exemption for public, pious, and charitable property in sections 3832 and 3840 and subdivision 3802(4) of this title is to allow these organizations to dedicate more of their financial resources to furthering their public-service missions.
(c) [Repealed.]
(d) The statutory purpose of the exemption for Young Men’s and Women’s Christian Associations in subdivision 3802(6) of this title is to allow these organizations to dedicate more of their financial resources to furthering their public-service missions.
(e) The statutory purpose of the exemption for cemeteries in subdivision 3802(7) of this title is to lower the cost of establishing and maintaining cemeteries.
(f) The statutory purpose of the exemption for property owned by agricultural societies in subdivision 3802(9) of this title is to lower the cost of public access to agricultural events.
(g) The statutory purpose of the exemption for $10,000.00 of appraised value of a residence for a veteran in subdivision 3802(11) of this title is to recognize disabled veterans’ service to Vermont and to the country.
(h) The statutory purpose of the exemption for property exclusively installed and operated for the abatement of water pollution in subdivision 3802(12) of this title is to encourage real property improvements that abate water pollution by nonpublic entities that would not qualify for an exemption as a government entity.
(i) The statutory purpose of the exemption for humane societies in subdivision 3802(15) of this title is to lower operating costs for organizations that protect animals to allow them to dedicate more of their financial resources to furthering their public-service missions.
(j) The statutory purpose of the exemption for federally qualified health centers or rural health clinics in subdivision 3802(16) of this title is to support health centers that serve an underserved area or population, offer a sliding fee scale, provide comprehensive services, and have an ongoing quality assurance program.
(k) The statutory purpose of the railroad property alternative tax method in subdivision 3803(1) of this title is to provide an alternative to the traditional valuation method in order to achieve consistency across municipalities.
(l) The statutory purpose of the telephone property alternative tax method referenced in subdivision 3803(2) of this title is to provide an alternative to the traditional valuation method in order to achieve consistency across municipalities.
(m) The statutory purpose of the exemptions in Vermont permanent session law in 2008 Acts and Resolves No. 190, 1892 Acts and Resolves No. 213, 1945 Acts and Resolves No. 204, 1939 Acts and Resolves No. 250, 1921 Acts and Resolves No. 31, 1921 Acts and Resolves No. 262, 1910 Acts and Resolves No. 370, and 1900 Acts and Resolves No. 244 is to provide relief to specific properties that have demonstrated an individual purpose to the General Assembly.
(n) The statutory purpose of the exemptions for renewable energy plants generating electricity from solar power in subdivision 3802(17) of this title and for energy storage facilities in subdivision 3802(19) of this title is to lower the cost of generating and storing electricity from solar power for smaller plants and facilities.
(o) The statutory purpose of the exemptions for broadband infrastructure in subdivision 3802(20) of this title is to lower the cost of broadband deployment in unserved and underserved areas of Vermont.
(p) The statutory purpose of the exemption under subdivision 3802(21) of this title for property owned by Native American tribes is to recognize those peoples as the traditional land caretakers of Vermont and to lower their costs to allow them to dedicate more of their financial resources to furthering their tribe-related activities.
[Subsection (q) repealed effective July 1, 2037.]
(q) The statutory purpose of the exemption under 32 V.S.A. chapter 125, subchapter 3 for new construction or rehabilitation is to lower the cost of new construction or rehabilitation of residential properties in flood-impacted communities.
(Added 2013, No. 200 (Adj. Sess.), § 15; amended 2021, No. 54, § 17; 2021, No. 71, § 13; 2021, No. 90 (Adj. Sess.), § 2, eff. July 1, 2022; 2021, No. 105 (Adj. Sess.), § 522, eff. July 1, 2022; 2023, No. 181 (Adj. Sess.), § 79, eff. June 17, 2024; 2023, No. 181 (Adj. Sess.), § 82(1), eff. July 1, 2037.)
§ 3801 [Repealed.]
§ 3802 Property tax
The following property shall be exempt from taxation:
(1) Real and personal estate owned by this State, except as otherwise provided; real and personal estate owned by the United States; U.S. securities that are specially exempt from taxation by the laws of the United States at the time of making the list, except that this subdivision shall not prohibit a federal agency from making payments for taxes on repossessed or voluntarily conveyed single family, multifamily living units, or farm properties.
(2) Real and personal property owned by a post of any veterans’ organization chartered by act of Congress of the United States or owned by a corporation the members or stockholders of which are members of such post or its auxiliary, provided such real estate is used for purposes of the post or its auxiliary or such corporation only, is used as the principal meeting place of such post or its auxiliary in the exercise of its functions and activities, and is not leased or rented for profit, and real and personal property owned by and used for the purpose of its work by a nonprofit organization chartered by act of the Congress of the United States, such as a Red Cross, boy scout, girl scout, or boy or girl organization.
(3) Personal estate owned by inhabitants of this State situated and taxed in another state.
(4) Real and personal estate granted, sequestered, or used for public, pious, or charitable uses; real property owned by churches or church societies or conferences and used as parsonages and personal property therein used by ministers engaged in full-time work in the care of the churches of their fellowship within the State; real and personal estate set apart for library uses and used by the public and private circulating libraries, open to the public and not used for profit; lands leased by towns or town school districts for educational purposes; and lands owned or leased by colleges, academies, or other public schools or leased by towns for the support of the gospel; and lands and buildings owned and used by towns for the support of the poor therein; but private buildings on such lands shall be set in the list to the owners thereof, and shall not be exempt. The exemption of lands owned or leased by colleges, academies, or other public schools shall not apply to lands or buildings rented for general commercial purposes, nor to farming or timberlands owned or leased thereby; but this provision shall not affect the exemption of so-called school or college lands, sequestered to such use prior to January 28, 1911.
(5) [Repealed.]
(6) Buildings, land, and personal property owned and occupied by a Young Men’s Christian Association or a Young Women’s Christian Association for the purposes of its work, the income of which is entirely used for such purposes.
(7) Lands used for cemetery purposes and the structures thereon, trust funds and other property belonging to or held by cemetery associations, and the lots of the proprietors thereof.
(8) Household furniture and equipment of every person not regularly used as income-producing property; household provisions; personal wearing apparel and ornament; private and professional libraries; shrubs and plants located in a commercial greenhouse or nursery; fowl; sheep; cattle; horses; goats; swine; bees; hay and produce sufficient to winter out the stock; tractors and other machinery of a farmer, not used for hire or contract purposes; real and personal farm property constructed and used for the storage of manure and designed to avoid water pollution; tools and implements of a mechanic or farmer; aircraft, automobiles, and motor vehicles, but not including trailer coaches; and motorized highway-building equipment and road-making appliances as defined in 23 V.S.A. § 4(19) and (31) required to be registered as motor vehicles.
(9) Grounds and property owned and occupied by agricultural societies, so long as the same are used annually for agricultural fairs.
(10) [Repealed.]
(11)(A)(i) Real and personal property to the extent of $10,000.00 of appraisal value, except any part used for business or rental, occupied as the established residence of and owned in fee simple by a veteran, the veteran’s spouse, widow, widower, or child, or jointly by any combination of them, if one or more of them are receiving disability compensation for at least 50 percent disability, death compensation, dependence and indemnity compensation, or pension for disability paid through any military department or the Veterans Administration if, before May 1 of each year, there is filed with the Office of Veterans Affairs:
(I) a written application for the compensation or pension; and
(II) a written statement from the Military Department or the Veterans Administration showing that the compensation or pension is being paid. Only one exemption may be allowed on a property. Application for an exemption under this section based upon permanent disability is only required to be filed with the Office of Veterans Affairs before May 1 of the first year for which the exemption is sought, and the exemption shall remain on the grand list until title to the property is transferred.
(ii) Only one exemption may be allowed on a property. Application for an exemption under this section based upon permanent disability is only required to be filed with the Office of Veterans Affairs before May 1 of the first year for which the exemption is sought, and the exemption shall remain on the grand list until title to the property is transferred.
(B) The terms used in this subdivision (11) shall have the same definitions as in 38 U.S.C. § 101, except that:
(i) the definitions shall apply as if federal law recognized a civil union or a civil marriage in the same manner as Vermont law;
(ii) such definitions shall not be construed to deny eligibility for exemption in the case where such exemption is based on retirement for disability and retirement pay is received from a federal agency other than the Veterans Administration; and
(iii) the age and marital status limits in 38 U.S.C. § 101(4)(A) shall not apply.
(C) An unremarried widow or widower of a previously qualified veteran shall be entitled to the exemption provided in this subdivision (11) whether or not the individual is receiving government compensation or pension. By majority vote of those present and voting at an annual or special meeting warned for the purpose, a town may increase the veterans’ exemption under this subdivision (11) to up to $40,000.00 of appraisal value. Any increase in exemption shall take effect for the taxable year for which it was voted and shall remain in effect for future taxable years until amended or repealed by a similar vote.
(12) Real and personal property exclusively installed and operated for the abatement of pollution of the waters of the State of Vermont or waters within the purview of the New England Interstate Water Pollution Control Compact in accordance with engineering principles approved by the Vermont Water Resources Board. This type of property shall be exempt as long as its operation meets with the approval of the Secretary of Natural Resources.
(13), (14) [Repealed.]
(15) Real and personal property owned by a charitable, nonprofit organization devoted to the welfare, protection, and humane treatment of animals, including any premises of a custodian or caretaker that are attached to or are located on the grounds of such an animal shelter.
(16) Real and personal property owned by a federally qualified health center or a free standing, federally designated rural health clinic, provided such center or clinic is governed by a community board of directors, offers care on a sliding scale based on ability to pay, is owned and operated on a nonprofit basis, is unconditionally dedicated to public use that directly benefits an indefinite class of the public, and confers a benefit on society. Notwithstanding any provision of law to the contrary, this exemption shall apply without the need for a vote of the town or municipality in which such property is located.
(17) Real and personal property, except land, comprising a renewable energy plant generating electricity from solar power that has a plant capacity of less than 50 kW and is either:
(A) operated on a net-metered system; or
(B) not connected to the electric grid and provides power only on the property on which the plant is located.
(18) [Repealed.]
(19) Real and personal property, except land, comprising an energy storage facility that has a plant energy rating of less than 600 kWh.
(20) Real and personal property, except land, owned by an electric distribution utility that comprises broadband infrastructure, including structures, machinery, lines, poles, wires, and fixtures, provided the infrastructure is leased to a communications union district or to an internet service provider working in conjunction with a communications union district, and is primarily for the purpose of providing broadband service capable of speeds of at least 100 Mbps symmetrical. This exemption applies only to broadband infrastructure constructed on or after July 1, 2021.
(21) Real and personal property owned by a Native American tribe that has been recognized pursuant to 1 V.S.A. chapter 23 or owned by a nonprofit organization that is organized for the tribe’s benefit and controlled by the tribe, provided the property is used for purposes of the tribe and is not leased or rented for profit.
(22) Real and personal estate owned by a county of this State, except land and buildings outside of a county’s territorial limits shall be subject to municipal property tax by the municipality in which the land or buildings are situated. Notwithstanding the preceding provision, the exemption for public, pious, and charitable uses under subdivision (4) of this section shall be available for qualifying county land and buildings outside of the county’s territorial limits.
(Amended 1959, No. 62, eff. March 26, 1959; 1961, No. 216, §§ 1, 2, eff. July 13, 1961; 1962, No. 3 (Sp. Sess.), § 1, eff. Aug. 2, 1962; 1963, No. 23, eff. March 28, 1963; 1963, No. 29, eff. April 2, 1963; 1963, No. 30, eff. April 2, 1963; 1963, No. 147; 1964, No. 16 (Sp. Sess.); 1965, No. 33, eff. April 20, 1965; 1966, No. 21 (Sp. Sess.), § 2, eff. March 3, 1967; 1967, No. 156, eff. April 15, 1967; 1971, No. 28, eff. Jan. 1, 1972; 1973, No. 9, § 1, eff. date, see note set out below; 1973, No. 91, eff. for the tax year beginning April 1, 1974 and thereafter; 1975, No. 101, § 3, eff. April 30, 1975; 1975, No. 160 (Adj. Sess.); 1977, No. 16, § 2, eff. March 22, 1977; 1977, No. 71, § 1, eff. date April 23, 1977 (first be effective for property taxes assessed for the year 1977); 1977, No. 170 (Adj. Sess.); 1977, No. 172 (Adj. Sess.); 1981, No. 70, eff. May 1, 1981; 1981, No. 222 (Adj. Sess.), § 10; 1987, No. 76, § 18; 1987, No. 147 (Adj. Sess.), § 1, eff. April 13, 1988; 1989, No. 26; 1991, No. 43; 1991, No. 187 (Adj. Sess.); 1991, No. 203 (Adj. Sess.), § 1, eff. May 27, 1992; 1993, No. 134 (Adj. Sess.), § 1, eff. April 26, 1994; 1995, No. 3, § 1, eff. March 9, 1995; 1995, No. 105 (Adj. Sess.), § 1; 1999, No. 49, § 44, eff. June 2, 1999; 1999, No. 91 (Adj. Sess.), § 23; 2005, No. 38, § 28; 2005, No. 207 (Adj. Sess.), § 25, eff. May 31, 2006; 2007, No. 190 (Adj. Sess.), § 23, eff. June 6, 2008; 2009, No. 1 (Sp. Sess.), § H.28, eff. June 2, 2009; 2011, No. 45, § 13g, eff. May 24, 2011; 2011, No. 111 (Adj. Sess.), § 1, eff. May 8, 2012; 2011, No. 127 (Adj. Sess.), § 2, eff. Jan. 1, 2013; 2013, No. 73, § 27, eff. June 5, 2013; 2013, No. 73, § 28, eff. Jan. 1, 2014; 2013, No. 174 (Adj. Sess.), §§ 26, 69, eff. Jan. 1, 2015; 2013, No. 200 (Adj. Sess.), § 21a; 2013, No. 200 (Adj. Sess.), § 22, eff. Jan. 1, 2017; 2021, No. 54, § 18; 2021, No. 71, § 12; 2021, No. 90 (Adj. Sess.), § 3, eff. July 1, 2022; 2021, No. 105 (Adj. Sess.), § 523, eff. July 1, 2022; 2023, No. 144 (Adj. Sess.), § 9, eff. June 3, 2024.)
§ 3802a Requirement to provide insurance information
Before April 1 of each year, owners of property exempt from taxation under subdivisions 3802(4), (6), (9), (12), and (15) and under subdivisions 5401(10)(D), (F), (G), and (J) of this title shall provide their local assessing officials with information regarding the insurance replacement cost of the exempt property or with a written explanation of why the property is not insured.
(Added 2013, No. 73, § 29, eff. June 5, 2013; amended 2021, No. 105 (Adj. Sess.), § 524, eff. July 1, 2022.)
§ 3803 Exemptions from local taxation
Except as otherwise provided, the following property shall not be set in the grand list to the owner thereof:
(1) real and personal estate used in operating a railroad, and appraised under sections 8281–8286 and 8321–8322 of this title, including the section of the North Stratford, New Hampshire, to Beecher Falls, Vermont, railroad line owned by the State of New Hampshire and situated in the Town of Canaan exempted from taxation under section 8286 of this title;
[Subdivision (2) effective until July 1, 2026; see also subdivision (2) effective July 1, 2026 set out below.]
(2) real and personal estate, except land and buildings, used in carrying on telephone business or in operating a transportation company in this State; and
[Subdivision (2) effective July 1, 2026; see also subdivision (2) effective until July 1, 2026 set out above.]
(2) real and personal estate, except land and buildings, used in operating a transportation company in this State; and
(3) money, stocks, bonds, mortgages, and other evidences of indebtedness.
(Amended 1989, No. 222 (Adj. Sess.), § 33, eff. May 31, 1990; 1997, No. 156 (Adj. Sess.), § 2, eff. April 29, 1998; 2021, No. 105 (Adj. Sess.), § 525, eff. July 1, 2022; 2023, No. 145 (Adj. Sess.), § 8, eff. July 1, 2026.)
Subchapter 2 Restricted Exemptions
§ 3831 College, university, or fraternity property
(a) Any real property acquired after April 1, 1941, by any college, university, or fraternity such as would be exempt from taxation under the provisions of section 3802 of this title shall be set to such institution in the grand list of the town or city in which such real property is located at the value fixed in the appraisal next preceding the date of acquisition of such property and taxed on such valuation. However, the voters of any town or city may at any legal meeting thereof vote to exempt such property from taxation, either in whole or in part. Except as provided under subsection (c) of this section, the value fixed on such property at such appraisal shall not be increased so long as the property is owned and used by such institution for other than commercial and investment purposes, whether or not improvements are made thereon.
(b) The provisions of subsection (a) of this section shall not exempt from county, town, or school taxes lands owned by a college and leased “as long as wood grows and water runs,” securing to the lessees the right of preemption, unless such lands were chartered as sequestered for the benefit of the college or became the property of the college prior to the organization of the town in which they lie.
(c) In the event of a general reappraisal of all property in the municipality completed after 1982, the appraisal value of property subject to subsection (a) of this section shall first be changed to an amount that yields a tax liability (computed with reference to the tax rate applicable to the first tax year based on the reappraisal) equal to the tax liability for such property for the tax year immediately preceding the reappraisal, provided that in the event the tax liability imposed on the majority of all taxable properties in the municipality increases in the first tax year based on the reappraisal, then any appraisal value of property subject to subsection (a) of this section shall be further changed to an amount that yields the tax liability computed above adjusted by the average percentage increase or decrease in the tax liability of all taxable properties in the municipality.
(d) As used in this section, the term “fraternity” shall also mean “sorority.”
(Amended 1957, No. 219, § 2, eff. July 1, 1961; 1987, No. 215 (Adj. Sess.), § 1, eff. May 27, 1988.)
§ 3832 Public, pious, and charitable uses
The exemption from taxation of real and personal estate granted, sequestered, or used for public, pious, or charitable uses shall not be construed as exempting:
(1) real and personal property held in trust for a municipal corporation by virtue of a trust that takes effect after May 20, 1959 when the property is located outside the town where the municipal corporation has its principal place of business, unless the town or municipality in which the property is located so votes at any regular or special meeting duly warned therefor;
(2) real estate owned or kept by a religious society other than a church edifice, a parsonage, the outbuildings of the church edifice or parsonage, a building used as a convent, school, orphanage, home, or hospital, land adjacent to any of the buildings named in this subdivision, kept and used as a parking lot not used to produce income, lawn, playground, or garden, and the so-called glebe lands;
(3) property of railroad corporations;
(4) a municipal electric light plant when located outside the town wherein the municipality owning it is situated;
(5) real and personal property held by the State and located in any town other than that in which the institution of which it forms a part is located;
(6) real and personal property owned or kept by an orphanage, home, or hospital, including a diagnostic and treatment center not used for the purpose of such institution but leased to others for income or profit, whether or not the institution is conducted by or connected with a religious society, unless the town or municipality in which the property is located so votes at any regular or special meeting duly warned therefor; or
(7) real and personal property of an organization when the property is used primarily for health or recreational purposes, unless the town or municipality in which the property is located so votes at any regular or special meeting duly warned therefor, and except for the following types of property:
(A) buildings and land owned and occupied by a health, recreation, and fitness organization that is:
(i) exempt from taxation under 26 U.S.C. § 501(c)(3);
(ii) used its income entirely for its exempt purpose; and
(iii) promotes exercise and healthy lifestyles for the community and serve citizens of all income levels; and
(B) real and personal property operated as a skating rink, owned and operated on a nonprofit basis, but not necessarily by the same entity, and that, in the most recent calendar year, provided facilities to local public schools for a sport officially recognized by the Vermont Principals’ Association.
(Amended 1959, No. 187; 1965, No. 71; 2013, No. 174 (Adj. Sess.), § 55, eff. Jan. 1, 2015; 2017, No. 113 (Adj. Sess.), § 187.)
§ 3833 Repealed
[Repealed]
1979, No. 203 (Adj. Sess.), § 5, eff. May 7, 1980.
§ 3834 Factories; quarries; mines
If the amount invested exceeds $1,000.00, manufacturing establishments, quarries, mines, and such machinery, tramways, appliances, and buildings as are necessary for use in the business, machinery placed in an unoccupied building to be used in such business, and capital and personal property used in such business may be exempted from taxation for a period not exceeding 10 years from the commencement of business if the town so votes.
§ 3835 Reporting exemption
Within 10 days after the adjournment of any town meeting at which an exemption is granted under the provisions of section 3834 of this title, the town clerk shall report to the director, upon forms to be furnished by him or her, the date upon which such exemption was granted and the length of the term thereof.
(Amended 1977, No. 105, § 14(a).)
§ 3836 Homes and dwellings
Annually at town meeting, a town may vote to exempt from taxes the first $75,000.00 or a smaller amount of the appraised value of buildings used and occupied exclusively as homes, dwelling houses, or farm buildings whether for sale or rent, provided such buildings have been constructed or put in the process of construction during the 12 months immediately preceding the meeting or are to be constructed or put in the process of construction during the 12 months immediately following the meeting. The duration of such exemption shall not exceed three years, to be determined by the vote. The exemption shall first be applicable against the grand list of the year in which the vote is taken.
(Amended 1961, No. 255, eff. July 31, 1961; 2003, No. 76 (Adj. Sess.), § 31.)
§ 3837 Airports
At an annual or special meeting, a town may vote to exempt, for a period not exceeding five years at a time, real and personal estate used and occupied for or in connection with airport purposes.
§ 3838 Hotels
At an annual or special meeting, a town may vote to exempt, for a period not exceeding five years at a time, real and personal estate used and occupied for hotel purposes. When a majority of those voting on the question of such exemption at an annual meeting vote in favor thereof, such vote shall not be valid unless it shall appear that the total grand list of such majority is equal to at least one-half of the total grand list of those voting on such question. When a majority of those voting on the question of such exemption at a special meeting vote in favor thereof, such vote shall not be valid unless it shall appear that such majority is equal in number to one-third of the total number of legal voters in such town, nor unless it shall appear that the total grand list of such majority is equal to at least one-half of the total grand list of those voting on such question.
§ 3839 Municipally owned lakeshore property
(a) Notwithstanding section 3659 of this title, a town may vote to exempt from its municipal taxes, in whole or in part, any parcel of land, but not buildings, that provides public access to public waters, as defined in 10 V.S.A. § 1422(6), and that is also:
(1) owned by the Town of Hardwick, and located in Greensboro, Vermont; or
(2) owned by the Town of Thetford, and located in Fairlee and West Fairlee, Vermont.
(b) An exemption voted by a town under subsection (a) of this section shall be for up to ten years. Upon the expiration of the exemption, a town may vote additional periods of exemption not exceeding five years each.
(Added 2013, No. 174 (Adj. Sess.), § 56.)
§ 3840 Charitable and fraternal organizations
When a society or body of persons associated for a charitable purpose, in whole or in part, including fraternal organizations, volunteer fire, and ambulance or rescue companies, owns real estate used exclusively for the purposes of such society, body, or organization, such real estate may be exempted from taxation, either in whole or in part, for a period not exceeding 10 years, if the town so votes. Upon the expiration of such exemption, a town may vote additional periods of exemption not exceeding five years each.
(Amended 1961, No. 24, eff. March 17, 1961; 1975, No. 156 (Adj. Sess.), § 1.)
§ 3841 Repealed
[Repealed]
1995, No. 169 (Adj. Sess.), § 7(b), eff. May 15, 1996.
§ 3842 Repealed
[Repealed]
1995, No. 169 (Adj. Sess.), § 7(c), eff. May 15, 1996.
§ 3843 Housing projects for low- and moderate-income occupants
A municipality may vote at any regular or special meeting to exempt, in full or in part, for a term not to exceed 40 years, a federally subsidized low- or moderate-income housing project from education property tax if federal assistance would not be available in the absence of such an exemption.
(Added 1969, No. 268 (Adj. Sess.), § 1, eff. April 8, 1970; amended 2007, No. 190 (Adj. Sess.), § 6, eff. June 6, 2008.)
§ 3844 Repealed
[Repealed]
2007, No. 190 (Adj. Sess.), § 7, eff. May 1, 2008.
§ 3845 Renewable energy sources
(a) At an annual or special meeting warned for that purpose, a town may, by a majority vote of those present and voting, exempt renewable energy sources, as defined herein, from real and personal property taxation. Such exemption shall first be applicable against the grand list of the year in which the vote is taken and shall continue until voted otherwise, in the same manner, by the town.
(b) As used in this section, renewable energy shall have the same meaning as in 30 V.S.A. § 8002 for energy used on the premises for private, domestic, or agricultural purposes, no part of which may be for sale or exchange to the public. The term shall include grist mills, windmills, facilities for the collection of solar energy or the conversion of organic matter to methane, net-metering systems regulated by the Public Utility Commission under 30 V.S.A. § 8010, and all component parts thereof, but excluding land upon which the facility is located.
(Added 1975, No. 226 (Adj. Sess.), § 2; amended 2007, No. 92 (Adj. Sess.), § 23; 2013 No. 99 (Adj. Sess.), § 8, eff. Jan. 1, 2017; 2013, No. 174 (Adj. Sess.), § 28, eff. Jan. 1, 2015.)
§ 3846 Farmland appraisal contracts
(a) As used in this section:
(1) “Farmland” means real estate that is actively and exclusively devoted to farming and that is at least 25 acres in area and is operated or leased as a farm enterprise by the owner.
(2) “Forestland” means any land, exclusive of any housesite, which is at least 25 acres in size and which is under active forest management for the purpose of growing and harvesting repeated forest crops.
(3) “Owner” of farmland or forestland means the record holder of the legal title (with closed leaseland, of the perpetual leasehold interest therein) individually, jointly with a member of his or her family, or as a member of a partnership all members of which are actively engaged in agriculture in Vermont.
(b) The legislative body of a municipality may negotiate tax stabilization contracts with the owners of farmland or forestland pursuant to the provisions of 24 V.S.A. § 2741, except that to negotiate such contracts the legislative body of the municipality shall be deemed to have the authorization of the municipality under 24 V.S.A. § 2741(b).
(c) Any tax stabilization contract negotiated without the approval of a vote of the municipality under subsection (b) of this section shall provide that each appropriate taxing jurisdiction in which the property is located, including municipalities and school districts, shall compute the difference between the taxes due on such land under a farmland or forestland stabilization contract and the amount of taxes that would have been owed on such land at a fair market value appraisal. In the event of a conversion of the land from farmland or forestland to another use in breach of the contract, the sum of the differences between these two amounts of taxes for the previous three years shall be paid by the owner of the land under contract to the municipality within 30 days of the conversion. The contract shall constitute a lien in favor of the municipality against the property subject to the contract for payment of any amounts due the municipality under this subsection.
(d) Whenever the assessing officials deny in whole or in part any application for classification as farmland or forest land or grant a different classification than that applied for, or fix an erroneous use value appraisal for eligible land, the aggrieved owner may appeal the decision in accordance with the provisions set forth in chapter 131 of this title. The appeal shall be heard in the same manner and under the same procedures as other appeals relating to real property appraisals and taxation.
(Added 1977, No. 105, § 24.)
§ 3847 Neighborhood housing improvement programs
At an annual or special meeting, a municipality may vote to exempt, for a period not exceeding five years, the property tax on the value of improvements made to principal dwelling units with funds provided in whole or in part by a nonprofit, neighborhood, or municipal housing improvement program that limits eligibility to residents with incomes below the median income of the State. Such programs include neighborhood housing services, Community Loan Funds, community land trusts, neighborhood planning associations, and municipal housing improvement programs.
(Added 1989, No. 23.)
§ 3848 Inventory tax; local option
(a) At an annual or special meeting warned for the purpose, a municipality may, by a majority vote of those present and voting, elect not to tax inventory of manufacturers and merchants and of other trades and businesses, including professional practices, except as otherwise provided by law. An election by a town not to tax inventory shall remain in effect until repealed or amended by a similar vote of the town.
(b) As used in this section, “inventory” means tangible personal property of a nondepreciable nature held for consumption, sale, resale, leasing, or to be furnished under contracts of service, in a trade or business, and includes raw materials, work in process, semi-finished or finished goods of manufacturers and processors, and the stock-in-trade of wholesalers and retailers.
(c) A repeal of the tax on inventory may be effective for 100 percent of inventory in the tax year following the vote, or the town may vote to exempt a stated percentage of inventory each year for a number of years not to exceed ten, until 100 percent of inventory is exempt.
(Added 1991, No. 203 (Adj. Sess.), § 2, eff. May 27, 1992.)
§ 3849 Business personal property; local option
(a) At an annual or special meeting warned for the purpose, a municipality may, by a majority vote of those present and voting, elect not to tax, in whole or in part, business personal property according to this section. An election by a town not to tax business personal property shall remain in effect until repealed or amended by a similar vote of the town.
(b) As used in this section, “business personal property” means property defined in subsection 3618(c) of this title.
(c) If a town elects to repeal in whole the tax on business personal property, it may do so effective for 100 percent of property in the year following the vote, or it may vote to exempt an increasing percentage of property each year for a number of years not to exceed 10 years, until 100 percent of business personal property is exempt.
(Added 1991, No. 203 (Adj. Sess.), § 3, eff. May 27, 1992.)
§ 3850 Blighted property improvement program
(a) At an annual or special meeting, a municipality may vote to authorize the legislative body of the municipality to exempt from municipal taxes for a period not to exceed five years the value of improvements made to dwelling units certified as blighted. As used in this section, “dwelling unit” means a building or the part of a building that is used as a primary home, residence, or sleeping place by one or more persons who maintain a household.
(b) If a municipality votes to approve the exemption described in subsection (a) of this section, the legislative body of the municipality shall appoint an independent review committee that is authorized to certify dwelling units in the municipality as blighted and exempt the value of improvements made to these dwelling units.
(c) As used in this section, a dwelling unit may be certified as blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare.
(d) If a dwelling unit is certified as blighted under subsection (b) of this section, the exemption shall take effect on the April 1 following the certification of the dwelling unit.
(Added 2013, No. 59, § 14a.)
Subchapter 3 New Construction or Rehabilitation in Flood-Impacted Communities [repealed Effective July 1, 2037]
§ 3870 Definitions [Repealed effective July 1, 2037]
As used in this subchapter:
(1) “Agency” means the Agency of Commerce and Community Development as established under 3 V.S.A. § 2402.
(2) “Appraisal value” has the same meaning as in subdivision 3481(1)(A) of this title.
(3) “Exemption period” has the same meaning as in subsection 3871(d) of this subchapter.
(4) “New construction” means the building of new dwellings.
(5) “Principal residence” means the dwelling occupied by a resident individual as the individual’s domicile during the taxable year and for a property owner, owned, or for a renter, rented under a rental agreement other than a short-term rental as defined under 18 V.S.A. § 4301(a)(14).
(6)(A) “Qualifying improvement” means new construction or a physical change to an existing dwelling or other structure beyond normal and ordinary maintenance, painting, repairs, or replacements, provided the change:
(i) results in new or rehabilitated dwellings that are designed to be occupied as principal residences and not as short-term rentals as defined under 18 V.S.A. § 4301(a)(14); and
(ii) occurred through new construction or rehabilitation, or both, during the 12 months immediately preceding or immediately following submission of an exemption application under this subchapter.
(B) “Qualifying improvement” does not mean new construction or a physical change to any portion of a mixed-use building as defined under 10 V.S.A. § 6001(28) that is not used as a principal residence.
(7)(A) “Qualifying property” means a parcel with a structure that is:
(i) located within one-half mile of a designated downtown district, village center, or neighborhood development area determined pursuant to 24 V.S.A. chapter 76A or a new market tax credit area determined pursuant to 26 U.S.C. § 45D, or both;
(ii) composed of one or more dwellings designed to be occupied as principal residences, provided:
(I) none of the dwellings shall be occupied as short-term rentals as defined under 18 V.S.A. § 4301(a)(14) before the exemption period ends; and
(II) a structure with more than one dwelling shall only qualify if it meets the definition of mixed-income housing under 10 V.S.A. § 6001(27);
(iii) undergoing, has undergone, or will undergo qualifying improvements;
(iv) in compliance with all relevant permitting requirements; and
(v) located in an area that was declared a federal disaster between July 1, 2023 and October 15, 2023 that was eligible for Individual Assistance from the Federal Emergency Management Agency or located in Addison or Franklin County.
(B) “Qualifying property” may have a mixed use as defined under 10 V.S.A. § 6001(28).
(C) “Qualifying property” includes property located outside a tax increment financing district established under 24 V.S.A. chapter 53, subchapter 5. By vote of the legislative body, a municipality with a tax increment financing district, or a municipality applying for a tax increment financing district, may elect to deem properties within a tax increment financing district as “qualifying property” under this subdivision (C), provided, notwithstanding 24 V.S.A. § 1896, an increase in the appraisal value of a qualifying property due to qualifying improvements shall be excluded from the total assessed valuation used to determine the district’s tax increment under 24 V.S.A. § 1896 during the exemption period.
(i) For a municipality that elects to consider properties within an existing tax increment financing district under this subdivision (C) as “qualifying property,” the municipality shall submit a substantial change request and file an alternate financial plan to the Vermont Economic Progress Council, which shall detail the effect of this action for approval by the Council.
(ii) For a municipality that elects to consider properties within a tax increment financing district under this subdivision (C) as “qualifying property” at the time of creation of a new district, prior to implementation of an exemption under this chapter, the municipality shall present a financial plan to the Vermont Economic Progress Council, which shall detail the impact of the action on approval by the Council.
(8) “Rehabilitation” means extensive repair, reconstruction, or renovation of an existing dwelling or other structure, with or without demolition, new construction, or enlargement, provided the repair, reconstruction, or renovation:
(A) is for the purpose of eliminating substandard structural, housing, or unsanitary conditions or stopping significant deterioration of the existing structure; and
(B) equals or exceeds a total cost of 15 percent of the grand list value prior to repair, reconstruction, or renovation or $75,000.00, whichever is less.
(9) “Taxable value” means the value of qualifying property that is taxed during the exemption period.
(Added 2023, No. 181 (Adj. Sess.), § 80, eff. June 17, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 82(2), eff. July 1, 2037.)
§ 3870 Repealed
[Repealed]
(Added 2023, No. 181 (Adj. Sess.), § 80, eff. June 17, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 82(2), eff. July 1, 2037.)
§ 3871 Exemption [Repealed effective July 1, 2037]
(a) Value increase exemption. An increase in the appraisal value of a qualifying property due to qualifying improvements shall be exempted from property taxation pursuant to this subchapter by fixing and maintaining the taxable value of the qualifying property at the property’s grand list value in the year immediately preceding any qualifying improvements. A decrease in appraisal value of a qualifying property due to damage or destruction from fire or act of nature may reduce the qualifying property’s taxable value below the value fixed under this subsection.
(b) State education property tax exemption. The appraisal value of qualifying improvements to qualifying property shall be exempt from the State education property tax imposed under chapter 135 of this title as provided under this subchapter. The appraisal value exempt under this subsection shall not be exempt from municipal property taxation unless the qualifying property is located in a municipality that has voted to approve an exemption under subsection (c) of this section.
(c) Municipal property tax exemption. If the legislative body of a municipality by a majority vote recommends, the voters of a municipality may, at an annual or special meeting warned for that purpose, adopt by a majority vote of those present and voting an exemption from municipal property tax for the value of qualifying improvements to qualifying property exempt from State property taxation under subsection (b) of this section. The municipal exemption shall remain in effect until rescinded in the same manner the exemption was adopted. Not later than 30 days after the adjournment of a meeting at which a municipal exemption is adopted or rescinded under this subsection, the town clerk shall report to the Director of Property Valuation and Review and the Agency the date on which the exemption was adopted or rescinded.
(d) Exemption period.
(1) An exemption under this subchapter shall start in the first property tax year immediately following the year in which an application for exemption under section 3872 of this title is approved and one of the following occurs:
(A) issuance of a certificate of occupancy by the municipal governing body for the qualifying property; or
(B) the property owner’s declaration of ownership of the qualifying property as a homestead pursuant to section 5410 of this title.
(2) An exemption under this subchapter shall remain in effect for three years, provided the property continues to comply with the requirements of this subchapter. When the exemption period ends, the property shall be taxed at its most recently appraised grand list value.
(3) The municipal exemption period for a qualifying property shall start and end at the same time as the State exemption period; provided that, if a municipality first votes to approve a municipal exemption after the State exemption period has already started for a qualifying property, the municipal exemption shall only apply after the vote and notice requirements have been met under subsection (c) of this section and shall only continue until the State exemption period ends.
(Added 2023, No. 181 (Adj. Sess.), § 80, eff. June 17, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 82(2), eff. July 1, 2037.)
§ 3871 Repealed
[Repealed]
(Added 2023, No. 181 (Adj. Sess.), § 80, eff. June 17, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 82(2), eff. July 1, 2037.)
§ 3872 Administration and certification [Repealed effective July 1, 2037]
(a) To be eligible for exemption under this subchapter, a property owner shall:
(1) submit an application to the Agency of Commerce and Community Development in the form and manner determined by the Agency, including certification by the property owner that the property and improvements qualify for exemption at the time of application and annually thereafter until the exemption period ends; and
(2) the certification shall include an attestation under the pains and penalties of perjury that the property will be used in the manner provided under this subchapter during the exemption period, including occupancy of dwellings as principal residences and not as short-term rentals as defined under 18 V.S.A. § 4301(a)(14), and that the property owner will either provide alternative housing for tenants at the same rent or that the property has been unoccupied either by a tenant’s choice or for 60 days prior to the application. A certification by the property owner granted under this subdivision shall:
(A) be coextensive with the exemption period;
(B) require notice to the Agency of the transfer or assignment of the property prior to transfer, which shall include the transferee’s or assignee’s full names, phone numbers, and email and mailing addresses;
(C) require notice to any prospective transferees or assignees of the property of the requirements of the exemption under this subchapter; and
(D) require a new certification to be signed by the transferees or assignees of the property.
(b) The Agency shall establish and make available application forms and procedures necessary to verify initial and ongoing eligibility for exemption under this subchapter. Not later than 60 days after receipt of a completed application, the Agency shall determine whether the property and any proposed improvements qualify for exemption and shall issue a written decision approving or denying the exemption. The Agency shall notify the property owner, the municipality where the property is located, and the Commissioner of Taxes of its decision.
(c) If the property owner fails to use the property according to the terms of the certification, the Agency shall, after notifying the property owner, determine whether to revoke the exemption. If the exemption is revoked, the Agency shall notify the property owner, the municipality where the property is located, and the Commissioner of Taxes. Upon notification of revocation, the Commissioner shall assess to the property owner:
(1) all State and municipal property taxes as though no exemption had been approved, including for any exemption period that had already begun; and
(2) interest pursuant to section 3202 of this title on previously exempt taxes.
(d) No new applications for exemption shall be approved pursuant to this subchapter after December 31, 2027.
(Added 2023, No. 181 (Adj. Sess.), § 80, eff. June 17, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 82(2), eff. July 1, 2037.)
§ 3872 Repealed
[Repealed]
(Added 2023, No. 181 (Adj. Sess.), § 80, eff. June 17, 2024; repealed by 2023, No. 181 (Adj. Sess.), § 82(2), eff. July 1, 2037.)
Chapter 127 Quadrennial Appraisal of Real Estate
Subchapter 1 Quadrennial Appraisal
§§ 3901-3916 Repealed
[Repealed]
1957, No. 219, § 4, eff. July 1, 1961.
Subchapter 2 Repeal of Quadrennial Appraisals
§§ 3941-3944 Repealed
[Repealed]
2003 (Adj. Sess.), No. 70, § 36, eff. March 1, 2004.
Chapter 129 Grand Tax Lists
Subchapter 1 Inventories
§ 4001 Inventory forms
(a) Annually on April 1, at the expense of the State, the Director shall furnish to the several town clerks and boards of appraisers for unorganized towns and gores inventory forms sufficient in number to meet the requirements of this chapter. Such forms shall be formulated by the Director and, among other things, shall contain suitable interrogatories requiring each taxpayer to furnish therein a brief statement of all of each taxpayer’s taxable property, real and personal, and such other information, including income and expense information with respect to any income-producing properties, as will enable the listers or appraisers to appraise such part thereof as is required by law to be by them appraised, and to make up the abstract of individual lists and grand list in the manner prescribed by law.
(b) The Director shall include in the blank inventories furnished pursuant to subsection (a) of this section sufficient space for describing the personal property of the taxpayer. This information may be furnished by schedules to be attached to the inventories.
(c) Listers shall obtain detailed inventory information respecting real and personal property only in such cases as in their judgment is necessary to ascertain the fair market value of property that is subject to an appraisal or reappraisal.
(Amended 1977, No. 105, § 14(a); 1999, No. 49, § 25, eff. June 2, 1999; 2005, No. 38, § 5, eff. June 2, 2005.)
§ 4002 Oath
Such form shall contain the following:
I do solemnly swear (or affirm), under the pains and penalties of perjury, that, to my best knowledge and belief, the foregoing inventory by me subscribed is a full, true, and correct list and description of all taxable property, both real and personal, which should be set in the list to me.
Sign here
Listers may administer all oaths prescribed in this chapter other than such as are required to be administered to listers.
§ 4003 Distribution of inventories
Inventory forms and printed copies of the law prepared as provided in subdivision 3411(6) of this title shall be delivered by the town clerk or listers to all taxpayers requesting the same. At the expense of the town, listers shall forward by mail such inventories and copies to such foreign corporations and nonresidents who are taxable therein, except those taxable for real estate only, as shall be known to them, and the listers or town clerk in like manner may furnish such copies to any taxpayer. Failure on the part of the listers or town clerk to mail or otherwise to furnish such copies, or of the aforesaid persons or corporations to receive the same, shall not in any manner affect or invalidate a grand list prepared and filed according to law.
(Amended 1993, No. 49, § 3, eff. May 28, 1993.)
§ 4004 Return of inventories by individuals
On or before April 20, unless otherwise required, every taxable person shall procure such inventory form, make full answers to all interrogatories therein, subscribe the same, make oath thereto, and deliver or forward the same to one of the listers in the town wherein such person owns or possesses property required by law to be set to him or her in the grand list. When notice in writing to file, deliver, or forward such inventory on or before a given date is delivered by one of the listers to a person, or mailed postage prepaid to him or her at his or her last known post office address, such person, within the time therein specified, shall properly fill out such inventory and deliver or forward the same to one of the listers, notwithstanding he or she may not own or possess property subject to taxation. Persons taxable only for real estate shall not be required to file such inventory unless notified so to do as herein provided.
(Amended 2013, No. 73, § 31, eff. July 1, 2014.)
§ 4005 Return by corporations, estates, or fiduciaries
The officer of a corporation on whom service of process may be made shall procure such form and the same shall be executed by its president or other principal officer and the same shall be delivered or forwarded to one of the listers. The person who has charge of the property of a trust, or the property of an estate of a decedent or of a ward or of the property of another person, shall procure and deliver or forward such form to one of the listers.
§ 4006 Failure to return inventory
Failure of a taxpayer to make and return a signed, sworn to, or affirmed inventory within 45 days after the mailing of such inventory by the town listers shall bar the taxpayer from any statutory appeal under this chapter or chapter 131 of this title, unless such failure is due to factors beyond the taxpayer’s control. In addition, a taxpayer who fails to submit an inventory within the time and in the form prescribed may be fined not more than $100.00 for each violation.
(Amended 1965, No. 194, § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1999, No. 49, § 28, eff. June 2, 1999.)
§ 4007 Final disposition of inventories
Inventories filled out by taxpayers shall be lodged by the listers in the town clerk’s office on or before June 1, shall be maintained in a manner reasonably calculated to protect the confidentiality of the information contained in the inventories, and shall be retained therein for a period of not less than three years.
(Added 1999, No. 49, § 26, eff. June 2, 1999.)
§ 4008 Willful destruction
A person who willfully destroys or removes an inventory from the office of the town clerk during the time the same is required to be preserved, except in obedience to process, shall be fined $500.00.
§ 4009 Examination of inventories
(a) Any inventory collected pursuant to section 4001 or 4452 of this title that is in the custody of the town clerk shall be available for inspection, tabulation, and copying by any commission authorized to do so by the General Assembly, a member of such commission, the Attorney General, the Director, the State’s Attorney of the county, and any person designated in writing by the commission, or by any officials listed in this section.
(b) Listers, selectboard members, treasurers, collectors of taxes, attorneys for the town, and any person designated by the town to assist the town in appraising, as required under section 4041 of this title, the fair market value of the property identified on the inventory form may examine any inventory that they name, and the taxpayer, or the taxpayer’s administrator or executor, may examine the taxpayer’s inventory.
(c) Town clerks shall upon request furnish a certified copy of an inventory to an official or person entitled to examine the same and, upon subpoena for that purpose, shall produce in court any inventory in the clerk’s custody.
(d) Copies or abstracts so taken or furnished and any data or information obtained by such examination or contained in such abstracts or copies shall not be disclosed in any manner that will reveal the name or identity of the person making such inventory, except for official use.
(e) Except as provided in this chapter, the town clerk shall not allow a person to examine such inventories.
(f) An official or person entitled to examine an inventory or any other person possessing such information by or through the town offices other than the reporting taxpayer, who, in a manner not provided for in this chapter, discloses any information so possessed shall be fined not more than $100.00.
(Amended 1977, No. 105, § 14(a); 1999, No. 49, § 27, eff. June 2, 1999; 2017, No. 93 (Adj. Sess.), § 27.)
§ 4010 Inventories in unorganized towns and gores
Persons liable to pay taxes in unorganized towns or gores, except as otherwise provided, shall be subject to the same provisions in regard to making out and returning inventories of property to which taxpayers in organized towns are subject; and in taking the list for taxation in unorganized towns and gores, the appraisers therefor, except as otherwise provided, shall be governed by the provisions of this chapter.
Subchapter 2 Appraisals
§ 4041 Examination of property; appraisal
On April 1, the listers shall proceed to take up such inventories and make such personal examination of the property that they are required to appraise as will enable them to appraise it at its fair market value. When a board of listers is of the opinion that expert advice or assistance is needed in making any appraisal required by law, it may, with approval of selectboard or by vote of the town, employ such assistance.
§ 4041a Reappraisal
(a) A municipality shall be paid $8.50 per grand list parcel per year from the General Fund to be used only for reappraisal and costs related to reappraisal of its grand list properties and for maintenance of the grand list.
(b) If the Director of Property Valuation and Review determines that a municipality’s education grand list has a coefficient of dispersion greater than 20 or that a municipality has not timely reappraised pursuant to subsection (d) of this section, the municipality shall reappraise its education grand list properties. If the Director orders a reappraisal, the Director shall send the municipality written notice of the decision. The municipality shall be given 30 days to contest the finding under procedural rules adopted by the Director or to develop a compliance plan, or both. If the Director accepts a proposed compliance plan submitted by the municipality, the Director shall not order commencement of the reappraisal until the municipality has had one year to carry out that plan.
(c) If a municipality fails to submit an acceptable plan or fails to carry out the plan, pursuant to subsection (b) of this section, the State shall withhold the education, transportation, and other funds from the municipality until the Director certifies that the town has carried out that plan.
(d) Each municipality shall commence a full reappraisal not later than six years after the commencement of the municipality’s most recent full reappraisal unless a longer period of time is approved by the Director.
(e) The Director shall adopt rules necessary for administration of this section.
(Added 1997, No. 60, § 46, eff. Jan. 1, 1998; amended 2005, No. 38, § 8; 2005, No. 215 (Adj. Sess.), § 284; 2015, No. 134 (Adj. Sess.), § 6, eff. May 25, 2016; 2019, No. 51, § 24; 2021, No. 20, § 265; 2023, No. 68, § 1, eff. July 1, 2023; 2023, No. 68, § 2, eff. January 1, 2025; 2023, No. 144 (Adj. Sess.), § 1, eff. June 3, 2024.)
§§ 4042, 4043 Repealed
[Repealed]
1957, No. 219, § 4, eff. July 1, 1961.
§ 4044 Appraisal of personalty on April 1
Unless otherwise provided, the taxable personal estate contained in the inventory shall be appraised by the listers at its fair market value on April 1.
§ 4045 Appraisal on other than April 1
If any business is normally operated for a period less than 12 consecutive months and is not in operation on April 1, an inventory shall be filed with the listers at least 15 days prior to the anticipated annual suspension of such business and the stock in trade shall be appraised for the period of operation so as to represent an average of values of such property during that period in which the business has been carried on.
§ 4046 Notice
The listers shall notify the taxpayer in writing within five days after the filing of such inventory of the appraised value of such property.
§ 4047 Amending tax list
If no appeal is taken within the time allowed under section 4403 of this title, or if an appeal is taken, upon determination of such appeal, the listers shall amend the grand list and make a certificate thereon of that fact.
§ 4048 Evaluating real estate of nonresidents
When the last owner of record of real estate is a nonresident and not taxable for personal estate in the town where the real estate is situated, it shall be set to such owner at the same valuation as if he or she had made a legal inventory.
§ 4049 Appraisal of orchard lands
Upon the request of the listers of a town wherein orchard lands lie or upon the request of an owner of orchard lands, the Director shall provide expert advice and assistance to the listers in making reappraisals of such lands.
(Amended 1957, No. 219, § 3, eff. July 1, 1961; 1977, No. 105, § 14(a).)
§ 4050 Appraisal in unorganized towns and gores
As soon as may be after March 31 next succeeding their appointment, the appraisers shall, in the respective unorganized towns and gores for which they are appointed, perform the same duties as are prescribed by law for listers in towns, and be subject to the same liabilities.
§ 4051 Basis for appraisals
The appraisals made under section 4050 of this title shall be the only appraisals for taxation in unorganized towns and gores. In making such appraisals, the appraisers shall appraise and set in the list, apart from the taxable real estate, lands sequestered for public, pious, or charitable uses and paying an annual rent.
§ 4052 Contract appraisals; assessor qualifications [Effective until January 1, 2026; see also 32 V.S.A. § 4052 effective January 1, 2026 set out below]
(a) No municipality shall employ or contract a person, firm, or corporation to perform appraisals of real property for the purpose of property taxation unless approved by the Director of Property Valuation and Review as qualified under this section.
(b) No person shall conduct the work of an assessor employed or contracted by a municipality pursuant to 17 V.S.A. § 2651c(b) unless the person meets the training requirements established by the Director of Property Valuation and Review under this section.
(c) The Director shall establish by rule reasonable qualifications for approval and training requirements, which shall include successful completion of educational and training courses approved by the Director and, in the case of an appraiser hired to do a townwide reappraisal, at least one year’s experience with an appraiser who has satisfactorily completed townwide reappraisals.
(d) This section shall not apply to elected or appointed officials of any town but shall apply to an assessor employed or contracted by a municipality pursuant to 17 V.S.A. § 2651c(b).
(Added 1985, No. 264 (Adj. Sess.), § 1; amended 1987, No. 101; 1989, No. 264 (Adj. Sess.), § 5; 1995, No. 169 (Adj. Sess.), § 8, eff. May 15, 1996; 2023, No. 68, § 7, eff. July 1, 2023.)
§ 4052 Contract appraisals; assessor and lister qualifications [Effective January 1, 2026; see also 32 V.S.A. § 4052 effective until January 1, 2026 set out above]
(a) No municipality shall employ or contract a person, firm, or corporation to perform and no elected lister or board of listers shall perform appraisals of real property for the purpose of property taxation unless approved by the Director of Property Valuation and Review as qualified under this section.
(b) No person shall conduct the work of an elected lister, board of listers, or assessor employed or contracted by a municipality pursuant to 17 V.S.A. § 2651c(b) unless the person meets the training requirements established by the Director of Property Valuation and Review under this section. An elected lister or board of listers who does not meet the training requirements of this section at the time of election shall have one year after entering into the duties of the office of lister to comply with this section.
(c) The Director shall establish by rule reasonable qualifications for approval and training requirements, which shall include successful completion of educational and training courses approved by the Director and, in the case of an appraiser hired to do a townwide reappraisal, at least one year’s experience with an appraiser who has satisfactorily completed townwide reappraisals.
(d) [Repealed.]
(Added 1985, No. 264 (Adj. Sess.), § 1; amended 1987, No. 101; 1989, No. 264 (Adj. Sess.), § 5; 1995, No. 169 (Adj. Sess.), § 8, eff. May 15, 1996; 2023, No. 68, § 7, eff. July 1, 2023; 2023, No. 68, § 8, eff. January 1, 2026.)
Subchapter 3 Individual Lists
§ 4081 Procedure when inventory properly completed
When an inventory is properly filled out, sworn to, and delivered and, in the opinion of the listers, contains full, true, and correct answers to all the interrogatories therein that such taxpayer is required to answer, and a full, true, and correct statement of all the items of property for which the taxpayer filling out such inventory is taxable, the listers shall complete the list of such taxpayer as provided in this chapter.
§ 4082 Taxpayer’s grand list
One percent of the listed value of the real estate taxable to a person shall be added to one percent of the listed value of his or her personal estate, and the sum so obtained shall constitute his or her grand list.
§ 4083 Repealed
[Repealed]
1957, No. 219, § 4, eff. July 1, 1961.
§ 4084 Procedure upon failure to return correct inventory
When a person willfully omits to make, swear to, and deliver an inventory, or to answer any interrogatory therein as required by this chapter, or makes a false answer or statement therein, or if the listers believe that an inventory does not contain a full, true, and correct statement of the taxable property of such person, the listers shall ascertain as best they can the amount of the taxable property of such person and appraise the same at its fair market value. When, in the opinion of the listers, the amount so obtained is less than the amount of the taxable property of such person, they shall further appraise his or her property at a sum that will, in their judgment, equal the difference between the amount of such appraisal and the amount of his or her taxable property. When taxable property of such person is not ascertainable by the listers, they shall appraise the property of such person at a sum that, in their judgment, is the fair market value of all the taxable property owned by him or her. The amount so obtained, multiplied by the percent of fair market value that is used by the listers in the town in which the property is situated shall be the listed value, one percent of which shall constitute the grand list of such person.
§ 4085 Notice to taxpayers on nonreturn of inventory
When the list of a person has been made under the provisions of section 4084 of this title, he or she shall be notified thereof by the listers on or before 14 days from the day fixed by law on or before which abstracts of individual lists shall be completed and lodged in the town clerk’s office by a written notice delivered to him or her personally, or by certified mail or left at his or her last and usual place of abode, if a resident, or if a nonresident, mailed to him or her at his or her last known residence. The notice to a corporation shall be delivered personally or by certified mail to the officer whose duty it is to make the inventory.
(Amended 1973, No. 104, § 1, 1983, No. 85, § 1.)
§ 4086 Omissions in inventory
When, prior to December 15, the listers learn that real or personal estate is omitted from the inventory of a person returned in such year or that a person has failed to return an inventory for such year, they shall notify such person in writing. If such person fails to return an inventory within ten days thereafter, the listers shall act as provided in section 4084 of this title. Taxes shall be assessed and collected upon such grand list as is provided for the assessment and collection of other taxes.
§ 4087 Notice to taxpayer of list prepared under preceding section
When the list of a person has been made under the provisions of section 4086 of this title, he or she shall be notified thereof by the listers on or before 14 days from the day on which the listers will meet to hear grievances of such persons by a written notice delivered to him or her personally, or left at his or her last usual place of abode, if a resident, or if a nonresident, mailed to his or her last known residence.
(Amended 1983, No. 85, § 2.)
§ 4088 Contents
The notice to a corporation shall be delivered or mailed to the officer whose duty it is to make the inventory. Such notice shall be in writing and signed by the listers, setting forth their doings in respect thereof, and the time and place at which they will thereafter meet to hear the taxpayer therein named who is aggrieved by any of their actions relating to his or her list. Unless cause to the contrary is shown within the time named in such notice, such list will become the grand list of such person for the year beginning on the first day of the preceding April.
§ 4111 Abstracts of individual lists
(a) Subject to the provisions of section 4341 of this title, on or before May 5, the listers shall arrange in alphabetical order, in a book or books required by law to be furnished for the abstract of individual lists and the grand lists, the names of the various taxpayers and all the data mentioned in section 4152 of this title. The listed valuation of all real and personal estate shall first be set in the appropriate columns therefor marked “valuation.”
(b) Such books shall also contain a certificate, signed by the listers, that according to their best knowledge, information, and belief they have therein set down the listed valuation of all taxable real and personal estate of each person therein named.
(c) Such book shall contain a notice in writing signed by the listers that the contents thereof will become the grand list of such town and of each person therein named, unless cause to the contrary is shown, and that, on or before May 20, as extended by section 4341 of this title, the listers will meet at some place therein designated by them to hear all grievances and make corrections in such list.
(d) Subject to the provisions of section 4341 of this title, on or before May 5, such book shall be lodged in the office of the town clerk for the inspection of the taxpayers in such town. The town clerk shall endorse thereon the time when the book was so lodged in his or her office. Such book when so lodged shall be the abstract of individual lists.
(e) When the listers return the grand list book to the town clerk, they shall notify by first-class mail, on which postage has been prepaid and that has been addressed to their last known address, all affected persons listed as property owners in the grand list book of any change in the appraised value of such property or any change in the allocation of value to the homestead as defined under subdivision 5401(7) of this title or the housesite as defined under subdivision 6061(11) of this title, and also notify them of the amount of such change and of the time and place fixed in the public notice hereinafter provided for, when persons aggrieved may be heard. No notice shall be required for a change solely to reflect a new use value set by the Current Use Advisory Board or the adjustment of that value by the common level of appraisal. Notices shall be mailed at least 14 days before the time fixed for hearing. Such personal notices shall be given in all towns and cities within the State, anything in the charter of any city to the contrary notwithstanding. At the same time, the listers shall post notices in the town clerk’s office and in at least four other public places in the town or, in the case of a city, in such other manner and places as the city charter shall provide, setting forth that they have completed and filed such book as an abstract and the time and place of the meeting for hearing grievances and making corrections. Unless the personal notices required hereby were sent by registered or certified mail, or unless an official certificate of mailing of the same was obtained from the post office, in the case of any controversy subsequently arising, it shall be presumed that the personal notices were not mailed as required.
(f) If the listers discover any error or omission in such abstract, they shall correct the same and shall forthwith give notice thereof in writing by mail, postage prepaid, or by personal delivery to the taxpayer whose list is thus changed, unless such change was made in his or her presence.
(g) A person who feels aggrieved by the action of the listers and desires to be heard by them shall, on or before the day of the grievance meeting, file with them his or her objections in writing and may appear at such grievance meeting in person or by his or her agents or attorneys. No grievance shall be allowed for a change solely to reflect a new use value set by the current use advisory board or the adjustment of that value by the common level of appraisal. Upon the hearing of such grievance, the parties thereto may submit such documentary or sworn evidence as shall be pertinent thereto.
(h) Failure on the part of the listers so to arrange the names of taxpayers in alphabetical order or to perform any of the requirements hereinbefore provided touching the form of the aforesaid abstract of individual lists and grand lists shall not in any manner affect or invalidate the list of any taxpayer, provided it shall contain data which, upon inspection thereof, together with the inventory of the taxpayer, shall disclose taxable property whereon such taxpayer is liable for a tax lawfully laid or assessed.
(Amended 1959, No. 87, eff. April 1, 1959; 1971, No. 73, § 6, eff. April 16, 1971; 1983, No. 85, § 3; 1997, No. 71 (Adj. Sess.), § 65, eff. March 11, 1998; 1999, No. 49, § 22b, eff. June 2, 1999; 2003, No. 76 (Adj. Sess.), § 10, eff. Feb. 17, 2004; 2007, No. 205 (Adj. Sess.), § 8.)
§ 4112 Legalizing defective or invalid abstracts
If an abstract of individual lists is not lodged in the town clerk’s office or is not lodged therein within the time prescribed by section 4111 of this title; or if a defective abstract is lodged therein within the time so prescribed or subsequent thereto; or if a defective notice or no notice is given under the provisions of section 4111 of this title; or if such abstract is otherwise defective or invalid; or if the listers do not meet at the time and place specified in such notice on or before February 1 next ensuing, they shall make in proper form and lodge in the town clerk’s office a valid abstract or correct any defective one theretofore lodged therein, or perform any act theretofore omitted that is necessary to render such abstract valid.
§ 4113 Certificate to amended abstract
The listers shall add to such abstract so lodged or amended a certificate setting forth the particulars wherein it was defective or invalid, their doings in respect thereto, and the date whereon such abstract was so lodged or amended. Failure on the part of the listers to incorporate in such certificate one or more particulars wherein such abstract was defective or invalid shall not in any manner invalidate their doings touching such abstract.
§ 4114 Certificate of clerk
When such abstract is so lodged or amended, the town clerk shall affix thereto his or her certificate showing the date whereon it was so lodged with him or her, or such amendments were added to one theretofore filed. Thereupon such abstract shall become lawful and valid and of the same force and effect as if the same had been filed within the time prescribed by law.
§ 4115 Notice by listers
The listers shall attach thereto a notice in writing signed by them setting forth their doings in respect thereto and the time and place at which they will thereafter meet to hear all taxpayers therein named who are aggrieved by any of their actions relating to such abstract thus filed or amended and that, unless cause to the contrary is shown within the time named in such notice, it will become the grand list of the town wherein the same is lodged for the year beginning on the first day of the preceding April. The date so fixed for hearing shall not be less than 15 days from and after the date of such notice.
§ 4116 Notices posted and published; mail to nonresidents
(a) The listers shall forthwith post copies of such notice in the town clerk’s office and in five or more public places within the town and shall, at the expense thereof, publish such notice for two weeks successively in one or more newspapers printed or circulating therein, to be selected by the clerk thereof, the last publication to be at least three days prior to the date of such hearing. A certificate signed by such clerk specifying the names and dates of the newspapers wherein such notice was so published and the public places wherein such copies of notice were so posted shall be prima facie evidence thereof.
(b) Nonresident taxpayers shall receive notice by first-class mail on which postage has been prepaid and addressed to their last known address.
(Amended 1983, No. 85, § 4.)
Subchapter 4 Grand List of Town
§ 4151 Grand list of town
(a) Subject to the provisions of section 4341 of this title, on or before June 25, the listers shall make all corrections in the abstracts and shall lodge such completed book in the office of the town clerk.
(b) Subject to the provisions of section 4341 of this title, each lister shall, on or before June 25, attach to such lists thus completed the following oath:
“I do solemnly swear (or affirm) that according to my best knowledge, information and belief the foregoing list contains a true statement of the listed valuation of all real estate and taxable personal estate, within the town of .................... . So help me God.” (or “under the pains and penalties of perjury.”)
(c) The town clerk shall certify upon such list the time at which such oath was taken by each lister and the date when the completed grand list was so filed and thereupon such list so lodged, certified, and sworn to shall become the grand list of such town, subject, however, to any and all corrections or additions therein or thereto as otherwise provided by law.
(d) When by notice from the taxpayer or otherwise the listers are informed of the presence within the town of personal property of the nature described in section 3603 of this title, they shall within 15 days of receipt of such knowledge correct the list of the owner of said property to show the assessed value thereof and shall give notice to the taxpayer of such change in the taxpayer’s list in accordance with sections 4087 and 4088 of this title. Copies of said notice shall be transmitted by the listers to the town clerk and treasurer. Within 18 days of receiving said notice the town treasurer, in the event of no appeal on the part of the taxpayer, shall send the taxpayer an amended statement of taxes due, payable not less than 30 nor more than 90 days from the date thereof. In the event of an appeal by the taxpayer, such notice of taxes due shall be sent within 10 days of the termination of said appeal. Collection of such taxes shall be in accordance with the provisions of chapter 133 of this title.
(Amended 1983, No. 85, § 5; 2003, No. 70 (Adj. Sess.), § 37, eff. March 1, 2004.)
§ 4152 Contents
(a) When completed, the grand list of a town shall be in such form as the Director prescribes and shall contain such information as the Director prescribes, including:
(1) In alphabetical order, the name of each real property owner and each owner of taxable personal property.
(2) The last known mailing address of all such owners.
[Subdivision (a)(3) effective until contingencies met; see also subdivision (a)(3) effective July 1, 2028 if contingencies met, set out below.]
(3) A brief description of each parcel of taxable real estate in the town. “Parcel” means all contiguous land in the same ownership, together with all improvements thereon.
[Subdivision (a)(3) effective July 1, 2028 if contingencies met; see also subdivision (a)(3) effective until contingencies met, set out above.]
(3) A brief description of each parcel of taxable real estate in the town, including a classification assigned pursuant to section 4152a of this title. As used in this subdivision, “parcel” means a separate and sellable lot or piece of real estate. Parcels may be combined to represent all contiguous land in the same ownership, together with all improvements thereon.
(4) The listed valuation of such owner’s personal estate taxable in the town and, for property exempted under the provisions of sections 3834, 3836, 3837, and 3838 of this title, what the full listed value of the property would be absent the exemption, the statutory authority for granting such exemption, the year in which the exemption became effective, and the year in which it ends.
(5) The listed valuation of each parcel that is not exempt.
[Subdivision (a)(6) effective until July 1, 2037; see also subdivision (a)(6) effective July 1, 2037 set out below.]
(6) For those parcels that are exempt, the insurance replacement value reported to the local assessing officials by the owner under section 3802a of this title or what the full listed value of the property would be absent the exemption and the statutory authority for granting such exemption and, for properties exempt pursuant to a vote, the year in which the exemption became effective and the year in which the exemption ends; provided that, for parcels exempt under chapter 125, subchapter 3 of this title, the insurance replacement value shall not be substituted for the full listed value of the property absent the exemption and the grand list shall indicate whether the exemption applies to the State property tax or both the State and municipal property taxes.
[Subdivision (a)(6) effective July 1, 2037; see also subdivision (a)(6) effective until July 1, 2037 set out above.]
(6) For those parcels that are exempt, the insurance replacement value reported to the local assessing officials by the owner under section 3802a of this title or what the full listed value of the property would be absent the exemption and the statutory authority for granting such exemption and, for properties exempt pursuant to a vote, the year in which the exemption became effective and the year in which the exemption ends.
(7) For those parcels appraised under the provisions of section 3607a, subdivisions 3832(1), (6), and (7), and section 3836, 3840, 3845, or 3847 of this title, the value that reflects the taxes to be paid on the property, the full listed value absent such appraisal, the statutory authority for granting such appraisal, the year in which such appraisal became effective, and the year in which it ends.
(8) The full listed value and the stabilization value agreed to by an owner and a town pursuant to 24 V.S.A. § 2741 or section 3843 or 3846 of this title, the year in which the stabilization agreement became effective, and the year in which it ends.
(9) Separate columns that will show the listed valuations of homesteads as defined in subdivision 5401(7) of this title and housesites as defined under subdivision 6061(11) of this title.
(b) When the grand list of a town contains a description of a mobile home, whether or not the mobile home is considered real or personal property, the description shall include, if available, the name of the manufacturer, the model number, the serial number, and the dimensions of the home.
(c) When the grand list of a town describes exempt property, the grand list shall identify if the value provided is the insurance replacement cost provided under section 3802a of this title or the full listed value under subdivision (a)(6) of this section.
(Amended 1975, No. 215 (Adj. Sess.), § 2; 1977, No. 105, § 14(a); 1995, No. 169 (Adj. Sess.), § 9, eff. May 15, 1996; 1997, No. 60, § 47, eff. Jan. 1, 1998; 1997, No. 71 (Adj. Sess.), § 63, eff. March 11, 1998; 1999, No. 49, § 22c, eff. June 2, 1999; 2003, No. 76 (Adj. Sess.), § 11, eff. Feb. 17, 2004; 2013, No. 73, § 30, eff. July 1, 2014; 2023, No. 181 (Adj. Sess.), § 81, eff. June 17, 2024; 2023, No. 181 (Adj. Sess.), § 83, eff. July 1, 2037; 2025, No. 73, § 60, contingently eff. July 1, 2028.)
§ 4152a Property tax classifications [Effective July 1, 2028 if contingencies met]
(a) The grand list of a town shall include one or more tax classifications for each parcel of real estate. A parcel shall be classified using one of the general classes of real estate listed under subsection (b) of this section and based on the considerations set forth in this section and by guidance provided by the Division of Property Valuation and Review. The listers and assessors shall annually update the grand list to include a tax classification not later than June 1 of every year, using information submitted to the Department of Taxes pursuant to this section. The tax classification may be updated after June 1 when a taxpayer files, or corrects an erroneously filed, homestead declaration after June 1.
(b) A parcel shall be assigned one or more of the following general classes:
(1) Homestead;
(2) Nonhomestead nonresidential; and
(3) Nonhomestead residential.
(c) As used in this section:
(1) “Homestead” means a parcel, or portion of a parcel, declared as a homestead on or before October 15 in accordance with section 5410 of this title for the current year.
(2) “Nonhomestead nonresidential” means a parcel, or portion of a parcel, that does not qualify as “homestead” or “nonhomestead residential” under this section.
(3) “Nonhomestead residential” means a parcel, or portion of a parcel, for which a homestead was not declared in accordance with section 5410 of this title for the current year and that has a residential property, as defined by the Commissioner by rule.
(d) A parcel with two or more portions qualifying for different tax classifications under this section shall be classified proportionally based on the percentage of floor space used.
(1) In the case of a homestead with 25 percent or less of floor space used for a business purpose, the parcel shall be classified as a homestead pursuant to subdivision 5401(a)(7)(F) of this title.
(2) If a portion of floor space is used for more than one purpose, the use in which the floor space is most often used shall be considered the primary use and the floor space shall be dedicated to that use for purposes of tax classification.
(e) The Commissioner shall amend existing forms, and publish new forms, as needed to gather the necessary attestations and declarations required under this section.
(f) Nothing in this section shall be construed to alter the tax treatment or enrollment eligibility of property as it relates to use value appraisal under chapter 124 of this title.
(g) Persons aggrieved by a decision to classify property for taxation purposes under this section may appeal in the manner provided for property valuation appeals under this title.
(Added 2025, No. 73, § 61, contingently eff. July 1, 2028.)
§ 4153 Repealed
[Repealed]
1995, No. 169 (Adj. Sess.), § 10, eff. May 15, 1996.
§ 4154 Endorsement of time of reception
When a grand list is completed and lodged in the office of the town or city clerk, such clerk shall duly endorse thereon the time of its reception and place the same with the permanent files of the office.
§ 4154a State-owned land
At least two months prior to each annual town meeting, the listers of each municipality in which the Agency of Natural Resources or one of its subdivisions holds title to lands and premises shall report to the selectboard of the municipality regarding the percentage of acreage within the municipality that is owned or otherwise controlled by the Agency.
(Added 2003, No. 63, § 56, eff. June 11, 2003.)
§ 4155 Certificate and attestation—No appeal or suit pending
When no statutory appeal as provided by law from the appraisal of the listers and no suit to recover taxes paid under protest is pending on the first Tuesday of February following such lodgment, the selectboard and listers of a town or the mayor and assessors of a city shall endorse a certificate to that effect upon the grand list and the same shall be attested by the town or city clerk with the date of such attestation.
§ 4156 After appeal and suit determined
When any such appeal or suit is then pending, such certificate shall be made as soon as such appeal or suit has been finally determined.
§ 4157 Effect of such certificate
From the date of endorsing such certificate upon the grand list as aforesaid to the effect that no such appeal or suit is pending, when offered in evidence in any court in this State, such list shall be received as a legal grand list of such town or city and its validity shall not be put in issue by any party to any action in any hearing or trial in any court.
§ 4158 Loss or destruction of grand list
When the grand list of a town becomes lost or destroyed, the listers shall at once make a new appraisal of all taxable property in such town and return the same to the office of the town clerk within 60 days from such appraisal in the manner provided for the appraisal of real and personal estate.
§ 4159 Unorganized towns and gores
The lists of unorganized towns and gores shall be made up by the boards of appraisers therefor in the form prescribed by this chapter and deposited in the offices of the clerks of the counties in which such unorganized towns or gores are respectively situated, on or before June 15 next following the making up of the same. At least 14 days prior to the date set for hearing grievances, the appraisers for unorganized towns and gores shall notify each taxpayer in writing by first-class mail, on which postage has been prepaid and addressed to the last known address, of any change in the appraisal value of property. During such month, sitting at the places where the lists have been deposited, the appraisers shall hear and decide upon the applications of the persons aggrieved, and the appraisers shall not be required to give notice of hearings other than to fix the time therefor upon application. Changes shall not be made in the lists after July 7.
(Amended 1983, No. 85, § 6.)
§ 4181 Form and deposit of abstract
Annually, on or before June 15, listers shall make and deposit with the town clerk an abstract of the grand list of such town. Annually, on or before July 5, a like abstract shall be made by the appraisers for unorganized towns and gores and deposited by them with the county clerk. Abstracts shall contain information prescribed by rule of the Commissioner of Taxes that is reasonably needed for the proper execution of his or her duties.
(Amended 1987, No. 84, § 9.)
§ 4182 False abstracts
When a lister or appraiser knowingly makes or returns an incorrect abstract, he or she shall be fined not more than $500.00.
§ 4183 Certification by clerk
The clerk to whom such abstract is returned shall compare the same with the grand list and, if he or she finds it correct in every particular, shall so certify on the abstract; and if he or she finds that it is not correct, he or she shall so certify and state wherein and the changes necessary to make it conform to the grand list.
§ 4184 Neglect
A town or county clerk who fails to make such certificate, or transmit such abstract, or knowingly makes a false certificate or statement on such abstract, shall be fined not more than $500.00.
§ 4185 Repealed
[Repealed]
2001, No. 63, § 283(c), eff. July 1, 2003.
§ 4186 Repealed
[Repealed]
2007, No. 190 (Adj. Sess.), § 9, eff. June 6, 2008.
Subchapter 5 Hearings on Appraisals and Abstracts
§ 4221 Time and notice of hearings
On or before May 20, the listers shall meet at the place so designated by them and on that day and from day to day thereafter shall hear persons aggrieved by their appraisals or by any of their acts until all questions and objections are heard and decided. Listers shall add to the aforesaid abstract certificates setting forth such corrections therein as they shall determine and shall forward to each taxpayer a copy of any certificate relating to his or her list. Such hearings shall not be held later than June 2.
(Amended 1983, No. 85, § 7.)
§ 4222 Procedure
The listers shall meet at the time and place designated in such notice to hear all persons aggrieved as aforesaid who have filed their objections in writing and on that day, and from day to day thereafter, shall hear those appearing in person or by agents or attorneys until all such objections have been heard and considered. All objections filed in writing with the board of listers at or prior to the time fixed for hearing appeals shall be determined by the board notwithstanding that the person filing the objections fails to appear in person, or by agent or attorney, and proper notification of the listers determination shall be sent to the taxpayer.
(Amended 1973, No. 86, § 1, eff. for the tax year beginning April 1, 1974, and thereafter.)
§ 4223 Evidence; voluntary payment
A person so objecting may submit such evidence under oath or in documentary form as shall be pertinent thereto. Nothing herein contained shall permit the filing of objections by a person who has theretofore, without protest, voluntarily paid his or her taxes assessed on a defective or invalid grand list for that year.
§ 4224 Amendment; certificate; notice
When all objections so stated have been determined by the listers, they shall amend such abstract relating to the persons so aggrieved, if they shall so determine, and shall add thereto a certificate signed by them setting forth such amendments. By June 9, notice in writing of such amendments therein made shall be forthwith delivered or mailed postage prepaid to each of the persons filing such objections. The notice shall inform the taxpayer that he or she may appeal from this decision to the board of civil authority by lodging his or her appeal with the town clerk within 14 days of the mailing of the written notice of amendments. Unless the personal notices required by this section were sent by registered or certified mail, or unless an official certificate of mailing of the same was obtained from the post office, in the case of any controversy subsequently arising, it shall be presumed that the personal notices were not mailed as required.
(Amended 1983, No. 85, § 8; 1993, No. 49, § 23, eff. May 28, 1993.)
Subchapter 6 Corrections in Grand List After Return
§ 4261 Correcting omission from grand list
When real or personal estate is omitted from the grand list by mistake or an obvious error is found, the listers, with the approval of the selectboard, on or before December 31, may supply such omissions or correct such errors and make a certificate thereon of the fact; provided, however, the listers may make a correction resulting from the filing or rescission of a homestead declaration without approval of the selectboard.
(Amended 2005, No. 38, § 14, eff. June 2, 2005; 2019, No. 175 (Adj. Sess.), § 1, eff. Oct. 8, 2020.)
§ 4262 Legalizing defective or invalid grand list
When the listers fail to subscribe and attach to the grand list the oath prescribed in section 4151 of this title within the time required, or fail to lodge the grand list within the time prescribed in such section, or if a defective or invalid grand list is lodged within the time so prescribed, or if such grand list is otherwise defective or invalid, on or before February 15 next ensuing, the listers shall correct any defective grand list theretofore lodged in the town clerk’s office, subscribe and append thereto the oath prescribed, and perform any act theretofore omitted that is necessary to render such grand list valid.
§ 4263 Listers’ certificate
The listers shall add to such grand list so amended and corrected a certificate setting forth their doings in respect thereto and the date whereon such amendments or corrections were made or the date whereon such list was lodged in the town clerk’s office.
§ 4264 Clerk’s certificate
When such grand list is so amended or corrected, the town clerk shall affix thereto his or her certificate showing the date whereon such amendments were added or whereon such grand list was lodged in his or her office, and thereupon the same shall become the grand list of the town wherein the same is lodged for the year beginning on the first day of the preceding April and shall be valid and of the same force and effect as if the same had been filed within the time prescribed in this chapter.
§ 4265 When grand list not filed within time
In case an abstract or grand list is invalid solely on account of the failure of the listers to lodge such abstract or grand list in the office of the town clerk within the time required by law or to return the appraisal within such time, they shall add a certificate thereto setting forth the date whereon the same was so lodged or returned. Thereupon such proceedings shall be had as are hereinbefore provided for legalizing abstracts, grand lists, or appraisals otherwise defective or invalid.
(Amended 1957, No. 219, § 2, eff. July 1, 1961.)
Subchapter 7 Other Tax Lists
§ 4301 Basis for county taxes
(a) The equalized municipal property tax grand lists for each town, unorganized town and gore, and the unified towns and gores of Essex County shall be the basis of taxation for county purposes.
(b) Annually, on or before January 1, the Director shall provide to each county treasurer the equalized municipal property tax grand list for each town, unorganized town, and gore within the county, and the unified towns and gores of Essex County. “Equalized municipal property tax grand list” in this section shall mean the equalized education property tax grand list as defined in chapter 135 of this title plus inventory, machinery, and equipment subject to municipal tax in that municipality at its grand list value.
(Amended 1971, No. 73, § 7; 1977, No. 105, § 14(a); 1977, No. 105, § 14(a); 1999, No. 49, § 5, eff. June 2, 1999; 2011, No. 143 (Adj. Sess.), § 35, eff. May 15, 2012.)
§ 4302 Repealed
[Repealed]
1999, No. 49, § 6(a), eff. June 2, 1999.
§ 4303 Repealed
[Repealed]
1999, No. 49, § 6(b), eff. June 2, 1999.
§ 4304 Fire district list
In a town where a fire district is organized after the listers of such town have completed their grand list and in a town where a fire district has previously been organized and the listers have neglected to designate the list of such fire district as provided by law, upon the application of three legal voters of such fire district, the listers shall make such designation upon the grand list of the town and such list shall be valid.
Subchapter 8 Extensions of Time
§ 4341 Generally
The several dates fixed by law on or before which: (1) abstracts of individual lists shall be completed and lodged in the town clerk’s office; (2) meetings of listers may be held to hear grievances; (3) hearings upon such grievances shall be closed; (4) meetings of the board of civil authority shall be held to consider the same; (5) hearings upon such appeal shall be closed; (6) the grand list shall be completed and deposited in the town clerk’s office; (7) listers shall lodge inventories of taxpayers with the town clerk; and (8) abstracts of the grand list shall be filed with the town clerk shall be extended as follows: In towns of fewer than 5,000 inhabitants, 30 days; in towns of 5,000 or more inhabitants, 50 days. Nothing contained in this section shall in any manner change the date fixed in a municipal charter whereon any of the aforesaid acts or things are therein required to be done or performed.
(Amended 1977, No. 105, § 14(a); 1979, No. 177 (Adj. Sess.), § 1; 1993, No. 49, § 4, eff. May 28, 1993; 1995, No. 169 (Adj. Sess.), § 11, eff. May 15, 1996.)
§ 4342 Extensions by the Director
On written application therefor made by the listers or assessors of any town, with the approval of the selectboard of the town or mayor of the city, the several dates fixed by law and extended by section 4341 of this title or the charter of any municipal corporation, on or before which certain acts must be done relating to duties of listers and assessors, may be further extended by the Director and such extensions shall be in writing.
(Amended 1977, No. 105, § 14(a), eff. July 1, 1977; 1993, No. 49, § 5, eff. May 28, 1993; 2019, No. 175 (Adj. Sess.), § 2, eff. Oct. 8, 2020.)
Chapter 131 Appeals
Subchapter 1 To Board of Civil Authority
§§ 4401, 4402 Repealed
[Repealed]
1957, No. 219, § 4, eff. July 1, 1961.
§ 4403 Appeal from appraisal made other than on April 1
Within 14 days after the date of mailing of notice required under section 4046 of this title, a person aggrieved by the decision of the listers under the provisions of section 4046 of this title may appeal therefrom pursuant to the provisions of sections 4407-4410 of this title.
(Amended 1983, No. 85, § 9.)
§ 4404 Appeals from listers as to grand list
(a) Within 14 days after the date of notice thereof, a person aggrieved by the final decision of the listers under the provisions of section 4221 of this title may appeal in writing therefrom to the board of civil authority by lodging his or her appeal with the town clerk, who shall record the same in the book containing the abstract of individual lists. The grounds upon which such appeal is based shall therein be briefly set forth.
(b) The town clerk forthwith shall call a meeting of the board to hear and determine such appeals, which shall be held at such time, not later than 14 days after the last date allowed for notice of appeal, and at such place within the town as he or she shall designate. Notice of such time and place shall be given by posting a warning therefor in three or more public places in such town and by mailing a copy of such warning, postage prepaid, to each member of the board, an agent designated by the legislative body, the chair of the board of listers, and to all persons so appealing.
(c)(1) The board shall meet at the time and place so designated, and on that day and from day to day thereafter shall hear and determine such appeals until all questions and objections are heard and decided. Each property, the appraisal of which is being appealed, shall be inspected by a committee of not less than three members of the board who shall report to the board within 30 days from the hearing on the appeal and before the final decision pertaining to the property is given. If, after notice, the appellant refuses to allow an inspection of the property as required under this subsection, including the interior and exterior of any structure on the property, the appeal shall be deemed withdrawn. The board shall, within 15 days from the time of the report, certify in writing its notice of decision, with reasons, in the premises, and shall file the notice with the town clerk who shall thereupon record the same in the book wherein the appeal was recorded and forthwith notify the appellant in writing of the action of such board by certified mail. If the board does not substantially comply with the requirements of this subsection and if the appeal is not withdrawn by filing written notice of withdrawal with the board or deemed withdrawn as provided in this subsection, the grand list of the appellant for the year for which appeal is being made shall remain at the amount set before the appealed change was made by the listers; except, if there has been a complete reappraisal, the grand list of the appellant for the year for which appeal is being made shall be set at a value that will produce a tax liability equal to the tax liability for the preceding year. The town clerk shall immediately record the same in the book wherein the appeal was recorded and forthwith notify the appellant in writing of the action by certified mail. Thereupon the appraisal so determined pursuant to this subsection shall become a part of the grand list of the person.
(2) During a declared state of emergency under 20 V.S.A. chapter 1, a board of civil authority within a municipality affected by an all-hazards event shall not be required to physically inspect any property that is the subject of an appeal. If the appellant requests in writing that the property be inspected for purposes of the appeal, a member or members of the board shall conduct the inspection through electronic means. If the appellant does not facilitate the inspection through electronic means, then the appeal shall be deemed withdrawn.
(3) As used in this subsection, “electronic means” means the transmittal of video or photographic evidence by the appellant at the direction of the board members conducting the inspection.
(d) Listers and agents to prosecute and defend suits wherein a town is interested shall not be eligible to serve as members of the board while convened to hear and determine such appeals nor shall an appellant, the appellant’s servant, agent, or attorney be eligible to serve as a member of the board while convened to hear and determine any appeals. However, listers and agents to prosecute and defend suits wherein a town is interested shall be given the opportunity to defend the appraisals in question.
(Amended 1959, No. 58, eff. April 1, 1959; 1961, No. 4; 1963, No. 201; 1973, No. 104, § 2, eff. April 25, 1973; 1983, No. 85, § 10, affecting property tax years beginning on and after April 1, 1984; 1993, No. 49, § 6, eff. May 28, 1993; 1993, No. 117 (Adj. Sess.), § 1, eff. March 24, 1994; 1995, No. 169 (Adj. Sess.), § 12, eff. May 15, 1996; 2019, No. 84 (Adj. Sess.), § 3; 2021, No. 157 (Adj. Sess.), § 9, eff. July 1, 2022.)
§ 4405 Oath
The members of the board of civil authority shall each take, subscribe, and file in the town clerk’s office before entering upon the discharge of their duties under section 4404 of this title the following oath, and the oath as subscribed shall be recorded in such clerk’s office:
“I do solemnly swear (or affirm) that I will well and truly hear and determine all matters at issue between taxpayers and listers submitted for my decision. So help me God.” (or, “under the pains and penalties of perjury.”)
§ 4406 Repealed
[Repealed]
§ 4407 Appeal from proceedings to correct abstracts
Within 14 days after the date of notice thereof, a person aggrieved by the final decision of the listers under the provisions of sections 4112-4116 and 4222-4224 of this title may appeal therefrom and shall file his or her objections in writing with the town or city clerk, who shall call a meeting of the board of civil authority at a time and place to be determined by the clerk, but such time shall not be later than 14 days after the last date allowed for notice of appeal. Notices in writing of such appeal and of the time and place of such hearing shall be delivered in person or mailed, postage prepaid, to the appellant and one or more of the listers.
(Amended 1983, No. 85, § 11; 1991, No. 129 (Adj. Sess.), § 1; 1993, No. 49, § 7, eff. May 28, 1993.)
§ 4408 Hearing by board
(a) On the date so fixed by the town clerk and from day to day thereafter, the board of civil authority shall hear such appellants as appear in person or by agents or attorneys until all such objections have been heard and considered. All objections filed in writing with the board of civil authority at or prior to the time fixed for hearing appeals shall be determined by the board, notwithstanding that the person filing the objections fails to appear in person or by agent or attorney.
(b), (c) [Repealed.]
(Amended 1971, No. 73, § 9, eff. April 16, 1971; 2009, No. 1 (Sp. Sess.), § H.22; 2011, No. 4, § 1, eff. Feb. 23, 2011; 2011, No. 155 (Adj. Sess.), § 20.)
§ 4409 Certification of changes
The board of civil authority may increase, reduce, or sustain an appraisal made by listers. The action taken in such appeal proceedings shall be certified in writing by the board of civil authority to the town clerk, who shall record the same in such abstract and make proper notations therein opposite the name of each taxpayer whose appeal is thus determined and shall forthwith notify the appellant in writing of the action of such board, sent by certified mail.
(Amended 1971, No. 73, § 10, eff. April 16, 1971; 1973, No. 104, § 3, eff. April 25, 1973.)
§ 4410 When no appeal taken
When all section 4407 appeals so taken have been determined as aforesaid, the listers shall amend or correct the grand list to conform to such abstracts, shall complete the grand list in the town clerk’s office, shall subscribe and append thereto the oath prescribed in section 4151 of this title, and shall affix thereto a certificate setting forth their doings in respect thereof and the date whereon such grand list was so amended.
§ 4411 Modifying grand list to conform with results of an appeal
If, at the time when the listers are required to complete the grand list and to lodge the same with the town clerk by section 4151 of this title, an appeal from the listers is pending and undetermined, such appeal shall be determined as soon as may be thereafter, and the board deciding such appeal shall file with the town clerk a certificate setting forth its decision in the premises, and he or she shall record the same in the grand list book, and thereupon the grand list shall be modified or amended to conform thereto.
Subchapter 2 To Director or to Superior Court
§ 4441 Repealed
[Repealed]
1969, No. 253 (Adj. Sess.), § 3.
§ 4442 Repealed
[Repealed]
1959, No. 158, § 5, eff. May 5, 1959.
§§ 4443-4451 Repealed
[Repealed]
1969, No. 253 (Adj. Sess.), § 3.
§ 4452 Valuations
(a) On or before May 1 of each year, the Division of Property Valuation and Review of the Department of Taxes shall furnish the listers in each town or city with the valuation of all taxable property of any public utility situated therein as reported by such utility to the Division.
(b) Each public utility shall furnish to the Division not later than March 31 in each year a sworn inventory of all its taxable property in such form as will show the valuation of its property in each town, city, or other municipality.
(c) The Division shall prescribe the form of such report and the officer or officers who shall make oath thereto.
(d) The valuations furnished under this section shall be considered along with any other information as may reasonably be required by listers in determining and fixing the valuations of property for the purposes of property taxation. The Division may require that each municipality use certain valuations furnished under this section. The valuations provided by the Division for property used for the transmission and distribution of electricity shall be used by the listers as the valuations of that property for purposes of property taxation.
(Added 1975, No. 184 (Adj. Sess.); amended 1983, No. 152 (Adj. Sess.); 1999, No. 49, § 29, eff. June 2, 1999; 2023, No. 144 (Adj. Sess.), § 8, eff. June 3, 2024.)
§§ 4453-4460 [Reserved for future use]
§ 4461 Time and manner of appeal
(a) A taxpayer or the selectboard members of a town aggrieved by a decision of the board of civil authority under subchapter 1 of this chapter may appeal the decision of the board to either the Director or the Superior Court of the county in which the property is located. The appeal to the Superior Court shall be heard without a jury. The appeal to either the Director or the Superior Court shall be commenced by filing a notice of appeal pursuant to Rule 74 of the Vermont Rules of Civil Procedure within 30 days after entry of the decision of the board of civil authority. The date of mailing of notice of the board’s decision by the town clerk to the taxpayer shall be deemed the date of entry of the board’s decision. The town clerk shall transmit a copy of the notice to the Director or to the Superior Court as indicated in the notice and shall record or attach a copy of the notice in the grand list book. The entry fee for an appeal to the Director is $70.00; provided, however, that the Director may waive, reduce, or refund the entry fee in cases of hardship or to join appeals regarding the same parcel. If, in the opinion of the Director, an appeal under this subsection involves a complex or unique property or valuation that would be best adjudicated by the Superior Court, the Director may decline to assign a property valuation hearing officer pursuant to section 4465 of this title and shall forward the appeal to the Superior Court where it shall be heard. An appeal forwarded by the Director under this subsection shall be considered timely filed in the Superior Court if it was timely appealed to the Director.
(b) On or before the last day on which appeals may be taken from the decision of the board of civil authority, an agent designated by the legislative body of the town, in the name of the town, on written application of one or more taxpayers of the town whose combined grand list represents at least three percent of the grand list of the town for the preceding year, shall appeal to the Superior Court from any action of the board of civil authority not involving appeals of the applying taxpayers. However, the agent designated by the legislative body shall, in any event, have at least six business days after receipt of such taxpayers’ application for appeal in which to take the appeal, and the date for the taking of such appeal shall accordingly be extended, if necessary, until the six business days shall have elapsed. The $70.00 entry fee shall be paid by the applicants with respect to each individual property thus being appealed that is separately listed in the grand list.
(c) [Repealed.]
(d) Fees collected under this section shall be credited to a special fund established and managed pursuant to chapter 7, subchapter 5 of this title and shall be available to the Department of Taxes to offset the costs of providing those services.
(Added 1969, No. 253 (Adj. Sess.), § 1; amended 1971, No. 185 (Adj. Sess.), § 217, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1977, No. 66; 1977, No. 105, § 14(a); 1979, No. 177 (Adj. Sess.), § 2; 1983, No. 201 (Adj. Sess.), § 7, eff. April 27, 1984; 1993, No. 131 (Adj. Sess.), § 1; 1997, No. 59, § 12, eff. June 30, 1997; 1997, No. 161 (Adj. Sess.), § 21a, eff. Jan. 1, 1998; 1999, No. 49, § 45, eff. June 2, 1999; 2005, No. 202 (Adj. Sess.), § 8; 2017, No. 11, § 58; 2019, No. 51, § 3, eff. June 10, 2019; 2019, No. 84 (Adj. Sess.), § 4; 2021, No. 163 (Adj. Sess.), § 5, eff. June 1, 2022.)
§ 4462 Repealed
[Repealed]
1999, No. 49, § 46, eff. June 2, 1999.
§ 4463 Objections to appeal
When a taxpayer, an agent designated by the legislative body of the town, or selectboard claims that an appeal to the Director is in any manner defective or was not lawfully taken, on or before 14 days after mailing of the notice of appeal by the clerk under Rule 74(b) of the Vermont Rules of Civil Procedure, the taxpayer, agent, or selectboard shall file objections in writing with the Director and furnish the appellant or appellant’s attorney with a copy of the objections. When the taxpayer, agent, or selectboard so requests, the Director shall thereupon fix a time and place for hearing the objections and shall notify all parties thereof, by mail or otherwise. Upon hearing or otherwise, the Director shall pass upon the objections and make such order in relation thereto as is required by law. The order shall be recorded or attached in the town clerk’s office in the book wherein the appeal is recorded.
(Added 1969, No. 253 (Adj. Sess.), § 1; amended 1971, No. 185 (Adj. Sess.), § 219, eff. March 29, 1972; 1977, No. 105, § 14(a); 1999, No. 49, § 47, eff. June 2, 1999; 2003, No. 70 (Adj. Sess.), § 38, eff. March 1, 2004; 2017, No. 11, § 59; 2019, No. 84 (Adj. Sess.), § 5.)
§ 4464 Withdrawal of appeal
On application to the Director, an appellant may request leave to withdraw his or her appeal at any time before it is heard. When an appeal is withdrawn, the Director shall so certify to the clerk of the town from the action of whose listers or board of civil authority the appeal was taken, and the clerk shall record the certificate of withdrawal of the appeal. The appraisal from which the appeal was taken shall then become a part of the appraisal or grand list of the taxpayer.
(Added 1969, No. 253 (Adj. Sess.), § 1; amended 1971, No. 185 (Adj. Sess.), § 220, eff. March 29, 1972; 1977, No. 105, § 14(a).)
§ 4465 Appointment of property valuation hearing officer; oath; pay
When an appeal to the Director is not withdrawn or forwarded by the Director to Superior Court pursuant to subsection 4461(a) of this title, the Director shall refer the appeal in writing to a person not employed by the Director, appointed by the Director as hearing officer. The Director shall have the right to remove a hearing officer for inefficiency, malfeasance in office, or other cause. In like manner, the Director shall appoint a hearing officer to fill any vacancy created by resignation, removal, or other cause. Before entering into their duties, persons appointed as hearing officers shall take and subscribe the oath of the office prescribed in the Constitution, which oath shall be filed with the Director. The Commissioner of Taxes shall pay each hearing officer $38.00 per hour plus a cost-of-living adjustment in an amount equal to any adjustment approved for exempt employees by the Secretary of Administration, together with reasonable expenses as the Commissioner may determine. A hearing officer may subpoena witnesses, records, and documents in the manner provided by law for serving subpoenas in civil actions and may administer oaths to witnesses.
(Added 1969, No. 253 (Adj. Sess.), § 1; amended 1977, No. 105, § 14(a); 1995, No. 178 (Adj. Sess.), § 293; 1997, No. 59, § 13, eff. June 30, 1997; 2005, No. 215 (Adj. Sess.), § 279; 2013, No. 73, § 32; 2015, No. 134 (Adj. Sess.), § 7, eff. May 25, 2016; 2019, No. 175 (Adj. Sess.), § 6, eff. Oct. 8, 2020; 2021, No. 163 (Adj. Sess.), § 6, eff. June 1, 2022; 2025, No. 73, § 67, eff. July 1, 2025.)
§ 4466 Conduct of appeal before hearing officer
Unless expressly waived by all parties to the appeal, the provisions of 3 V.S.A. chapter 25 shall govern all proceedings before a hearing officer except where inconsistent with this subchapter. A hearing officer shall promptly notify in writing the clerk of the town and all other parties to the appeal of the place within the town wherein the appeal is taken, of the place within such town and the time at which the parties shall be heard, such notice to be delivered in person or by mail, postage prepaid.
(Added 1969, No. 253 (Adj. Sess.), § 1; amended 1995, No. 178 (Adj. Sess.), § 294; 2013, No. 73, § 33.)
§ 4467 Determination of appeal
(a) Upon appeal to the Director or the court, the hearing officer or court shall proceed de novo and determine the correct valuation of the property as promptly as practicable and to determine a homestead and a housesite value if a homestead has been declared with respect to the property for the year in which the appeal is taken. The hearing officer or court shall take into account the requirements of law as to valuation, and the provisions of Chapter I, Article 9 of the Constitution of Vermont and the 14th Amendment to the Constitution of the United States.
(b) If the hearing officer or court finds that the listed value of the property subject to appeal does not correspond to the listed value of comparable properties within the town, the hearing officer or court shall set the property in the list at a corresponding value. The findings and determinations of the hearing officer shall be made in writing and shall be available to the appellant.
(c)(1) If the appeal is taken to the Director, the hearing officer may inspect the property prior to making a determination, unless one of the parties requests an inspection, in which case the hearing officer shall inspect the property prior to making a determination. Within 10 days of the appeal being filed with the Director, the Director shall notify the property owner in writing of the Director’s option to request an inspection under this section.
(2) During a declared state of emergency under 20 V.S.A. chapter 1, a hearing officer shall not be required to physically inspect any property that is the subject of an appeal. If the appellant requests in writing that the property be inspected for purposes of the appeal, the hearing officer shall conduct the inspection through electronic means. If the appellant does not facilitate the inspection through electronic means, then the appeal shall be deemed withdrawn.
(3) As used in this subsection, “electronic means” means the transmittal of video or photographic evidence by the appellant at the direction of the hearing officer conducting the inspection.
(Added 1969, No. 253 (Adj. Sess.), § 1; amended 1973, No. 104, § 4, eff. April 25, 1973, operative only with respect to appeals brought after that date; 1983, No. 215 (Adj. Sess.), § 1, eff. May 10, 1984; 1995, No. 178 (Adj. Sess.), § 295; 1999, No. 49, § 16, eff. June 2, 1999; 2003, No. 76 (Adj. Sess.), § 12, eff. Feb. 17, 2004; 2013, No. 73, § 34; 2015, No. 134 (Adj. Sess.), § 8, eff. May 25, 2016; 2021, No. 157 (Adj. Sess.), § 10, eff. July 1, 2022.)
§ 4468 Transmission and record of determination
The Director or clerk of the court shall forward by certified mail one copy of the determination to the taxpayer, one copy to the Commissioner and one copy to the town clerk, who shall record the same in the book in which the appeal was recorded under section 4461 of this title. The appraisal so fixed by the Director or court shall become the basis for the grand list of the taxpayer for the year in which the appeal is taken and, if the appraisal relates to real property, for the two next ensuing years, except that if the real property is enrolled in use value appraisal under chapter 124 of this title, the value of enrolled land, prior to its being equalized, shall be the per acre value set annually by the Current Use Advisory Board multiplied by the number of acres enrolled. The appraisal, however, may be changed in the ensuing two years if the taxpayer’s property is materially altered, changed, damaged, or if the municipality, city, or town in which it is located has undergone a complete revaluation of all taxable real estate.
(Added 1969, No. 253 (Adj. Sess.), § 1; amended 1971, No. 185 (Adj. Sess.), § 221, eff. March 29, 1972; 1973, No. 86, § 2, eff. for the tax year beginning April 1, 1974, and thereafter; 1973, No. 106, § 12, eff. 30 days from April 25, 1973; 1977, No. 105, § 14(a); 1999, No. 49, § 48, eff. June 2, 1999; 2001, No. 63, § 279a, eff. June 16, 2001.)
§ 4469 Tax credit upon successful appeal
Whenever a taxpayer has had his or her appraisal reduced upon appeal and has paid the tax due upon the original appraisal that he or she appealed, the taxpayer shall be entitled to a credit against the tax for the next ensuing tax year, and for succeeding years if required to use up the amount of the credit, for the amount of tax paid in excess of that due upon the reduced appraisal.
(Added 1975, No. 158 (Adj. Sess.), § 2.)
Chapter 133 Assessment and Collection of Taxes
Subchapter 1 Assessment Generally
§ 4601 Taxes to be uniformly assessed
Taxes shall be uniformly assessed on the lists of the persons taxed unless otherwise provided by law.
§ 4602 List upon which taxes are assessed
Subject to the provisions relating to the assessment of taxes on an amended or corrected grand list, State and county taxes assessed, and town, village, school, and highway taxes assessed or voted on or after March 1 in any year and before March 1 following, and fire district taxes assessed or voted on or after January 1 in any year and before January 1 following, shall be assessed on the grand list returned to the town clerk’s office in May of such year. In case of incorporated villages that have their annual meetings before March 1, taxes so voted at such annual meetings, subject to such provisions, shall be assessed on the grand list returned to the town clerk’s office in May of the year when such taxes are voted.
§ 4603 Taxes assessed on defective list
All taxes assessed on a defective or invalid grand list described in sections 4262-4264 of this title that have been theretofore voluntarily paid without protest shall be valid. All taxes theretofore or thereafter assessed on such grand list and not paid as aforesaid shall be assessed on such grand list so amended and corrected.
§ 4604 Assessment on corrected or amended list
Taxes voted and not assessed shall be assessed on the amended list described in section 4261 of this title. Where a tax has been assessed, an assessment of the same percent may be made upon additions to such list. The collector shall collect the same as though it were in the original tax bill, and the warrant in such original tax bill shall be sufficient authority therefor.
§ 4605 Assessment when appraisal on other than April 1
(a) If no appeal is taken within the time allowed in section 4403 of this title, or if an appeal is taken, upon determination of such appeal, the treasurer shall forthwith assess the tax on the amended list described in section 4047 of this title and mail to the taxpayer at his or her last known address a notice stating the amount of his or her grand list, the tax rate, the amount of taxes due from him or her, and when the same are payable. The same shall be payable to the tax collector not less than five nor more than 15 days after such assessment. Unless otherwise provided, collection of such taxes shall be in accordance with the provisions of this chapter.
(b) Taxes voted and not assessed shall be assessed on such amended list. Where a tax has been assessed, an assessment of the same percent may be made upon additions to such list. The collector shall collect the same as though it were in the original tax bill, and the warrant in such original tax bill shall be sufficient authority therefor.
§ 4606 Apportionment of assessment on transfer
When a part of a piece of real estate has been transferred in any year, the listers shall make such apportionment of the assessments thereon as they deem just.
§ 4607 Effect of irregularities
The assessment of a tax upon a list made up in part of property not taxable to the person assessed, or of real estate carried from an irregular or void appraisal into an annual grand list, or of property erroneously set in the list, shall not invalidate the whole tax but only such part thereof as is assessed upon the invalid part of the list.
(Amended 1957, No. 219, § 2, eff. July 1, 1961.)
§ 4608 Resident ownership ratio
(a) The board of listers of each town or city shall report annually to the Director:
(1) the value as appears in the grand list of all taxable real property in the town or city; and
(2) the value as appears in the grand list of all such taxable property in the town or city, classified according to the use of the property and, within each use category, further classified as owned by one of the following:
(A) resident of the town or city;
(B) resident of the State but not of the town or city;
(C) individual domiciled outside the State; or
(D) corporation, partnership, or other entity.
(b) The reports shall be made on forms provided by the Director, and annually on October 1 or as soon thereafter as may be practical, the Director shall on the basis of available data compute the percentage at fair market value of all taxable property in the State and in each town or city, and the percentage of each use category of taxable property in the State and in each town or city, that is owned by residents of the town or city, other residents of the State, individuals domiciled outside the State, and corporations, partnerships, and other entities.
(c) All such reports and computations shall be classified as public information, except that the Director is authorized and directed to make reasonable charges for any documentation of such information to persons requesting the same, other than agencies of government, State or local.
(d) The Director shall consult with local listers and establish the date or dates, in any or all cases, when such reports shall be made to him or her by local officials in each year, having regard to resources of manpower and personnel available to him or her and to local officials, and he or she shall have power to alter or extend such due dates if such is reasonably necessary.
(e) “Resident” means those individuals who, to the best knowledge of the listers, are legal residents of the town, city, or State, as the case may be, on April 1.
(Added 1975, No. 92, § 1, eff. April 30, 1975; amended 1977, No. 105, § 14(a), eff. July 1, 1977; 1991, No. 3, § 1, eff. March 6, 1991; 1991, No. 186 (Adj. Sess.), § 36, eff. May 7, 1992.)
§ 4609 Military personnel penalty and interest exemption
(a) Notwithstanding any other provision of law, the legislative body of a municipality or the voters at a town meeting may exempt from the payment of any penalty, fee, or interest relative to the failure to make timely payment of taxes upon the principal residences of military personnel, individuals who have been called to full-time active duty by the President of the United States as the result of a military conflict in an area designated a combat zone by the President of the United States, for the time such member is on active duty and for 180 days thereafter.
(b) Persons exempted under subsection (a) of this section shall provide a copy of their military orders or other appropriate documentation to the municipal clerk in order to secure such benefits.
(Added 1991, No. 110, § 3, eff. June 28, 1991.)
Subchapter 2 Collector of Taxes
§ 4641 Liability for mistakes in the tax bill
A collector shall not be liable to an action that may accrue in consequence of mistake, mischarge, or overcharge in the tax bill committed to him or her for collection.
§ 4642 Indemnification
A collector shall be indemnified by the town or other municipality by which he or she is elected or appointed for the damage that he or she suffers by the illegality of the imposition, assessment, or apportionment of a tax or the illegality or informality in the tax bill, warrant, or other precept furnished him or her for the collection of such tax. Such damage may be recovered by him or her of such town, village, or municipality.
§ 4643 Vacation of office upon failure to post additional bond
When the bond given by a collector of taxes or the treasurer of a town or municipality therein becomes insufficient in the judgment of the selectboard, trustees, prudential committee, or the executive officers of the municipality to which such bond was given, they may require in writing an additional bond in such sum and with such sureties as they deem necessary. If the collector or the treasurer does not give such additional bond within 10 days after such notice, his or her office shall be vacant.
§ 4644 Collector’s duty on vacancy
On demand of such selectboard, trustees, prudential committee, or executive officers, the collector whose office so becomes vacant shall lodge with the treasurer of the municipality the tax bills and tax warrants issued to him or her and a list of the names of all persons included in such tax bills against whom there are unpaid taxes and the amount due from each. When such collector willfully fails to comply with any of the provisions of this section, he or she shall be imprisoned not more than five years or fined not more than $1,000.00, or both.
(Amended 1971, No. 199 (Adj. Sess.), § 17.)
§ 4645 Successor’s powers
The collector of the municipality shall receive from the treasurer of the municipality the tax warrants and tax bills deposited with him or her under section 4644 of this title and complete the collection as though the same had been originally committed to him or her.
§ 4646 Duty to pay over collections
The collector of a town or of a municipality within it, whether or not such municipality has voted to collect its taxes by its treasurer, at the end of every two months and also when demanded in writing by the selectboard or other proper officers of such municipality, shall pay all taxes collected during such two months or since such last preceding payment into the treasury of such municipality. Such collector shall file with the treasurer thereof a list of the taxpayers from whom such taxes have been collected, showing the amounts collected and the years in which such taxes were due.
§ 4647 Collector to direct application
When a collector of taxes makes a payment on account of taxes, he or she shall state the tax on which the same shall be applied. If he or she fails to do so, the treasurer to whom the same is paid shall immediately notify the bondsmen of such collector of the fact that an application of the payment has not been made. Unless the collector shall direct an application within 10 days, the application made by the treasurer shall be conclusive.
§ 4671 Delivery of tax bill to successor
At the expiration of his or her term of office or when a collector removes from the town or other municipality for which he or she was appointed or elected, while a tax bill committed to him or her is uncollected in whole or in part, he or she shall lodge immediately with the treasurer of such municipality such tax bill and the monies collected thereon. If such collector dies or is placed under guardianship, his or her administrator, executor, or guardian shall perform the same duties on demand by the selectboard, trustees of a village, or city council. Such tax bill shall be audited and reissued to the succeeding collector of taxes, who shall receive the same and give his or her receipt therefor.
§ 4672 Liability of collector upon removal
A collector so removing, or the executor, administrator, or guardian of a collector who neglects the duties required in section 4671 of this title, shall be liable for the whole amount of such tax bill to the town or other municipality and shall not have authority to collect such unpaid taxes.
§ 4673 Successor’s powers
If a collector having in his or her hands uncollected taxes dies, removes from the State, or becomes otherwise incapacitated after commencing tax collection proceedings, a successor of such collector may complete such proceedings or collect such taxes. An unpaid tax not collected by a former collector may be collected under the same warrant by any successor.
§ 4674 Disability of collector
When a collector of town taxes is unable, from sickness or otherwise, to discharge his or her duties, and taxes are uncollected on a tax bill held by him or her, the selectboard may certify such disability on the warrant for the collection of such taxes and may appoint a person as collector, and in such certificate shall authorize and direct such collector to collect and pay over such taxes. The person so authorized shall have the same power and be subject to the same duties and penalties as the collector to whom such tax bill was originally committed.
(Amended 1963, No. 24.)
§ 4675 Death of delinquent collector
When a collector who is delinquent in the collection and payment of State taxes dies, the State Treasurer may give notice to one of the selectboard of the amount of such taxes in arrears and request payment thereof. If such taxes are not paid within 30 days thereafter, such Treasurer may issue an extent against the goods and chattels of the inhabitants of such town, and the same shall be collected as hereinafter provided in this chapter in case of an extent against the inhabitants of a town.
§ 4691 Collector’s liability generally
A collector who unlawfully neglects to collect and pay over a tax delivered to him or her shall be accountable for such tax or the arrearages thereof to the treasurer, selectboard, trustees, committees, or other persons authorized to receive the same. Such persons may, and, upon the receipt of a petition from the Director alleging that such collector has unlawfully neglected to collect and pay over a tax delivered to him or her, shall cite him or her to appear before a justice residing in an adjoining town, to show cause why an extent should not be issued against him or her for such arrearages and the costs of such proceedings. Such citation shall be served at least six days before the time appointed for hearing the same.
(Amended 1977, No. 105, § 14(a).)
§ 4692 Extent against delinquent collector
When a collector is delinquent in paying over a tax entrusted to him or her to collect and is cited as provided in section 4691 of this title, if it appears to the justice that such collector has not performed his or her duty pursuant to his or her warrant, unless such collector appeals from his or her decision, he or she shall issue an extent, directed as writs of attachment are directed, commanding the officer serving such extent to collect such arrearages and costs of the goods, chattels, or estate of such collector.
§ 4693 Appeal—Procedure
The collector or the person citing him or her before such justice may appeal from the judgment of the justice to the Superior Court if the appeal is claimed within two hours after the rendition of such judgment. The party appealing shall give security by way of recognizance to the opposite party at the time of taking such appeal that the appellant will prosecute his or her appeal to effect and pay the costs of prosecution.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 4694 Bond by collector
When such collector appeals, within 48 hours after the rendition of such judgment and appeal, he or she shall file with the clerk of the Superior Court to which such appeal is taken, a bond to the State or municipality to whose Treasury such taxes are payable, with sureties to be approved by such clerk, in a sum double the amount of arrearages of taxes as adjudged by such justice, conditioned for the payment of such sum of arrearages of taxes and costs as such Superior Court may finally adjudge to be paid by such collector. When such collector fails to give and file such bond, the justice shall issue an extent as though an appeal had not been taken.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 4695 Superior Court’s jurisdiction
The Superior Court shall have authority upon such appeal to try and determine the question whether such extent should issue and to issue the same.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 4696 Distraint of collector’s property
When an officer serving such extent distrains the property of the collector, the mode of notifying, advertising, and selling and the time for redemption shall be the same as in cases of sheriffs who do not execute or return an extent. Such collector shall be committed to jail for want of goods, chattels, or estate.
§ 4697 Distraint by copy
When a sheriff, high bailiff, or other officer having for service an extent issued against a delinquent collector of taxes distrains any class of property that may by law be attached on mesne process by lodging a copy in the town clerk’s office, such officer may lodge a copy of such extent, with a list of the property so distrained indorsed thereon with his or her return, in the town clerk’s office of the town in which such property is situated. Such lodgment shall give to such officer the same right to hold such property as if attached on mesne process and taken into the actual custody of such officer. Within 48 hours after lodging such copy in the town clerk’s office, such officer shall deliver to such delinquent collector or leave at his or her last and usual place of abode in this State, a like true and attested copy of such extent, with a list of the property distrained indorsed thereon, as is required in the like service of writs of attachment.
§ 4698 Excess realized on extent
When a municipality realizes out of the goods, chattels, or estate of such delinquent collector only part satisfaction upon extents against him or her, on demand it shall pay to such collector all sums realized from such tax bills in excess of the just balance due such municipality from such collector.
§ 4699 Discharge of imprisoned collector
When a collector has been committed to jail on any extent and the municipality shall realize on any of the tax bills lodged with the treasurer under this chapter the full amount due from the collector on all such extents, he or she may be discharged from such imprisonment by the order of a Superior judge upon proof of the foregoing facts, on notice to the treasurer of such municipality.
§§ 4700, 4701 Repealed
[Repealed]
§ 4702 Collection enjoined, time not reckoned
When the collection of taxes is restrained by injunction, the time such injunction is in force shall not be considered as a part of the time within which the collector is required to execute his or her warrant.
Subchapter 3 Collection of State and County Taxes
§ 4731 Collection of State and county taxes
When the General Assembly imposes a State or county tax, the State or county treasurer, unless otherwise provided, shall seasonably issue a warrant directed to the town treasurer. Such treasurer shall present such warrant to the selectboard who, within the time required by the warrant, shall draw an order on the town treasurer for the amount of such tax, and such treasurer shall forthwith pay the State or county treasurer, as the case may be, the amount of such order.
§ 4732 Instructions on tax warrants
The State Treasurer shall cause to be printed upon the back of each collector’s warrant for the collection of State taxes the time when the same is to be paid and the other duties to be performed by the collector as to such payment.
§ 4733 Repealed
[Repealed]
2003, No. 122 (Adj. Sess.), § 294c.
§ 4734 County treasurer’s powers
The county treasurer in collecting county taxes shall have the same powers as the State Treasurer in collecting State taxes.
§ 4735 Extent against town
When a collector does not pay into the State Treasury a State tax by the time prescribed in the warrant issued to him or her by the State Treasurer for the collection of such tax, the Treasurer shall issue his or her extent to the sheriff of any county, requiring him or her to levy such tax or the amount remaining due on the goods and chattels of the inhabitants of the town from which such tax is unpaid, and such sheriff shall levy and collect the same as aforesaid of the goods and chattels of any such inhabitants.
§ 4736 Owner of property taken may recover over
The owner of goods or chattels so taken and sold may recover of such town payment therefor and 12 percent interest thereon in a civil action under this section.
§ 4737 Extent against sheriff
When a sheriff does not execute or return an extent nor account to the Treasurer for the sum due thereon within 60 days from the time he or she receives it, the Treasurer shall issue his or her extent against such sheriff directed to the high bailiff of the county where such sheriff resides and the high bailiff shall levy and collect the same of the goods, chattels, or estate of the sheriff as collectors serve their warrants, giving 14 days’ notice of the sale of such goods and chattels. If real estate is taken, he or she shall advertise and sell it in the same manner, and the same time for redemption shall be allowed, as in case of the sale of lands by collectors for the payment of taxes. The high bailiff shall commit such sheriff to jail for want of sufficient goods, chattels, or estate.
§ 4738 High bailiff’s liability
When a high bailiff does not discharge his or her duty in thus collecting an extent, the Treasurer may recover against such bailiff and his or her sureties double the sum contained in such extent, with costs.
§ 4739 Tax to satisfy extent
When a collector is delinquent and an extent is issued against the town, the selectboard shall immediately make a tax bill sufficient to pay the sum due with the costs and deliver the same to another collector of the town to collect. If there is no such collector, the selectboard shall deliver the same to such person as they appoint. Such collector or person so appointed shall have the same power and be accountable in the same manner as collectors of town taxes.
Subchapter 4 Collection of Town and Other Taxes
§ 4771 Warrant for collection of taxes
A District judge may issue a warrant for the collection of taxes other than State and county taxes, although he or she is liable to pay a part of such tax. Collectors shall have the same powers in the collection of such taxes as town collectors have in the collection of State taxes.
(Amended 1973, No. 249 (Adj. Sess.), § 99, eff. April 9, 1974.)
§ 4772 Notice to taxpayers
The tax collector shall, at least 30 days prior to the date fixed for the payment of taxes by vote of the municipality, mail to each taxpayer at his or her last known address a notice stating the amount of his or her grand list, the tax rate, the amount of taxes due from him or her, and when the same are payable. If a prepayment discount is available, the tax notice shall include information regarding the discount. If no date is fixed by vote of the municipality for the payment of taxes or if no notice is mailed to the taxpayer at least 30 days prior to the date fixed for the payment of taxes, the date for the payment of taxes shall be 30 days from the date of mailing of notice to the taxpayer.
(Amended 1993, No. 68, § 2.)
§ 4773 Date and method of payment; discount
(a) A municipality that has not previously voted to establish the time and method of tax payment for the municipality may by majority vote of its members present and voting at a regular or special town meeting fix a date or dates, time of acceptance, and method of delivery, including acceptance of postmarked mail, for the payment of the tax and may direct its collector or treasurer, as receiver of taxes, to deduct a percent, to be fixed by such vote, not to exceed four percent from the tax of a person who pays his or her taxes on or before such date or dates.
(b) A municipality that does not vote to fix a date, time, or method of delivery for the payment of a tax shall accept payment of a tax delivered or postmarked before midnight on the day established in the notice required by section 4772 of this title.
(Amended 2003, No. 100 (Adj. Sess.), § 2.)
§ 4774 Discount allowed
(a) When a municipality votes that its taxes be paid to its treasurer or collector on or before a date or dates fixed, with a discount according to law, then the treasurer or collector may receive taxes in advance at any time after the municipality has so voted. Such treasurer or collector may allow a discount upon taxes paid in advance of the date or dates fixed at the rate fixed by such vote.
(b)(1) The treasurer or collector shall deposit to the General Fund any tax overpayment by a taxpayer who has paid by mail or electronic fund transfer, provided that:
(A) the payment made was equal to the taxes due without regard to the discount under section 4773 of this title; and
(B) the overpayment amount is $10.00 or less.
(2) If the taxpayer requests refund of such an overpayment within one year of payment, the treasurer or collector shall refund it.
(Amended 1987, No. 13; 2007, No. 121 (Adj. Sess.), § 30.)
§ 4791 Tax bills delivered to treasurer
When a town or municipality within it votes to collect its taxes by its treasurer, the proper officers, unless otherwise voted, shall make and deliver all tax bills to the treasurer of the municipality so voting, and such treasurer shall keep separate accounts of all monies received as highway or school taxes and pay out the same upon orders of the proper officers.
§ 4792 Notice to taxpayers
The treasurer shall, at least 30 days prior to the date fixed for the payment of taxes by vote of the municipality, mail to each taxpayer at his or her last known address a notice stating the amount of his or her grand list, the tax rate, the amount of taxes due from him or her, and when the same are payable. If a prepayment discount is available, the tax notice shall include information regarding the discount. If no date is fixed by vote of the municipality for the payment of taxes or if no notice is mailed to the taxpayer at least 30 days prior to the date fixed for the payment of taxes, the date for the payment of taxes shall be 30 days from the date of mailing of notice to the taxpayer.
(Amended 1987, No. 53, eff. May 15, 1987; 1993, No. 68, § 3.)
§ 4793 Warrant against delinquents
(a) Within 15 days after the expiration of the date or dates, fixed under the provisions of section 4792 of this title for the payment of taxes, the treasurer shall issue a warrant against the delinquent taxpayers for the amount of taxes remaining unpaid. Such warrants shall remain in full force until all the taxes thereon have been fully paid or otherwise discharged. The treasurer shall deliver such warrant, together with a rate bill of such delinquent taxes, to the collector of the town or municipality within it, who shall proceed forthwith to collect such taxes.
(b) Notwithstanding the provisions of subsection (a) of this section, a municipality may elect, at a special or annual meeting called for that purpose, to have the treasurer issue a warrant within less than 15 days after the expiration of the date or dates, fixed under the provisions of section 4792 of this title for the payment of taxes. A vote under this subsection shall specify the number of days within which the treasurer shall issue the warrant. A vote to shorten the period of time for issuance of a warrant shall remain in effect until rescinded or amended by the voters. For purposes of computing time under this section, “days” means calendar days.
(Amended 1997, No. 26, § 2.)
§ 4794 Omissions
When the names of one or more delinquent taxpayers and the amount of delinquent taxes due therefrom, or either, are omitted from a tax warrant issued under the provisions of section 4793 of this title, the treasurer so issuing such warrant, from time to time, may issue one or more additional warrants for the collection of such taxes, provided the same are issued within one year from the date whereon such taxes became delinquent. Warrants so issued and collectors receiving the same shall be subject to the provisions of section 4793 of this title.
§ 4795 Repealed
[Repealed]
1993, No. 68, § 5.
§ 4796 Absconding taxpayers
When the treasurer makes and files with the officers making the tax bill an affidavit that a person whose name is thereon is about to remove or abscond from the State, the treasurer may thereupon issue a warrant against such taxpayer for the amount of his or her tax, although such 30 days, as provided in section 4792 of this title, have not expired, and the collector shall execute the warrant. The collector shall be entitled to the same fees for collecting the taxes upon such warrants as he or she is allowed by law in the case of distraint of property in the collection of taxes, and such sum shall be taxed against the delinquent taxpayer.
(Amended 1993, No. 68, § 4.)
§ 4797 Taxes based on an amended or corrected grand list
The proper officials in town, village, school, and fire districts, as soon as conveniently may be after a defective or invalid grand list becomes valid pursuant to sections 4262-4264 and 4603 of this title, shall make out and deliver to the treasurer thereof tax bills for all taxes theretofore assessed but not paid. Such unpaid taxes shall become due and payable within the time prescribed by statute provided that time has not theretofore elapsed, otherwise within 30 days from the date of such last named tax bill.
§ 4798 Warrants
Warrants against one or more persons for the collection of the aforesaid unpaid taxes may be from time to time issued as other tax warrants are issued. Nothing in sections 4262-4264, 4603, and 4797 of this title shall be so construed as to require that all taxes so assessed and unpaid on such amended or corrected grand list shall be contained in one warrant.
§ 4799 Hiring tax collector
When a town is without a tax collector, the selectboard may hire any qualified person to act as tax collector for the town. The person hired need not be a resident of the town and shall have the same power and be subject to the same duties and penalties as a duly elected collector of taxes for the town.
(Added 1977, No. 30.)
§ 4821 Procedure
When jurisdiction over property, real or personal, for purposes of taxation is claimed by more than one municipality or is claimed by a municipality in this State and a municipality in another state, a person or corporation whose property is subject to such conflicting claims may pay the tax thereon to any municipality in this State claiming jurisdiction, under protest, or with notice of the other claim of jurisdiction. When it shall be finally determined by any court of last resort having jurisdiction that such property, real or personal, was improperly or unlawfully taxed by the municipality to which such tax had been paid, or if any compromise or adjustment is made that shall place the property in question in a jurisdiction other than that in which it is so taxed, the person or corporation paying the same under protest, or with notice as herein provided, may recover the same from the municipality to which the same was so paid in a civil action under this section.
§ 4822 Limitation on action to recover tax paid under protest
A cause of action for the recovery of money under the provisions of section 4821 of this title shall be deemed to have accrued at the time final judgment is rendered or compromise or adjustment completed, determining the question of jurisdiction of the property in question for purposes of taxation.
§ 4841 Collection delegated
A collector having an unpaid tax against a person who has removed from or resides outside the town in which such collector resides may make an abstract containing the person’s name, his or her grand list, and the tax against him or her, and append thereto a copy of his or her warrant certified by him or her, and deliver it to the collector of any town in which such person is or resides. Such collector may collect the tax as the original collector might have done; and his or her powers, liabilities, and fees therein shall be the same as if the tax and warrant had been originally committed to him or her. Such collector shall be paid only for actual travel. If he or she arrests such person, he or she shall commit him or her to the jail of the county in which the collector making the arrest resides.
§ 4842 Notice to taxpayer
When a collector has a tax for collection against a person residing outside the town in which the collector resides, he or she may notify such person thereof by a letter containing a statement of the amount of such tax and of the time and place when and where the collector will receive payment thereof. The time appointed for payment shall not be less than 20 nor more than 40 days from the time when the letter is deposited in the post office.
§ 4843 Collection fees
When the person so notified fails to pay such tax pursuant to notice, the collector may collect the same of such person and shall be entitled to $0.10 per mile for necessary travel to be collected with such tax and computed as in the service of process by sheriffs.
§ 4871 Article in warning
The warning for each annual town or other municipal meeting may contain an article in substance as follows:
“Will the town (or other municipality) vote to collect taxes on real and personal property in installments?”
§ 4872 Installment dates; discounts
In a town so voting to collect taxes on real and personal property in installments, all such taxes assessed on the grand list shall be due and payable in such installments as the town may vote, not to exceed four in number, payable to the town treasurer or collector. A taxpayer who pays each installment in full on or before the due date thereof shall be entitled to such rate of discount as the town may vote for the payment of each installment. No discount on any installment shall be allowed unless such installment shall be paid on or before the due date thereof. A taxpayer may anticipate subsequent installments and pay the same and shall be entitled to the proper rate of discount applicable at the time of payment. However, in towns where the annual settlement with the auditors is had on January 1, the fourth installment payment shall be due on December 31 preceding.
(Amended 1959, No. 22, eff. March 6, 1959; 1973, No. 203 (Adj. Sess.), eff. April 3, 1974; 1993, No. 68, § 6.)
§ 4873 Interest on installments
All taxes payable in installments may bear interest if the town so votes at a rate not to exceed one percent per month or fraction thereof for the first three months and thereafter one and one-half percent per month or fraction thereof, either from the due date of the last installment or from the due date of each installment. When a town so votes, such vote shall remain in effect until such time as the town rescinds the same by a majority vote of the legal voters present and voting at an annual or special meeting duly warned for such purpose.
(Amended 1963, No. 49, eff. April 19, 1963; 1973, No. 162 (Adj. Sess.), § 1, eff. March 20, 1974 for tax year beginning April 1, 1974; 1981, No. 133 (Adj. Sess.), § 3, eff. April 2, 1982 for the tax year beginning April 1, 1982, and thereafter.)
§ 4874 Delivery to collector of list of delinquents
Within 15 days after the due date of the final installment or within the time determined by the voters under section 4793 of this title, the town treasurer shall deliver to the collector a list of such unpaid taxes with the name of each delinquent. After giving 10 days’ notice in writing of the time and place of payment to each delinquent of the amount of the unpaid taxes and the legal fees thereon, the collector may immediately proceed to collect the same by proper process.
(Amended 1983, No. 131 (Adj. Sess.), § 1; 1997, No. 26, § 3.)
§ 4875 Absconding taxpayers
When the town treasurer or collector is informed and believes that a taxpayer whose taxes are unpaid is about to abscond or remove from the town, he or she shall at once institute in the name of the town a civil action to collect the same under sections 5222-5224 of this title, or the town treasurer may proceed under a warrant issued by him or her as provided by section 4796 of this title.
§ 4876 Manner of collection
When a town has voted to collect its taxes under the provisions of sections 4872-4875 of this title, such taxes, including State and county taxes based on the grand list, shall be collected thereunder.
(Amended 1977, No. 118 (Adj. Sess.), § 3, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978.)
§ 4877 Lien on real estate
The provisions of section 5061 of this title relating to tax liens on real estate shall apply to all taxes legally assessed and to be collected under the foregoing provisions of this article.
§ 4878 Effect on powers of tax collectors
The provisions of this article shall in no way abridge or enlarge the powers of the collectors as to any method or proceeding provided by existing law as to the collection of delinquent taxes.
§ 4911 Forms of writs
The forms of writs contained in this article, in the several courts of this State and other proceedings, shall, as near as circumstances will admit, be adopted and used, and shall be sufficient in law, but alterations may be made and allowed by the courts when necessary to adapt them to changes in the law.
§ 4912 Warrant to be issued by a district judge for the collection of town and other taxes
STATE OF VERMONT, To A. B., collector of the town of
_______ County, ss. } ______ , in the county of
_____ , (or to the collector of ______ school district, or other taxes,) (as the case may be)
Greeting:
By the authority of the State of Vermont, you are hereby commanded to levy and collect of the several persons named in the list herewith committed to you, the sum of money annexed to the name of each person, respectively, and pay the same to the Treasurer of the town of ________ , (or to such other person appointed to receive the same) on or before the _______ day of _______ ; and if any person neglects or refuses to pay the sum in which he or she is assessed in such list, you are hereby commanded to distrain the goods and chattels of such delinquent person, and the same dispose of according to law, for the satisfying of such sum, with your own fees; and, for want thereof, you are hereby commanded either to extend this warrant for the collection of such sum so assessed against such delinquent person, with costs, upon any land in this State belonging to such delinquent, according to law, or to take the body of such delinquent person, and him or her commit to the keeper of the jail, in the county of ________ (or such other jail as the law directs) within such jail, who is hereby commanded to receive such person, and him or her safely keep until he or she pays such sum so assessed with legal costs, together with your own fees, or is released according to law.
Dated at _______ in the county of _______ , the _______ day of _____________ A.D. 20_____ .
_________ , District Judge.
§ 4913 Warrant to be issued by treasurer of a town for collection of town and other taxes
STATE OF VERMONT, To A. B., collector of the town of
_______ County, ss. } ______ , in the county of
Greeting:
By the authority of the State of Vermont, you are hereby commanded to levy and collect of the several persons named in the foregoing list herewith committed to you the sum of money annexed to the name of each person respectively, with your own fees, and pay the same to the treasurer of the town of __________ , on or before 60 days from the date hereof; and if any person neglects or refuses to pay such sums with your fees, you are hereby commanded, etc., (here insert as in § 4912 of this title).
Dated at _______ in the county of _______ , the _____ day of _______________ A.D. 20___ .
__________ , Treasurer
(Amended 1983, No. 131 (Adj. Sess.), § 2.)
§ 4914 Judge’s order for the assessment of a county tax
To A.B., treasurer of the county of _________________________________________ :
You are hereby ordered and directed, on or before the first day of March A.D. 20___ , to issue warrants to the collectors of taxes of the several towns in the county of __________ , for the collection of a tax of ____ cents (or mills) on the list of the taxable estate of the several towns in such county for the year A.D. 20___ for the purpose of paying the debts and expenses of such county.
Dated at _______ in the county of _______ , the _______ day of _______ A.D. 20___ .
Dated at _______ in the county of _______ , the _______ day of _______ A.D. 20___ .
_______ Assistant Judges of
_______ } the Superior Court.
(Amended 1973, No. 193 (Adj. Sess.), § 3.)
Subchapter 5 Assessment and Collection in Unorganized Towns and Gores
§ 4961 Assessment of tax
(a) A State tax determined pursuant to this section is hereby annually assessed upon the grand list of the gore in Chittenden County and upon the grand list of the Town of Glastenbury in the County of Bennington and of the unorganized Town of Somerset in the County of Windham.
(b) Annually, on or before August 1, the Supervisor of Buel’s Gore shall call a meeting of the residents of the Gore for the purpose of presenting the proposed budget and tax rate for the Gore for the ensuing year and inviting discussion thereon. Notice of the meeting shall be sent by first-class mail to all residents of the Gore at least 14 days before the meeting. The meeting shall be held at a place within the Gore or within a town that adjoins the Gore. Included with the notice shall be an itemized proposed budget that shall, in the judgment of the Supervisor, cover the education, road maintenance, and general government costs within the Gore. Also included with the notice shall be proposed tax rates consistent with the budget. Annually, on or before September 10, the Supervisor shall adopt a budget and tax rate and notify the residents and appraisers for the Gore.
(c) Annually, on or before August 1, the Supervisors of Glastenbury and Somerset shall each present the proposed budget and tax rate for the town for the ensuing year. Upon a finding by the Commissioner of Taxes before September 10 that the budget and tax rate are reasonable and show no obvious irregularities, the Commissioner shall approve the budget and tax rate, and the Supervisor shall then adopt the budget and tax rate and notify the residents of the town. If the Commissioner does not approve the budget and tax rate by September 10, the budget shall remain the same as the budget for the prior year, and the Supervisor shall so notify the residents of the town.
(Amended 1977, No. 118 (Adj. Sess.), § 4, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978; 1987, No. 58, § 1, eff. May 16, 1987; 1995, No. 63, § 48f; 1997, No. 60, § 57; 1999, No. 49, § 17, eff. June 2, 1999; 2003, No. 1, § 1, eff. Feb. 21, 2003; 2009, No. 50, § 91; 2011, No. 45, § 10, eff. May 24, 2011.)
§ 4962 Tax bills delivered to the Director of Taxes; contents
Annually, on or before July 15, the appraisers for unorganized towns and gores shall make out and deliver to the Director tax bills for the State tax so assessed upon the taxable property in such unorganized places, respectively, based upon the lists annually completed by June 15 next prior thereto. Such tax bills shall contain the name of each person taxed, with his or her residence, if known, and the amount of his or her tax. If a corporation is so taxed, such tax bill shall state its principal place of business. The Director shall issue a receipt for such tax bills.
(Amended 1997, No. 50, § 11, eff. June 26, 1997.)
§ 4963 Warrants for collection of tax
Annually, on or before August 1, the Director shall transmit to the supervisors for unorganized towns and gores warrants for the collection of the tax hereinbefore provided for, in their respective places, together with the tax bills received by him or her from the appraisers. Such warrants shall be returnable to the Director on or before August 1 in the year next following the date of issue.
(Amended 1977, No. 105, § 14(a).)
§ 4964 List on which county tax assessed
County taxes assessed on or after March 1 in any year and before March 1 following shall be assessed in unorganized towns and gores upon the list returned to the county clerk’s office on July 5 in such year.
§ 4965 County tax transmitted
When a county tax is assessed, the county treasurer shall transmit to the Commissioner of Finance and Management a certified statement of the amount of such tax based on the equalized grand list of such unorganized towns and gores as shown by the list filed annually under the provisions of section 4303 of this title. The Commissioner of Finance and Management shall thereupon issue his or her warrant in favor of such county for the amount of such tax out of the funds received by him or her from the tax levied under the provisions of section 4961 of this title.
(Amended 1959, No. 238 (Adj. Sess.), § 8(a), (b); 1971, No. 73, § 11, eff. April 16, 1971; 1983, No. 195 (Adj. Sess.), § 5(b).)
§ 4966 Supervisor’s duties and powers
A supervisor shall collect and pay over the tax pursuant to the tax bills and warrants committed to him or her. He or she shall have the same powers and be subject to the same duties and liabilities in respect thereto as town collectors in respect to taxes in towns and may, in like manner, sell property of delinquent taxpayers and give conveyances thereof. Such sales shall be subject to the same right of redemption as if made by a town collector.
§ 4967 Transmission of taxes and credit to special fund
(a) All monies received by supervisors in the collection of taxes or otherwise in the performance of their official duties shall be paid by them to the Department of Finance and Management to be credited to special fund accounts, which are hereby established.
(b) Revenues collected pursuant to this section shall be disbursed based on warrants authorized by the Commissioner of Finance and Management under the authority granted by section 461 of this title and shall be expended consistent with the budgets adopted pursuant to subsections 4961(b) and (c) of this title.
(Amended 1977, No. 105, § 14(a); 2011, No. 162 (Adj. Sess.), § E.142.1.)
§ 4968 Recording sale of real estate
When the supervisor sells real estate of nonresidents, he or she shall leave the list, tax bill, warrant, and advertisement or copies thereof in the office of the clerk of the county in which the lands lie, who shall record the same. In general, such clerk shall have the powers and be subject to the liabilities of town clerks in the sale of lands of nonresidents, and his or her certificate shall have like effect.
§ 4969 Tax stabilization contracts
The supervisor, appraisers, Director of Property Valuation and Review, and the Commissioner of Taxes may negotiate tax stabilization contracts with owners of farmland or forestland located in the unorganized towns and gores in all counties of the State except Essex County. The definitions of “farmland” and “forestland” set forth in subsection 3846(a) of this title shall be applicable to such contracts.
(Added 1977, No. 150 (Adj. Sess.), § 2.)
Subchapter 6 Assessment and Collection in Unified Towns and Gores of Essex County
§ 4981 Assessment of tax
(a) A tax determined pursuant to this section is hereby annually assessed upon the grand list of the unified towns and gores in Essex County.
(b) Annually, the Board of Governors of the unified towns and gores in Essex County shall prepare a proposed municipal services budget and establish a proposed tax rate for the unified towns and gores in Essex County for the ensuing year. Annually, on the second Saturday in September, the Board of Governors shall call a meeting of the residents and property owners of the unified towns and gores in Essex County for the purpose of presenting the proposed budget and tax rate based upon the current grand list.
(c) Notice of the meeting and a copy of the proposed budget shall be sent by first-class mail to all residents and property owners of the unified towns and gores at their last known address at least 30 days before the meeting. The meeting shall be held in Essex County. The notice shall include the itemized proposed budget and the proposed tax rate.
(d) Annually, on or before September 30, the Board of Governors shall adopt a budget and tax rate and notify the residents and property owners of the unified towns and gores, the Supervisor, and the appraisers.
(Added 1967, No. 331 (Adj. Sess.), § 3, eff. Jan. 1, 1969; amended 1973, No. 58, § 3, eff. April 1, 1973; 1977, No. 118 (Adj. Sess.), § 5, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978; 1999, No. 139 (Adj. Sess.), § 1, eff. May 18, 2000; 2017, No. 98 (Adj. Sess.), § 2, eff. April 11, 2018.)
§ 4982 Salary and expenses of Supervisor and Board of Governors
The expenses of the unified towns and gores in Essex County, including the salaries of the Supervisor and the three members of the Board of Governors and the reasonable and necessary expenses that the Supervisor and the members of the Board incur in the performance of their duties, shall be met from the revenues from the taxes assessed under section 4981 of this title. Notwithstanding the provisions of section 1761 of this title, the Supervisor shall receive a salary to be established annually by the Board of Governors. The members of the Board of Governors shall receive compensation for performance of their official duties in an amount to be established annually in the budget and approved by the residents and property owners of the unified towns and gores in Essex County.
(Added 1967, No. 331 (Adj. Sess.), § 3, eff. Jan. 1, 1969; amended 1971, No. 49, eff. April 7, 1971; 1999, No. 139 (Adj. Sess.), § 2, eff. May 18, 2000.)
§ 4983 Repealed
[Repealed]
1999, No. 139 (Adj. Sess.), § 3, eff. May 18, 2000.
§ 4984 County tax transmitted to supervisor
When a county tax is assessed in Essex County, the County Treasurer shall transmit to the Supervisor for the unified towns and gores within Essex County a certified statement of the amount of such tax based on the grand list of such unified towns and gores as shown by the list filed annually under the provisions of section 4301 of this title. The Supervisor shall thereupon issue his or her warrant in favor of Essex County for the amount of such tax out of the funds received by him or her from the tax levied under the provisions of section 4981 of this title.
(Added 1967, No. 331 (Adj. Sess.), § 3, eff. Jan. 1, 1969; amended 2017, No. 98 (Adj. Sess.), § 3, eff. April 11, 2018.)
§ 4985 Tax stabilization contracts
The Supervisor and appraisers may negotiate tax stabilization contracts with owners of farmland or forestland located in the unified towns and gores of Essex County pursuant to the provisions of 24 V.S.A. § 2741(a) and (c). The definitions of “farmland” and “forestland” set forth in subsection 3846(a) of this title shall be applicable to such contracts.
(Added 1977, No. 150 (Adj. Sess.), § 1; amended 2005, No. 105 (Adj. Sess.), § 1.)
Subchapter 7 Assessment and Collection of Poll Taxes
§ 5011 Repealed
[Repealed]
§ 5012 Repealed
[Repealed]
1977, No. 118 (Adj. Sess.), § 12, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978.
§§ 5013-5023 Repealed
[Repealed]
Subchapter 8 Tax Liens
§ 5061 Force and effect of lien
(a) Commencing with the date of the filing by the listers of the grand list in the office of the town clerk of the town, taxes lawfully assessed upon real estate shall be a first lien thereon, underlying all mortgages, attachments, liens, or other encumbrances thereon, and all estates for the term of a natural life or lives, for a term of years or for any other duration. Such lien shall remain in full force and effect for a period of 15 years and it may be enforced separately against each parcel of real estate upon which a tax has been voted or assessed. Notice to all parties having an interest in such land shall be given as provided by law or as directed by the court. Courts at law may issue such execution as the facts warrant, to impress such lien on such real estate.
(b) When the taxes secured by a lien in accordance with this section remain unpaid more than two years after the creation of such lien, such lien may be foreclosed in the same manner as provided by law for the foreclosure of mortgages on real estate. In such case, the parties having an interest in the land on record in the town clerk’s office shall be given notice as directed by the presiding judge of the Superior Court. The judge in his or her final decree shall appoint a commissioner who shall be bonded before entering upon his or her duties in an amount set by the judge to sell with the approval of the judge the real estate after time for redemption has expired, which period of redemption shall run for one full year from the date of the decree. The commissioner shall be empowered to execute a conveyance to the purchaser, apply the proceeds of the sale to the amount found due the town, including costs, in the decree, the expense of the sale, which shall include the commissioner’s compensation and expenses, and a reasonable fee for the town’s solicitor. The commissioner shall first pay out of the proceeds, the expense of sale, the town solicitor’s fee and the amount due the town with costs, in order named. The residue, if any, shall be disposed of by the commissioner, with the approval of the judge, in the same manner as proceeds from foreclosure of chattel mortgages. As directed by the judge, the Commissioner shall report his or her doings to the judge, and such report shall be accepted by the judge and judgment rendered thereon before the commissioner is discharged from his or her duties.
(c) [Repealed.]
(Amended 1961, No. 125; 1971, No. 185 (Adj. Sess.), § 236(a); 1973, No. 193 (Adj. Sess.), § 3; 1997, No. 71 (Adj. Sess.), § 69, eff. March 11, 1998; 1999, No. 1, § 60g(c), eff. Mar. 31, 1999.)
§ 5071 Filing and notice of lien
The tax collector of a town with the approval of the selectboard, or the tax collector of a city with the approval of the aldermen, on or after April 1 in any year may file with the town clerk of his or her town for record in the personal property records written notice that a tax lien is claimed by such town upon part or all of the personal property of a taxpayer in such town to secure the payment of the taxes voted by such town at its previous annual meeting, or assessed as provided by 24 V.S.A. § 1523, and levied or to be levied on such personal property of such taxpayer. Like notice shall be given forthwith to the taxpayer or if he or she is not the owner of such personal property, to the owner thereof, and to all persons having a duly recorded lien on such personal property by sending such notice to the last known post office address of each by registered mail with return receipt. If the taxpayer or owner or lien holder is a partnership, such notice shall be given as aforesaid to one of the partners and if a corporation, such notice shall be given as aforesaid to the president or treasurer thereof.
§ 5072 Nature and effect of lien
The filing of such notice shall thereby create and constitute a tax lien on such personal property therein described and shall have priority in law over any other lien having priority in time. Such underlying tax lien shall remain a valid and subsisting lien upon such personal property until such taxes are fully paid or otherwise discharged, but not longer than two years from the date such notice is filed as aforesaid. Such lien shall not be enforceable against a bona fide owner who has purchased such property for value without actual notice of such lien from any person other than the taxpayer to whom such property is listed. A person against whom such lien is enforceable shall not sell, mortgage, exchange, or pledge the property covered thereby, or any part thereof, without procuring the discharge of such lien. A person who sells, mortgages, exchanges, or pledges the property or any part thereof covered by such lien, shall be fined not more than double the amount of the lien on the property so sold, mortgaged, exchanged, or pledged, and one-half of such fine shall be paid to the town claiming such lien.
§ 5073 Form of lien
The tax lien notices shall contain a description of each article of personal property upon which a lien is claimed, give the name and address of the taxpayer or owner of the property and of all other persons having an interest as aforesaid in such property and shall be substantially in the form following:
Notice of Personal Property Tax Lien
To (here insert name and address of all persons required to be notified):
You and each of you are hereby notified that the town (or city) of _______ in the county of _______ asserts and claims a tax lien upon certain personal property owned by or in the possession of ____ (taxpayer) ____ of said ____ (town or city) ____ at _____ described as follows: _______ ; said lien to secure the payment of the taxes levied or to be levied upon the grand list of said property by the said town (or city) for the year ____
Dated at ______ , Vermont, this ___ day of ____ , 20__ .
Approved
Collector of Taxes
Selectboard
Aldermen
§ 5074 Sales in fraud of lien
A person holding a chattel mortgage or other lien on any personal property on which a tax lien has been created as herein provided, who induces a person to purchase part or all of such personal property for the purpose of avoiding such tax lien shall be fined not more than $100.00. Such fine shall be paid to the town to which such tax is owed.
§ 5075 Foreclosure of lien
Such tax lien may be enforced against a part or all of such personal property by distraint or action at law as provided by this chapter. Such distraint proceedings or action at law shall be instituted within the two year period aforesaid and if commenced thereafter such tax lien shall not attach. Notice that such action has been instituted shall be given by such tax collector to all persons except the taxpayer mentioned in section 5071 of this title in the manner therein prescribed. The form of such notice shall be deemed sufficient if the tax collector sends an attested copy of the original distraint warrant or writ of attachment. Such collector may add to the taxes as costs of collection a fee of $0.50 and postage for each copy so sent.
§ 5076 Sale and discharge of lien
If a person other than the owner of such personal property shall pay the taxes assessed on such property or shall redeem the same from the action brought to enforce such lien, by paying the taxes due thereon and all costs, the amount so paid including costs, if any, shall thereupon be added to and become a part of the debt or obligation secured by such lien. The tax collector in office shall discharge of record a tax lien created hereunder upon payment of the taxes due thereon.
§ 5077 Duly recorded liens
The term “duly recorded lien” shall include a chattel mortgage, conditional sale and lien note, pledge, or attachment lien that has been recorded in accordance with the provisions of law, whether in the town clerk’s office in the town wherein such taxpayer is then a resident or in the town where he or she has previously been a resident.
§ 5078 Fees for recording liens and discharge thereof
The tax collector and town clerk shall each be paid a fee of $6.00 for making and recording the notice herein provided, including the discharge thereof. Such fees shall be paid by the town upon order of the selectboard or board of aldermen.
(Amended 1971, No. 84, § 16, eff. July 1, 1971; 1993, No. 170 (Adj. Sess.), § 15.)
§ 5079 Sale or transfer of mobile homes; collection of taxes
(a) A transfer of ownership of a mobile home shall be made pursuant to the requirements set forth in 9 V.S.A. chapter 72.
(b), (c) [Repealed.]
(d) A mobile home removed from a town without a mobile home uniform bill of sale endorsed by the clerk of the municipality where the mobile home was located as required by 9 V.S.A. § 2602 may be taken into possession by any sheriff, deputy sheriff, constable, or police officer, or by the treasurer or tax collector of the town in which the mobile home was last listed if known, or by the Commissioner of Taxes if that town is unknown. A mobile home taken into possession under this section shall be in the constructive custody of the official, who shall control the use and movement of the mobile home. In taking possession, the authorized officer may proceed without judicial process only in the event that the taking of possession can be done without breach of the peace. Proceedings for collection of the taxes assessed against and due with respect to the mobile home shall then be conducted in accordance with subchapter 9 of chapter 133 of this title.
(e) Taxes assessed against a mobile home shall be considered due for purposes of this section as of the date of removal of the mobile home from the town in which the mobile home was last listed, and the owner shall be liable for fees provided for in section 1674 of this title from the date of removal.
(f) The treasurer or tax collector of any town from which a mobile home is removed without an endorsed mobile home uniform bill of sale as required by 9 V.S.A. § 2602(b) may notify the Director of Property Valuation and Review of the removal giving a description of the mobile home by serial or other number if known. If the Director is notified of the seizure of a mobile home as provided in subsection (d) of this section, he or she shall immediately notify the treasurer or tax collector of the town, if known, in which the mobile home was last listed on the grand list.
(g) Taxes lawfully assessed upon a mobile home shall attach as a lien on the mobile home as provided in section 5061 of this title.
(Added 1971, No. 41, § 1, eff. April 7, 1971; amended 1977, No. 105, § 14(a); 1977, No. 141 (Adj. Sess.), § 1, eff. date March 27, 1978; 1983, No. 237 (Adj. Sess.), § 3; 1993, No. 141 (Adj. Sess.), § 15, eff. May 6, 1994; 1997, No. 71 (Adj. Sess.), § 35a, eff. March 11, 1998; 1999, No. 159 (Adj. Sess.), § 22, eff. May 29, 2000; 2001, No. 101 (Adj. Sess.), § 3, eff. May 12, 2002; 2009, No. 140 (Adj. Sess.), § 2, eff. Sept. 1, 2010.)
§§ 5091-5093 Repealed
[Repealed]
Subchapter 9 Delinquent Taxes
§ 5131 Supervision by Director
The Director shall supervise the collection of delinquent taxes by officials of towns and other municipal corporations.
(Amended 1977, No. 105, § 14(a).)
§ 5132 Conferences; bulletins; forms
The Director may examine a tax list in the hands of a collector; shall confer from time to time with collectors, advise them concerning their official duties, and furnish them printed instructions and directions relating thereto; shall issue such bulletins as in the Director’s judgment will aid in enforcing the law; and shall formulate and furnish the necessary forms for the use of officials required to make returns to the Director.
(Amended 1977, No. 105, § 14(a); 2021, No. 105 (Adj. Sess.), § 526, eff. July 1, 2022.)
§ 5133 Meetings of tax collectors
The Director shall call meetings of collectors of taxes to be held at such places and at such times as he or she shall designate for the purpose of instruction as to the law governing their official duties and concerning the collection of delinquent taxes.
(Amended 1977, No. 105, § 14(a).)
§ 5134 Failure to attend meetings; compensation
Collectors shall attend all meetings for instruction to which they are summoned in writing by the Director. When a collector is unable to attend, he or she shall notify forthwith the Director stating the cause of such inability and, in his or her discretion, the Director may summon such collector to attend such other meeting as he or she may designate. Collectors attending such meetings shall receive therefor from the treasury of their municipality not less than $10.00 per day and their necessary expenses.
(Amended 1959, No. 8, eff. Feb. 26, 1959; 1977, No. 105, § 14(a).)
§ 5135 Returns to Director
Collectors and other officials named in this chapter shall render such assistance, furnish such information, and make such returns to the Director in relation to the subject of delinquent taxes and the administration of the law in reference thereto as he or she may require.
(Amended 1977, No. 105, § 14(a).)
§ 5136 Interest on overdue taxes
(a) When a municipality votes under an article in the warning to collect interest on overdue taxes, such taxes, however collected, shall be due and payable not later than December 1 and shall bear interest at the rate of not more than one percent per month or fraction thereof, for the first three months and thereafter one and one-half percent per month or fraction thereof, from the due date of such tax. Such interest shall be imposed on a fraction of a month as if it were an entire month. A municipality having so voted to collect interest as hereinbefore provided, and the amount thereof, shall thereafter collect such interest each year until the municipality shall vote otherwise at a meeting duly warned for the purpose of voting on such question.
(b) Whenever a municipality votes to collect interest on overdue taxes pursuant to this section, interest in like amount shall be paid by the municipality to any person making any overpayment of taxes occurring as a result of a redetermination of the grand list of the taxpayer on appeal provided by chapter 131 of this title.
(Amended 1973, No. 86, § 3, eff. for the tax year beginning April 1, 1974, and thereafter; 1981, No. 133 (Adj. Sess.), § 4, eff. April 2, 1982 for tax year beginning April 1, 1982, and thereafter; 1997, No. 50, § 12, eff. June 26, 1997.)
§ 5137 Recording delinquent payments
A collector of taxes for a town or municipality within it shall receipt for every payment made to the collector on account of delinquent taxes. Such receipt shall be written in triplicate in a bound book or other permanent record purchased at the expense of the municipality and shall indicate the date of the payment, the name of the person making the payment, the name of the person against whom was assessed the tax on which the payment is to be applied, the year in which such tax was assessed, and if a partial payment on an annual tax bill, whether applied on personal property or real estate taxes. Such collector shall deliver the original receipt forthwith to the person making the payment and one copy thereof within 30 days to the town clerk who shall keep such copy on file. Annually, on or before February 5, the collector shall deliver to the auditors of each municipality for which the collector is acting all such bound volumes in which entries pertaining to such municipality have been made during the year ending January 31 next preceding, and the auditors shall audit the books forthwith and after the completion of audit shall return such books to such collector.
(Amended 1977, No. 118 (Adj. Sess.), § 8, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978; 2003, No. 100 (Adj. Sess.), § 4; 2007, No. 121 (Adj. Sess.), § 31.)
§ 5138 Power of collector as to delinquent taxes
Within 10 years from the time of receiving a tax bill, the collector may collect a tax in any place in the State and execute his or her warrant wherever he or she finds the property or person of a delinquent. When a person against whom the collector has a tax is absent from the State when the tax bill is received or removes therefrom within two years thereafter and has no property in the State that can be distrained for taxes, the collector may collect the tax within six years from the time he or she returns to the State or has known property therein liable to distress.
§ 5139 Collection of taxes by sheriff
A collector having an unpaid tax against a person may make an abstract containing the person’s name, his or her grand list, and the tax against him or her and append it to a copy of his or her warrant certified by him or her and deliver it to any sheriff or constable. Such sheriff or constable may collect the tax as such collector might have done. The powers, liabilities, and fees therein of such sheriff or constable shall be the same as such collector’s in the collection of such delinquent tax.
§ 5140 Collection from estate of deceased
When the property of a deceased person is set in the list to such person’s estate without naming the executor or administrator, if the executor or administrator does not pay the taxes assessed on such estate, any personal property of the estate may be taken and sold for the payment of such taxes, with costs, upon the same notice and demand upon such executor or administrator, and in the same manner as provided by law for the collection of taxes. Real estate belonging to such estate shall be holden as provided in section 5061 of this title and may be sold as provided in sections 5252-5255 of this title.
§ 5141 Collection from earnings of municipal employees
(a) If an employee of a municipality is a delinquent taxpayer thereof, a treasurer or tax collector thereof may, after judicial hearing, collect the delinquent tax by causing to be deducted from the disposable earnings of the employee for any workweek an amount not exceeding:
(1) 20 percent of the disposable earnings for that week; or
(2) the amount by which the disposable earnings for that week exceed 30 times the federal minimum hourly wage prescribed by 29 U.S.C. § 206(a)(1) in effect at the time the earnings are payable, whichever amount is less.
(b) The deductions may be made from time to time until the taxes, including costs, penalties, and interest, if any, are fully paid. This section shall not affect any other means or remedies for the collection of taxes.
(Amended 1971, No. 185 (Adj. Sess.), § 223, eff. March 29, 1972.)
§ 5142 Delinquent taxes; interest and collection fees
(a) The acceptance of full or partial payment of overdue taxes by a town official shall not preclude the town from collecting any unpaid balance of taxes and any interest and collection fees accruing to the town, whether relating to the collected or uncollected portion of taxes.
(b) Notwithstanding the provisions of subsection (a) of this section, the treasurer shall accept, on behalf of the collector of delinquent taxes, full payment of overdue taxes tendered after the due date fixed in the notice sent pursuant to section 4792 of this title but before the warrant is issued, provided such payment is accompanied by the collection fee and any interest. Taxes, fees, and interest collected under this subsection shall be turned over to the collector of delinquent taxes when the warrant is issued.
(c) Notwithstanding the provisions of subsection (a) of this section, if taxes are not collected by the treasurer and the collector of delinquent taxes and the collector of current taxes are not the same person, the collector of current taxes shall accept, on behalf of the collector of delinquent taxes, full payment of overdue taxes tendered after the due date fixed in the notice sent pursuant to section 4772 of this title but before the list of delinquent taxpayers is delivered to the collector of delinquent taxes, provided such payment is accompanied by the collection fee and any interest. Taxes, fees, and interest collected under this subsection shall be turned over to the collector of delinquent taxes when the list of delinquent taxpayers is delivered.
(Added 1985, No. 91; amended 1989, No. 149 (Adj. Sess.), § 4, eff. April 24, 1990; 1997, No. 26, § 4.)
§ 5161 Repealed
[Repealed]
§ 5162 List of delinquent taxpayers
Annually, on or before January 15, the collector for a town or a municipality within it, shall make a list of the taxpayers of such municipality whose real and personal property taxes are unpaid as of December 31 next preceding, showing the amounts due and the years in which such taxes were due, certify under oath that such list is correct and deliver the same to the treasurer of such municipality.
(Amended 1977, No. 118 (Adj. Sess.), § 9, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978.)
§ 5163 Certification
The lists described in section 5162 of this title shall be submitted by the collector of taxes to the auditors of such municipality for verification and if correct shall be so certified by the auditors. The lists described in sections 4646 and 5162 of this title shall be open to public inspection.
§ 5164 Penalties
A collector of taxes for a town or municipality within it who fails for 10 days to report as required by sections 4646 and 5162 of this title may be fined not more than $100.00.
§§ 5165-5167 Repealed
[Repealed]
2013, No. 73, §§ 35-37, eff. June 5, 2013.
§ 5191 Property subject to distraint
At the expiration of the time for payment of tax as given in the notice required by section 4772 of this title or sooner in the case of a person whom he or she has just reason to believe is about to remove from town, the collector may distrain the goods, chattels, and capital stock in a corporation of a person whose tax is not paid. In the case of taxes assessed on real estate, he or she shall not distrain upon apparel, bedding, household furniture necessary for supporting life, one sewing machine kept for use, or provisions not exceeding $25.00 in value.
§ 5192 Distraint by copy
Personal estate, which may be attached on a writ by leaving a copy in the town clerk’s office or by leaving a copy with the clerk or other officer of a corporation may be distrained for taxes by leaving in such town clerk’s office or with the clerk or other officer of such corporation, a copy of the warrant with the collector’s return thereon, giving a description of the property distrained and the character and amount of the tax; if stock in a corporation is sold by a collector to satisfy a tax, the clerk or other officer whose duty it is to make transfers of stock on the books of the corporation shall transfer the stock so sold to the purchaser on the books of the corporation and give the purchaser a certificate of stock.
§ 5193 Sale on distraint
When a tax with costs and charges is not paid within four days after distress is made, the collector may sell the property at public auction. At least six days before such sale, he or she shall post notice thereof in a public place in the town where the property was taken. After deducting the tax and his or her charges, he or she shall return the balance realized from the sale to the taxpayer, on demand, with an account of the tax and his or her charges.
§ 5194 Repealed
[Repealed]
1979, No. 21.
§ 5221 Commencement of action; disqualifications
When the treasurer, collector of taxes, or other proper officer has a delinquent tax in his or her hands for collection, he or she may notify the agent or other proper officer whose duty it is to prosecute and defend suits wherein such municipality is interested of the amount of such tax and of all fees accrued thereon, who, in his or her discretion, may institute suit therefor under the provisions of sections 5222-5226 and 5291 of this title, and a tax collector may institute suits as tax collector in his or her own name and join in one action to recover all taxes in his or her hands for collection against one taxpayer. A constable or sheriff shall not be disqualified to serve and return mesne, final, or other process in such suit, by reason of being a taxpayer in such municipality, by reason of being collector of taxes therein, or by reason of any act done or fees in his or her behalf accrued on account of such unpaid taxes.
§ 5222 Taxes collectible by action
Taxes imposed or assessed under the provisions of this chapter and of chapters 127 and 129 of this title and all fees accruing or accrued against the taxpayer on account of delinquency may be recovered with costs in an action brought in the name of the town or municipality within it to which such taxes are due.
§ 5223 Recognizance requirement
A town or municipality within it shall not be required to furnish recognizance or other security for costs in any proceeding instituted under the provisions of sections 5222-5224 of this title; but, unless otherwise provided, upon final judgment, the Court may make such order relating to the payment of costs by the plaintiff for defendant as it shall deem just and reasonable.
§ 5224 Trustee process
(a) A person or corporation may be summoned as trustee of the defendant and the goods, effects, and credits of such defendant in the hands of such trustee at the time of service of the writ thereon or that shall thereafter come into the hands or possession thereof before disclosure, shall thereby be attached and held to respond to final judgment in such cause, notwithstanding the tax or taxes whereon action is so brought are less than the sum of $10.00. A person or corporation so summoned as trustee may be adjudged liable as such notwithstanding the value of the goods, effects, or credits in the hands or possession thereof belonging to such defendant is less than $10.00.
(b) In suits for the collection of taxes by trustee process, when the defendant contests the validity of the tax and does not prevail, judgment shall be rendered against him or her for all taxable costs and execution issued accordingly, notwithstanding such costs are greater than the amount of the judgment against the trustee.
§ 5225 Repealed
[Repealed]
1971, No. 185 (Adj. Sess.), § 237, eff. March 29, 1972.
§ 5226 Presumption of lawful assessment
Except as otherwise provided in sections 5224-5226 and 5291 of this title, a tax bill regular on its face that has been theretofore placed for collection in the hands of the treasurer, collector of taxes, or other officer designated by law to collect the same, in a town or municipality within it so bringing suit, shall be prima facie evidence that the taxes therein standing against the name of the defendant were lawfully assessed against him or her.
§ 5227 Judge not disqualified
A judge shall not be disqualified to try an action for the collection of taxes by reason of being a taxpayer in the municipality where the tax is voted.
(Amended 1973, No. 249 (Adj. Sess.), § 102, eff. April 9, 1974.)
§ 5251 Definitions
As used in sections 5251-5258 and 5292-5295 of this title:
(1) The assessment of a tax shall be defined to mean all acts required by law to be done in respect to such tax by the officials of the town designated by law for that purpose, from the time of the making of a warning for an annual town meeting, up to and including the time that a tax bill is placed in the hands of the town treasurer for collection, in cases where the town votes to collect by its treasurer, or when the town does not so vote, up to and including the time that a tax bill with a warrant annexed thereto for collection has been placed in the hands of the town tax collector for collection.
(2) The collection of a tax shall be defined to mean all acts required by law to be done or permitted by law to be done in respect to such tax, by either the town treasurer or the town tax collector, from the time specified in subdivision (1) of this section as marking the end of the assessment of the tax, up to and including the last act required or permitted by law to be done by the town tax collector in the enforcement of the collection of the tax.
§ 5252 Levy and notice of sale; securing property
(a) When the collector of taxes of a town or of a municipality within it has for collection a tax assessed against real estate in the town and the taxpayer owes a minimum of $1,500.00 and is delinquent for a period longer than one year, the collector may extend a warrant on such land. However, no warrant shall be extended until a delinquent taxpayer is given an opportunity to enter a written reasonable repayment plan pursuant to subsection (c) of this section. If a collector receives notice from a mobile home park owner pursuant to 10 V.S.A. § 6248(b), the collector shall, within 15 days after the notice, commence tax sale proceedings to hold a tax sale within 60 days after the notice. If the collector fails to initiate such proceedings, the town may initiate tax sale proceedings only after complying with 10 V.S.A. § 6249(f). If the tax collector extends the warrant, the collector shall:
(1) File in the office of the town clerk for record a true and attested copy of the warrant and so much of the tax bill committed to the collector for collection as relates to the tax against the delinquent taxpayer, a sufficient description of the land so levied upon, and a statement in writing that by virtue of the original tax warrant and tax bill committed to the collector for collection, the collector has levied upon the described land.
(2) Advertise forthwith such land for sale at public auction in the town where it lies three weeks successively in a newspaper circulating in the vicinity, the last publication to be at least 10 days before such sale.
(3) Give the delinquent taxpayer written notice by certified mail requiring a return receipt directed to the last known address of the delinquent of the date and place of such sale at least 30 days prior thereto if the delinquent is a resident of the town and 30 days prior thereto if the delinquent is a nonresident of the town. If the notice by certified mail is returned unclaimed:
(A) notice shall be provided to the taxpayer by resending the notice by first-class mail or by personal service pursuant to Rule 4 of the Vermont Rules of Civil Procedure; and
(B) notice shall be provided by email, provided the tax collector can acquire the email address of the delinquent taxpayer using reasonable effort; and
(C) notice shall be affixed to the front door of the property subject to tax sale, provided it has a structure.
(4) Give to the mortgagee or lien holder of record written notice of such sale at least 30 days prior thereto if a resident of the town and, if a nonresident, 30 days’ notice to the mortgagee or lien holder of record or the mortgagee’s or lien holder’s agent or attorney by certified mail requiring a return receipt directed to the last known address of such person. If the notice by certified mail is returned unclaimed, notice shall be provided by resending the notice by first-class mail or by personal service pursuant to Rule 4 of the Vermont Rules of Civil Procedure.
(5) Post a notice of such sale in some public place in the town.
(6) Enclose the following statement, with directions to a resource translating the notice into the five most common non-English languages used in this State, with the notices required under subdivisions (3) and (4) of this subsection and with every delinquent tax notice: Warning: There are unpaid property taxes at (address of property), which you may own, have a legal interest, or may be contiguous to your property. The property will be sold at public auction on (date set for sale) unless the overdue taxes, fees, and interest in the amount of (dollar amount due) is paid. To make payment or receive further information, contact (name of tax collector) immediately at (office address), (mailing address), (email address), or (telephone number).
(7) The resource for translation of the notice required under subdivision (6) of this subsection shall be made available to all municipalities by the Vermont Department of Taxes.
(b)(1) If the warrant and levy for delinquent taxes has been recorded pursuant to subsection (a) of this section, the municipality in which the real estate lies may secure the property against illegal activity and potential fire hazards after giving the mortgagee or lien holder of record written notice at least 10 days prior to such action.
(2) Notwithstanding any provision of this section to the contrary, when a warrant and levy for delinquent taxes has been recorded pursuant to subsection (a) of this section, it shall be for all delinquent taxes due at the time the warrant and levy is filed.
(c)(1) A municipality shall not initiate a tax sale proceeding until it has, after attempting to consult with the taxpayer, offered a delinquent taxpayer a written reasonable repayment plan and the taxpayer has either denied the offer, failed to respond within 30 days, or failed to make a payment under the plan within the time frame established by the collector. When establishing a plan under this subsection, the municipality may request related information and shall consider the following:
(A) the income and income schedule of the taxpayer, if offered by the taxpayer;
(B) the taxpayer’s tax payment history with the municipality;
(C) the amount of tax debt owed to the municipality;
(D) the amount of time tax has been delinquent; and
(E) the taxpayer’s reason for the delinquency, if offered by the taxpayer.
(2) A collector is only required to offer one payment plan per delinquency, without regard for whether it is agreed to by the delinquent taxpayer.
(3) A collector may void a payment plan and proceed to tax sale if a delinquent taxpayer agrees to a payment plan under this subsection and fails to make a timely payment.
(Amended 1993, No. 141 (Adj. Sess.), § 16, eff. May 6, 1994; 2017, No. 7, § 2; 2017, No. 117 (Adj. Sess.), § 3; 2023, No. 106 (Adj. Sess.), § 4, eff. May 13, 2024; 2025, No. 73, § 66, eff. July 1, 2025.)
§ 5253 Form of advertisement and notice of sale
The form of advertisement and notice of sale provided for in section 5252 of this title shall be substantially in the following form: The resident and nonresident owners, lien holders, and mortgagees of lands in the town of_______________________________________________________________________ in the county of_______________________________________________________________________ are hereby notified that the taxes assessed by such town for the years___________ (insert years the taxes are unpaid) remain , either in whole or in part, unpaid on the following described lands in such town, to wit, ___________ (insert description of lands) and so much of such lands will be sold at public auction at____________________________________________________________ a public place in such town, on the___________ day of_____________________ (month) ,___________ (year) at___________ o’clock___________ (am/pm), as shall be requisite to discharge such taxes with costs and fees, unless previously paid. Be advised that the owner or mortgagee, or the owner’s or mortgagee’s representatives or assigns, of lands sold for taxes shall have a right to redemption for a period of one year from the date of sale pursuant to 32 V.S.A. § 5260. Dated at_______________________________________________________________________ , Vermont, this___________ day of_____________________ (month) ,___________ (year). ___________ Collector of Town Taxes
(Amended 1995, No. 106 (Adj. Sess.), § 1; 2023, No. 106 (Adj. Sess.), § 5, eff. May 13, 2024.)
§ 5254 Sale of realty
(a) When the tax with costs and fees is not paid before the day of sale, the real property on which the taxes are due shall be sold to pay such taxes, costs, and fees.
(b) Notwithstanding the provisions of subsection (a) of this section, the owner of the property being sold for taxes may request in writing, not less than 24 hours prior to the tax sale, that a portion of the property be sold. Such request must clearly identify the portion of the property to be sold and must be accompanied by a certification from the District Environmental Commission and the town zoning administrative officer that the portion identified may be subdivided and meets minimum lot size requirements. In the event that the portion identified by the taxpayer cannot be sold for the tax and costs, then the entire property may be sold to pay such tax and costs.
(Amended 1995, No. 106 (Adj. Sess.), § 2; 1995, No. 169 (Adj. Sess.), § 13, eff. May 15, 1996; 1999, No. 49, § 70, eff. June 2, 1999.)
§ 5255 Report of sale; form
Within 30 days after such sale of the land, the collector shall make a complete return of his or her doings and file the same for record in the town clerk’s office of the town wherein such land lies, which return shall be prima facie evidence of the facts therein stated and shall be substantially in the following form:
By virtue of a warrant (or warrants as the case may be) lawfully committed to me for the year(s) 20_____ by the treasurer of the town of __________ (or by the selectboard of the town of _________ if the town has voted to collect its taxes by its collector and the tax bill annexed thereto) and the delinquent tax bill annexed thereto, I gave notice as required by law to the taxpayers of the town of _________ of the place where and the time when I would receive such taxes, and said taxpayers having failed and neglected to pay their said taxes upon such demand, on the __ day of ____ 20__ , I did extend and levy my said warrant(s) in the manner provided by law upon the following described land(s) of the following named delinquent taxpayer situated within the town, for the following described taxes due thereon, to wit:
Name of Delinquent Taxpayer Description of Land Amount of Tax
And on the __ day of ____ , 20__ , I did cause notice of the time and place of sale of the above described land(s) to be published three weeks successively in _________ a ____ newspaper circulating in the town of ___ and vicinity, for the issues of ____ , which said notice of sale therein provided that the same would be holden at __________ , a public place in the town of _____ at __ o’clock in the ____ noon, unless said land(s) was previously redeemed by the payment of said tax, and on the ___ day of _ , 20_ , I gave the delinquent taxpayer __ notice by registered mail of the time and place of such sale, and on the same date posted at __ , a public place in said town, notice of the time and place of such sale (also here insert facts as to the mortgagee, if any).
And he or she (or they) having failed and neglected to pay said taxes and costs, at _______ (place of sale) on the ___ day of _____ , 20___ at ___ o’clock in the ____ noon, the time and place set by me for said sale, pursuant to the notice thereof, I did sell so much of said land(s) as was necessary to satisfy the tax and costs thereon to __________________ of _______ , for cash in the sum of _____ , he or she being the highest bidder therefor, the land and premises thus sold being particularly described as follows (here describe the lands).
From the proceeds of said sale, I did satisfy myself for my own fees and the legal costs of said sale amounting in the whole to the sum of _______ , and on the ___ day of ____ , 20___ , turned over to _______________ the treasurer of the town of __________ , the sum of _________ in (part) satisfaction of the taxes due said town on said premises thus sold.
And now at __________ in said County, this ___ day of _______ , 20___ , I make return of my doings hereunder by filing the same as herein set forth with the town clerk of the town of __________________ for record as provided by law.
Attest,
Collector of Town Taxes.
§ 5256 Sale of lands subject to lease
The reversionary interest of the owner of property subject to lease may be distrained by a collector of taxes by delivering to the lessor and lessee of such property a copy of his or her warrant with his or her return thereon, giving a description of the taxes and of the property and the lessor’s interest. The collector may sell such interest in the same manner as is required by law for the sale of the property for taxes when it is not under a lease.
§ 5257 Sale of realty to satisfy personal property taxes
Real estate of a taxpayer may be levied upon and sold in the manner prescribed in sections 5252-5255 of this title for the collection of a delinquent personal property tax, but the sale thereof shall be subject to homestead rights and all existing liens and encumbrances of record on such property and all taxes validly assessed on such real estate.
(Amended 1959, No. 218, § 2; 1977, No. 118 (Adj. Sess.), § 10, eff. Feb. 3, 1978, for tax years beginning Jan. 1, 1978.)
§ 5258 Fees and costs allowed after warrant and levy recorded
(a) The fees and costs allowed after the warrant and levy for delinquent taxes have been recorded shall be as follows:
(1) levy and extending of warrant, $10.00;
(2) recording levy and extending of warrant in the town clerk’s office, $15.00, to be paid to the town clerk;
(3) notices and publication of notices, actual costs incurred, including the costs of service pursuant to subdivisions 5252(a)(3) and (4) of this title;
(4) expenses actually and reasonably incurred by the town in securing a property for which property taxes are delinquent against illegal activity and fire hazards, to be paid to the town clerk, provided that the expenses shall not exceed 20 percent of the uncollected tax;
(5) when authorized by the selectboard, expenses actually and reasonably incurred by the tax collector for legal assistance in the preparation for or conduct of a tax sale, provided that the expenses shall not exceed 15 percent of the uncollected tax;
(6) travel reimbursement at the rate established by the contract governing State employees;
(7) attending and holding the sale, $10.00;
(8) making return and recording the return in the town clerk’s office, $15.00 per page, to be paid to the town clerk; and
(9) collector’s deed, $15.00 per page.
(b) The fees and costs allowed in subsection (a) of this section, together with a collector’s fee of up to eight percent, shall be in lieu of all other fees and costs.
(Amended 1963, No. 124; 1983, No. 116 (Adj. Sess.); 1985, No. 264 (Adj. Sess.), § 4; 1995, No. 106 (Adj. Sess.), § 3; 2017, No. 7, § 1; 2017, No. 117 (Adj. Sess.), § 4; 2021, No. 73, § 12.)
§ 5259 Municipality may acquire land on tax sale
By the act of its mayor or selectboard, when a tax warrant is extended on any land in this State, the city or town by which the tax is assessed may become the purchaser at the tax sale thereof, if a bid not equal to the tax and costs is made at such sale. When a tax warrant is extended on a mobile home located in a mobile home park in proceedings initiated after notice pursuant to 10 V.S.A. § 6248(b), the municipality may purchase the mobile home or may sell the mobile home to the highest bidder at the sale, although the bid is less than the taxes and costs due the municipality. If there is a release or a potential release of a hazardous substance, as defined in 10 V.S.A. § 6602(16), upon land that a municipality purchases at tax sale, the municipality shall have the right, prior to the expiration of the redemption period, to enter onto the land for the purpose of assessing and remediation on the land.
(Amended 1993, No. 141 (Adj. Sess.), § 17, eff. May 6, 1994; 2005, No. 81, § 1.)
§ 5260 Redemption
(a) When the owner, lien holder, or mortgagee of lands sold for taxes, the owner’s, lien holder’s, or mortgagee’s representatives or assigns, within one year from the day of sale, pays or tenders to the collector who made the sale or in the case of the collector’s death or removal from the town where the land lies, to the town clerk of such town, the sum for which the land was sold with interest thereon calculated at a rate of one percent per month or fraction thereof from the day of sale to the day of payment, a deed of the land shall not be made to the purchaser, but the money paid or tendered by the owner, lien holder, or mortgagee or the owner’s, lien holder’s, or mortgagee’s representatives or assigns to the collector or town clerk shall be paid over to such purchaser on demand. In the event that a municipality purchases contaminated land pursuant to section 5259 of this title, the cost to redeem shall include all costs expended for assessment and remediation, including expenses incurred or authorized by any local, State, or federal government authority.
(b) During the redemption period, the tax collector shall:
(1) Serve the delinquent taxpayer with the written notice required under subsection (c) of this section between 90 and 120 days prior to the end of the redemption period using certified mail requiring a return receipt, directed to the last known address of the delinquent taxpayer. If the notice by certified mail is returned unclaimed, notice shall be provided by resending the notice by first-class mail or by personal service pursuant to Rule 4 of the Vermont Rules of Civil Procedure.
(2) Post the notice in some public place in the municipality between 90 and 120 days prior to the end of redemption period.
(c) The tax collector shall enclose the following statement, with directions to a resource translating the notice into the five most common non-English languages used in this State, with every notice required under this section: Warning: There are unpaid property taxes at (address of property), which you may own, have a legal interest in, or may be contiguous to your property. The property was sold at public auction on (date). Unless the overdue taxes, fees, and interest are paid by (last day of redemption period), the deed to the property will transfer to purchaser. To redeem the property and avoid losing your legal interest, you must pay (dollar amount due for redemption). The amount you must pay to redeem the property increases every month due to interest, mailing costs, and other costs. To make payment or receive further information, contact (name of tax collector) immediately at (office address), (mailing address), (email address), and (telephone number).
(d) The resource for translation of the notice required under subsection (c) of this section shall be made available to all municipalities by the Vermont Department of Taxes.
(Amended 1989, No. 119, § 21, eff. June 22, 1989; 2005, No. 81, § 2; 2023, No. 106 (Adj. Sess.), § 6, eff. May 13, 2024.)
§ 5261 Deed by collector
When the time for redemption has passed and the land is not redeemed, the collector or his or her successor shall execute to the purchaser a deed, which shall convey to him or her a title against the person for whose tax it was sold and those claiming under him or her.
§ 5262 Recording lands not redeemed
Within 30 days from the expiration of the time for redemption, the collector shall deposit with the town clerk for record a list of the lands that have not been redeemed, but a failure to comply with this provision shall not affect the title of the purchaser.
§ 5263 Limitation of actions against grantee in possession
An action for the recovery of lands, or the possession thereof, shall not be maintained against the grantee of such lands in a tax collector’s deed, duly recorded, or his or her heirs or assigns, when the grantee, or his or her heirs or assigns have been in continuous and open possession of the land conveyed in such deed and have paid the taxes thereon, unless commenced within one year after the cause of action first accrues to the plaintiff or those under whom he or she claims.
(Amended 1959, No. 218, § 5; 2017, No. 117 (Adj. Sess.), § 2.)
§ 5291 Disputing validity of tax
In case the defendant disputes the validity of some part or all of a tax for the recovery of which suit is brought under the provisions of sections 5222-5226 of this title, or for the recovery of which a suit is brought by the town for the foreclosure of a tax lien, he or she shall not avail himself of such defense unless, by appropriate answer or notice in writing, he or she shall set forth therein a certified copy of his or her objections to the validity of the assessment of the tax as provided in sections 5292-5294 of this title, obtained from the town clerk of the town wherein the tax is assessed, which certified copy shall show upon its face that the original thereof was filed with the town clerk within the period of limitations prescribed in section 5292 of this title and unless also by appropriate answer or notice in writing, he or she shall set forth all other particular grounds whereon he or she claims such tax is invalid or unlawful. When such grounds are so set forth, the burden of proof shall be upon the plaintiff in so far as the validity of such tax is thus put in issue.
§ 5292 Filing of taxpayer’s objections
(a) A taxpayer shall not contest the validity of any tax assessed against his or her person, personal property, or real estate, nor the validity of the action of the listers or selectboard in assessing such tax, nor the validity of any grand list, unless the taxpayer filed his or her objections to the validity thereof, in the office of the town clerk wherein the tax is assessed, within a period of two months from November 15 of each year in which the tax is assessed.
(b) If the taxpayer desires to object upon the ground that the notice he or she received, although given in the manner prescribed by law, is based upon invalid or defective proceedings in making up of the appraisal, grand list, or in the assessment thereof, he or she shall file at the place and within the time prescribed by subsection (a) of this section his or her specific objection that the notice received was so based.
(Amended 1957, No. 219, § 2, eff. July 1, 1961; 1959, No. 218 § 3.)
§ 5293 Time limitation on assertion of defenses by taxpayer
If the taxpayer is a resident of the State, within six months or if he or she is a nonresident, within one year from the date when collection of the tax might first be enforced against him or her, he or she may assert as a defense against the collection of the tax lack of notice and opportunity to be heard in all proceedings relating to the levying of such tax, including the making of the appraisal and grand list.
(Amended 1957, No. 219, § 2, eff. July 1, 1961.)
§ 5294 Time limitations on actions or suits by taxpayer
Unless commenced within one year from the time that collection is sought to be enforced against the taxpayer by arrest, distraint, or levy, an action shall not lie wherein a taxpayer may question the validity of:
(1) an act required to be done by a treasurer of a town relating to a tax assessed;
(2) notice by the treasurer to the taxpayer as to the amount of the tax or the time of the payment thereof;
(3) acts of the treasurer as to turning over the unpaid portion of the tax bill and the annexed warrant to the tax collector for collection;
(4) acts of the tax collector relating to the collection of the tax either before or after the tax became delinquent.
(Amended 1959, No. 218, § 1.)
§ 5295 Construction of limitation period
For the purpose of determining when the statutory period of one year has begun to run, the following provisions shall apply:
(1) If the taxpayer is arrested on a tax collector’s warrant, within one year from the date of his or her arrest.
(2) If collection is sought to be enforced by distraint of personal property on the tax collector’s warrant, within one year from the date of the distraint.
(3) If collection is sought to be enforced by sale of real estate, within one year from the date of the levy thereon by the tax collector.
(4) If a taxpayer pays a tax to a town or subdivision thereof under protest, he or she shall commence action for the recovery of the tax thus paid within one year from the time of such payment.
(Amended 1959, No. 218, § 4.)
Chapter 135 Education Property Tax
§ 5400 Statutory purposes
(a) The statutory purpose of the exemption for whey processing fixtures in subdivision 5401(10)(G) of this title is to support industries using whey processing facilities to convert waste into value-added products.
(b) [Repealed.]
[Subsection (c) effective until contingency met; see also subsection (c) effective July 1, 2028 if contingency met, set out below.]
(c) The statutory purpose of the exemption for qualified housing in subdivision 5404a(a)(6) of this title is to ensure that taxes on this rent- restricted housing provided to Vermonters of low and moderate income are more equivalent to property taxed using the State homestead rate and to adjust the costs of investment in rent-restricted housing to reflect more accurately the revenue potential of such property.
[Subsection (c) effective July 1, 2028 if contingency met; see also subsection (c) effective until contingency met, set out above.]
(c) The statutory purpose of the exemption for qualified housing in subdivision 5404a(a)(6) of this title is to ensure that taxes on this rent-restricted housing provided to Vermonters of low and moderate income are more equivalent to property taxed as a homestead property and to adjust the costs of investment in rent-restricted housing to reflect more accurately the revenue potential of such property.
(d) The statutory purpose of the tax increment financing districts in subsection 5404a(f) of this title is to allow communities to encourage investment and improvements that would not otherwise occur and to use locally the additional property tax revenue attributable to those investments to pay off the debt incurred to construct the improvements.
(e) The statutory purpose of the Vermont Economic Progress Council approved stabilization agreements in section 5404a of this title is to provide exemptions on a case-by-case basis in conjunction with other economic development efforts in order to facilitate economic development that would not otherwise occur.
(f) [Repealed.]
(g) The statutory purpose of the wind-powered electric generating facilities alternative tax scheme in subdivision 5401(10)(J)(i) of this title is to provide an alternative to the traditional valuation method in order to achieve consistent valuation across municipalities.
(h) The statutory purpose of the renewable energy plant generating electricity from solar power alternative tax structure in subdivision 5401(10)(J)(ii) is to provide an alternative to the traditional valuation method in order to achieve consistent valuation across municipalities.
(i) The statutory purpose of subdivision 5401(10)(D) of this title is to support Vermont’s ski industry and to encourage personal property investments and improvements at ski resorts.
[Subsection (j) effective July 1, 2028 if contingency met.]
(j) The statutory purpose of the homestead property tax exemption in subdivision 6066(a)(1) of this title is to reduce the property tax liability for Vermont households with low and moderate household income.
(Added 2013, No. 200 (Adj. Sess.), § 16; amended 2017, No. 73, § 10, eff. June 13, 2017; 2021, No. 105 (Adj. Sess.), § 527, eff. July 1, 2022; 2025, No. 73, § 51, contingently eff. July 1, 2028.)
§ 5401 Definitions
As used in this chapter:
(1) “Coefficient of dispersion” is the average absolute deviation expressed as a percentage of the median ratio, and for a municipality in any school year shall be determined by the Director of Property Valuation and Review as follows:
(A) calculate the ratio of the listed value to the fair market value of each property used in determining the equalized education property value of the municipality as required by section 5406 of this title;
(B) determine the median of the ratios calculated in subdivision (A) of this subdivision (1);
(C) determine the absolute deviation of each ratio from the median ratio calculated in subdivision (B) of this subdivision (1); and
(D) calculate the average absolute deviation.
(2) “Commissioner” means the Commissioner of Taxes.
(3) “Common level of appraisal” means the ratio of the aggregate value of local education property tax grand list to the aggregate value of the equalized education property tax grand list.
(4) “Director” means the Director of Property Valuation and Review.
(5) “Education property tax grand list” means the list of property determined pursuant to section 5404 of this title. When the listed value of real property for school tax purposes is credited by a board of civil authority or a court, that board or court shall make a corresponding credit to the listed value for purposes of taxation under this chapter.
(6) “Equalized education property tax grand list” means one percent of the aggregate fair market value of all nonhomestead and homestead property that is required to be listed at fair market value as certified during that year by the Director of Property Valuation and Review under section 5406 of this title, plus one percent of the aggregate value of property required to be listed at a value established under a stabilization agreement described under section 5404a of this title, plus one percent of the aggregate use value established under chapter 124 of this title of all nonhomestead property that is enrolled in the use value appraisal program.
(7) “Homestead”:
(A) “Homestead” means the principal dwelling and parcel of land surrounding the dwelling, owned and occupied by a resident individual as the individual’s domicile or owned and fully leased on April 1, provided the property is not leased for more than 182 days out of the calendar year or, for purposes of the renter credit under subsection 6066(b) of this title, is rented and occupied by a resident individual as the individual’s domicile.
(B) The parcel of land surrounding the dwelling shall be determined without regard to any road that intersects the land. If the parcel of land surrounding the dwelling is owned by a cooperative housing corporation incorporated under 11 V.S.A. chapter 14 or owned by a nonprofit land conservation corporation or community land trust with exempt status under 26 U.S.C § 501(c)(3), the homestead includes a pro rata part of the land upon which the dwelling is built, as determined by the cooperative corporation, nonprofit corporation, or land trust.
(C) A homestead may consist of a part of a multidwelling or multipurpose building, including cooperative property occupied as a permanent residence by a member of a cooperative housing corporation incorporated under 11 V.S.A. chapter 14. A mobile home may constitute a principal dwelling for purposes of this chapter.
(D) A dwelling owned by a trust may qualify as a homestead if it meets the requirements of subsection 6062(e) of this title.
(E)(i) A homestead also includes a dwelling on the homestead parcel owned by a farmer as defined under section 3752 of this title and occupied as the permanent residence by a parent, sibling, child, grandchild of the farmer or by a shareholder, partner, or member of the farmer-owner, provided that the shareholder, partner, or member owns more than 50 percent of the farmer-owner, including attribution of stock ownership of a parent, sibling, child, or grandchild.
(ii) A homestead further includes the principal dwelling of a widow or widower, provided the dwelling is owned by the estate of the deceased spouse and it is reasonably likely that the dwelling will pass to the widow or widower by law or valid will when the estate is settled.
(F) A homestead also includes any other improvement or structure on the homestead parcel that is not used for business purposes. A homestead does not include that portion of a principal dwelling used for business purposes if the portion used for business purposes includes more than 25 percent of the floor space of the building.
(G) For purposes of homestead declaration and application of the homestead property tax rate, “homestead” also means a residence that was the homestead of the decedent at the date of death and, from the date of death through the next April 1, is held by the estate of the decedent and not rented.
(H) A homestead does not include any portion of a dwelling that is rented, and a dwelling is not a homestead for any portion of the year in which it is rented.
[Subdivision (8) repealed July 1, 2028 if contingency met.]
(8) “Education spending” means “education spending” as defined in 16 V.S.A. § 4001(6).
(9) “Municipality” means a city, town, unorganized town, village, grant, or gore; or, in the case of property located within the territorial limits of an incorporated school district, “municipality” means an incorporated school district.
(10) “Nonhomestead property” means all property except:
(A) Property that is exempt from the municipal property tax by law and not by vote of the municipality.
[Subdivision (10)(B) effective until July 1, 2026; see also subdivision (10)(B) effective July 1, 2026 set out below.]
(B) Property that is subject to the tax on railroads imposed by chapter 211, subchapter 2 of this title or the tax on telephone companies imposed by chapter 211, subchapter 6 of this title.
[Subdivision (10)(B) effective July 1, 2026; see also subdivision (10)(B) effective until July 1, 2026 set out above.]
(B) Property that is subject to the tax on railroads imposed by chapter 211, subchapter 2 of this title.
(C) Homesteads declared in accordance with section 5410 of this title.
(D) Personal property, machinery, inventory and equipment, ski lifts, and snow-making equipment for a ski area; provided, however, this subdivision shall not exclude from the definition of “nonhomestead property” the following real or personal property:
[Subdivision (10)(D)(i) effective until July 1, 2026; see also subdivision (10)(D)(i) effective July 1, 2026 set out below.]
(i) utility cables and lines, poles, and fixtures (except those taxed under chapter 211, subchapter 6 of this title), provided that utility cables, lines, poles, and fixtures located on homestead property and owned by the person claiming the homestead shall be taxed as homestead property; and
[Subdivision (10)(D)(i) effective July 1, 2026; see also subdivision (10)(D)(i) effective until July 1, 2026 set out above.]
(i) utility cables and lines, poles, and fixtures, provided that utility cables, lines, poles, and fixtures located on homestead property and owned by the person claiming the homestead shall be taxed as homestead property; and
(ii) gas distribution lines (except aboveground meters, regulators and gauges, and leased water heaters are excluded personal property).
(E) The excess valuation of property subject to tax increment financing in a tax increment financing district established under 24 V.S.A. chapter 53, subchapter 5 to the extent that the taxes generated on such excess valuation of property are committed under 24 V.S.A. § 1894 to finance tax increment financing district debt, provided that any increment in excess of the amounts committed shall be distributed in accordance with 24 V.S.A. § 1900.
(F) Property owned by a municipality that is located within that municipality and that is used for municipal purposes, including the provision of utility services.
(G) Machinery and equipment used directly in the processing of whey, whether or not such machinery or equipment is attached or affixed to real property.
(H), (I) [Repealed.]
(J) Buildings and fixtures of:
(i) wind-powered electric generating facilities taxed under section 5402c of this title; and
(ii) renewable energy plants generating electricity from solar power and energy storage facilities that are taxed under section 8701 of this title.
(K) Any parcel of land, but not buildings, that provides public access to public waters, as defined in 10 V.S.A. § 1422(6), and that is also:
(i) owned by the Town of Hardwick, and located in Greensboro, Vermont; or
(ii) owned by the Town of Thetford, and located in Fairlee and West Fairlee, Vermont.
(11) “Education property value” means the aggregate fair market value of all nonhomestead and homestead real property that is required to be listed at fair market value as certified during that year by the Director of Property Valuation and Review under section 5406 of this title, plus the aggregate value of property required to be listed at a value established under a stabilization agreement described under section 5404a of this title, plus the aggregate use value established under chapter 124 of this title of all nonhomestead real property that is enrolled in the use value appraisal program.
[Subdivision (12) repealed July 1, 2028 if contingency met.]
(12) “Excess spending” means:
(A) The per pupil spending amount of the district’s education spending, as defined in 16 V.S.A. § 4001(6), plus any amount required to be added from a capital construction reserve fund under 24 V.S.A. § 2804(b).
(B) In excess of 118 percent of the statewide average district per pupil education spending increased by inflation, as determined by the Secretary of Education on or before November 15 of each year based on the passed budgets to date. As used in this subdivision, “increased by inflation” means increasing the statewide average district per pupil education spending for fiscal year 2025 by the most recent New England Economic Project cumulative price index, as of November 15, for state and local government purchases of goods and services, from fiscal year 2025 through the fiscal year for which the amount is being determined.
[Subdivision (13) repealed July 1, 2028 if contingency met.]
(13)(A) “Education property tax spending adjustment” means the greater of one or a fraction in which:
(i) the numerator is the district’s per pupil education spending plus excess spending for the school year, and
(ii) the denominator is the property dollar equivalent yield for the school year, as defined in subdivision (15) of this section.
(B) “Education income tax spending adjustment” means the greater of one or a fraction in which the numerator is the district’s per pupil education spending plus excess spending for the school year, and the denominator is the income dollar equivalent yield for the school year, as defined in subdivision (16) of this section.
(14) “Domicile” means the principal dwelling of a person who has established permanent residence in the State. Intention to establish permanent residence is a factual determination to be made in the first instance by the Commissioner. No one factor is conclusive of whether a dwelling is a permanent residence; the Commissioner may consider any relevant factors, including the following: formal and informal statements of the declarant; the location of residences owned or leased by the declarant; where the declarant spends time; the declarant’s place of employment and business connections; the location of items of significant value (either monetary or sentimental) to declarant; where the declarant’s family lives; place of voter registration; place of issuance of automobile registration and driver’s license; previous permanent residency of the declarant; and address listed on federal and state income tax returns filed by the declarant.
[Subdivision (15) repealed July 1, 2028 if contingency met.]
(15) “Property dollar equivalent yield” means the amount of per pupil education spending that would result in a district having a homestead tax rate of $1.00 per $100.00 of equalized education property value.
[Subdivision (16) repealed July 1, 2028 if contingency met.]
(16) “Income dollar equivalent yield” means the amount of per pupil education spending that would result in a district having an income percentage in subdivision 6066(a)(2) of this title of 2.0 percent.
(17) “Statewide adjustment” means the ratio of the aggregate education property tax grand list of all municipalities to the aggregate value of the equalized education property tax grand list of all municipalities.
[Subdivisions (18)-(23) effective July 1, 2028 if contingency met.]
(18) “Adjusted equalized education property tax grand list” means the equalized education property tax grand list after removing the value of homestead property exempted from the statewide education property tax and the supplemental district spending tax pursuant to section 6066 of this title.
(19) “Per pupil supplemental district spending” means the per pupil amount of supplemental district spending resulting from dividing a school district’s supplemental district spending by its long-term membership as defined in 16 V.S.A. § 4001(7).
(20) “Recapture” means the amount of revenue raised through imposition of the supplemental district spending tax pursuant to subsection 5402(f) of this chapter that is in excess of the school district’s supplemental district spending.
(21) “School district with the lowest taxing capacity” means the school district other than an interstate school district anticipated to have the lowest aggregate adjusted equalized education property tax grand list of its municipal members per long-term membership as defined in 16 V.S.A. § 4001(7) in the following fiscal year.
(22) “Supplemental district spending” means the spending that the voters of a school district approve in excess of the school district’s educational opportunity payment, as defined in 16 V.S.A. § 4001(17), for the fiscal year, provided that the voters of a school district other than an interstate school district shall not approve spending in excess of five percent of the product of the base amount, as defined in 16 V.S.A. § 4001(16), and the school district’s long-term membership, as defined in 16 V.S.A. § 4001(7).
(23) “Supplemental district spending yield” means the amount of property tax revenue per long-term membership as defined in 16 V.S.A. § 4001(7) that would be raised in the school district with the lowest taxing capacity using a supplemental district spending tax rate of $1.00 per $100.00 of equalized education property value multiplied by the statewide adjustment.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), §§ 7, 7a, eff. Jan. 1, 1998; 1997, No. 71 (Adj. Sess.), § 58, eff. June 26, 1997; 1997, No. 156 (Adj. Sess.), § 34, eff. April 29, 1998; 1999, No. 49, §§ 7, 18, eff. June 2, 1999; 2001, No. 53, § 1, eff. June 12, 2001; 2001, No. 144 (Adj. Sess.), § 3, eff. June 21, 2002; 2003, No. 66, § 289b; 2003, No. 68, § 3; 2003, No. 68, § 28, eff. June 18, 2003; 2003, No. 76 (Adj. Sess.), §§ 13, 14, eff. Feb. 17, 2004; 2005, No. 38, §§ 16, 24; 2005, No. 94 (Adj. Sess.), § 8, eff. March 8, 2006; 2005, No. 182 (Adj. Sess.), § 10; 2007, No. 66, §§ 11, 25, eff. July 1, 2007; 2007, No. 82, § 21, eff. July 1, 2007; 2007, No. 92 (Adj. Sess.), § 24; 2009, No. 44, § 19, eff. May 21, 2009; 2011, No. 45, § 13c, eff. May 24, 2011; 2011, No. 127 (Adj. Sess.), § 3, eff. Jan. 1, 2013; 2011, No. 143 (Adj. Sess.), § 37, eff. May 15, 2012; 2013, No. 60, §§ 1, 2; 2013, No. 73, § 38, eff. June 5, 2013; 2013, No. 80, § 11; 2013, No. 92 (Adj. Sess.), § 283, eff. Feb. 14, 2014; 2013, No. 174 (Adj. Sess.), §§ 57, 58, eff. Jan. 1, 2015; 2013, No. 174 (Adj. Sess.), §§ 59, 60; 2015, No. 46, § 27; 2015, No. 57, § 59, eff. June 11, 2015; 2015, No. 132 (Adj. Sess.), § 3a, eff. July 1, 2017; 2015, No. 157 (Adj. Sess.), § H.5, eff. Jan. 1, 2017; 2019, No. 46, § 1, eff. Jan. 1, 2020; 2019, No. 51, § 22, eff. June 10, 2019; 2021, No. 20, § 266; 2021, No. 54, § 20; 2021, No. 105 (Adj. Sess.), § 528, eff. July 1, 2022; 2021, No. 127 (Adj. Sess.), § 28, eff. July 1, 2024; 2023, No. 145 (Adj. Sess.), § 9, eff. July 1, 2026; 2023, No. 183 (Adj. Sess.), § 13a, eff. July 1, 2025; 2023, No. 183 (Adj. Sess.), § 18, eff. July 1, 2024; 2025, No. 73, § 69, eff. July 1, 2025; 2025, No. 73, § 46, contingently eff. July 1, 2028.)
§ 5402 Education property tax liability
[Subsection (a) effective until contingency met; see also subsection (a) effective July 1, 2028 if contingency met, set out below.]
(a) A statewide education tax is imposed on all nonhomestead and homestead property at the following rates:
(1) The tax rate for nonhomestead property shall be $1.59 per $100.00 divided by the statewide adjustment.
(2) The tax rate for homestead property shall be $1.00 multiplied by the education property tax spending adjustment for the municipality per $100.00 of equalized education property value as most recently determined under section 5405 of this title. The homestead property tax rate for each municipality that is a member of a union or unified union school district shall be calculated as required under subsection (e) of this section.
[Subsection (a) effective July 1, 2028 if contingency met; see also subsection (a) effective until contingency met, set out above.]
(a) A statewide education tax is imposed on all nonhomestead and homestead property at a rate sufficient to cover expenditures from the Education Fund other than supplemental district spending, after accounting for forecasted non-property tax revenues and any funds unreserved in the Education Fund following the process under 16 V.S.A. § 4032(c). It is the intention of the General Assembly that the statewide education tax rate under this section shall be adopted for each fiscal year by act of the General Assembly. If the General Assembly fails to adopt a statewide education tax rate for a fiscal year, the statewide education tax rate for the fiscal year shall equal the product of 110 percent and the statewide education tax rate for the preceding fiscal year. The statewide education tax rate shall be adjusted for homestead property and each general class of nonhomestead property provided under section 4152a of this title as follows:
| | If the tax classification of the property subject to taxation is: | then the statewide education tax rate is multiplied by a factor of: | | --- | --- | --- | | | Homestead | 1.0 | | | Nonhomestead Nonresidential | 1.0 | | | Nonhomestead Residential | 1.0 |
[Subsection (b) effective until contingency met; see also subsection (b) effective July 1, 2028 if contingency met, set out below.]
(b) The statewide education tax shall be calculated as follows:
(1) The Commissioner of Taxes shall determine for each municipality the education tax rates under subsection (a) of this section divided by the number resulting from dividing the municipality’s most recent common level of appraisal by the statewide adjustment. The legislative body in each municipality shall then bill each property taxpayer at the homestead or nonhomestead rate determined by the Commissioner under this subdivision, multiplied by the education property tax grand list value of the property, properly classified as homestead or nonhomestead property and without regard to any other tax classification of the property. Statewide education property tax bills shall show the tax due and the calculation of the rate determined under subsection (a) of this section, divided by the number resulting from dividing the municipality’s most recent common level of appraisal by the statewide adjustment, multiplied by the current grand list value of the property to be taxed. Statewide education property tax bills shall also include language provided by the Commissioner pursuant to subsection 5405(g) of this title.
(2) Taxes assessed under this section shall be assessed and collected in the same manner as taxes assessed under chapter 133 of this title with no tax classification other than as homestead or nonhomestead property; provided, however, that the tax levied under this chapter shall be billed to each taxpayer by the municipality in a manner that clearly indicates the tax is separate from any other tax assessed and collected under chapter 133, including an itemization of the separate taxes due. The bill may be on a single sheet of paper with the statewide education tax and other taxes presented separately and side by side.
(3) If a district has not voted a budget by June 30, an interim homestead education tax shall be imposed at the base rate determined under subdivision (a)(2) of this section, divided by the number resulting from dividing the municipality’s most recent common level of appraisal by the statewide adjustment, but without regard to any spending adjustment under subdivision 5401(13) of this title. Within 30 days after a budget is adopted and the deadline for reconsideration has passed, the Commissioner shall determine the municipality’s homestead tax rate as required under subdivision (1) of this subsection.
[Subsection (b) effective July 1, 2028 if contingency met; see also subsection (b) effective until contingency met, set out above.]
(b) The statewide education tax shall be calculated as follows:
(1) The Commissioner of Taxes shall determine for each municipality the education tax rates under subsection (a) of this section divided by the number resulting from dividing the municipality’s most recent common level of appraisal by the statewide adjustment. The legislative body in each municipality shall then bill each property taxpayer at the applicable rate determined by the Commissioner under this subdivision, multiplied by the education property tax grand list value of the property, properly classified as homestead or nonhomestead property and without regard to any other tax classification of the property not authorized under this chapter. Statewide education property tax bills shall show the tax due and the calculation of the rate determined under subsection (a) of this section, divided by the number resulting from dividing the municipality’s most recent common level of appraisal by the statewide adjustment, multiplied by the current grand list value of the property to be taxed. Statewide education property tax bills shall also include language provided by the Commissioner pursuant to subsection 5405(g) of this title.
(2) Taxes assessed under this section shall be assessed and collected in the same manner as taxes assessed under chapter 133 of this title with no tax classification other than those required by this section; provided, however, that the tax levied under this chapter shall be billed to each taxpayer by the municipality in a manner that clearly indicates the tax is separate from any other tax assessed and collected under chapter 133, including an itemization of the separate taxes due. The bill may be on a single sheet of paper with the statewide education tax and other taxes presented separately and side by side.
(3) [Repealed.]
[Subsection (c) effective until contingency met; see also subsection (c) effective July 1, 2028 if contingency met, set out below.]
(c)(1) The treasurer of each municipality shall by December 1 of the year in which the tax is levied and on June 1 of the following year pay to the State Treasurer for deposit in the Education Fund one-half of the municipality’s statewide nonhomestead tax and one-half of the municipality’s homestead education tax, as determined under subdivision (b)(1) of this section.
(2) The Secretary of Education shall determine each municipality’s net nonhomestead education tax payment and its net homestead education tax payment to the State based on grand list information received by the Secretary not later than the March 15 prior to the June 1 net payment. Payment shall be accompanied by a return prescribed by the Secretary of Education. Each municipality may retain 0.225 of one percent of the total education tax collected, only upon timely remittance of net payment to the State Treasurer or to the applicable school district or districts.
[Subsection (c) effective July 1, 2028 if contingency met; see also subsection (c) effective until contingency met, set out above.]
(c)(1) The treasurer of each municipality shall by December 1 of the year in which the tax is levied and on June 1 of the following year pay to the State Treasurer for deposit in the Education Fund one-half of the municipality’s statewide education tax, as determined under subdivision (b)(1) of this section.
(2) The Secretary of Education shall determine each municipality’s net education tax payment to the State based on grand list information received by the Secretary not later than the March 15 prior to the June 1 net payment. Payment shall be accompanied by a return prescribed by the Secretary of Education. Each municipality may retain 0.225 of one percent of the total education tax collected, only upon timely remittance of net payment to the State Treasurer or to the applicable school district or districts.
(d) [Repealed.]
[Subsection (e) repealed July 1, 2028 if contingency met.]
(e) The Commissioner of Taxes shall determine a homestead education tax rate for each municipality that is a member of a union or unified union school district as follows:
(1) For a municipality that is a member of a unified union school district, use the base rate determined under subdivision (a)(2) of this section and a spending adjustment under subdivision 5401(13) of this title based upon the per pupil education spending of the unified union.
(2) For a municipality that is a member of a union school district:
(A) Determine the municipal district homestead tax rate using the base rate determined under subdivision (a)(2) of this section and a spending adjustment under subdivision 5401(13) of this title based on the per pupil education spending in the municipality who attends a school other than the union school.
(B) Determine the union district homestead tax rate using the base rate determined under subdivision (a)(2) of this section and a spending adjustment under subdivision 5401(13) of this title based on the per pupil education spending of the union school district.
(C) Determine a combined homestead tax rate by calculating the weighted average of the rates determined under subdivisions (A) and (B) of this subdivision (2), with weighting based upon the ratio of union school long-term membership, as defined in 16 V.S.A. § 4001(7), from the member municipality to total long-term membership of the member municipality; and the ratio of long-term membership attending a school other than the union school to total long-term membership of the member municipality. Total long-term membership of the member municipality is based on the number of pupils who are legal residents of the municipality and attending school at public expense. If necessary, the Commissioner may adopt a rule to clarify and facilitate implementation of this subsection (e).
[Subsection (f) effective July 1, 2028 if contingency met.]
(f)(1) A supplemental district spending tax is imposed on all homestead and nonhomestead property in each member municipality of a school district that approves spending pursuant to a budget presented to the voters of a school district under 16 V.S.A. § 563. The Commissioner of Taxes shall determine the supplemental district spending tax rate for each school district by dividing the school district’s per pupil supplemental district spending as certified by the Secretary of Education by the supplemental district spending yield. The legislative body in each member municipality shall then bill each property taxpayer at the rate determined by the Commissioner under this subsection, divided by the number resulting from dividing the municipality’s most recent common level of appraisal by the statewide adjustment and multiplied by the current grand list value of the property to be taxed. The bill shall show the tax due and the calculation of the rate.
(2) The supplemental district spending tax assessed under this subsection shall be assessed and collected in the same manner as taxes assessed under chapter 133 of this title with no tax classification other than as homestead or nonhomestead property; provided, however, that the tax levied under this chapter shall be billed to each taxpayer by the municipality in a manner that clearly indicates the tax is separate from any other tax assessed and collected under chapter 133 of this title and the statewide education property tax under this section, including an itemization of the separate taxes due. The bill may be on a single sheet of paper with the supplemental district spending tax, the statewide education tax, and other taxes presented separately and side by side.
(3) The treasurer of each municipality shall on or before December 1 of the year in which the tax is levied and on or before June 1 of the following year pay to the State Treasurer for deposit in the Education Fund one-half of the municipality’s supplemental district spending tax as determined under subdivision (1) of this subsection.
(4) The Secretary of Education shall determine each municipality’s net supplemental district spending tax payment to the State based on grand list information received by the Secretary not later than the March 15 prior to the June 1 net payment. Payment shall be accompanied by a return prescribed by the Secretary of Education. Each municipality may retain 0.225 of one percent of the total supplemental district spending tax collected, only upon timely remittance of net payment to the State Treasurer or to the applicable school district.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 8, eff. Jan. 1, 1998; 1997, No. 71 (Adj. Sess.), § 53; 1997, No. 71 (Adj. Sess.), § 73, eff. January 1, 1999; 1999, No. 1, § 60e, eff. March 31, 1999; 1999, No. 49, § 30, eff. June 2, 1999; 2001, No. 63, § 276, eff. June 16, 2001; 2001, No. 144 (Adj. Sess.), § 21, eff. June 21, 2002; 2003, No. 68, § 76, eff. June 18, 2003; 2003, No. 68, § 4, eff. for fiscal years 2005 and after; 2003, No. 76 (Adj. Sess.), § 6; 2003, No. 80 (Adj. Sess.), §§ 49a, 49c, eff. March 8, 2004; 2003, No. 130 (Adj. Sess.), § 13; 2005, No. 182 (Adj. Sess.), §§ 11, 12; 2007, No. 33, § 11, eff. May 18, 2007; 2007, No. 65, § 289; 2007, No. 82, § 12; 2007, No. 190 (Adj. Sess.), §§ 10, 11; 2009, No. 1 (Sp. Sess.), § H.23, eff. June 2, 2009; 2013, No. 92 (Adj. Sess.), § 284, eff. Feb. 14, 2014; 2013, No. 174 (Adj. Sess.), § 61, eff. June 4, 2014; 2015, No. 46, § 28; 2018, No. 11 (Sp. Sess.), § H.14, eff. July 1, 2019; 2019, No. 51, § 25; 2021, No. 20, § 267; 2021, No. 127 (Adj. Sess.), § 29, eff. July 1, 2024; 2021, No. 163 (Adj. Sess.), § 1, eff. June 1, 2022; 2023, No. 183 (Adj. Sess.), § 14, eff. July 1, 2025; 2025, No. 73, § 68, eff. July 1, 2025; 2025, No. 73, § 47, contingently eff. July 1, 2028.)
§ 5402a Repealed
[Repealed]
2011, No. 143 (Adj. Sess.), § 57.
§ 5402b Statewide education tax yields; recommendation of the Commissioner [Effective until July 1, 2027; see also 32 V.S.A. § 5402b effective July 1, 2027 set out below]
(a) Annually, not later than December 1, the Commissioner of Taxes, after consultation with the Secretary of Education, the Secretary of Administration, and the Joint Fiscal Office, shall calculate and recommend a property dollar equivalent yield, an income dollar equivalent yield, and a nonhomestead property tax rate for the following fiscal year. In making these calculations, the Commissioner shall assume:
(1) the homestead base tax rate in subdivision 5402(a)(2) of this title is $1.00 per $100.00 of equalized education property value;
(2) the applicable percentage in subdivision 6066(a)(2) of this title is 2.0;
(3) the statutory reserves under 16 V.S.A. § 4026 and this section were maintained at five percent;
(4) the percentage change in the average education tax bill applied to nonhomestead property and the percentage change in the average education tax bill of homestead property and the percentage change in the average education tax bill for taxpayers who claim a credit under subsection 6066(a) of this title are equal;
(5) the equalized education grand list is multiplied by the statewide adjustment in calculating the property dollar equivalent yield; and
(6) the nonhomestead rate is divided by the statewide adjustment.
(b) For each fiscal year, the property dollar equivalent yield and the income dollar equivalent yield shall be the same as in the prior fiscal year, unless set otherwise by the General Assembly.
(c) Annually, on or before December 1, the Joint Fiscal Office shall prepare and publish an official, annotated copy of the Education Fund Outlook. The Emergency Board shall review the Outlook at its meetings. As used in this section, “Education Fund Outlook” means the projected revenues and expenses associated with the Education Fund for the following fiscal year, including projections of different categories of educational expenses and costs.
(d) Along with the recommendations made under this section, the Commissioner shall include the range of per pupil spending between all districts in the State for the previous year.
(Added 2003, No. 68, § 5, eff. June 18, 2003; amended 2005, No. 185 (Adj. Sess.), § 10; 2009, No. 160 (Adj. Sess.), §§ 50, 51, eff. June 4, 2010; 2013, No. 92 (Adj. Sess.), § 285, eff. Feb. 14, 2014; 2013, No. 174 (Adj. Sess.), § 52; 2015, No. 46, § 32; 2015, No. 132 (Adj. Sess.), § 4; 2018, No. 11 (Sp. Sess.), §§ H.10a, H.29; 2023, No. 183 (Adj. Sess.), § 15, eff. July 1, 2025.)
§ 5402b Statewide education tax rate; supplemental district spending yield; recommendation of the Commissioner [Effective July 1, 2027; see also 32 V.S.A. § 5402b effective until July 1, 2027 set out above]
(a) Annually, not later than December 1, the Commissioner of Taxes, after consultation with the Secretary of Education, the Secretary of Administration, and the Joint Fiscal Office, shall calculate and recommend the statewide education property tax rate pursuant to subsection 5402(a) of this chapter and the supplemental district spending yield for the following fiscal year. In making these calculations, the Commissioner shall assume the statutory reserves are maintained at five percent pursuant to 16 V.S.A. § 4026, the amounts in the Supplemental District Spending Reserve are unavailable for any purpose other than that specified in 16 V.S.A. § 4032(b), and the statewide education property tax rate is divided by the statewide adjustment.
(b) For each fiscal year, the supplemental district spending yield shall be the same as in the prior fiscal year unless set otherwise by the General Assembly.
(c) Annually, on or before December 1, the Joint Fiscal Office shall prepare and publish an official, annotated copy of the Education Fund Outlook. The Emergency Board shall review the Outlook at its meetings. As used in this section, “Education Fund Outlook” means the projected revenues and expenses associated with the Education Fund for the following fiscal year, including projections of different categories of educational expenses and costs.
(d) Along with the recommendations made under this section, the Commissioner shall include:
(1) the base amount as defined in 16 V.S.A. § 4001(16);
(2) for each school district, the estimated long-term membership, weighted long-term membership, and aggregate adjusted equalized education property tax grand list of its municipal members;
(3) for each school district, the estimated aggregate adjusted equalized education property tax grand list of its municipal members per long-term membership;
(4) the estimated school district with the lowest taxing capacity; and
(5) the range of per pupil supplemental district spending between all districts in the State for the previous year.
(Added 2003, No. 68, § 5, eff. June 18, 2003; amended 2005, No. 185 (Adj. Sess.), § 10; 2009, No. 160 (Adj. Sess.), §§ 50, 51, eff. June 4, 2010; 2013, No. 92 (Adj. Sess.), § 285, eff. Feb. 14, 2014; 2013, No. 174 (Adj. Sess.), § 52; 2015, No. 46, § 32; 2015, No. 132 (Adj. Sess.), § 4; 2018, No. 11 (Sp. Sess.), §§ H.10a, H.29; 2023, No. 183 (Adj. Sess.), § 15, eff. July 1, 2025; 2025, No. 73, § 48, eff. July 1, 2027.)
§ 5402c Wind-powered electric generating facilities tax
(a) A facility certified by the Commissioner of Public Service as a facility that produces electrical energy for resale generated solely from wind power, that has an installed capacity of at least one megawatt, that was placed in service after January 1, 2007, and that holds a valid certificate of public good issued under 30 V.S.A. § 248, shall be assessed an alternative education property tax on its buildings and fixtures used directly and exclusively in the generation of electrical energy from wind power.
(b) The tax shall be imposed at a rate per kWh of electrical energy produced by the certified facility, as determined by the Public Service Department for the six months ending April 30 and the six months ending October 31 each year. The rate of the tax shall be $0.003.
(c) In no case shall the tax imposed for any six-month period be less than an amount equal to the rate per kWh imposed by this subsection multiplied by the number of kWh that would be generated if the facility operated at 15 percent of the facility’s average capacity factor.
(d) The tax imposed by this section shall be paid to the Commissioner of Taxes by the person or entity then owning or operating the certified facility by December 1 for the period ending October 31 and by June 1 for the period ending April 30 for deposit into the Education Fund. A person or entity failing to make returns or pay the tax imposed by this section within the time required shall be subject to and governed by the provisions of sections 3202 and 3203 and subchapters 8 and 9 of chapter 151 of this title.
(e) Unless buildings and fixtures are taxed under this section, they shall remain subject to taxation under section 5402 of this title. Buildings and fixtures subject to the education property tax under this section shall not be taken into account in determining the common level of appraisal for the municipality.
(Added 2007, No. 92 (Adj. Sess.), § 25; amended 2011, No. 127 (Adj. Sess.), § 5, eff. Jan. 1, 2013.)
§ 5403 Assessment districts
(a) A municipality may vote at any regular or special meeting to merge with one or more other municipalities in the same unified union school district to create or join an assessment district for the purpose of standardized property valuation.
(b) All municipalities merged into an assessment district shall agree to implement standardized assessment procedures approved by the Commissioner. The Commissioner shall provide written guidance to municipalities relating to how they may receive approval under this subsection.
(c) A vote to merge with an assessment district shall be binding on a municipality for five years. After five years, a municipality may vote at any regular or special meeting to leave the assessment district, unless the assessment district has consolidated all administrative functions.
(d) All municipalities within an assessment district shall be treated as a single municipality for purposes of the equalization process established by section 5405 of this chapter.
(e) Municipalities within an assessment district shall maintain independent grand lists for municipal taxation as well as independent processes for grievances, property valuation appeals, abatements, grand list filing, use value appraisal parcel management, reappraisal, and financial interaction with the Agency of Education, unless the Commissioner, in writing, authorizes the municipalities of an assessment district to consolidate all property valuation administrative functions.
(Added 2019, No. 51, § 26.)
§ 5404 Determination of education property tax grand list
(a) Municipalities shall determine the education property tax grand list by calculating one percent of the listed value of nonhomestead and homestead real property as provided in this section. The listed value of all nonhomestead and homestead real property in a municipality shall be its fair market value, its value established under a stabilization agreement described in section 5404a of this title, or the use value of property enrolled in a Use Value Program under chapter 124 of this title. If a homestead is located on a parcel of greater than two acres, the entire parcel shall be appraised at fair market value; the housesite shall then be appraised as if it were situated on a separate parcel, and the value of the housesite shall be subtracted from the value of the total parcel to determine the value of the remainder of the parcel.
(b) Annually, on or before August 15, the clerk of a municipality, or the supervisor of an unorganized town or gore, shall transmit to the Director in an electronic or other format as prescribed by the Director education and municipal grand list data, including exemption information and grand list abstracts; tax rates; an extract of the assessor database also referred to as a Computer Assisted Mass Appraisal (CAMA) system or Computer Assisted Mass Appraisal database; and the total amount of taxes assessed in the town or unorganized town or gore. The data transmitted shall identify each parcel by a parcel identification number assigned under a numbering system prescribed by the Director. Municipalities may continue to use existing numbering systems in addition to, but not in substitution for, the parcel identification system prescribed by the Director. If changes or additions to the grand list are made by the listers or other officials authorized to do so after such abstract has been so transmitted, such clerks shall forthwith certify the same to the Director.
(c) If a town clerk or the legislative body fails without good cause, as determined by the Commissioner, to transmit the grand list data or the tax data in a timely manner and in the format required by the Director, the Commissioner shall notify the Secretary of Transportation and the Secretary of Education, who shall withhold all general and other aid payments owing to the municipality until the grand list information is filed as required by the Director under subsection (b) of this section. Federal funds are exempt from withholding if either Secretary has an opinion of counsel that withholding would be a violation of federal law.
(d) Municipalities shall include, on all property tax bills, the parcel identification number prescribed in subsection (b) of this section.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 2003, No. 68, § 29, eff. June 18, 2003; 2009, No. 160 (Adj. Sess.), § 5, eff. June 4, 2010; 2013, No. 92 (Adj. Sess.), § 286, eff. Feb. 14, 2014; 2025, No. 69, § 6, eff. July 1, 2025.)
§ 5404a Tax stabilization agreements; tax increment financing districts
(a) A tax agreement or exemption shall affect the education property tax grand list of the municipality in which the property subject to the agreement is located if the agreement or exemption is:
(1) A prior agreement, meaning that it was:
(A) a tax stabilization agreement for any purpose authorized under 24 V.S.A. § 2741 or comparable municipal charter provisions entered into or proposed and voted by the municipality before July 1, 1997, or a property tax exemption adopted by vote pursuant to chapter 125 of this title or comparable municipal charter provisions before July 1, 1997; or
(B) an agreement relating to property sold or transferred by the New England Power Company of its Connecticut River system and its facilities along the Deerfield River that was warned before September 1, 1997.
(2) A tax stabilization agreement relating to industrial or commercial property entered into under 24 V.S.A. § 2741 or comparable municipal charter provisions.
(3) An agreement relating to affordable housing, which may be approved under this subdivision by the Commissioner of Taxes upon recommendation of the Commissioner of Housing and Community Affairs, provided the agreement provides either for new construction housing projects or rehabilitated preexisting housing projects and secures federal financial participation that may include projects financed with federal low income housing tax credits.
(4) An exemption of property owned by a nonprofit volunteer fire, rescue, or ambulance organization and used for the purposes of the organization, adopted, extended, or renewed by vote of a municipality under chapter 125 of this title or comparable municipal charter provision after July 1, 1997.
(5) An exemption of property owned by a municipality situated in another municipality, which has been exempted from municipal property taxes by vote of the municipality in which the property is situated and that is used for municipal forest lands, municipal water supply, or for other noncommercial municipal purposes. To be exempted under this subsection, the property must have been voted an exemption by the municipality before January 1, 1998, and such exemption may be extended or renewed thereafter by a similar vote of the municipality.
(6) An exemption of a portion of the value of a qualified rental unit parcel. An owner of a qualified rental unit parcel shall be entitled to an exemption on the education property tax grand list of 10 percent of the grand list value of the parcel, multiplied by the ratio of square footage of improvements used for or related to residential rental purposes to total square footage of all improvements, multiplied by the ratio of qualified rental units to total residential rental units on the parcel. “Qualified rental units” means residential rental units that are subject to rent restriction under provisions of State or federal law but excluding units subject to rent restrictions under only one of the following programs: Section 8 moderate rehabilitation, Section 8 housing choice vouchers, or Section 236 or Section 515 rural development rental housing. A municipality shall allow the percentage exemption under this subsection upon presentation by the taxpayer to the municipality, by April 1, of a certificate of education grand list value exemption obtained from the Vermont Housing Finance Agency (VHFA). VHFA shall issue a certificate of exemption upon presentation by the taxpayer of information that VHFA and the Commissioner shall require. A certificate of exemption issued by VHFA under this subsection shall expire upon transfer of the building, upon expiration of the rent restriction, or after 10 years, whichever first occurs; provided, however, that the certificate of exemption may be renewed after 10 years and every 10 years thereafter if VHFA finds that the property continues to meet the requirements of this subsection.
[Subdivision (b)(1) effective until contingency met; see also subdivision (b)(1) effective July 1, 2028 if contingency met, set out below.]
(b)(1) An agreement affecting the education property tax grand list defined under subsection (a) of this section shall reduce the municipality’s education property tax liability under this chapter for the duration of the agreement or exemption without extension or renewal, and for a maximum of 10 years. A municipality’s property tax liability under this chapter shall be reduced by any difference between the amount of the education property taxes collected on the subject property and the amount of education property taxes that would have been collected on such property if its fair market value were taxed at the equalized nonhomestead rate for the tax year.
[Subdivision (b)(1) effective July 1, 2028 if contingency met; see also subdivision (b)(1) effective until contingency met, set out above.]
(1) An agreement affecting the education property tax grand list defined under subsection (a) of this section shall reduce the municipality’s education property tax liability under this chapter for the duration of the agreement or exemption without extension or renewal, and for a maximum of 10 years. A municipality’s property tax liability under this chapter shall be reduced by any difference between the amount of the education property taxes collected on the subject property and the amount of education property taxes that would have been collected on such property if its fair market value were taxed at the equalized rate for the tax year.
(2) Notwithstanding any other provision of law, if a municipality has entered into an agreement that reduces the municipality’s education property tax liability under this chapter and the municipality establishes a tax increment financing district under 24 V.S.A. chapter 53, subchapter 5, the municipality’s municipal and education tax increment shall be calculated based on the assessed value of the properties in the municipality’s grand list and not on the stabilized value.
(c) Tax agreements not affecting the education property tax grand list. A tax agreement shall not affect the education property tax grand list if it is:
(1) A tax exemption adopted by vote of a municipality after July 1, 1997 under chapter 125 of this title, or voted under a comparable municipal charter provision or other provision of law for property owned by nonprofit organizations used for public, pious, or charitable purposes, or exemptions of property of a nonprofit volunteer fire, rescue, or ambulance organization adopted by vote of a municipality.
(2) A tax stabilization agreement relating to agricultural property, forestland, open space land, or alternate energy generating plants entered into after July 1, 1997 by a municipality under 24 V.S.A. § 2741.
(3) A tax stabilization agreement relating to commercial or industrial property entered into after July 1, 1997 by a municipality under 24 V.S.A. § 2741, or a property tax exemption for purposes of economic development adopted by vote after July 1, 1997.
(d) Tax agreements not affecting the education property tax grand list as defined in subsection (c) of this section shall not reduce the total education property tax liability of the municipality to the State under this chapter. However, such agreements shall reduce the education property tax liability of the owner of the property subject to the agreement to the extent provided in the agreement. A municipality shall assess a tax on its municipal grand list at a rate sufficient to raise an amount equal to the difference between the municipality’s total education property tax liability to the State under this chapter and the amount collected from education property taxes in the municipality after reductions for all tax agreements in effect in the municipality as defined in subsection (c) of this section. Any such tax assessed under this section shall be identified on the tax bill of the municipality as a separate tax for municipally voted tax agreements.
(e) [Repealed.]
(f) A municipality that establishes a tax increment financing district under 24 V.S.A. chapter 53, subchapter 5 shall collect all property taxes on properties contained within the district and apply not more than 70 percent of the State education property tax increment, and not less than 85 percent of the municipal property tax increment, to repayment of financing of the improvements and related costs for up to 20 years pursuant to 24 V.S.A. § 1894, if approved by the Vermont Economic Progress Council pursuant to this section, subject to the following:
(1) In a municipality with one or more approved districts, the Council shall not approve an additional district until the municipality retires the debt incurred for all of the districts in the municipality.
(2) The Council shall not approve more than six districts in the State, and not more than two per county, provided:
(A) The districts listed in 24 V.S.A. § 1892(d) shall not be counted against the limits imposed in this subdivision (2).
(B) The Council shall consider complete applications in the order they are submitted, except that if during any calendar month the Council receives applications for more districts than are actually available in a county, the Council shall evaluate each application and shall approve the application that, in the Council’s discretion, best meets the economic development needs of the county.
(3)(A) A municipality shall immediately notify the Council if it resolves not to incur debt for an approved district within five years of approval or a five-year extension period as required in 24 V.S.A. § 1894.
(B) Upon receiving notification pursuant to subdivision (A) of this subdivision (3), the Council shall terminate the district and may approve a new district, subject to the provisions of this section and 24 V.S.A. chapter 53, subchapter 5.
(g) Any use of education property tax increment approved under subsection (f) of this section shall be in addition to any other payments to the municipality under 16 V.S.A. chapter 133, shall remain available to the municipality for the full period authorized under 24 V.S.A. § 1894, and shall be restricted only to the extent that the real property development giving rise to the increased value to the grand list fails to occur within the authorized period or by the enforcement provided by subsection (j) of this section.
(h) To approve utilization of incremental revenues pursuant to subsection (f) of this section, the Vermont Economic Progress Council shall do all the following:
(1) Application review.
(A) Review each application to determine that the infrastructure improvements proposed to serve the tax increment financing district and the proposed development in the district would not have occurred as proposed in the application, or would have occurred in a significantly different and less desirable manner than as proposed in the application, but for the proposed utilization of the incremental tax revenues.
(B) The review shall take into account:
(i) the amount of additional time, if any, needed to complete the proposed development within the tax increment district and the amount of additional cost that might be incurred if the project were to proceed without education property tax increment financing;
(ii) how the proposed development components and size would differ, if at all, including, if applicable to the development, in the number of units of affordable housing, as defined in 24 V.S.A. § 4303, without education property tax increment financing; and
(iii)(I) the amount of additional revenue expected to be generated as a result of the proposed development;
(II) the percentage of that revenue that shall be paid to the Education Fund;
(III) the percentage that shall be paid to the municipality; and
(IV) the percentage of the revenue paid to the municipality that shall be used to pay financing incurred for development of the tax increment financing district.
(2) Process requirements. Determine that each application meets all of the following four requirements:
(A) The municipality held public hearings and established a tax increment financing district in accordance with 24 V.S.A. §§ 1891-1900.
(B) The municipality has developed a tax increment financing district plan, including a project description; a development financing plan; a pro forma projection of expected costs; a projection of revenues; a statement and demonstration that the project would not proceed without the allocation of a tax increment; evidence that the municipality is actively seeking or has obtained other sources of funding and investment; and a development schedule that includes a list, a cost estimate, and a schedule for public improvements and projected private development to occur as a result of the improvements.
(C) The municipality has approved or pledged the utilization of incremental municipal tax revenues for purposes of the district in the same proportion as the utilization of education property tax revenues approved by the Vermont Economic Progress Council for the tax increment financing district.
(D) The proposed infrastructure improvements and the projected development or redevelopment are compatible with approved municipal and regional development plans, and the project has clear local and regional significance for employment, housing, and transportation improvements.
(3) Location criteria. Determine that each application meets at least two of the following three criteria:
(A) The development is:
(i) compact;
(ii) high density; or
(iii) located in or near existing industrial areas.
(B) The proposed district is within an approved growth center, designated downtown, designated village center, new town center, or neighborhood development area.
(C) The development will occur in an area that is economically distressed, which for the purposes of this subdivision means that the municipality in which the area is located has at least one of the following:
(i) a median family income that is not more than 80 percent of the statewide median family income as reported by the Vermont Department of Taxes for the most recent year for which data are available;
(ii) an annual average unemployment rate that is at least one percent greater than the latest annual average statewide unemployment rate as reported by the Vermont Department of Labor; or
(iii) a median sales price for residential properties under six acres that is not more than 80 percent of the statewide median sales price for residential properties under six acres as reported by the Vermont Department of Taxes.
(4) Project criteria. Determine that the proposed development within a tax increment financing district will accomplish at least three of the following five criteria:
(A) The development within the tax increment financing district clearly requires substantial public investment over and above the normal municipal operating or bonded debt expenditures.
(B) The development includes new or rehabilitated affordable housing, as defined in 24 V.S.A. § 4303.
(C) The project will affect the remediation and redevelopment of a brownfield located within the district. As used in this section, “brownfield” means an area in which a hazardous substance, pollutant, or contaminant is or may be present, and that situation is likely to complicate the expansion, development, redevelopment, or reuse of the property.
(D) The development will include at least one entirely new business or business operation or expansion of an existing business within the district, and this business will provide new, quality, full-time jobs that meet or exceed the prevailing wage for the region as reported by the Department of Labor.
(E) The development will enhance transportation by creating improved traffic patterns and flow or creating or improving public transportation systems.
(i) The Vermont Economic Progress Council and the Department of Taxes shall make an annual report to the Senate Committee on Economic Development, Housing and General Affairs and the House Committees on Commerce and Economic Development and on Ways and Means on or before April 1. The report shall include, in regard to each existing tax increment financing district, the date of creation, a profile of the district, a map of the district, the original taxable value, the scope and value of projected and actual improvements and developments, projected and actual incremental revenue amounts and division of the increment revenue between district debt, the Education Fund, the special account required by 24 V.S.A. § 1896 and the municipal General Fund, projected and actual financing, and a set of performance measures developed by the Vermont Economic Progress Council, which shall include the number of jobs created in the district, what sectors experienced job growth, and the amount of infrastructure work performed by Vermont firms. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection.
(j)(1) Authority to adopt rules. The Vermont Economic Progress Council is hereby granted authority to adopt rules in accordance with 3 V.S.A. chapter 25 for the purpose of providing clarification and detail for administering the provisions of 24 V.S.A. chapter 53, subchapter 5 and the tax increment financing district provisions of this section. A single rule shall be adopted for all tax increment financing districts that will provide further clarification for statutory construction and include a process whereby a municipality may distribute excess increment to the Education Fund as allowed under 24 V.S.A. § 1900. From the date the rules are adopted, the municipalities with districts in existence prior to 2006 are required to abide by the governing rule and any other provisions of the law in force; provided, however, that the rule shall indicate which specific provisions are not applicable to those districts in existence prior to January 2006.
(2) Authority to issue decisions.
(A) The Secretary of Commerce and Community Development, after reasonable notice to a municipality and an opportunity for a hearing, is authorized to issue decisions to a municipality on questions and inquiries concerning the administration of tax increment financing districts, statutes, rules, noncompliance with 24 V.S.A. chapter 53, subchapter 5, and any instances of noncompliance identified in audit reports conducted pursuant to subsection (l) of this section.
(B) The Vermont Economic Progress Council shall prepare recommendations for the Secretary prior to the issuance of a decision. As appropriate, the Council may prepare such recommendations in consultation with the Commissioner of Taxes, the Attorney General, and the State Treasurer. In preparing recommendations, the Council shall provide a municipality with a reasonable opportunity to submit written information in support of its position. The Secretary shall review the recommendations of the Council and issue a final written decision on each matter within 60 days of the receipt of the recommendations. However, pursuant to subdivision (5) of this subsection (j), the Secretary may permit an appeal to be taken by any party to a Superior Court for determination of questions of law in the same manner as the Supreme Court may by rule provide for appeals before final judgment from a Superior Court before issuing a final decision.
(3) Remedy for noncompliance. If the Secretary issues a decision under subdivision (2) of this subsection that includes a finding of noncompliance and that noncompliance has resulted in the improper reduction in the amount due the Education Fund, the Secretary, unless and until he or she is satisfied that there is no longer any such failure to comply, shall request that the State Treasurer bill the municipality for the total identified underpayment. The amount of the underpayment shall be due from the municipality upon receipt of the bill. If the municipality does not pay the underpayment amount within 60 days, the amount may be withheld from any funds otherwise payable by the State to the municipality or a school district in the municipality or of which the municipality is a member.
(4) Referral; Attorney General. In lieu of or in addition to any action authorized in subdivision (3) of this subsection (j), the Secretary of Commerce and Community Development or the State Treasurer may refer the matter to the Office of the Attorney General with a recommendation that an appropriate civil action be initiated.
(5) Appeal; hearing officer. A hearing that is held pursuant to this subsection shall be subject to the provisions of 3 V.S.A. chapter 25 relating to contested cases. The hearing shall be conducted by the Secretary or by a hearing officer appointed by the Secretary. If a hearing is conducted by a hearing officer, the hearing officer shall have all authority to conduct the hearing that is provided for in the applicable contested case provisions of 3 V.S.A. chapter 25, including issuing findings of fact, hearing evidence, and compelling, by subpoena, the attendance and testimony of witnesses.
(k) The Vermont Economic Progress Council may require a third-party financial and technical analysis as part of the application of a municipality applying for approval of a tax increment financing district pursuant to this section. The applicant municipality shall pay a fee to cover the actual cost of the analysis to be deposited in a special fund, which shall be managed pursuant to chapter 7, subchapter 5 of this title and be available to the Council to pay the actual cost of the analysis.
(l) The State Auditor of Accounts shall conduct performance audits of all tax increment financing districts. The cost of conducting each audit shall be considered a “related cost” as defined in 24 V.S.A. § 1891(6) and shall be billed back to the municipality pursuant to subsection 168(b) of this title. Audits conducted pursuant to this subsection shall include a review of a municipality’s adherence to relevant statutes and rules adopted by the Vermont Economic Progress Council pursuant to subsection (j) of this section, an assessment of record keeping related to revenues and expenditures, and a validation of the portion of the tax increment retained by the municipality and used for debt repayment and the portion directed to the Education Fund.
(1)(A) For municipalities with a district created prior to January 1, 2006 and a debt repayment schedule that anticipates retention of education increment beyond fiscal year 2016, an audit shall be conducted when approximately three-quarters of the period for retention of education increment has elapsed, and at the end of that same period, an audit shall be conducted for the final one-quarter period for retention of education increment.
(B) Notwithstanding subdivision (1)(A) of this subsection (l), the audit schedule for the Burlington Waterfront Tax Increment Financing District shall be as follows:
(i) an audit shall be conducted on or after October 1, 2021;
(ii) an audit shall be conducted not more than three years from the date debt is incurred as allowed by 2020 Acts and Resolves No. 175, Sec. 29(4); and
(iii) a final audit shall be conducted at the end of the retention period for the District.
(2) For municipalities with a district created after January 1, 2006 and approved by the Vermont Economic Progress Council, an audit shall be conducted five years after the first debt is incurred and a second audit seven years after completion of the first audit. A final audit will be conducted at the end of the period for retention of education increment.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 47, eff. March 11, 1998; 2003, No. 76 (Adj. Sess.), § 7, eff. Jan. 1, 2004; 2003, No. 163 (Adj. Sess.), § 33, eff. Jan. 1, 2004; 2005, No. 184 (Adj. Sess.), § 2h; 2007, No. 81, §§ 12, 13, eff. June 11, 2007; 2007, No. 190 (Adj. Sess.), §§ 61, 63, 64; 2009, No. 47, § 6, eff. May 28, 2009; 2011, No. 45, § 15a, eff. May 24, 2011; 2013, No. 80, §§ 12-16, eff. June 7, 2013; 2013, No. 174 (Adj. Sess.), §§ 13, 14, eff. June 4, 2014; 2015, No. 11, § 28; 2015, No. 57, § 60, eff. Jan. 1, 2014; 2015, No. 157 (Adj. Sess.), § H.6, eff. Jan. 1, 2017; 2017, No. 69, § J.4, eff. June 28, 2017; 2017, No. 154 (Adj. Sess.), § 33, eff. May 21, 2018; 2019, No. 14, § 77, eff. April 30, 2019; 2021, No. 73, § 26; 2021, No. 74, § E.130.1; 2021, No. 105 (Adj. Sess.), § 529, eff. July 1, 2022; 2023, No. 72, §§ 21, 36, eff. June 19, 2023; 2025, No. 73, § 49, contingently eff. July 1, 2028.)
§ 5404b Hydroelectric property; conservation easements; transfers
Notwithstanding any other provision of law, including the provisions of subdivisions 3481(1) and 3802(1) of this title:
(1) any real property subject to conservation easements granted pursuant to the terms of any agreement executed on or after January 1, 1997 between companies owning real property used for hydroelectric generation in this State and the State of Vermont shall continue to be assessed and property taxes collected as if such property were not subject to such easements;
(2) any real property purchased by the State pursuant to the terms of any agreement executed on or after January 1, 1997 between companies owning real property used for hydroelectric generation in this State and the State of Vermont, which property continues to be owned by the State or by some successor owner that would otherwise be exempt from property taxes, shall continue to be assessed and property taxes collected as if such property were not so purchased by the State; and
(3) any real property and fixtures used for hydroelectric generation and purchased by the Town of Rockingham on or after January 1, 2002, which property and fixtures continue to be owned by the Town of Rockingham and used for purposes of hydroelectric generation, shall continue to be listed on the education property tax grand list and assessed as if such property were not so purchased by the Town of Rockingham. The Town shall, in lieu of property taxes, pay to any governmental body authorized to levy property taxes the amount that would be assessable as property taxes on the real and tangible personal property if that property were the property of a utility. These payments shall be due, and bear interest if unpaid, as in the case of taxes on the property of a utility. For purposes of these payments in lieu of taxes, the assessors of the taxing authority shall make a valuation and assessment of the property and determine the tax that would be assessable if the property were owned by a utility. Payments in lieu of taxes made under this chapter shall be treated in the same manner as taxes for the purposes of all procedural and substantive provisions of law, including appeals, now and hereinafter in effect applicable to assessment and taxation of real and personal property, collection and abatement of these taxes, and the raising of public revenues.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 2003, No. 121 (Adj. Sess.), § 100, eff. June 8, 2004.)
§ 5405 Determination of equalized education property tax grand list and coefficient of dispersion
(a) Annually, on or before April 1, the Commissioner shall determine the equalized education property tax grand list and coefficient of dispersion for each municipality in the State; provided, however, that for purposes of equalizing grand lists pursuant to this section, the equalized education property tax grand list of a municipality that establishes a tax increment financing district shall include the fair market value of the property in the district and not the original taxable value of the property, and further provided that the unified towns and gores of Essex County may be treated as one municipality for the purpose of determining an equalized education property grand list and a coefficient of dispersion, if the Director determines that all such entities have a uniform appraisal schedule and uniform appraisal practices.
(b) The sum of all municipal equalized education property tax grand lists shall be the equalized education property tax grand list for the State.
(c) In determining the fair market value of property that is required to be listed at fair market value, the Commissioner shall take into consideration those factors required by section 3481 of this title. The Commissioner shall value property as of April 1 preceding the determination and shall take account of all homestead declaration information available before October 1 each year.
(d) Any determination of fair market value made by the Commissioner under this section shall be based upon such methods as, in the judgment of the Commissioner and in view of the resources available for that purpose, shall be appropriate to support that determination. If the common level of appraisal is calculated using the weighted mean of ratios, any outlier shall be carefully reviewed and deleted if it will significantly affect the weighted mean, particularly if the outlier is a high-value property.
(e) Individual appraisals performed by the Division of Property Valuation and Review may be used to supplement actual sales when necessary to obtain a representative sample.
(f) Within the limits of the resources available for that purpose, the Commissioner may employ such individuals, whether on a permanent, temporary, or contractual basis, as shall be necessary, in the judgment of the Commissioner, to aid in the performance of duties under this section. The Commissioner shall pay each municipality the sum of $1.00 per grand list parcel in the municipality for services provided to the Commissioner in connection with the performance of duties under this section. Each municipality shall deposit payments received under this subsection into a special fund that shall be used to support the preparation of the education property tax grand list.
[Subsection (g) effective until contingency met; see also subsection (g) effective July 1, 2028 if contingency met, set out below.]
(g) The Commissioner shall provide to municipalities for the front of property tax bills the district homestead property tax rate before equalization, the nonresidential tax rate before equalization, and the calculation process that creates the equalized homestead and nonhomestead tax rates. The Commissioner shall further provide to municipalities for the back of property tax bills an explanation of the common level of appraisal, including its origin and purpose.
[Subsection (g) effective July 1, 2028 if contingency met; see also subsection (g) effective until contingency met, set out above.]
(g) The Commissioner shall provide to municipalities for the front of property tax bills the statewide education tax rate before equalization and the calculation process that creates the equalized homestead and nonhomestead tax rates. The Commissioner shall further provide to municipalities for the back of property tax bills an explanation of the common level of appraisal, including its origin and purpose.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1999, No. 49, §§ 19, 49, eff. June 2, 1999; 2003, No. 68, §§ 41, 85, eff. June 18, 2003; 2003 No. 68, § 85, eff. for fiscal year 2005; 2003, No. 76 (Adj. Sess.), § 1, eff. Feb. 17, 2004; 2003, No. 76 (Adj. Sess.), § 28, eff. Jan. 1, 2004; 2009, No. 160 (Adj. Sess.), § 14, eff. June 4, 2010; 2013, No. 73, § 39, eff. June 5, 2013; 2019, No. 51, § 27; 2019, No. 175 (Adj. Sess.), § 3, eff. Oct. 8, 2020; 2021, No. 20, § 268; 2025, No. 73, § 50, contingently eff. July 1, 2028.)
§ 5406 Notice of fair market value and coefficient of dispersion
(a) Not later than January 1 of each year, the Director of Property Valuation and Review shall notify the town clerk and chair of the board of listers of each municipality of the equalized education property value and the coefficient of dispersion of that town for the prior year and of the manner by which the equalized education property value and coefficient of dispersion were determined by the Director.
(b) Not later than April 1 of each year, the Director shall certify to the Secretary of Education the equalized education property value and coefficient of dispersion for the prior year of every municipality of the State.
(c) If the Director of Property Valuation and Review certifies that a municipality has completed a townwide reappraisal, the common level of appraisal for that municipality shall be equal to its new grand list value divided by its most recent equalized grand list value, for purposes of determining education property tax rates.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 10, eff. Jan. 1, 1998; 2003, No. 76 (Adj. Sess.), § 9, eff. Feb. 17, 2004; 2005, No. 75, § 12; 2013, No. 92 (Adj. Sess.), § 287, eff. Feb. 14, 2014.)
§ 5407 Repealed
[Repealed]
2018, No. 2 (Sp. Sess.), § 4.
§ 5408 Petition for redetermination
(a) Not later than 35 days after mailing of a notice under section 5406 of this title, a municipality may petition the Director of Property Valuation and Review for a redetermination of the municipality’s equalized education property value and coefficient of dispersion. The petition shall be in writing and shall be signed by the chair of the legislative body of the municipality or designee.
(b)(1) Upon receipt of a petition for redetermination under subsection (a) of this section, the Director shall, after written notice, grant a hearing upon the petition to the aggrieved town.
(2) The Director shall thereafter notify the town and the Secretary of Education of his or her redetermination of the equalized education property value and coefficient of dispersion of the town or district, in the manner provided for notices of original determinations under section 5406 of this title.
(c)(1) A municipality, within 30 days after the Director’s redetermination, may appeal the redetermination to the Superior Court of the county in which the municipality is located. The Superior Court shall hear the matter de novo in the manner provided by Rule 74 of the Vermont Rules of Civil Procedure.
(2) An appeal from the decision of the Superior Court shall be to the Supreme Court under the Vermont Rules of Appellate Procedure.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1999, No. 49, § 52, eff. June 2, 1999; 2013, No. 92 (Adj. Sess.), § 288, eff. Feb. 14, 2014; 2013, No. 174 (Adj. Sess.), § 16, eff. June 4, 2014; 2018, No. 2 (Sp. Sess.), § 5.)
§ 5409 Duties of municipalities and administration
The following shall apply with regard to the statewide education tax imposed under this chapter:
(1) Late payments of the tax by a municipality to the State shall be assessed interest at a per diem rate of eight percent per annum of the amount due. If a payment is more than 90 days overdue, any State funds due the municipality shall be withheld.
(2) If by August 1 a municipality has failed to issue notices of assessment of the statewide education tax, or if the municipality fails for more than 90 days after the due date for any installment payment to enforce the tax in the municipality, then the Commissioner of Taxes shall either issue notices of assessment or collect the tax, or both, or bring appropriate court action to require the municipal officials to issue notices and collect the tax, as the Commissioner deems necessary.
(3) In any case of administration under subdivision (2) of this section by the Commissioner of Taxes of education property tax:
(A) Sections 3202, 3203, 5868, 5882–5887, and 5891–5895 of this title, as amended, shall apply in the same manner as to income tax.
(B) Persons aggrieved by decisions of the listers may appeal in the manner provided for property tax appeals in chapter 131 of this title, and the Commissioner of Taxes shall have all the powers described in chapter 133 of this title.
(C) The Commissioner may abate in whole or in part the statewide education taxes of a taxpayer who has been granted an abatement of municipal taxes under 24 V.S.A. § 1535.
(4) [Repealed.]
(5) In case of insufficient property tax payment by a taxpayer to a municipality, payments shall be allocated first to municipal property tax and next to statewide education tax. In case of insufficient payment by a taxpayer to the Department of Taxes, payments shall be allocated first to liabilities other than education taxes and next to education tax.
(6) In case of overpayment by a taxpayer who has an income tax liability under chapter 151 of this title and a homestead property tax liability, a refund of the overpayment, after accounting for any benefit amount allowed under chapter 154 of this title, shall be deemed to be a refund of income tax for purposes of debt setoff under chapter 151, subchapter 12 of this title.
(7) Notwithstanding section 435 of this title, the Commissioner shall deposit the revenue from taxes imposed under this chapter in the education fund.
(8) A municipality’s liability to the State for education taxes shall not be reduced by any early payment property tax discount or similar discount offered by the municipality.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 11, eff. Jan. 1, 1998; 1997, No. 71 (Adj. Sess.), § 75, eff. January 1, 1999; 1997, No. 156 (Adj. Sess.), § 50, eff. April 29, 1998; 2003, No. 68, § 21, eff. June 18, 2003; 2019, No. 14, § 78, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 530, eff. July 1, 2022.)
§ 5410 Declaration of homestead
(a) A homestead owner shall declare ownership of a homestead for purposes of education property tax.
(b) Annually, on or before the due date for filing the Vermont income tax return, without extension, each homestead owner shall, on a form prescribed by the Commissioner, which shall be verified under the pains and penalties of perjury, declare the owner’s homestead, if any, as of, or expected to be as of, April 1 of the year in which the declaration is made.
(c) In the event that an unsigned but otherwise completed homestead declaration is filed with the declarant’s signed State income tax return, the Commissioner may treat such declaration as signed by the declarant.
(d) The Commissioner shall provide a list of homesteads in each town to the town listers by May 15. The listers shall notify the Commissioner by June 1 of any residences on the Commissioner’s list that do not qualify as homesteads. The listers shall separately identify homesteads in the grand list.
(e) The Commissioner shall adopt rules governing the eligibility requirements for declaring a homestead.
(f) [Repealed.]
(g) If the property identified in a declaration under subsection (b) of this section is not the taxpayer’s homestead or if the owner of a homestead fails to declare a homestead as required under this section, the Commissioner shall notify the municipality, and the municipality shall issue a corrected tax bill that may, as determined by the governing body of the municipality, include a penalty of up to three percent of the education tax on the property. However, if the property incorrectly declared as a homestead is located in a municipality that has a lower homestead tax rate than the nonhomestead tax rate or if an undeclared homestead is located in a municipality that has a lower nonhomestead tax rate than the homestead tax rate, then the governing body of the municipality may include a penalty of up to eight percent of the education tax liability on the property. If the Commissioner determines that the declaration or failure to declare was with fraudulent intent, then the municipality shall assess the taxpayer a penalty in an amount equal to 100 percent of the education tax on the property, plus any interest and late-payment fee or commission that may be due. Any penalty imposed under this section and any additional property tax interest and late-payment fee or commission shall be assessed and collected by the municipality in the same manner as a property tax under chapter 133 of this title. Notwithstanding section 4772 of this title, issuance of a corrected bill issued under this section does not extend the time for payment of the original bill nor relieve the taxpayer of any interest or penalties associated with the original bill. If the corrected bill is less than the original bill and there are also no unpaid current year taxes, interest, or penalties and no past year delinquent taxes or penalties and interest charges, any overpayment shall be reflected on the corrected tax bill and refunded to the taxpayer.
(h) The filing of a new or corrected declaration or rescission of an erroneous declaration, on or before September 1 of the property tax year, that is not reflected in the first Education Fund payment under 16 V.S.A. § 4028 for that fiscal year or in a municipality’s first payment to the Education Fund under subsection 5402(c) of this title for that fiscal year, shall be reflected in the final net payment to or from the Education Fund for that fiscal year. The municipality may retain 0.225 of one percent of the tax collected. Any reduction in tax paid to a municipality due to a new, revised, or rescinded declaration shall be paid by the municipality to the taxpayer no later than May 15 of the fiscal year. No later than June 1, each municipality shall provide to the State Treasurer a list of taxpayers who filed late or corrected declarations or rescinded declarations, the amount of the change in education tax, and the amount of any interest and penalty billed the taxpayer.
(i) An owner filing a new or corrected declaration or rescinding an erroneous declaration after October 15 shall not be entitled to a refund resulting from the correct property classification, and any additional property tax and interest that would result from the correct classification shall not be assessed as tax and interest, but shall instead constitute an additional penalty to be assessed and collected in the same manner as penalties under subsection (g) of this section. Any change in property classification under this subsection shall not be entered on the grand list.
(j) A taxpayer may appeal a determination of domicile for purposes of a homestead declaration or an assessment of fraud penalty under this section to the Commissioner in the same manner as an appeal under chapter 151 of this title. A taxpayer may appeal an assessment of any other penalty under this section to the listers within 14 days after the date of mailing of notice of the penalty, and from the listers to the board of civil authority, and thereafter to the courts, in the same manner as an appraisal appeal under chapter 131 of this title. The legislative body of a municipality shall have authority in cases of hardship to abate all or any portion of a penalty appealable to the listers under this section and any tax, penalty, and interest arising out of a corrected property classification under this section, and shall state in detail in writing the reasons for its grant or denial of the requested abatement. The legislative body may delegate this abatement authority to the board of civil authority or the board of abatement for the municipality. Requests for abatement shall be made to the municipal treasurer or other person designated to collect current taxes, and that person shall forward all requests, with that person’s recommendation, to the body authorized to grant or deny abatement.
(k) A municipality may retain any penalties and interest assessed and collected in accord with this section.
(l) “Hardship” under this section means an owner’s inability to pay as certified by the Commissioner of Taxes, in the Commissioner’s discretion, or means an owner filing an incorrect, or failing to file a correct, homestead declaration due to one or more of the following:
(1) full-time active military duty of the declarant outside the State;
(2) serious illness or disability of the declarant;
(3) serious illness, disability, or death of an immediate family member of the declarant; and
(4) fire, flood, or other disaster.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1999; amended 1997, No. 71 (Adj. Sess.), §§ 12, 13, 14, eff. Jan. 1, 1998; 1997, No. 71 (Adj. Sess.), § 76, eff. January 1, 1999; 1999, No. 1, § 60g(b); 1999, No. 49, §§ 31, 53, eff. June 2, 1999; 2003, No. 68, § 6, eff. July 1, 2004; 2003, No. 76 (Adj. Sess.), §§ 2, 20, eff. Feb. 17, 2004; 2003, No. 107 (Adj. Sess.), § 18a; 2005, No. 38, § 6, eff. Jan. 1, 2006; 2005, No. 38, § 17; 2005, No. 185 (Adj. Sess.), § 6, eff. Jan. 1, 2006; 2007, No. 190 (Adj. Sess.), § 12; 2009, No. 1 (Sp. Sess.), § H.24, eff. June 2, 2009; 2009, No. 160 (Adj. Sess.), § 47, eff. June 4, 2010; 2011, No. 45, § 11, eff. May 24, 2011; 2011, No. 143 (Adj. Sess.), § 25, eff. Jan. 1, 2013; 2013, No. 174 (Adj. Sess.), §§ 17, 18; 2021, No. 105 (Adj. Sess.), § 531, eff. July 1, 2022.)
§ 5411 Rules
The Commissioner of Taxes and the Director of Property Valuation and Review may each adopt formal or informal rules in order to carry out the provisions of this chapter.
(Added 1997, No. 60, § 45, eff. Jan. 1, 1998.)
§ 5412 Reduction of listed value and recalculation of education tax liability
(a)(1) If a listed value is reduced as the result of an appeal or court action made pursuant to section 4461 of this title, a municipality may submit a request for the Director of Property Valuation and Review to recalculate its education property tax liability for the education grand list value lost due to a determination, declaratory judgment, or settlement. The Director shall recalculate the municipality’s education property tax liability for each year at issue, in accord with the reduced valuation, provided that:
(A) The reduction in valuation is the result of an appeal under chapter 131 of this title to the Director of Property Valuation and Review or to a court, with no further appeal available with regard to that valuation, or any judicial decision with no further right of appeal, or a settlement of either an appeal or court action if the Director determines that the settlement value is the fair market value of the parcel. The Director may waive the requirement of continuing an appeal or court action until there is no further right of appeal if the Director concludes that the value determined by an adjudicated decision is a reasonable representation of the fair market value of the parcel.
(B) The municipality submits the request on or before January 15 for a request involving an appeal or court action resolved within the previous calendar year.
(C) [Repealed.]
(D) The Director determines that the municipality’s actions were consistent with best practices published by the Property Valuation and Review in consultation with the Vermont Assessors and Listers Association. The municipality shall have the burden of showing that its actions were consistent with the Director’s best practices.
(2) A determination of the Director made under subdivision (1) of this subsection may be appealed within 30 days by an aggrieved municipality to the Commissioner for a hearing to be held in accordance with 3 V.S.A. §§ 809-813. The Commissioner’s determination may be further appealed to Superior Court, which shall review the Commissioner’s determination using the record that was before the Commissioner. The Commissioner’s determination may only be overturned for abuse of discretion.
(3) Upon the Director’s request, a municipality submitting a request under subdivision (1) of this subsection shall include a copy of the agreement, determination, or final order, and any other documentation necessary to show the existence of these conditions.
(b) To the extent that the municipality has paid that liability, the Director shall allow a credit for any reduction in education tax liability against the next ensuing year’s education tax liability.
(c) If a listed value is increased as the result of an appeal under chapter 131 of this title or court action, whether adjudicated or settled, and the Director determines that the settlement value is the fair market value of the parcel with no further appeal available with regard to that valuation, the Director shall recalculate the municipality’s education property tax for each year at issue, in accord with the increased valuation, and shall assess the municipality for the additional tax at the same time the Director assesses the municipality’s education tax liability for the next ensuing year, unless the resulting assessment would be less than $300.00. Payment under this section shall be due with the municipality’s education tax liability for the next ensuing year.
(d) Recalculation of education property tax under this section shall have no effect other than to reimburse or assess a municipality for education property tax changes that result from property revaluation.
(e) A reduction made under this section shall be an amount equal to the loss in education grand list value multiplied by the tax rate applicable to the subject property in the year the request is submitted. However, the total amount for all reductions made under this section in one year shall not exceed $1,000,000.00. If total reductions for a calendar year would exceed this amount, the Director shall instead prorate the reductions proportionally among all municipalities eligible for a reduction so that total reductions equal $1,000,000.00.
(f) Prior to the issuance of a final administrative determination or judicial order, a municipality may request that the Director certify that best practices were followed for purposes of meeting the requirements of subdivision (a)(1)(D) of this section. The Director may choose to grant certification, deny certification, or refrain from a decision until a request is submitted under subdivision (a)(1) of this section. The Director shall consider the potential impact on the Education Fund, the unique character of the subject property or properties, and any extraordinary circumstances when deciding whether to grant certification under this subsection. The Director shall be bound by a decision to grant certification unless the municipality agrees to a settlement after such certification was made.
(Added 2001, No. 63, § 279, eff. June 16, 2001; amended 2007, No. 65, § 393, eff. June 4, 2007; 2007, No. 190 (Adj. Sess.), § 13, eff. June 6, 2008; 2017, No. 11, § 60; 2017, No. 73, § 27, eff. June 13, 2017; 2018, No. 8 (Sp. Sess.), § 9, eff. June 28, 2018; 2021, No. 163 (Adj. Sess.), § 2, eff. January 1, 2022; 2023, No. 144 (Adj. Sess.), § 2, eff. June 3, 2024.)
§ 5413 State appraisal and litigation assistance program
(a) A State appraisal and litigation assistance program shall be created within the Division of Property Valuation and Review of the Department of Taxes to assist municipalities with the valuation of complex commercial or other unique properties within a municipality’s jurisdiction and to assist with any appeals arising from those valuations. The Commissioner of Taxes may contract with one or more commercial appraisers to provide State appraisal and litigation assistance to municipalities under this section. The Commissioner may adopt rules to administer the provisions of this section.
(b) The Commissioner shall:
(1) determine the conditions for a property to be eligible for State assistance, including the grand list value or category of the property or other relevant factors as determined by the Commissioner; and
(2) provide a process by which a municipality may apply for assistance under this section for one or more properties.
(c) Any municipality assisted under this section shall be considered to have followed best practices pursuant to subdivision 5412(a)(1)(D) of this title.
(Added 2021, No. 163 (Adj. Sess.), § 3, eff. July 1, 2023.)
§ 5414 Creation; Education Fund Advisory Committee [Repealed effective July 1, 2034]
[Subsection (a) effective until contingency met; see also subsection (a) effective July 1, 2028 if contingency met, set out below.]
(a) Creation. There is created the Education Fund Advisory Committee to monitor Vermont’s education financing system, conduct analyses, and perform the duties under subsection (c) of this section.
[Subsection (a) effective July 1, 2028 if contingency met; see also subsection (a) effective until contingency met, set out above.]
(a) Creation. There is created the Education Fund Advisory Committee to monitor Vermont’s education financing system, conduct analyses, assist with the transformation of Vermont’s education finance system, and perform the duties under subsection (c) of this section.
(b) Membership. The Committee shall be composed of the following members:
(1) the Commissioner of Taxes or designee;
(2) the Secretary of Education or designee;
(3) the Chair of the State Board of Education or designee;
(4) two members of the public with expertise in education financing, who shall be appointed by the Speaker of the House;
(5) two members of the public with expertise in education financing, who shall be appointed by the Committee on Committees;
(6) one member of the public with expertise in education financing, who shall be appointed by the Governor;
(7) the President of the Vermont Association of School Business Officials or designee;
(8) one representative from the Vermont School Boards Association (VSBA) with expertise in education financing, selected by the Executive Director of VSBA;
(9) one representative from the Vermont Superintendents Association (VSA) with expertise in education financing, selected by the Executive Director of VSA; and
(10) one representative from the Vermont National Education Association (VTNEA) with expertise in education financing, selected by the Executive Director of VTNEA.
(c) Powers and duties.
[Subdivision (c)(1) effective until contingency met; see also subdivision (c)(1) effective July 1, 2028 if contingency met, set out below.]
(1) Annually, on or before December 15, the Committee shall make recommendations to the General Assembly regarding:
(A) updating the weighting factors using the weighting model and methodology used to arrive at the weights enacted under 2022 Acts and Resolves No. 127, which may include recalibration, recalculation, adding or eliminating weights, or any combination of these actions, as necessary;
(B) changes to, or the addition of new or elimination of existing, categorical aid, as necessary;
(C) changes to income levels eligible for a property tax credit under section 6066 of this title;
(D) means to adjust the revenue sources for the Education Fund;
(E) means to improve equity, transparency, and efficiency in education funding statewide;
(F) the amount of the Education Fund stabilization reserve;
(G) school district use of reserve fund accounts; and
(H) any other topic, factor, or issue the Committee deems relevant to its work and recommendations.
[Subdivision (c)(1) effective July 1, 2028 if contingency met; see also subdivision (c)(1) effective until contingency met, set out above.]
(1) Annually, on or before December 15, the Committee shall make recommendations to the General Assembly regarding:
(A) updating the weighting factors using the weighting model and methodology used to arrive at the weights enacted for the foundation formula, which may include recalibration, recalculation, adding or eliminating weights, or any combination of these actions, as necessary;
(B) changes to, or the addition of new or elimination of existing, categorical aid, as necessary;
(C) changes to income levels eligible for a homestead exemption under section 6066 of this title;
(D) means to adjust the revenue sources for the Education Fund;
(E) means to improve equity, transparency, and efficiency in education funding statewide;
(F) the amount of the Education Fund stabilization reserve;
(G) school district use of reserve fund accounts;
(H) national best practices for addressing intra-school district effects of a foundation formula, including through the use of weighting factors;
(I) how to maintain intra-district equity under Vermont’s foundation formula;
(J) whether weighted foundation formula payments lead to improved outcomes across all populations; and
(K) any other topic, factor, or issue the Committee deems relevant to its work and recommendations.
(2) The Committee shall review and recommend updated weights, categorical aid, and changes to the excess spending threshold to the General Assembly not less than every three years, which may include a recommendation not to make changes where appropriate. In reviewing and recommending updated weights, the Committee shall use the weighting model and methodology used to arrive at the weights enacted under 2022 Acts and Resolves No. 127.
(d) Assistance. The Committee shall have the administrative, technical, and legal assistance of the Department of Taxes and the Agency of Education.
(e) Meetings.
(1) The Commissioner of Taxes shall call the first meeting of the Committee to occur on or before July 15, 2026.
(2) The Committee shall select a chair from among its members at the first meeting.
(3) A majority of the membership shall constitute a quorum.
(f) Compensation and reimbursement. Members of the Committee shall be entitled to per diem compensation and reimbursement of expenses as permitted under section 1010 of this title for up to four meetings per year.
(Added 2023, No. 183 (Adj. Sess.), § 11, eff. July 1, 2024; repealed by 2023, No. 183 (Adj. Sess.), § 12, eff. July 1, 2037; amended 2025, No. 73, § 45c, eff. July 1, 2025; 2025, No. 73, § 57, contingently eff. July 1, 2028.)
§ 5414 Repealed
[Repealed]
(Added 2023, No. 183 (Adj. Sess.), § 11, eff. July 1, 2024; repealed by 2023, No. 183 (Adj. Sess.), § 12, eff. July 1, 2037; amended 2025, No. 73, § 45c, eff. July 1, 2025; 2025, No. 73, § 57, contingently eff. July 1, 2028.)
Chapter 151 Income Taxes
Subchapter 1 Definitions; General Provisions
§ 5811 Definitions
As used in this chapter unless the context requires otherwise:
(1) [Repealed.]
(2) “Commissioner” means the Commissioner of Taxes appointed under section 3101 of this title or any officer or employee of the Department authorized by the Commissioner (directly or indirectly by one or more redelegations of authority) to perform the functions mentioned or described in this chapter.
(3) “Corporation” means any business entity subject to income taxation as a corporation, and any entity qualified as a small business corporation, under the laws of the United States, with the exception of the following entities that are exempt from taxation under this chapter:
(A) railroad and insurance companies that are taxed under chapter 211 of this title;
(B) credit unions organized under 8 V.S.A. chapter 221 and federal credit unions;
(C) nonprofit hospital service corporations organized under 8 V.S.A. chapter 123; and
(D) nonprofit medical service corporations organized under 8 V.S.A. chapter 125.
(4) [Repealed.]
(5) “Fiscal year” means an accounting period of 12 months ending on the last day of any month except December, or an accounting period of less than 12 months, which period is employed as the fiscal year of the taxpayer for U.S. income tax purposes.
(6) “Individual” means a natural person. However, if, for any taxable year, a spouse or a surviving spouse file a joint income tax return under this chapter, they shall be considered to be a single individual for that taxable year.
(7) “Laws of the United States” means, for any taxable year, the statutes of the United States relating to federal income taxes, whether enacted before or after this chapter effective for the taxable year, unless otherwise provided.
(8) “Nonresident estate” means any estate other than a resident estate.
(9) “Nonresident individual or trust” means, for any taxable year, an individual or trust not qualifying for residency in this State during any part of that taxable year.
(10) “Part-year resident individual or trust” means, for any taxable year, an individual or trust qualifying for residency in this State during only part of that taxable year.
(11) “Residency.”
(A) An individual qualifies for residency in this State for that portion of the taxable year during which:
(i) the individual is domiciled in this State; or
(ii) the individual maintains a permanent place of abode within this State if the individual both maintains a permanent place of abode and is present in this State for more than an aggregate of 183 days of that taxable year.
(B) A trust qualifies for residency in this State if it is:
(i) a trust, or a portion of a trust, consisting of property transferred by will or by a decedent who at his or her death was domiciled in this State; or
(ii) a trust, or a portion of a trust, consisting of property of:
(I) a person domiciled in this State at the time such property was transferred to the trust, if such trust or portion of a trust was then irrevocable, or if it was then revocable and has not subsequently become irrevocable; or
(II) a person domiciled in this State at the time such trust, or portion of a trust, became irrevocable, if it was revocable when such property was transferred to the trust but has subsequently become irrevocable.
(C) As used in subdivision (B) of this subdivision (11), a trust or a portion of a trust is revocable if it is subject to a power, exercisable immediately or at any future time, to revest title in the person whose property constitutes such trust or portion of a trust, and a trust or portion of a trust becomes irrevocable when the possibility that such power may be exercised has been terminated.
(12) “Resident estate” means the estate of a decedent who, at the decendent’s death, was domiciled in this State.
(13) “Resident individual or trust” means, for any taxable year, an individual or trust qualifying for residency in this State during the entirety of that taxable year.
(14) “Tax” or “tax liability” includes the liability for all amounts owing by a taxpayer to the State of Vermont under this chapter.
(15) “Taxable corporation” means, for any taxable year, a corporation that, at any time during that taxable year:
(A) was incorporated under the laws of this State;
(B) possessed a certificate of authority to do business within this State; or
(C) received any income allocable or apportionable to this State under the provisions of section 5833 of this title, except that a corporation that would otherwise be taxable under this subdivision shall be exempt if the corporation’s activities in this State are limited to the performance of any activities that, without more, would not subject the corporation to taxation in this State, plus either:
(i) fulfillment operations as follows:
(I) maintenance of cash balances with banks or trust companies in this State;
(II) the following actions by a person unrelated to the corporation taken on behalf of the corporation:
(aa) sales order processing service;
(bb) credit card processing services;
(cc) receipt, storage, and removal from storage of property of the corporation in conjunction with the packaging or repackaging of such property for shipment to a customer of the corporation; and
(dd) reproduction of property of the corporation contained in or on electromagnetic or optical media, such as computer discs, magnetic tapes, compact discs, laser discs, and microprocessor chips, onto tangible media, and receipt, storage, and removal from storage of property of the corporation for shipment to a customer of the corporation or to the corporation itself in conjunction with any such reproduced property; or
(ii) any or all of the following necessary to create or maintain a World Wide Web page or internet site for the corporation:
(I) ownership of data or programming code in this State, or use of that data or programming code by a person other than the corporation or by a person not in this State;
(II) ownership of, or receipt of services from, computer servers in this State; and
(III) receipt of computer processing or web hosting services from a computer service provider or web hosting service in this State.
(16) “Taxable year” means the calendar year, or the fiscal year ending during the calendar year, with respect to which a tax is imposed under this chapter and, in the case of a return filed with respect to a fractional part of a year, the period with respect to which the return is filed.
(17) “Taxpayer” means a person obligated to file a return with or pay or remit any amount to this State under this chapter.
(18) “Vermont net income” means, for any taxable year and for any corporate taxpayer:
(A) the taxable income of the taxpayer for that taxable year under the laws of the United States, without regard to 26 U.S.C. § 168(k), and excluding income that under the laws of the United States is exempt from taxation by the states:
(i) increased by:
(I) the amount of any deduction for State and local taxes on or measured by income, franchise taxes measured by net income, franchise taxes for the privilege of doing business and capital stock taxes;
(II) to the extent such income is exempted from taxation under the laws of the United States by the amount received by the taxpayer on and after January 1, 1986 as interest income from state and local obligations, other than obligations of Vermont and its political subdivisions, and any dividends or other distributions from any fund to the extent such dividend or distribution is attributable to such Vermont State or local obligations; and
(III) the amount of any deduction for a federal net operating loss; and
(ii) decreased by:
(I) the “gross-up of dividends” required by the federal Internal Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the foreign tax credit;
(II) the amount of income that results from the required reduction in salaries and wages expense for corporations claiming the Targeted Job or WIN credits; and
(III) any federal deduction or credit that the taxpayer would have been allowed for the cultivation, testing, processing, or sale of cannabis or cannabis products as authorized under 7 V.S.A. chapter 33 or 37, but for 26 U.S.C. § 280E.
(B) In the case of an “electing small business corporation” (“Subchapter S Corporation”) under the laws of the United States, “Vermont net income” shall include only the Vermont net income of the corporation (as defined in this section) that is taxable to the corporation under the provisions of the Internal Revenue Code.
(C) For a taxable corporation that is a member of an affiliated group and that is engaged in a unitary business with one or more other members of that affiliated group, “Vermont net income” includes the allocable share of the combined net income of the group.
(D) For a corporation with federal exempt status, “Vermont net income” means all income that is subject to federal income tax, including unrelated business income under 26 U.S.C. § 511 and any income arising from debt-financed property subject to taxation under 26 U.S.C. § 514.
(19) [Repealed.]
(20) “Person” shall include an individual, firm, partnership, association, joint stock company, corporation, trust, estate, or other entity.
(21) “Taxable income” means, in the case of an individual, federal adjusted gross income determined without regard to 26 U.S.C. § 168(k) and:
(A) increased by the following items of income (to the extent such income is excluded from federal adjusted gross income):
(i) interest income from non-Vermont state and local obligations; and
(ii) dividends or other distributions from any fund to the extent they are attributable to non-Vermont state or local obligations; and
(B) decreased by the following items of income (to the extent such income is included in federal adjusted gross income):
(i) income from U.S. government obligations;
(ii) with respect to adjusted net capital gain income as defined in 26 U.S.C. § 1(h) reduced by the total amount of any qualified dividend income: either the first $5,000.00 of such adjusted net capital gain income or 40 percent of adjusted net capital gain income from the sale of assets held by the taxpayer for more than three years, except not adjusted net capital gain income from:
(I) the sale of any real estate or portion of real estate used by the taxpayer as a primary or nonprimary residence; or
(II) the sale of depreciable personal property other than farm property and standing timber; or stocks or bonds publicly traded or traded on an exchange, or any other financial instruments; regardless of whether sold by an individual or business; and provided that the total amount of decrease under this subdivision (21)(B)(ii) shall not exceed 40 percent of federal taxable income or $350,000.00, whichever is less;
(iii) recapture of State and local income tax deductions not taken against Vermont income tax;
(iv) the portion of certain retirement income and federally taxable benefits received under the federal Social Security Act that is required to be excluded under section 5830e of this chapter;
(v) the amount of any federal deduction or credit that the taxpayer would have been allowed for the cultivation, testing, processing, or sale of cannabis or cannabis products as authorized under 7 V.S.A. chapter 33 or 37, but for 26 U.S.C. § 280E; and
(vi) the amount of interest paid by a qualified resident taxpayer during the taxable year on a qualified education loan for the costs of attendance at an eligible educational institution; and
(C) decreased by the following exemptions and deductions:
(i) a personal exemption of $4,150.00 per person for the taxpayer, for the spouse or the deceased spouse of the taxpayer whose filing status under section 5822 of this chapter is married filing a joint return or surviving spouse, and for each individual qualifying as a dependent of the taxpayer under 26 U.S.C. § 152, provided that no exemption may be claimed for an individual who is a dependent of another taxpayer;
(ii) a standard deduction determined as follows:
(I) for taxpayers whose filing status under section 5822 of this chapter is unmarried (other than surviving spouses or heads of households) or married filing separate returns, $6,000.00;
(II) for taxpayers whose filing status under section 5822 of this chapter is head of household, $9,000.00; and
(III) for taxpayers whose filing status under section 5822 of this chapter is married filing joint return or surviving spouse, $12,000.00;
(iii) an additional deduction of $1,000.00 for each federal deduction under 26 U.S.C. § 63(f) that the taxpayer qualified for and received; and
(iv) an amount equal to the itemized deduction for medical expenses taken at the federal level by the taxpayer, under 26 U.S.C. § 213:
(I) minus the amount of the Vermont standard deduction and Vermont personal exemptions taken by the taxpayer under this subdivision (C); and
(II) minus any amount deducted at the federal level that is attributable to the payment of an entrance fee or recurring monthly payment made to a continuing care retirement community regulated under 8 V.S.A. chapter 151, which exceeds the deductibility limits for premiums paid during the taxable year on qualified long-term care insurance contracts under 26 U.S.C. 213(d)(10)(A).
(D) The dollar amounts of the personal exemption allowed under subdivision (C)(i) of this subdivision (21), the standard deduction allowed under subdivision (C)(ii) of this subdivision (21), and the additional deduction allowed under subdivision (C)(iii) of this subdivision (21) shall be adjusted annually for inflation by the Commissioner of Taxes beginning with taxable year 2018 by using the Consumer Price Index and the same methodology as used for adjustments under 26 U.S.C. § 1(f)(3); provided, however, that as used in this subdivision (D), “consumer price index” means the last Consumer Price Index for All Urban Consumers published by the U.S. Department of Labor.
(22) “Affiliated group” means a group of two or more corporations in which more than 50 percent of the voting stock of each member corporation is directly or indirectly owned by a common owner or owners, either corporate or noncorporate, or by one or more of the member corporations, but shall exclude foreign corporations and corporations taxable under 8 V.S.A. § 6014.
(23) “Unitary business” means one or more related business organizations engaged in business activity both within and outside the State among which there exists a unity of ownership, operation, and use or an interdependence in their functions.
(24) [Repealed.]
(25) “Vermont net operating loss” means any negative income after allocation and apportionment of Vermont net income pursuant to section 5833 of this chapter.
(26) “Digital business entity” means a business entity that, during the entire taxable year:
(A) was not a member of an affiliated group or engaged in a unitary business with one or more members of an affiliated group that is subject to Vermont income taxation; did not have any Vermont property, payroll, or sales; and did not perform any activities in this State that would constitute doing business for purposes of income taxation except activities described in subdivisions (15)(C)(i) (fulfillment operations) and (C)(ii) (web page or internet site maintenance) of this section; and
(B) used mainly computer, electronic, and telecommunications technologies in its formation and in the conduct of its business meetings, in its interaction with shareholders, members, and partners, in executing any other formal requirements.
(27)(A) For the purposes of subdivisions (21)(B)(ii)(I), (21)(B)(ii)(II), (28)(B)(ii)(I), and (28)(B)(ii)(II) of this section, the sale of a farm shall mean the disposition of real and personal property owned by a farmer as that term is defined in subdivision 3752(7) of this title and used by the farmer in the business of farming as that term is defined in 26 C.F.R. § 1.175-3.
(B) For the purposes of subdivisions (21)(B)(ii)(II) and (28)(B)(ii)(II) of this section, the sale of standing timber shall mean the disposition of standing timber by an owner of timber that would give rise to the owner recognizing a capital gain or loss as defined in 26 U.S.C. § 631(b).
(28) “Taxable income” means, in the case of an estate or a trust, federal taxable income determined without regard to 26 U.S.C. § 168(k) and:
(A) increased by the following items of income:
(i) interest income from non-Vermont state and local obligations;
(ii) dividends or other distributions from any fund to the extent they are attributable to non-Vermont state or local obligations; and
(iii) the amount of State and local income taxes deducted from federal gross income for the taxable year; and
(B) decreased by the following items of income:
(i) income from U.S. government obligations;
(ii) with respect to adjusted net capital gain income as defined in 26 U.S.C. § 1(h), reduced by the total amount of any qualified dividend income: either the first $5,000.00 of such adjusted net capital gain income or 40 percent of adjusted net capital gain income from the sale of assets held by the taxpayer for more than three years, except not adjusted net capital gain income from:
(I) the sale of any real estate or portion of real estate used by the taxpayer as a primary or nonprimary residence; or
(II) the sale of depreciable personal property other than farm property and standing timber; or stocks or bonds publicly traded or traded on an exchange, or any other financial instruments; regardless of whether sold by an individual or business; and provided that the total amount of decrease under this subdivision (28)(B)(ii) shall not exceed 40 percent of federal taxable income or $350,000.00, whichever is less; and
(iii) recapture of State and local income tax deductions not taken against Vermont income tax.
(29) As used in subdivision (21)(B)(vi) of this section:
(A) “Qualified education loan” and “eligible educational institution” shall have the same meanings as under 26 U.S.C. § 221(d).
(B) “Qualified resident taxpayer” means an individual qualifying for residency as defined under subdivision (11) of this section and whose adjusted gross income is equal to or less than:
(i) $120,000.00 if the individual’s filing status is single, head of household, or married filing separately; or
(ii) $200,000.00 if the individual’s filing status is married filing jointly.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1967, No. 121, § 1, eff. Jan. 1, 1968 for taxable years beginning on or after January 1, 1968; 1971, No. 73, § 12, eff. April 16, 1971; 1973, No. 90, § 4; 1975, No. 190 (Adj. Sess.), § 3, eff. for tax years beginning after December 31, 1974; 1977, No. 17, § 1, eff., March 22, 1977 for tax years ending on and after December 31, 1976; 1977, No. 117 (Adj. Sess.), §§ 1, 2, eff. Jan. 27, 1978 for tax years commencing on and after January 1, 1977; 1979, No. 105 (Adj. Sess.), §§ 1, 2, § 45, eff. April 2, 1980 for taxable years beginning after January 1, 1979; 1981, No. 152 (Adj. Sess.), § 1, eff. April 12, 1982 for taxable years beginning on and after Jan. 1, 1982; 1985, No. 262 (Adj. Sess.), §§ 5–7, eff. June 4, 1986, affecting income taxes beginning on and after Jan. 1, 1986; 1985, No. 266 (Adj. Sess.), §§ 1, 2, eff. June 4, 1986 for taxable years beginning on and after Jan. 1, 1986; 1987, No. 82, §§ 4, 5, 9, eff. June 9, 1987 affecting taxable years beginning on and after Jan. 1, 1987; 1987, No. 210 (Adj. Sess.), § 4; 1989, No. 119, § 2, eff. June 22, 1989, applying to taxes payable for taxable years beginning on and after Jan. 1, 1989; 1989, No. 210 (Adj. Sess.), § 296, eff. May 31, 1990, affecting taxable years beginning on or after Jan. 1, 1990; 1989, No. 222 (Adj. Sess.) § 4, eff. May 31, 1990, applying to taxable years beginning on or after Jan. 1, 1990; 1991, No. 32, eff. May 18, 1991, §§ 31, 32, eff. May 18, 1991, applying retroactively to taxable years beginning on and after January 1, 1990, § 33 eff. May 18, 1991, applying to loss years ending on and after April 30, 1991; 1991, No. 67, § 25, eff. June 19, 1991; 1995, No. 29, §§ 7, 8, eff. April 14, 1995; 1995, No. 169 (Adj. Sess.), §§ 14, 22, eff. May 15, 1996; 1997, No. 156 (Adj. Sess.), §§ 3, 51, eff. April 29, 1998; 2001, No. 67, §§ 2, 3, eff. June 16, 2001; 2001, No. 140 (Adj. Sess.), §§ 1-3, eff. June 21, 2002; 2001, No. 144 (Adj. Sess.), § 28, eff. June 21, 2002; 2003, No. 67, § 24a, eff. July 1, 2003; 2003, No. 152 (Adj. Sess.), § 2, eff. June 7, 2004; 2005, No. 94 (Adj. Sess.), § 1, eff. March 8, 2006; 2005, No. 207 (Adj. Sess.), §§ 9, 15, eff. May 31, 2006; 2007, No. 190 (Adj. Sess.), §§ 19, 36; 2009, No. 1 (Sp. Sess.), §§ H.25, H.47, H.51; 2009, No. 2 (Sp. Sess.), §§ 16a, 16b, 17, eff. June 9, 2009; 2009, No. 160 (Adj. Sess.), § 60, eff. June 4, 2010; 2013, No. 73, §§ 17, 18, eff. June 5, 2013; 2015, No. 57, § 64, eff. Jan. 1, 2015; 2017, No. 73, § 13a, eff. Jan. 1, 2018; 2018, No. 11 (Sp. Sess.), § H.1, eff. Jan. 1, 2018; 2019, No. 71, § 1; 2019, No. 71, § 2, eff. Jan. 1, 2019; 2019, No. 164 (Adj. Sess.), § 18, eff. Jan. 1, 2022; 2019, No. 164 (Adj. Sess.), §§ 18a, 18b, eff. Jan. 1, 2023; 2021, No. 105 (Adj. Sess.), § 532, eff. July 1, 2022; 2021, No. 138 (Adj. Sess.), §§ 5, 6, eff. January 1, 2022; 2021, No. 148 (Adj. Sess.), § 1, eff. January 1, 2023; 2023, No. 6, § 375, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), §§ 467, 468, eff. July 1, 2024.)
§ 5812 Income taxation of parties to a civil union
This chapter shall apply to parties to a civil union or civil marriage and surviving parties to a civil union or civil marriage as if federal income tax law recognized a civil union and civil marriage in the same manner as Vermont law.
(Added 1999, No. 91 (Adj. Sess.), § 21; amended 2013, No. 73, § 19.)
§ 5813 Statutory purposes
(a) The statutory purpose of the exemption for Vermont municipal bond income in subdivision 5811(21)(A)(i) of this title is to lower the cost of borrowing in order to finance State and municipal projects.
(b) The statutory purpose of the Vermont flat capital gains exclusion in subdivision 5811(21)(B)(ii) of this title is intended to increase savings and investment by making the effective tax rate on capital gains income lower than the effective tax rate on earned income while exempting a portion of the gain that may represent inflation. The 40-percent business capital gains exclusion mitigates the impact of one-time realizations in a progressive tax structure.
(c) [Repealed.]
(d) The statutory purpose of the Vermont credit for persons who are elderly or disabled in subsection 5822(d) of this title is to provide financial assistance to seniors and persons who are disabled with little tax-exempt retirement or disability income.
(e) The statutory purpose of the Vermont investment tax credit in subsection 5822(d) of this title is to encourage Vermont business investments by lowering the effective costs of certain activities.
(f) The statutory purpose of the Vermont farm income averaging credit in subdivision 5822(c)(2) of this title is to mitigate the adverse tax consequences of fluctuating farm incomes under a progressive tax structure and to provide stability to farm operations.
(g) The statutory purpose of the exemption for military pay in subdivisions 5823(a)(2) and (b)(3) of this title is to provide additional compensation for military personnel in recognition of their service to Vermont and to the country.
(h) The statutory purpose of the Vermont charitable housing credit in section 5830c of this title is to enable lower capital cost to certain affordable housing charities by restoring some of the forgone investment income through a tax credit to the investor.
(i) The statutory purpose of the Vermont affordable housing credit in section 5930u of this title is to increase the capital available to certain affordable housing projects for construction or rehabilitation by attracting up-front private investment.
(j) The statutory purpose of the Vermont qualified sale of a mobile home park credit in section 5828 of this title is to encourage sales of mobile home parks to a group composed of a majority of the mobile home park leaseholders, or to a nonprofit organization that represents such a group and, in doing so, to provide stability to the inhabitants of such mobile home parks.
(k) The statutory purpose of the Vermont higher education investment credit in section 5825a of this title is to encourage contributions to Vermont 529 plans that would not otherwise occur and to lower the cost of higher education for Vermont students and the Vermont taxpayers who financially support them.
(l) The statutory purpose of the Vermont entrepreneurs’ seed capital fund credit in section 5830b of this title is to provide incentives for investment in the Seed Capital Fund, ensuring it has sufficient capital to make equity investments in Vermont businesses.
(m) The statutory purpose of the Vermont historical rehabilitation tax credit in subsection 5930cc(a) of this title is to provide incentives to improve and rehabilitate historic properties in designated downtowns and village centers.
(n) The statutory purpose of the Vermont façade improvement tax credit in subsection 5930cc(b) and sections 5930aa-5930ff of this title is to provide incentives to improve façades and rehabilitate historic properties in designated downtowns and village centers.
(o) The statutory purpose of the Vermont code improvement tax credit in subsection 5930cc(c) and sections 5930aa-5930ff of this title is to provide incentives to improve and rehabilitate historic properties in designated downtowns and village centers.
(p) The statutory purpose of the Vermont research and development tax credit in section 5930ii of this title is to encourage business investment in research and development within Vermont and to attract and retain intellectual-property-based companies.
(q) The statutory purpose of the Vermont downtown tax credits in sections 5930n-5930r of this title is to provide incentives to improve and rehabilitate historic properties in designated downtowns and village centers.
(r) The statutory purpose of the Vermont child and dependent care tax credit in section 5828c of this title is to provide cash relief to employees who incur dependent care expenses to enable them to remain in the workforce.
(s) The statutory purpose of the Vermont earned income tax credit in section 5828b of this title is to provide incentives for working families and individuals with low income and to offset the effect on these Vermonters of conventionally regressive taxes.
(t) The statutory purpose of the Vermont machinery and equipment tax credit in section 5930ll of this title is to provide an incentive to make a major, long-term capital investment in Vermont-based plants and property to ensure the continuation of in-state employment.
(u) The statutory purpose of the Vermont Employment Growth Incentive Program in chapter 105, subchapter 2 of this title is to generate net new revenue to the State by encouraging a business to add new payroll, create new jobs, and make new capital investments and sharing a portion of the revenue with the business.
(v) The statutory purpose of the Vermont Downtown and Village Center Program tax credits in section 5930cc of this title is to provide incentives to improve and rehabilitate historic properties in designated downtowns and village centers.
(w) The statutory purpose of the partial exemption of federally taxable benefits under the Social Security Act and certain retirement income in section 5830e of this title is to lessen the tax burden on Vermonters with low to moderate income who derive part of their income from Social Security benefits and certain retirement income.
(x) The statutory purpose of the charitable contribution credit in subdivision 5822(d)(3) of this title is to reduce the tax liability for Vermonters who contribute to charitable causes.
(y) The statutory purpose of the Vermont child tax credit in section 5830f of this title is to provide financial support to families with young children.
(z) The statutory purpose of the exclusion from income of student loan interest paid in subdivision 5811(21)(B)(vi) of this title is to lessen the financial impact of higher education debt on Vermonters.
(aa) The statutory purpose of the Vermont veteran tax credit in section 5830g of this title is to provide financial support to Vermonters who served in the U.S. uniformed services.
(Added 2013, No. 200 (Adj. Sess.), § 3; amended 2015, No. 157 (Adj. Sess.), § H.7, eff. Jan. 1, 2017; 2018, No. 11 (Sp. Sess.), § H.6, eff. Jan. 1, 2018; 2021, No. 105 (Adj. Sess.), § 533, eff. July 1, 2022; 2021, No. 138 (Adj. Sess.), § 8, eff. January 1, 2022; 2025, No. 71, § 4, eff. January 1, 2025.)
§ 5814 Repealed
[Repealed]
1991, No. 186 (Adj. Sess.), § 8(b), eff. May 7, 1992.
§ 5815 Repealed
[Repealed]
§ 5816 Repealed
[Repealed]
1991, No. 186 (Adj. Sess.), § 3(b), eff. May 7, 1992.
§ 5817 Repealed
[Repealed]
1991, No. 186 (Adj. Sess.), § 8(c), eff. May 7, 1992.
§ 5818 Repealed
[Repealed]
1991, No. 186 (Adj. Sess.), § 8(d), eff. May 7, 1992.
§ 5819 Inconsistent provisions
Notwithstanding any provision of the statutes of this State to the contrary, no individual, corporation, or other taxpayer, and no item of income, shall be exempt from taxation under this chapter unless the individual, corporation, other taxpayer, or item of income, as the case may be, is expressly exempted from taxation by this chapter.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1967, No. 121, § 2, eff. Jan. 1, 1968 for taxable years beginning on or after Jan. 1, 1968.)
§ 5820 Purpose
(a) This chapter is intended to conform the Vermont personal and corporate income taxes with the U.S. Internal Revenue Code, except as otherwise expressly provided, in order to simplify the taxpayer’s filing of returns, reduce the taxpayer’s accounting burdens, and facilitate the collection and administration of these taxes.
(b) It is intended that, for any taxable year, individuals, estates, and trusts shall be taxed upon only their Vermont income for that year, but that the rate at which the Vermont income of any taxpayer is taxed under this chapter shall reflect the taxpayer’s ability to pay as measured by his or her adjusted gross income for the taxable year.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1967, No. 121, § 3, eff. Jan. 1, 1968 for taxable years beginning on or after Jan. 1, 1968.)
Subchapter 2 Taxation of Individuals, Trusts, and Estates
§ 5821 Name of tax
The tax imposed by this subchapter shall be known as the Vermont personal income tax.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5822 Tax on income of individuals, estates, and trusts
(a) A tax is imposed for each taxable year upon the taxable income earned or received in that year by every individual, estate, and trust, subject to income taxation under the laws of the United States, in an amount determined by the following tables, and adjusted as required under this section:
(1) Married individuals filing joint returns and surviving spouses:
| If taxable income is: | The tax is: | | --- | --- | | Not over $64,600.00 | 3.35% of taxable income | | Over $64,600.00 but | $2,164.00 plus 6.6% of | | not over $156,150.00 | the amount of taxable | | | income over $64,600.00 | | Over $156,150.00 but | $8,206.00 plus 7.6% | | not over $237,950.00 | of the amount of taxable | | | income over $156,150.00 | | Over $237,950.00 | $14,423.00 plus 8.75% | | | of the amount of taxable | | | income over $237,950.00 |
(2) Heads of households:
| If taxable income is: | The tax is: | | --- | --- | | Not over $51,850.00 | 3.35% of taxable income | | Over $51,850.00 but | $1,737.00 plus 6.6% | | not over $133,850.00 | of the amount of taxable | | | income over $51,850.00 | | Over $133,850.00 but | $7,149.00 plus 7.60% | | not over $216,700.00 | of the amount of taxable | | | income over $133,850.00 | | Over $216,700.00 | $13,446.00 plus 8.75% | | | of the amount of taxable | | | income over $216,700.00 |
(3) Unmarried individuals (other than surviving spouse or head of household):
| If taxable income is: | The tax is: | | --- | --- | | Not over $38,700.00 | 3.35% of taxable income | | Over $38,700.00 but | $1,296.00 plus 6.6% of | | not over $93,700.00 | the amount of taxable | | | income over $38,700.00 | | Over $93,700.00 but | $4,926.00 plus 7.6% | | not over $195,450.00 | of the amount of taxable | | | income over $93,700.00 | | Over $195,450.00 | $12,659.00 plus 8.75% | | | of the amount of taxable | | | income over $195,450.00 |
(4) Married individuals filing separate returns:
| If taxable income is: | The tax is: | | --- | --- | | Not over $32,300.00 | 3.35% of taxable income | | Over $32,300.00 but | $1,082.00 plus 6.6% of | | not over $78,075.00 | the amount of taxable | | | income over $32,300.00 | | Over $78,075.00 but | $4,103.00 plus 7.6% | | not over $118,975.00 | of the amount of taxable | | | income over $78,075.00 | | Over $118,975.00 | $7,212.00 plus 8.75% | | | of the amount of taxable | | | income over $118,975.00 |
(5) Estates and trusts:
| If taxable income is: | The tax is: | | --- | --- | | $2,600.00 or less | 3.35% of taxable income | | Over $2,600.00 but | $87.00 plus 6.6% of | | not over $6,100.00 | the amount of taxable | | | income over $2,600.00 | | Over $6,100.00 but | $318.00 plus 7.6% | | not over $9,350.00 | of the amount of taxable | | | income over $6,100.00 | | Over $9,350.00 | $565.00 plus 8.75% | | | of the amount of taxable | | | income over $9,350.00 |
(6) If the federal adjusted gross income of the taxpayer exceeds $150,000.00, then the tax calculated under this subsection shall be the greater of the tax calculated under subdivisions (1)-(5) of this subsection or three percent of the taxpayer’s federal adjusted gross income.
(b) As used in this section:
(1) “Married individuals,” “surviving spouse,” “head of household,” “unmarried individual,” “estate,” and “trust” have the same meaning as under the Internal Revenue Code.
(2) The amounts of taxable income shown in the tables in this section shall be adjusted annually for inflation by the Commissioner of Taxes using the Consumer Price Index adjustment percentage, in the manner prescribed for inflation adjustment of federal income tax tables for the taxable year by the Commissioner of Internal Revenue, beginning with taxable year 2003; provided, however, notwithstanding 26 U.S.C. § 1(f)(3), that as used in this subdivision, “consumer price index” means the last Consumer Price Index for All Urban Consumers published by the U.S. Department of Labor.
(c) The amount of tax determined under subsection (a) of this section shall be:
(1) increased by 24 percent of the taxpayer’s federal tax liability for the taxable year for the following:
(A) additional taxes on qualified retirement plans, including individual retirement accounts and medical savings accounts and other tax-favored accounts;
(B) recapture of the federal investment tax credit attributable to the Vermont portion of the investment; and
(C) tax on qualified lump-sum distributions of pension income not included in federal taxable income; and
(2) decreased by 24 percent of the reduction in the taxpayer’s federal tax liability due to farm income averaging.
(d)(1) A taxpayer shall be entitled to a credit against the tax imposed under this section of 24 percent of each of the credits allowed against the taxpayer’s federal income tax for the taxable year as follows: the credit for people who are elderly or permanently totally disabled and the investment tax credit attributable to the Vermont-property portion of the investment.
(2) Any unused solar energy investment tax credit under this section may be carried forward for not more than five years following the first year in which the credit is claimed.
(3) Individuals shall receive a nonrefundable charitable contribution credit against the tax imposed under this section for the taxable year. The credit shall be five percent of the first $20,000.00 in charitable contributions made during the taxable year that are allowable under 26 U.S.C. § 170. This credit shall be available irrespective of a taxpayer’s election not to itemize at the federal level.
(e) The tax determined under subsections (a) through (d) of this section shall be reduced by a percentage equal to the portion of adjusted gross income that is not Vermont income; provided, however, that if a taxpayer’s Vermont income exceeds the taxpayer’s adjusted gross income, no reduction shall be made and provided, further, that if a taxpayer has zero or negative Vermont income and the taxpayer’s Vermont income computed without regard to the reductions in subsection 5823(a) of this chapter does not equal or exceed the taxpayer’s adjusted gross income, no tax shall be due under this section.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1967, No. 121, § 4, eff. Jan. 1, 1968; 1979, No. 70, § 1, eff. Jan. 1, 1968, affecting taxable years beginning on or after Jan. 1, 1968; 1979, No. 84 (Adj. Sess.), § 1, eff. Jan. 29, 1980 for taxable years beginning on and after Jan. 1, 1980; 1981, No. 170 (Adj. Sess.) § 15, eff. April 19, 1982, affecting taxable years beginning on and after January 1, 1982; 1983, No. 144 (Adj. Sess.), § 4, eff. Jan. 1, 1985; 1985, No. 213 (Adj. Sess.), § 2, eff. June 2, 1986 for taxable years beginning on and after January 1, 1987; 1987, No. 82, § 2, eff. June 9, 1987, affecting taxable years beginning on and after Jan. 1, 1987 (except for change in tax rate); 1987, No. 259 (Adj. Sess.), § 1, eff. June 16 1988, affecting taxable years beginning on and after Jan. 1, 1988, § 2, eff. Jan. 1, 1989, affecting taxable years beginning on and after Jan. 1, 1989; 1989, No. 119, § 26, eff. June 22, 1989, applying to taxes payable for taxable years beginning on and after January 1, 1989; 1991, No. 32, § 2, eff. May 18, 1991, affecting taxes payable for taxable years beginning January 1, 1991, through December 31, 1993; 1993, No. 14, § 1, eff. April 27, 1993, applicable to income taxes payable for taxable years beginning on and after January 1, 1993; 1999, No. 49, § 35, eff. June 2, 1999; 2001, No. 67, § 4, eff. June 16, 2001; 2001, No. 140 (Adj. Sess.), § 5, eff. June 21, 2002; 2003, No. 66, § 305; 2005, No. 75, § 15; 2007, No. 92 (Adj. Sess.), § 27; 2009, No. 45, §§ 9, 9b, eff. May 27, 2009; 2009, No. 54, §§ 97, 99, eff. June 1, 2009; 2009, No. 1 (Sp. Sess.), § H.48a, eff. June 2, 2009; 2009, No. 159 (Adj. Sess.), §§ 9, 10, eff. June 4, 2010; 2013, No. 96 (Adj. Sess.), § 196; 2015, No. 57, § 65, eff. Jan. 1, 2015; 2018, No. 11 (Sp. Sess.), § H.2, eff. Jan. 1, 2018; 2018, No. 11 (Sp. Sess.), § H.3, eff. Jan. 1, 2018; 2019, No. 51, § 4, eff. Jan. 1, 2019; 2021, No. 138 (Adj. Sess.), § 2, eff. January 1, 2022; 2023, No. 85 (Adj. Sess.), § 469, eff. July 1, 2024.)
§ 5823 Vermont income of individuals, estates, and trusts
(a) For any taxable year, the Vermont income of a resident individual is the adjusted gross income of the individual for that taxable year, and the Vermont income of a resident estate or trust is its gross income for the taxable year, less:
(1) income exempted from State taxation under the laws of the United States and not subtracted under subdivision 5811(21)(B)(i) of this chapter;
(2) military pay for full-time active duty with the U.S. Armed Services earned outside the State; and the first $2,000.00 of military pay for unit training in the State to National Guard and U.S. Reserve personnel for whom the Adjutant and Inspector General or Reserve Component Commander certifies that the taxpayer completed all unit training of his or her unit during the calendar year, and who has a federal adjusted gross income of less than $50,000.00;
(3) funds received through the federal Armed Forces Educational Loan Repayment Program under 10 U.S.C. chapters 109 and 1609, to the extent the funds are included in adjusted gross income of the taxpayer for the taxable year; and
(4)-(7) [Repealed.]
(8) the amount paid by the State of Vermont pursuant to 20 V.S.A. chapter 181 to the extent that such amount is included in the federal adjusted gross income of the taxpayer for the taxable year.
(b) For any taxable year, the Vermont income of a nonresident individual, estate, or trust is the sum of the following items of income to the extent they are required to be included in the adjusted gross income of the individual or the gross income of an estate or trust for that taxable year:
(1) rents and royalties derived from the ownership of property located within this State;
(2) gains from the sale or exchange of property located within this State;
(3) wages, salaries, commissions, or other income (excluding military pay for full-time active duty with the U.S. Armed Services and also excluding funds received through the federal Armed Forces Educational Loan Repayment Program under 10 U.S.C. chapters 109 and 1609; and also excluding the first $2,000.00 of military pay for unit training in the State to National Guard and U.S. Reserve personnel for whom the Adjutant and Inspector General or Reserve Component Commander certifies that the taxpayer completed all unit training of his or her unit during the calendar year, and who has a federal adjusted gross income of less than $50,000.00) received with respect to services performed within this State;
(4) income (other than income exempted from State taxation under the laws of the United States) derived from every business, trade, occupation, or profession to the extent that the business, trade, occupation, or profession is carried on within this State, including any compensation received:
(A) under an agreement not to compete with a business operating in Vermont;
(B) for goodwill associated with the sale of a Vermont business; or
(C) for services to be performed under a contract associated with the sale of a Vermont business, unless it is shown that the compensation for services does not constitute income from the sale of the business;
(5) income that was previously deferred under a nonqualified deferred compensation plan and that would have previously been included in the taxpayer’s Vermont income if it had not been deferred, and income derived from such previously deferred income; and
(6) proceeds from wagering transactions made within the State; or any Vermont State Lottery, tri-state lottery, or multijurisdictional lottery ticket paid to a person who purchased the ticket in Vermont, including payments received from a third party for the transfer of the rights to future proceeds related to the ticket; and the Commissioner may require withholding of any taxes due to the State under this subdivision from payments of wagering or lottery proceeds.
(c) For any taxable year, the Vermont income of a part-year resident individual or trust is the sum of:
(1) all items of income constituting Vermont income for the purpose of subsection (a) of this section that are earned or received during the period of the taxpayer’s residency in this State in the taxable year; and
(2) all items of income constituting Vermont income for the purposes of subsection (b) of this section that are earned or received during the period of the taxpayer’s nonresidency in this State in the taxable year.
(d) Vermont income shall not include any income of a nonresident from the activities listed in this subsection; and shall not include income of a nonresident through an entity such as a partnership, limited liability company, or trust, if that entity’s activities in this State are limited to activities that, without more, would not constitute nexus, plus any or all of the following activities necessary to create or maintain a World Wide Web page or internet site for the nonresident or entity:
(1) ownership of data or programming code in this State, or use of that data or programming code by a person other than the nonresident or entity or by a person not in this State;
(2) ownership of, or receipt of services from, computer servers in this State; and
(3) receipt of computer processing or web hosting services from a computer service provider or web hosting service in this State.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1967, No. 121, § 5, eff. Jan. 1, 1968; 1969, No. 263 (Adj. Sess.), § 3, eff. April 6, 1970; 1979, No. 105 (Adj. Sess.), § 44, eff. date, see note set out below; 1989, No. 119, §§ 22, 23(a), eff. June 22, 1989; 1989, No. 210 (Adj. Sess.), § 297, eff. May 31, 1990; 1991, No. 32, § 6, eff. May 18, 1991; 1993, No. 49, § 8, eff. May 28, 1993; 1995, No. 29, § 28, eff. April 14, 1995; 1995, No. 71 (Adj. Sess.), § 1, eff. Feb. 14, 1996; 1995, No. 169 (Adj. Sess.), § 23, eff. May 15, 1996; 1995, No. 174 (Adj. Sess.), § 6; 1997, No. 50, §§ 13, 14, eff. June 26, 1997; 1997, No. 79 (Adj. Sess.), § 2, eff. Jan. 1, 1999; 1997, No. 156 (Adj. Sess.), §§ 4, 52, eff. April 29, 1998; 2001, No. 140 (Adj. Sess.), § 6; 2001, No. 144 (Adj. Sess.), §§ 1, 2, 29, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 40, eff. March 1, 2004; 2003, No. 152 (Adj. Sess.), § 14; 2005, No. 14, § 2, eff. May 3, 2005; 2007, No. 33, § 1, eff. May 18, 2007; 2009, No. 160 (Adj. Sess.), §§ 51, 53, eff. June 4, 2010; 2011, No. 45, § 3a, eff. May 24, 2011; 2011, No. 45, § 36l, eff. July 1, 2013; 2023, No. 63, § 4, eff. June 14, 2023.)
§ 5824 Adoption of federal income tax laws
The statutes of the United States relating to the federal income tax, as in effect on December 31, 2024, but without regard to federal income tax rates under 26 U.S.C. § 1, are hereby adopted for the purpose of computing the tax liability under this chapter and shall continue in effect as adopted until amended, repealed, or replaced by act of the General Assembly.
(Added 2001, No. 140 (Adj. Sess.), § 7, eff. June 21, 2002; 2001, No. 144 (Adj. Sess.), § 23, eff. June 21, 2002; amended 2003, No. 66, § 313; 2003, No. 152 (Adj. Sess.), § 24, eff. June 7, 2004; 2005, No. 14, § 13; 2005, No. 94 (Adj. Sess.), § 2, eff. March 8, 2006; 2007, No. 33, § 6, eff. May 18, 2007; 2007, No. 190 (Adj. Sess.), § 26; 2009, No. 1 (Sp. Sess.), § H.26, eff. June 2, 2009; 2009, No. 160 (Adj. Sess.), § 29, eff. June 4, 2010; 2011, No. 45, § 2, eff. May 24, 2011; 2011, No. 143 (Adj. Sess.), § 9, eff. May 15, 2012; 2013, No. 73, § 20; 2013, No. 174 (Adj. Sess.), § 5, eff. Jan. 1, 2014; 2015, No. 57, § 66, eff. Jan. 1, 2015; 2015, No. 134 (Adj. Sess.), § 11, eff. Jan. 1, 2015; 2017, No. 73, § 7, eff. Jan. 1, 2016; 2018, No. 11 (Sp. Sess.), § H.7, eff. Jan. 1, 2018; 2019, No. 51, § 5, eff. Jan. 1, 2019; 2019, No. 175 (Adj. Sess.), § 13, eff. Jan. 1, 2020; 2021, No. 9, § 23, eff. Jan. 1, 2021; 2021, No. 73, § 23, eff. March 31, 2021; 2021, No. 148 (Adj. Sess.), § 7, eff. January 1, 2022; 2023, No. 72, § 1, eff. January 1, 2023; 2023, No. 144 (Adj. Sess.), § 3, eff. January 1, 2024; 2025, No. 27, § E.111, eff. January 1, 2025.)
§ 5825 Credit for taxes paid to other states and provinces
(a) A taxpayer of this State who was a resident individual, estate, or trust during any portion of a taxable year shall receive credit against the tax imposed, for that taxable year, by section 5822 of this title for income taxes imposed by, and paid to, another state or territory of the United States, the District of Columbia, or a province of Canada, upon the taxpayer’s income earned or received from sources within that state, territory, district, or province during that portion of that taxable year. In no case shall the credit allowed by this section exceed the portion of Vermont income tax, otherwise imposed by this chapter, attributable to the adjusted gross income earned or received from sources within such other state, territory, district, or province.
(b) For purposes of this section, when a taxpayer domiciled in another jurisdiction is deemed to be a resident of Vermont as provided by subdivision 5811(11)(A)(ii) of this title, income from intangibles not employed in a business, trade, or profession shall be deemed to be derived from sources within the jurisdiction of domicile. However, notwithstanding the provisions of this subsection, no credit will be allowed against the tax imposed unless the jurisdiction of domicile provides for a similar credit.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1981, No. 134 (Adj. Sess.), § 1, eff. April 2, 1982; 1991, No. 67, § 26, eff. June 19, 1991; 1991, No. 186 (Adj. Sess.), § 12; 1997, No. 50, § 16, eff. June 26, 1997; 2001, No. 140 (Adj. Sess.), § 8, eff. June 21, 2002.)
§ 5825a Credit for Vermont Higher Education Investment Plan contributions
(a) A taxpayer of this State, including each spouse filing a joint return, shall be eligible for a nonrefundable credit against the tax imposed under section 5822 of this title of 10 percent of the first $2,500.00 per beneficiary, contributed by the taxpayer during the taxable year to a Vermont Higher Education Investment Plan account under 16 V.S.A. chapter 87, subchapter 7, provided the account is provided directly by the Vermont Student Assistance Corporation to the participant.
(b) A taxpayer who has received a credit under subsection (a) of this section shall repay to the Commissioner 10 percent of any distribution from a higher education investment plan account, up to a maximum of the total credits received by the taxpayer under subsection (a) of this section minus any amount of repayment of such credits in prior tax years except when the distribution:
(1) is used exclusively for costs of attendance at an approved postsecondary education institution as defined in 16 V.S.A. § 2822(6);
(2) is used for a qualifying expense associated with a registered apprenticeship program pursuant to 26 U.S.C. § 529(c)(8);
(3) is made after the death of the beneficiary or after the beneficiary becomes disabled pursuant to subdivisions (q)(2)(C) and (m)(7) of 26 U.S.C. § 72; or
(4) is used for qualified higher education expense loan repayment pursuant to 26 U.S.C. § 529(c)(9), provided the loan being repaid was used exclusively for costs of attendance at an approved postsecondary education institution as defined in 16 V.S.A. § 2822(6).
(c) Repayments under subsection (b) of this section shall be subject to assessment, notice, penalty and interest, collection, and other administration in the same manner as an income tax under this chapter.
(Added 2003, No. 65, § 2, eff. for tax years beginning on and after Jan. 1, 2004; amended 2005, No. 207 (Adj. Sess.), § 6, eff. May 31, 2006; 2019, No. 51, § 19, eff. Jan. 1, 2019; 2019, No. 154 (Adj. Sess.), § E.605.3, eff. Oct. 2, 2020; 2019, No. 175 (Adj. Sess.), § 19, eff. Oct. 8, 2020; 2021, No. 20, § 269; 2021, No. 179 (Adj. Sess.), § 18, eff. January 1, 2022.)
§ 5826 Repealed
[Repealed]
2009, No. 160 (Adj. Sess.), § 51(a)(2), eff. Jan. 1, 2013.
§ 5827 Repealed
[Repealed]
1989, No. 119, § 23(b), eff. June 22, 1989.
§ 5828 Mobile home park sale; capital gain credit
A taxpayer of this State shall receive a credit against the tax imposed under section 5822 or 5832 of this title for a qualified sale of a mobile home park. The credit shall be in the amount of seven percent of the taxpayer’s gain subject to federal income tax for the taxable year. Credit in excess of the taxpayer’s tax liability for the taxable year may be carried forward for credit in the next succeeding three taxable years. “Qualified sale of a mobile home park” means the land comprising a mobile home park that is transferred in a single purchase to a group composed of a majority of the mobile home park leaseholders as defined in 10 V.S.A. § 6242(a) or to a nonprofit organization that represents such a group.
(Added 1997, No. 103 (Adj. Sess.), § 11, eff. April 23, 1998.)
§ 5828a Repealed
[Repealed]
1991, No. 32, § 7, eff. May 18, 1991.
§ 5828b Earned income tax credit
(a) A resident individual or part-year resident individual who is entitled to an earned income tax credit granted under the laws of the United States shall be entitled to a credit against the tax imposed for each year by section 5822 of this title. The credit shall be for an individual who claims one or more qualifying children 38 percent or for an individual who does not claim one or more qualifying children 100 percent of the earned income tax credit granted to the individual under the laws of the United States, multiplied by the percentage that the individual’s income that is earned or received during the period of the individual’s residency in this State bears to the individual’s total income. A resident individual or part-year resident individual who would have been entitled to or granted an earned income tax credit under the laws of the United States but for the fact that the individual, the individual’s spouse, or one or more of the individual’s children does not have a qualifying taxpayer identification number shall be entitled to a credit under this section.
(b) The tax credit claimed by a taxpayer under this section shall be deductible from the taxpayer’s income tax liability, if any, for the year in which the income is earned. In the event the credit exceeds the amount of the income tax payments due from the taxpayer, the excess of credits over payments due shall be paid to the taxpayer. Any payments due to a taxpayer under this subsection shall not bear interest.
(Added 1987, No. 258 (Adj. Sess.), § 1, eff. June 16, 1988; amended 1999, No. 49, § 36, eff. June 2, 1999; 1999, No. 119 (Adj. Sess.), § 2, eff. May 18, 2000; 2005, No. 14, § 1, eff. May 3, 2005; 2018, No. 11 (Sp. Sess.), § H.4, eff. Jan. 1, 2018; 2021, No. 138 (Adj. Sess.), § 4, eff. January 1, 2022; 2023, No. 72, § 15, eff. January 1, 2023; 2025, No. 71, § 2, eff. January 1, 2025.)
§ 5828c Child and dependent care credit
A resident or part-year resident of this State shall be eligible for a refundable credit against the tax imposed under section 5822 of this title. The credit shall be equal to 72 percent of the federal child and dependent care credit allowed to the taxpayer for the taxable year for child or dependent care services. The amount of the credit for a part-year resident shall be multiplied by the percentage that the individual’s income that is earned or received during the period of the individual’s residency in this State bears to the individual’s total income.
(Added 2001, No. 144 (Adj. Sess.), § 24, eff. June 21, 2002; amended 2003, No. 70 (Adj. Sess.), § 39, eff. March 1, 2004; 2021, No. 138 (Adj. Sess.), § 3, eff. January 1, 2022; 2023, No. 72, § 14, eff. January 1, 2023.)
§ 5829 Repealed
[Repealed]
1993, No. 210 (Adj. Sess.), § 40, eff. Jan. 1, 1994.
§ 5830 Taxpayer identification numbers; credits
(a) The Commissioner shall provide a process for an individual to claim the child tax credit or the earned income tax credit, or both, pursuant to subsections 5828b(a) and 5830f(a) of this title when the individual, the individual’s spouse, or one or more of the individual’s qualifying children does not have a taxpayer identification number. The Commissioner shall not inquire about or record the citizenship and immigration status of an individual, an individual’s spouse, or one or more of an individual’s qualifying children when an individual claims one or more credits pursuant to this section and subsections 5828b(a) and 5830f(a) of this title.
(b) Upon the Commissioner’s request, an individual who claims one or more credits pursuant to subsections 5828b(a) and 5830f(a) of this title shall provide valid documents establishing the identity and income for the taxable year of the individual and, as applicable, the individual’s spouse and qualifying children. Upon receiving a valid Social Security number issued by the Social Security Administration, the individual shall notify the Commissioner in the time and manner prescribed by the Commissioner.
(c) All claims submitted and records created pursuant to this section and subsections 5828b(a) and 5830f(a) of this title shall be exempt from public inspection and copying under the Public Records Act 1 V.S.A. § 317(c)(6) and shall be kept confidential as return or return information pursuant to section 3102 of this title.
(Added 2023, No. 72, § 17, eff. January 1, 2023.)
§ 5830a Interest tax
(a) When another state imposes a tax upon interest earned by its residents on deposits in a lending institution located in this State, but exempts from such taxation deposits by its residents in lending institutions located within that state, then there is hereby levied a tax in the amount of five percent upon interest earned by residents of this State on deposits in lending institutions located in such other state. As used in this section, “lending institution” includes any bank, savings bank, trust company, or building and loan association or other similar institution.
(b) For each taxpayer, $600.00 of income otherwise taxable under this section shall be exempt in each tax year. A husband and wife filing a joint return constitute a single taxpayer.
(Added 1977, No. 67.)
§ 5830b Tax credits; Entrepreneurs’ Seed Capital Fund
(a) The initial capitalization of the Entrepreneurs’ Seed Capital Fund, as established in 10 V.S.A. § 291, up to $7,150,000.00 raised from Vermont taxpayers on or before January 1, 2020, shall entitle those taxpayers to a credit against the tax imposed by section 5822, 5832, 5836, or 8551 of this title and by 8 V.S.A. § 6014. The credit may be claimed for the taxable year in which a contribution is made and each of the four succeeding taxable years. The amount of the credit for each year shall be the lesser of four percent of the taxpayer’s contribution or 50 percent of the taxpayer’s tax liability for that taxable year prior to the allowance of this credit; provided, however, that in no event shall the aggregate credit allowable under this section for all taxable years exceed 20 percent of the taxpayer’s contribution to the initial $7,150,000.00 capitalization of the Fund. The credit shall be nontransferable except as provided in subsection (b) of this section.
(b) If the taxpayer disposes of an interest in the Fund within four years after the date on which the taxpayer acquired that interest, any unused credit attributable to the disposed-of interest is disallowed. This disallowance does not apply in the event of an involuntary transfer of the interest, including a transfer at death to any heir, devisee, legatee, or trustee, or in the event of a transfer without consideration to or in trust for the benefit of the taxpayer or one or more persons related to the taxpayer as spouse, descendant, parent, grandparent, or child.
(Added 1985, No. 171 (Adj. Sess.), § 2, eff. May 7, 1986; amended 1987, No. 80, § 7, eff. June 9, 1987; 1993, No. 78, § 1; 2003, No. 164 (Adj. Sess.), § 8, eff. June 12, 2004; 2005, No. 184 (Adj. Sess.), § 17b, eff. May 24, 2006; 2009, No. 54, § 27, eff. June 1, 2009.)
§ 5830c Tax credits; charitable investments in housing
(a) Credit authorized. A charitable investment approved by the Commissioner of Housing and Community Affairs in an eligible housing charity shall entitle a Vermont taxpayer to a credit against the tax imposed by sections 5822 (individual income), 5832 (corporate income), 5836 (banks and financial institutions), or 8551 (insurance companies) of this title. The credit may be claimed for any year in which a charitable investment is made and for each year thereafter until the principal is repaid, or the investment is transferred, or the taxpayer is notified or agrees or the Commissioner of Housing and Community Affairs determines that the principal is not likely to be repaid, or until the end of the year in which the housing charity ceases to be eligible, whichever is earlier.
(b) Amount of credit. The amount of the credit shall be equal to the difference between the net income that would have been received by the taxpayer at the charitable threshold rate during the taxable year and the actual net income received by or credited to the taxpayer from a charitable investment in an eligible housing charity. However, the credit shall not exceed three percent of the average outstanding principal balance of the investment during the taxable year.
(c) Definitions. As used in this section:
(1) “Affordable housing” shall be defined by rule adopted by the Department of Housing and Community Affairs. The rule shall include the following provisions:
(A) At least 50 percent of the units shall be occupied by households whose income does not exceed 100 percent of the greater of State or area median income.
(B) The goal shall be to provide housing at a cost of no more than 30 percent of a household’s gross income.
(C) The affordability of the unit shall be protected for a period of time not less than the term of any loan made pursuant to subdivision (d)(4) of this section for the unit or units or at least 15 years, whichever is greater, through a housing subsidy covenant or other legally binding instrument, which shall terminate upon the issuance of a judgment of foreclosure or a transfer of the property in lieu of foreclosure. This rule may also include additional provisions consistent with this section.
(2) “Bank prime loan rate” means the March average prime loan rate, as of March 31 each year, used by insured U.S. chartered commercial banks to price short-term business loans, as published in the Federal Reserve Board’s statistical release.
(3) “Charitable investment” means a loan or deposit made to an eligible housing charity, on which the actual annual rate of return is at or below the charitable threshold rate.
(4) The “charitable threshold rate” means, for each year beginning July 1, a rate that is the greater of: two percentage points below the most recent bank prime loan rate or one percent.
(5) “Eligible housing charity” means a governmental agency or private nonprofit organization determined eligible by the Commissioner of Housing and Community Affairs according to subsection (d) of this section.
(6) “Net income” means interest income received or credited to the taxpayer.
(d) Eligibility. Any organization seeking eligibility shall apply to the Commissioner of Housing and Community Affairs, who is authorized to issue certificates of eligibility for tax credits to eligible housing charities in specific amounts. In no event shall certificates of eligibility for tax credits for charitable investments be issued in excess of $5,000,000.00 in the aggregate for any fiscal year. The Commissioner by rule shall establish procedures and criteria for application to ensure the equitable distribution of tax credit certificates among eligible applicants. Subject to this limit, the Commissioner shall issue a certificate of eligibility to receive tax credit investments to an organization if it meets all of the following criteria:
(1) It is either an agency or instrumentality of the State, or a private not-for-profit organization that has applied for and has not been denied tax-exempt status by the U.S. Internal Revenue Service.
(2) It has as a major purpose to provide affordable housing.
(3) It can demonstrate that as of the date of its application, it had loaned or invested at least $50,000.00 for the provision of affordable housing.
(4) At least 70 percent of all investments subject to this section are disbursed within 12 months for:
(A) the acquisition, rehabilitation, or construction of affordable housing in Vermont by the eligible housing charity; or
(B) loans for affordable housing in Vermont; or
(C) loans to individual borrowers in Vermont having no more than 100 percent of median income of the State or area, whichever is greater.
(5) Loans of charitable investments made pursuant to subdivision (4) of this subsection shall be at an average rate of interest not more than two percent above the bank prime loan rate.
(6) It can demonstrate that it has the administrative capacity to segregate funds to comply with and account for the requirements of subdivision (4) of this subsection.
(e) Revocation. The Commissioner of Housing and Community Affairs may revoke the eligibility of any organization under this section after a hearing, upon a finding that it fails to meet substantially all of the criteria required for eligibility. Such organization shall immediately notify all investors of the revocation. Such organization shall reimburse the State for the full amount of any tax credits allowed its investors after revocation of eligibility, and shall pay to investors the full amount of any tax credits claimed by an investor but disallowed by the Commissioner due solely to revocation of eligibility. Any person aggrieved by the denial or revocation of eligibility may appeal to Superior Court.
(f) Procedure for claiming tax credit.
(1) Each eligible housing charity accepting investment funds for which a tax credit may be claimed by the investor under this section shall furnish investors with a copy of its certificate of eligibility to receive tax credit investments, plus a statement of the amount and terms of the investment on a form to be provided by the Commissioner of Taxes. The eligible housing charity shall keep a current list of the names, current addresses, and taxpayer identification numbers of all investors who may claim a tax credit under this section.
(2) On or before January 31 of each year, the eligible housing charity shall furnish all investors who may claim a tax credit under this section with three copies of a tax credit statement, in a form specified by the Commissioner of Taxes, showing the principal balance of the investment at the beginning of the previous calendar year or at the date of the investment if made during that year, the principal balance at the end of the calendar year, the average outstanding principal balance during the year, the income that would have been received at the charitable threshold rate, the actual income received by or credited to the investor from the eligible housing charity during the calendar year and the amount of the tax credit.
(3) On or before January 31 of each year, the eligible housing charity shall furnish the Commissioner of Taxes with a list of all investors who may claim a tax credit under this section, in a form specified by the Commissioner, showing the principal balance of the investment at the beginning of the previous calendar year or at the date of the investment if made during that year, the principal balance at the end of the calendar year, the average outstanding principal balance during the year, the income that would have been received at the charitable threshold rate, the actual income received by or credited to the investor from the eligible housing charity during the calendar year and the amount of the tax credit.
(4) Each investor who claims a tax credit under this section shall claim the credit on a form to be provided by the Commissioner, which may be combined with the tax credit statement furnished by the eligible housing charity pursuant to subdivision (2) of this subsection. Each claimant shall also submit with his or her tax return a copy of the certificate of eligibility of the eligible housing charity and a copy of the tax credit statement furnished by the eligible housing charity.
(5) If the amount of allowed tax credit exceeds the taxpayer’s income tax liability for the taxable year, the amount thereof that exceeds such tax liability may be carried over for deduction from the taxpayer’s income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability; provided, however, that no tax credit shall be carried over for deduction after the third taxable year succeeding the taxable year in which the credit was earned.
(6) Investors in an eligible housing charity whose eligibility to receive tax credit investments is revoked during any calendar year may receive the credit for the year during which the revocation occurs, but not for any succeeding year unless eligibility is reinstated by the Commissioner of Housing and Community Affairs.
(Added 1989, No. 240 (Adj. Sess.), § 2; amended 2001, No. 144 (Adj. Sess.), §§ 39, 40, eff. June 21, 2002; 2005, No. 116 (Adj. Sess.), §§ 3, 4, eff. April 26, 2006.)
§ 5830d Deferral of income taxation; combat zone duty
The provisions of 26 U.S.C. § 7508 shall apply to this chapter for the benefit of:
(1) individuals called up for full-time active military duty as the result of the existence of a military conflict in an area designated as a combat zone by the President of the United States, regardless of whether such duty is performed within the combat zone; and
(2) individuals serving in an area treated by federal law in the same manner as if it were a combat zone.
(Added 1991, No. 110, § 2, eff. June 28, 1991; amended 1995, No. 169 (Adj. Sess.), § 25, eff. May 15, 1996.)
§ 5830e Retirement income; Social Security income
(a) Social Security income. The portion of federally taxable Social Security benefits excluded from taxable income under subdivision 5811(21)(B)(iv) of this chapter shall be as follows:
(1) For taxpayers whose filing status is single, married filing separately, head of household, or surviving spouse:
(A) If the federal adjusted gross income of the taxpayer is less than or equal to $55,000.00, all federally taxable benefits received under the federal Social Security Act shall be excluded.
(B) If the federal adjusted gross income of the taxpayer is greater than $55,000.00 but less than $65,000.00, the percentage of federally taxable benefits received under the Social Security Act to be excluded shall be proportional to the amount of the taxpayer’s federal adjusted gross income over $55,000.00, determined by:
(i) subtracting the federal adjusted gross income of the taxpayer from $65,000.00;
(ii) dividing the value under subdivision (i) of this subdivision (B) by $10,000.00; and
(iii) multiplying the value under subdivision (ii) of this subdivision (B) by the federally taxable benefits received under the Social Security Act.
(C) If the federal adjusted gross income of the taxpayer is equal to or greater than $65,000.00, no amount of the federally taxable benefits received under the Social Security Act shall be excluded under this section.
(2) For taxpayers whose filing status is married filing jointly:
(A) If the federal adjusted gross income of the taxpayer is less than or equal to $70,000.00, all federally taxable benefits received under the Social Security Act shall be excluded.
(B) If the federal adjusted gross income of the taxpayer is greater than $70,000.00 but less than $80,000.00, the percentage of federally taxable benefits received under the Social Security Act to be excluded shall be proportional to the amount of the taxpayer’s federal adjusted gross income over $70,000.00, determined by:
(i) subtracting the federal adjusted gross income of the taxpayer from $80,000.00;
(ii) dividing the value under subdivision (i) of this subdivision (B) by $10,000.00; and
(iii) multiplying the value under subdivision (ii) of this subdivision (B) by the federally taxable benefits received under the Social Security Act.
(C) If the federal adjusted gross income of the taxpayer is equal to or greater than $80,000.00, no amount of the federally taxable benefits received under the Social Security Act shall be excluded under this section.
(b) Civil Service Retirement System income. The portion of income received from the Civil Service Retirement System excluded from taxable income under subdivision 5811(21)(B)(iv) of this title shall be subject to the limitations under subsection (e) of this section and shall be determined as follows:
(1) For taxpayers whose filing status is single, married filing separately, head of household, or surviving spouse:
(A) If the federal adjusted gross income of the taxpayer is less than or equal to $55,000.00, the first $10,000.00 of income received from the Civil Service Retirement System shall be excluded.
(B) If the federal adjusted gross income of the taxpayer is greater than $55,000.00 but less than $65,000.00, the percentage of the first $10,000.00 of income received from the Civil Service Retirement System to be excluded shall be proportional to the amount of the taxpayer’s federal adjusted gross income over $55,000.00, determined by:
(i) subtracting the federal adjusted gross income of the taxpayer from $65,000.00;
(ii) dividing the value under subdivision (i) of this subdivision (B) by $10,000.00; and
(iii) multiplying the value under subdivision (ii) of this subdivision (B) by the first $10,000.00 of income received from the Civil Service Retirement System.
(C) If the federal adjusted gross income of the taxpayer is equal to or greater than $65,000.00, no amount of the income received from the Civil Service Retirement System shall be excluded under this section.
(2) For taxpayers whose filing status is married filing jointly:
(A) If the federal adjusted gross income of the taxpayer is less than or equal to $70,000.00, the first $10,000.00 of income received from the Civil Service Retirement System shall be excluded.
(B) If the federal adjusted gross income of the taxpayer is greater than $70,000.00 but less than $80,000.00, the percentage of the first $10,000.00 of income received from the Civil Service Retirement System to be excluded shall be proportional to the amount of the taxpayer’s federal adjusted gross income over $70,000.00, determined by:
(i) subtracting the federal adjusted gross income of the taxpayer from $80,000.00;
(ii) dividing the value under subdivision (i) of this subdivision (B) by $10,000.00; and
(iii) multiplying the value under subdivision (ii) of this subdivision (B) by the first $10,000.00 of income received from the Civil Service Retirement System.
(C) If the federal adjusted gross income of the taxpayer is equal to or greater than $80,000.00, no amount of the income received from the Civil Service Retirement System shall be excluded under this section.
(c) Other contributory retirement systems; earnings not covered by Social Security. Other retirement income, except U.S. military retirement income pursuant to subsection (d) of this section, received by a taxpayer of this State shall be excluded pursuant to subsection (b) of this section as though the income were received from the Civil Service Retirement System and shall be subject to the limitations under subsection (e) of this section, provided that:
(1) the income is received from a contributory annuity, pension, endowment, or retirement system of:
(A) the U.S. government or a political subdivision or instrumentality of the U.S. government;
(B) this State or a political subdivision or instrumentality of this State; or
(C) another state or a political subdivision or instrumentality of another state; and
(2) the contributory system from which the income is received was based on earnings that were not covered by the Social Security Act.
(d) U.S. military retirement income and U.S. military survivor benefit income. For taxpayers of any filing status, U.S. military retirement income, and U.S. military survivor benefit income received by an eligible beneficiary, received by a taxpayer of this State shall be excluded from taxable income under subdivision 5811(21)(B)(iv) of this chapter as follows:
(1) If the federal adjusted gross income of the taxpayer is less than or equal to $125,000.00, all federally taxable U.S. military retirement income and survivor benefit income shall be excluded.
(2) If the federal adjusted gross income of the taxpayer is greater than $125,000.00 but less than $175,000.00, the percentage of federally taxable U.S. military retirement income and survivor benefit income to be excluded shall be proportional to the amount of the taxpayer’s federal adjusted gross income over $125,000.00, determined by:
(A) subtracting the federal adjusted gross income of the taxpayer from $175,000.00;
(B) dividing the value under subdivision (A) of this subdivision (2) by $50,000.00; and
(C) multiplying the value under subdivision (B) of this subdivision (2) by the federally taxable U.S. military retirement income and survivor benefit income received.
(3) If the federal adjusted gross income of the taxpayer is equal to or greater than $175,000.00, no amount of the federally taxable U.S. military retirement income and survivor benefit income received shall be excluded under this section.
(e)(1) Requirement to elect one exclusion. A taxpayer of this State who is eligible during the taxable year for more than one of the exclusions under subsections (a), (b), and (c) of this section shall elect only one of the exclusions for which the taxpayer is eligible.
(2) A taxpayer of this State who is eligible during the taxable year for the military retirement and survivor benefit exclusion under subsection (d) of this section may elect that exclusion regardless of whether the taxpayer also elects an exclusion under subsections (a)–(c) of this section.
(Added 2018, No. 11 (Sp. Sess.), § H.5, eff. Jan. 1, 2018; amended 2021, No. 105 (Adj. Sess.), § 534, eff. July 1, 2022; 2021, No. 138 (Adj. Sess.), § 7, eff. January 1, 2022; 2023, No. 6, §§ 376, 377, eff. July 1, 2023; 2025, No. 71, § 3, eff. January 1, 2025.)
§ 5830f Vermont child tax credit
(a) A resident individual or part-year resident individual who is entitled to a child tax credit under the laws of the United States or who would have been entitled to a child tax credit under the laws of the United States but for the fact that the individual or the individual’s spouse does not have a taxpayer identification number shall be entitled to a refundable credit against the tax imposed by section 5822 of this title for the taxable year. The total credit per taxable year shall be in the amount of $1,000.00 per qualifying child, as defined under 26 U.S.C. § 152(c) but notwithstanding the taxpayer identification number requirements under 26 U.S.C. § 24(e) and (h)(7), who is six years of age or younger as of the close of the calendar year in which the taxable year of the taxpayer begins. For a part-year resident individual, the amount of the credit shall be multiplied by the percentage that the individual’s income that is earned or received during the period of the individual’s residency in this State bears to the individual’s total income. An otherwise eligible individual shall be entitled to the credit under this section without regard for the laws of the United States pertaining to the amount of federal child tax credit that may be refunded.
(b) Notwithstanding subsection (a) of this section, the amount of the credit per child under this section shall be reduced, but not below zero, by $20.00 for each $1,000.00, or fraction thereof, by which the individual’s adjusted gross income exceeds $125,000.00, irrespective of the individual’s filing status. For purposes of this subsection, spouses filing jointly shall be considered an individual.
(c) Notwithstanding any provision of law to the contrary, the refundable credit and its payment authorized under this section shall be treated in the same manner as the federal Earned Income Tax Credit and shall not be considered as assets, income, or resources to the same extent the credit and its payment would be disregarded pursuant to 26 U.S.C. § 6409 and the general welfare doctrine for purposes of determining eligibility for benefits or assistance, or the amount or extent of those benefits or assistance, under any State or local program, including programs established under 33 V.S.A. § 3512 and chapters 11, 17, 19, 21, 25, and 26. This subsection shall only apply to the extent that it does not conflict with federal law relating to the benefit or assistance program and that any required federal approval or waiver is first obtained for that program.
[Subsection (d) effective when contingency met.]
(d)(1) The Commissioner shall establish a program to make advance quarterly payments of the credit under this section during the calendar year that, in the aggregate, equal 50 percent of the annual amount of the credit allowed to each individual for the taxable year. The quarterly payments made to an individual during the calendar year shall be in equal amounts, except that the Commissioner may modify the quarterly amount upon receipt of any information furnished by the individual that allows the Commissioner to determine the annual amount. The remaining 50 percent of the annual amount of the credit allowed to each individual shall be determined at the time of filing a Vermont personal income tax return for the taxable year pursuant to section 5861 of this title.
(2) The Commissioner shall provide a process by which individuals may elect not to receive advance payments under this subsection.
(Added 2021, No. 138 (Adj. Sess.), § 1, eff. January 1, 2022; amended 2023, No. 72, § 16, eff. January 1, 2023; 2023, No. 72, § 18; 2025, No. 71, § 1, eff. January 1, 2025.)
§ 5830g Vermont veteran tax credit
(a) A resident individual or part-year resident individual who served in the uniformed services shall be entitled to a refundable credit against the tax imposed by section 5822 of this title for the taxable year.
(b) A taxpayer shall be eligible for the credit under this section provided the taxpayer has a discharge record, or other record of separation from active duty, verifying service in the uniformed services.
(c)(1) If the federal adjusted gross income of the taxpayer is less than or equal to $25,000.00, the amount of tax credit provided under this section shall be $250.00.
(2) If the federal adjusted gross income of the taxpayer is greater than $25,000.00 but less than $30,000.00, the amount of credit shall be $250.00 less $5.00 per $100.00 of federal adjusted gross income exceeding $25,000.00 of federal adjusted gross income.
(3) If the federal adjusted gross income of the taxpayer is $30,000.00 or greater, no amount of credit shall be provided under this section.
(Added 2025, No. 71, § 5, eff. January 1, 2025.)
Subchapter 3 Taxation of Corporations
§ 5831 Name of tax
The tax imposed by this subchapter shall be known as the Vermont Corporate Income Tax.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5832 Tax on income of corporations
A tax is imposed for each calendar year, or fiscal year ending during that calendar year, upon the income earned or received in that taxable year by every taxable corporation, reduced by any Vermont net operating loss allowed under section 5888 of this title, such tax being the greater of:
(1) an amount determined in accordance with the following schedule:
| | Vermont net income of the corporation | | Tax | | | --- | --- | --- | --- | --- | | | for the taxable year allocated or | | | | | | apportioned to Vermont | | | | | | under section 5833 of this title | | | | | | | | | | | | $ | 0-10,000.00 | | 6.00% | | | 10,001.00-25,000.00 | | $600.00 plus 7.0% of the | | | | | | excess over $10,000.00 | | | | 25,001.00 and over | | $1,650.00 plus 8.5% of the | | | | | | excess over $25,000.00 | | | | or | | | |
(2)(A) $75.00 for small farm corporations. “Small farm corporation” means any corporation organized for the purpose of farming, which during the taxable year is owned solely by active participants in that farm business and receives less than $100,000.00 Vermont gross receipts from that farm operation, exclusive of any income from forest crops; or
(B) An amount determined in accordance with section 5832a of this title for a corporation that qualifies as and has elected to be taxed as a digital business entity for the taxable year; or
(C) For C corporations with Vermont gross receipts from $0.00–$500,000.00, the greater of the amount determined under subdivision (1) of this section or $100.00; or
(D) For C corporations with Vermont gross receipts from $500,001.00–$1,000,000.00, the greater of the amount determined under subdivision (1) of this section or $500.00; or
(E) For C corporations with Vermont gross receipts from $1,000,001.00–$5,000,000.00, the greater of the amount determined under subdivision (1) of this section or $2,000.00; or
(F) For C corporations with Vermont gross receipts from $5,000,001.00–$300,000,000.00, the greater of the amount determined under subdivision (1) of this section or $6,000.00; or
(G) For C corporations with Vermont gross receipts greater than $300,000,000.00, the greater of the amount determined under subdivision (1) of this section or $100,000.00.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1969, No. 144, § 10, eff. June 1, 1969; 1973, No. 270 (Adj. Sess.), § 1, eff. date, see note set out below; 1983, No. 144 (Adj. Sess.), § 3, eff. April 12, 1984; 1983, No. 144 (Adj. Sess.), § 6(b), eff. Jan. 1, 1988; 1991, No. 32, § 31, eff. May 18, 1991; 1991, No. 67, § 26c, eff. June 19, 1991; 1997, No. 60, § 73, eff. June 26, 1997; 2003, No. 152 (Adj. Sess.), §§ 3, 4, eff. June 7, 2004; 2005, No. 207 (Adj. Sess.), §§ 14, 16, eff. May 31, 2006; 2009, No. 1 (Sp. Sess.), § H.52, eff. Jan. 1, 2010; 2011, No. 143 (Adj. Sess.), § 16, eff. May 15, 2012; 2019, No. 51, § 7, eff. Jan. 1, 2019; 2021, No. 148 (Adj. Sess.), § 2, eff. January 1, 2023.)
§ 5832a Digital business entity franchise tax
(a) There is imposed upon every business entity that qualifies as and has elected to be taxed as a digital business entity an annual franchise tax equal to:
(1) the greater of 0.02 percent of the current value of the tangible and intangible assets of the company or $250.00, but in no case more than $500,000.00; or
(2) where the authorized capital stock does not exceed 5,000 shares, $250.00; where the authorized capital stock exceeds 5,000 shares but is not more than 10,000 shares, $500.00; and the further sum of $250.00 on each 10,000 shares or part thereof.
(b) In no case shall the tax on any corporation for a full taxable year, whether computed under subdivision (a)(1) or (2) of this section, be more than $500,000.00 or less than $250.00.
(c) In the case of a corporation that has not been in existence during the whole year, the amount of tax due, at the foregoing rates and as provided, shall be prorated for the portion of the year during which the corporation was in existence.
(d) In the case of a corporation changing during the taxable year the amount of its authorized capital stock, the total annual franchise tax payable at the foregoing rates shall be arrived at by adding together the franchise taxes calculated pursuant to subdivision (a)(2) of this section as prorated for the several periods of the year during which each distinct authorized amount of capital stock was in effect.
(e) For the purpose of computing the taxes imposed by this section, the authorized capital stock of a corporation shall be considered to be the total number of shares that the corporation is authorized to issue without regard to whether the number of shares that may be outstanding at any one time is limited to a lesser number.
(f) The franchise tax under this section shall be reported and paid in the same manner as the tax under subdivision 5832(2)(B) of this title; provided, however, that an electing corporation shall also provide the Commissioner with a copy of its federal tax return.
(Added 2009, No. 1 (Sp. Sess.), § H.53, eff. Jan. 1, 2010.)
§ 5833 Allocation and apportionment of income
(a) If the income of a taxable corporation is derived from any trade, business, or activity conducted entirely within this State, the Vermont net income of the corporation shall be allocated to this State in full. If the income of a taxable corporation is derived from any trade, business, or activity conducted both within and outside this State, the amount of the corporation’s Vermont net income that shall be apportioned to this State, so as to allocate to this State a fair and equitable portion of that income, shall be determined by multiplying that Vermont net income by the gross sales, or charges for services performed, within this State, expressed as a percentage of such sales or charges whether within or outside this State.
(1) Sales of tangible personal property are made in this State if: the property is delivered or shipped to a purchaser, other than the U.S. government, who takes possession within this State, regardless of f.o.b. point or other conditions of sale.
(2) Sales, other than the sale of tangible personal property, are in this State if the taxpayer’s market for the sales is in this State. The taxpayer’s market for sales is in this State:
(A) in the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this State;
(B) in the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this State;
(C) in the case of sale of a service, if and to the extent the service is delivered to a location in this State; and
(D) in the case of intangible property:
(i) that is rented, leased, or licensed, if and to the extent the property is used in this State, provided that intangible property utilized in marketing a good or service to a consumer is “used in this State” if that good or service is purchased by a consumer who is in this State; and
(ii) that is sold, if and to the extent the property is used in this State, provided that:
(I) a contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is “used in this State” if the geographic area includes all or part of this State;
(II) receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i) of this subdivision (2)(D); and
(III) all other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(3) If the state or states of assignment under subdivision (2) of this subsection cannot be determined, the state or states of assignment shall be reasonably approximated.
(4) If the taxpayer is not taxable in a state to which a receipt is assigned under subdivision (2) or (3) of this subsection, or if the state of assignment cannot be determined under subdivision (2) of this subsection or reasonably approximated under subdivision (3) of this subsection, such receipt shall be excluded from the denominator of the receipts factor.
(5) The Commissioner of Taxes shall adopt rules as necessary to carry out the purposes of this section.
(6) A taxable corporation subject to apportionment under this section shall report to the Commissioner of Taxes:
(A) the average of the value of all the real and tangible property within this State at the beginning of the taxable year and at the end of the taxable year, provided the Commissioner may require the use of the average of the value on the 15th or other day of each month in cases where the Commissioner determines that the computation is necessary to more accurately reflect the average value of property within Vermont during the taxable year, expressed as a percentage of all property both within and outside this State; and
(B) the total wages, salaries, and other personal service compensation paid to employees within this State during the taxable year, expressed as a percentage of all compensation paid, whether within or outside this State.
(b) If the application of the provisions of this section does not fairly represent the extent of the business activities of a corporation within this State, the corporation may petition for, or the Commissioner may require, with respect to all or any part of the corporation’s business activity, if reasonable:
(1) separate accounting;
(2) the exclusion or modification of any or all of the factors;
(3) the inclusion of one or more additional factors that will fairly represent the corporation’s business activity in this State; or
(4) the employment of any other method to effectuate an equitable allocation and apportionment of the corporation’s income.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 73, §§ 15, 16, eff. April 16, 1971; 1987, No. 82, § 6, eff. June 9, 1987; 2003, No. 152 (Adj. Sess.), § 5, eff. June 7, 2004; amended 2019, No. 51, § 8, eff. Jan. 1, 2020; 2021, No. 148 (Adj. Sess.), § 3, eff. January 1, 2023; 2023, No. 6, § 378, eff. July 1, 2023.)
§ 5834 Computation of gains and losses
For the purpose of ascertaining gain or loss from the sale or other disposition of property, real, personal, or mixed, acquired before January 1, 1931, the taxpayer may, in lieu of the adjusted basis prescribed by the applicable U.S. Internal Revenue Code, use the fair market value of such property as of January 1, 1931, adjusted for the period subsequent thereto. In all other respects, the gain or loss on the sale or other disposition of property shall be ascertained as prescribed by such Code.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5835 Construction of subchapter
Nothing in this subchapter shall be construed to repeal or affect any of the provisions of chapter 211 of this title.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5836 Franchise tax on financial institutions
(a) A tax is imposed for each calendar month or part thereof upon the franchise or privilege of doing business in this State of every corporation that is a financial institution as defined in 8 V.S.A. § 11101(32) that has a business location in this State; provided, however, that a merchant bank organized under 8 V.S.A. § 12603 and an uninsured bank organized under 8 V.S.A. § 12604 shall not be considered to be financial institutions for purposes of the tax imposed by this section.
(b) The tax imposed by this section for each taxable month shall be equal to 0.000096 of the average monthly deposit for such taxable month held in Vermont by the corporation. As used in this section, the word “deposit” shall have the same meaning as the word “deposit” as defined in 12 C.F.R. § 204.2(a)(1). The average monthly deposit for any taxable month shall be determined by the deposits held in Vermont by the corporation on the last business day of each of the 12 months directly preceding the taxable month for which the average monthly deposit is to be determined. The 12 deposits for the preceding 12 months shall be added together and divided by 12 to produce the average monthly deposit for the taxable month in question. In the event a corporation has not been doing business for 12 consecutive months prior to any taxable month for which an average monthly deposit is to be determined, the average monthly deposit for such taxable months shall be based upon the number of months (less than 12) that the bank has been doing business prior to the taxable month in question.
(c) The tax imposed by this section shall be paid monthly to the Commissioner on or before the 25th day of each month for the tax due in the previous month.
(d), (e) [Repealed.]
(f) To the extent they are not explicitly in conflict with the provisions of this section, the provisions of subchapters 6, 7, 8, and 9 of this chapter shall apply to the tax imposed by this section.
(g) A corporation that is subject to the tax imposed by this section shall not be subject to the tax imposed by section 5832 of this title.
(h) When a taxpayer, under this section, transfers all or a portion of its business assets to another corporation that is or will be subject to tax under this section, the transferee corporation shall include, and the transferor shall not include, in the computation of “average monthly deposit” for purposes of subsection (b) of this section, the transferred deposits that were held by the transferor corporation during the 12 months directly preceding the transfer.
(i) An independent trust company established pursuant to 8 V.S.A. chapter 77 is not a financial institution within the meaning of this section.
(j) The Vermont Higher Education Savings Plan shall not be subject to the tax imposed by this section.
(Added 1967, No. 157, § 1; amended 1969, No. 144, § 11, eff. June 1, 1969; 1973, No. 270 (Adj. Sess.), § 2, eff. date, see note set out below; 1983, No. 144 (Adj. Sess.), § 5, eff. April 12, 1984; 1991, No. 32, § 29, eff. May 18, 1991; 1995, No. 29, § 29, eff. April 14, 1995; 1995, No. 169 (Adj. Sess.), § 16, eff. May 15, 1996; 1997, No. 60, § 75; 1997, No. 79 (Adj. Sess.), § 3; 1997, No. 98 (Adj. Sess.), § 8d, eff. April 16, 1998; 1999, No. 153 (Adj. Sess.), § 33, eff. Jan. 1, 2001; 2003, No. 152 (Adj. Sess.), § 6, eff. June 7, 2004; 2015, No. 134 (Adj. Sess.), § 37, eff. Jan. 1, 2017.)
§ 5837 Repealed
[Repealed]
2003, No. 152 (Adj. Sess.), § 8.
§ 5838 Digital business entity election
A corporation shall not be subject to the tax imposed by section 5832 of this title if the corporation qualifies as and elects to be taxed as a digital business entity for the taxable year.
(Added 2009, No. 1 (Sp. Sess.), § H.54, eff. Jan. 1, 2010.)
Subchapter 4 Withholding of Taxes at Source
§ 5841 Requirement and rate of withholding
(a) Every person who is required under the laws of the United States to withhold federal income tax from payments that are also subject to Vermont income tax shall deduct and withhold during the calendar year from the payments made by such person such amount as the Commissioner shall prescribe. Every person who makes payments of income with respect to services performed for such person that were previously deferred under a nonqualified deferred compensation plan shall deduct and withhold during the calendar year from the payments made by such person six percent of any payment (including any withheld tax) of such previously deferred income and of income derived from such previously deferred income. The Commissioner may authorize any person to deduct and withhold Vermont income tax from any other payments that are subject to the tax imposed by this chapter. Notwithstanding the foregoing, banks (as defined in 8 V.S.A. § 909a(a)) shall not be required to withhold Vermont income tax from payments that are subject to federal back-up withholding.
(b) The Commissioner shall establish such withholding tables, schedules, or formulae as will result in the withholding of such amounts from the payments made by any person during any taxable year, as shall closely approximate the income tax liabilities of the recipients of those payments with respect to those payments for that year under this chapter.
(c) Every person who is required under this subchapter to withhold income taxes from payments of income, except for the government of the United States, shall provide the aggregate cost of applicable employer-sponsored coverage required under 26 U.S.C. § 6051(a)(14) regardless of the number of W-2 forms filed.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1985, No. 266 (Adj. Sess.), § 3, eff. June 4, 1986; 1989, No. 210 (Adj. Sess.), § 298, eff. June 1, 1990; 1989, No. 222 (Adj. Sess.), § 6, eff. May 31, 1990; 1991, No. 67, § 24, eff. June 19, 1991; 2015, No. 57, § 67.)
§ 5842 Return and payment of withheld taxes
(a) Every person required to deduct and withhold any amount under section 5841 of this title shall make return thereof and shall pay over that amount to the Commissioner as follows:
(1) In quarterly payments to be made not later than 25 days following the last day of March, June, September, and December, if the person is required to make quarterly or annual payments of federal withholding pursuant to the Internal Revenue Code.
(2) In semiweekly payments, if the person is required to make semiweekly payments of federal withholding pursuant to the Internal Revenue Code. Semiweekly shall mean payment of tax withheld for pay dates on Wednesday, Thursday, or Friday is due by the following Wednesday, and tax withheld for pay dates on Saturday, Sunday, Monday, or Tuesday is due by the following Friday.
(3) In monthly payments to be made not later than the 25th (23rd of February) day following the close of the calendar month during which the amount was withheld, if subdivisions (1) and (2) of this subsection do not apply.
(b) The Commissioner shall prescribe the method of payment of tax and may, without limitation, require electronic funds transfer or payment to a bank depository. The Commissioner may, in writing, permit or require returns to be made covering other periods and upon such dates as the Commissioner may specify and require payments of tax liability at such intervals and based upon such classifications as the Commissioner may designate:
(1) to conform to federal withholding law as the Commissioner deems appropriate;
(2) in cases in which less frequent reporting is determined by the Commissioner to be sufficient; and
(3) in cases in which the Commissioner determines that the taxpayer’s repeated failure to file or pay tax makes more frequent reporting necessary to ensure the prompt and orderly collection of the tax.
(c) In addition to the returns required to be filed and payments required to be made under subsection (a) of this section, every person required to deduct and withhold any tax under section 5841 of this title shall file an annual return covering the aggregate amount deducted and withheld during the entire preceding year, on or before January 31 of each year. At the time of filing that return, the person shall pay over to the Commissioner any amount deducted and withheld during the preceding calendar year and not previously paid. The person shall, further, make such annual report to payees and to the Commissioner of amounts paid and withheld as the Commissioner by regulation shall prescribe.
(d) Notwithstanding section 5867 of this title, the Commissioner may, in his or her discretion, prescribe that one or more or all of the returns required by subsection (a) of this section are not required to be signed or verified by the taxpayer. The Commissioner may require businesses and payroll service providers to file information under this section by electronic means.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1983, No. 59, § 10, eff. April 22, 1983; 1985, No. 266 (Adj. Sess.), § 3, eff. June 4, 1986; 1989, No. 124 (Adj. Sess.), § 1, eff. Feb. 8, 1990; 1989, No. 222 (Adj. Sess.), §§ 7, 8, eff. May 31, 1990; 1991, No. 186 (Adj. Sess.), § 13, eff. May 7, 1992; 1993, No. 49, §§ 10-12, eff. May 28, 1993; 1995, No. 29, § 9, eff. April 14, 1995; 1999, No. 49, § 73, eff. June 2, 1999; 1999, No. 119 (Adj. Sess.), § 17, eff. May 18, 2000; 2007, No. 81, § 2, eff. July 1, 2008; 2009, No. 146 (Adj. Sess.), § B7; 2015, No. 57, § 68; 2015, No. 134 (Adj. Sess.), § 12.)
§ 5843 Failure to account; maintenance of trust account
If a person fails at any time to comply with the Commissioner’s requirement under subsection 5842(b) of this title to remit amounts deducted and withheld at such intervals and based upon such classifications as the Commissioner designates, the Commissioner may petition the Superior Court wherein the person has a place of business, and, upon the petition and hearing, a judge of that court shall issue a citation declaring any amounts thereafter deducted and withheld by the person under section 5841 of this title to be a trust for the State of Vermont. That order shall further require the person, (and, if the person is a corporation, any principal officer of the corporation), to remit those amounts as the Commissioner has required to, and to file a return with respect to each of those payments under the terms of this subchapter with, the court upon pain of contempt of court. The order of notice upon the petition shall be returnable not later than seven business days after the filing of the petition. The petition shall be heard and determined on the return day, or on such day as soon thereafter as the court considers practicable and shall fix, having regard to the circumstances of the case. The costs of the proceeding shall be payable as the court determines. The remittance of those amounts shall be made to the court or, if the court so directs, to the Commissioner, as the Commissioner has required for such period of time as the Commissioner determines with the approval of the court, whether or not all tax liabilities theretofore due have been satisfied, having regard to the maintenance of regular future payments by the person. All amounts and all returns received by the court under this section shall be remitted as soon as is practicable by the court to the Commissioner.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1985, No. 266 (Adj. Sess.), § 3, eff. June 4, 1986; 1991, No. 186 (Adj. Sess.), § 14, eff. May 7, 1992; 1995, No. 29, § 10, eff. April 14, 1995; 2017, No. 11, § 61.)
§ 5844 Liability; penalty; trust for the State
(a) Withholding requirement. Any person who fails to withhold the required tax or to pay it to the Commissioner as required under this subchapter shall be personally and individually liable for the amount of such tax, and if the person is a corporation or other entity, the personal liability shall extend and be applicable to any officer or agent of the corporation or entity who, as an officer or agent of the same, is under a duty to withhold the tax and transmit it to the Commissioner as required in this chapter.
(b) Held in trust for State. Any sum or sums withheld in accordance with this subchapter shall be deemed to be held by the person in trust for the State of Vermont. Such sums shall be recorded by such person in a ledger account so as clearly to indicate the amount of tax withheld and that the same are the property of the State of Vermont.
(c) Withholding penalties.
(1) Failure to file; failure to withhold; failure to remit. Any employer, including any corporate officer or agent, who knowingly fails to file a return, fails to withhold a tax, or fails to remit a tax required under this subchapter shall be imprisoned not more than one year or fined not more than $1,000.00, or both.
(2) Failure to file; failure to withhold; failure to remit; over $500.00. Any employer, including any corporate officer or agent, who with intent to evade a tax liability fails to file a return, fails to withhold a tax, or fails to remit a tax required under this subchapter shall, if the amount of tax withheld or required to be withheld exceeds $500.00 in a single calendar year, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(3) False or fraudulent return. Any employer, including any corporate officer or agent, who knowingly makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall be imprisoned not more than one year or fined not more than $1,000.00, or both. Any employer, including any corporate officer or agent, who with intent to evade a tax liability makes, signs, verifies, or files with the Commissioner a false or fraudulent return, if the amount of tax withheld or required to be withheld exceeds $500.00, shall be imprisoned not more than three years or fined not more than $10,000.00, or both.
(4) Lien. In addition, an unpaid tax shall constitute a lien in favor of the State of Vermont as provided in this chapter.
(d) Withholding liability. Any amount required to be deducted and withheld, and to be paid over to the Commissioner, by a person under this subchapter shall be considered to be a tax liability of the person for purposes of this chapter. The person shall be subject, with respect to that tax liability, to the provisions of this chapter, including the provisions governing returns, fees for late filing of returns, interest and penalties for nonpayment of tax liabilities, liens, levies, and appeals, except as those provisions conflict with the express provisions of this subchapter. Any report required under subsection 5842(c) of this title or rules issued under that section shall be considered to be a return for the purposes of this chapter.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 73, § 17, eff. April 16, 1971; 1985, No. 266 (Adj. Sess.), § 3, eff. June 4, 1986; 1987, No. 48, § 8; 1997, No. 50, § 17, eff. June 26, 1997; 2019, No. 14, § 79, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 535, eff. July 1, 2022.)
§ 5845 Repealed
[Repealed]
1991, No. 186 (Adj. Sess.), § 8(e), eff. May 7, 1992.
§ 5846 Repealed
[Repealed]
1991, No. 186 (Adj. Sess.), § 8(f), eff. May 7, 1992.
§ 5847 Withholding on sales or exchanges of real estate
(a) Except as otherwise provided in this section, in the case of any sale or exchange of real property located in Vermont by a nonresident of Vermont, the transferee shall be required to withhold and transmit to the Commissioner within 30 days of such sale or transfer, a withholding tax equal to 2 1/2 percent of the consideration paid for the transfer. Any transferee who fails to withhold such amount shall be personally liable for the amount of such tax.
(b) Subject to subsection (d) of this section, no person shall be required to withhold any amount under subsection (a) of this section if:
(1) the transferor furnishes to the transferee a certificate by the transferor stating, under penalty of perjury, the transferor’s Social Security number and the fact that the transferor is a Vermont resident; or
(2) the transferor or transferee has received a certificate from the Commissioner stating that:
(A) no tax is due on the gain from that transfer; or
(B) the transferor or transferee has satisfied the transferor’s tax liability or has provided adequate security to cover such liability; or
(3) the transferor is a mortgagor conveying the mortgaged property to a mortgagee in foreclosure, or in a transfer in lieu of foreclosure, with no additional consideration.
(c) At the request of the transferor or transferee, the Commissioner may issue the certificate referred to in subdivision (b)(2) of this section or a certificate prescribing a reduced amount to be withheld under this section if the Commissioner determines that such reduced amount will not jeopardize the collection of the tax imposed by this chapter and the transferor is in good standing with the Department of Taxes with respect to any and all taxes. For purposes of this section, a transferor is in good standing with respect to any and all taxes if:
(1) all returns due from the transferor for any and all taxes have been filed; and
(2) no taxes are due and payable, except those on appeal.
(d) If a transferee has actual knowledge that a certificate furnished under subsection (b) of this section is false and the transferee fails to withhold the prescribed amount, the transferee shall be liable for an amount equal to the amount that should have been withheld together with penalty and interest as provided by this title.
(e) As used in this section “nonresident” of Vermont shall include individuals, trusts, partnerships, and corporations, but not estates. A nonresident individual is an individual who is domiciled outside Vermont at the time of closing. A nonresident trust is a trust that, at the time of closing, does not qualify for Vermont residency as defined in subdivision 5811(11) of this title. A nonresident partnership is a partnership, the controlling interest in which is held by nonresidents. A nonresident corporation, other than a Subchapter S corporation, is a corporation that is incorporated outside Vermont other than a corporation that has its principal place of business in Vermont and does no business in its state of incorporation. A nonresident Subchapter S corporation is a Subchapter S corporation the controlling interest in which is held by nonresidents. A nonresident limited liability company is a limited liability company the controlling interest in which is held by nonresidents.
(f) The amount withheld pursuant to this section shall be deemed to be a payment against the tax imposed by this chapter on income received by the seller.
(g) The Commissioner shall, by rule, establish a procedure by which a seller may apply for an early refund of the tax withheld when the seller establishes that no tax under this chapter will be owed or that a tax less than the amount withheld will be owed. The Commissioner shall, by rule, establish methods by which nonresident transferors may provide security in lieu of withholding.
(h) In the case of an installment sale, the seller may elect for Vermont purposes to report the entire gain in the year of the sale and to pay a tax equal to six percent of that gain. If the seller does not make this election, the real estate withholding will be retained by the Department and applied as a credit against the seller’s tax liability in each year that an installment is received.
(Added 1989, No. 93; amended 1989, No. 222 (Adj. Sess.), § 9, eff. May 31, 1990; 1991, No. 67, § 26a, eff. June 19, 1991; 1995, No. 29, § 41, eff. April 14, 1995; 1997, No. 50, § 18, eff. June 26, 1997; 2021, No. 105 (Adj. Sess.), § 536, eff. July 1, 2022.)
Subchapter 5 Estimations of Nonwithheld Income Tax
§ 5851 Definitions
As used in this subchapter:
(1) “Tax” means, for any taxpayer and for any taxable year, the income tax liability of the taxpayer for that taxable year under section 5822 of this title, reduced by any allowable credits against such tax.
(2) “Required annual payment” means the lesser of:
(A) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year); or
(B) 100 percent of the tax shown on the return of the taxpayer for the preceding taxable year, if the preceding year was a taxable year of 12 months and the taxpayer filed a return for such preceding taxable year.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1985, No. 266 (Adj. Sess.), § 4, eff. June 4, 1986; 1989, No. 119, § 3, eff. June 22, 1989.)
§ 5852 Payment of estimated income tax
(a) Every individual, estate, and trust subject to taxation under section 5822 of this title (other than a person receiving at least two-thirds of his or her income from farming or fishing as defined under the laws of the United States) shall make installment payments of the taxpayer’s estimated tax liability for each taxable year. The amount of each payment shall be 25 percent of the required annual payment. For any taxable year, payments shall be made on or before April 15, June 15, and September 15 of the taxable year and January 15 of the following taxable year. In applying this section to a taxable year beginning on any date other than January 1, there shall be substituted, for the months specified in this section, the months that correspond thereto.
(b) In lieu of the estimated payments provided in subsection (a) of this section, a taxpayer who pays federal estimated income tax in annualized income installments may pay for the installment period an amount equal to the 24 percent of the taxpayer’s required payment for federal income tax purposes, reduced by a percentage equal to the percentage of the taxpayer’s adjusted gross income for the taxable year that is not Vermont income; provided, however, that if a taxpayer’s Vermont income exceeds the taxpayer’s adjusted gross income, no reduction shall be made.
(c) For purposes of applying this section, the amount deducted and withheld for the taxable year under subchapter 4 of this chapter shall be deemed a payment of estimated tax. An equal part of such amount shall be deemed paid on each due date for such taxable year unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.
(d) If a married couple has filed a joint personal income tax return for the 12-month period immediately preceding any taxable year, the payments of estimated tax required to be made under this section shall be deemed to be a joint obligation of the married couple unless they make separate payments of estimated tax liability for that taxable year. If a married couple has made any payments with respect to a joint obligation to pay estimated tax for any taxable year and those taxpayers thereafter file separate Vermont and federal income tax returns for that taxable year, the total amount of the payments may be treated as the payment of either member of the married couple, or may be divided between them.
(e) The Commissioner may require the filing of a return with the payment of estimated taxes required under subchapter 5 of this chapter. Notwithstanding section 5867 of this title, or any other provision of law, those returns are not required to be signed or verified by the taxpayer.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1967, No. 278 (Adj. Sess.), § 29, eff. March 12, 1968; 1983, No. 59, § 1, eff. April 22, 1983; 1987, No. 278 (Adj. Sess.), § 15, eff. June 21, 1988; 1989, No. 119, § 4, eff. June 22, 1989; 2013, No. 73, § 21, eff. June 5, 2013; 2015, No. 57, § 69, eff. June 11, 2015.)
§§ 5853, 5854 Repealed
[Repealed]
1989, No. 119, § 6, eff. June 22, 1989.
§ 5855 Payments as tax liability
(a) Any payment of estimated tax required to be made under the provisions of this subchapter shall be deemed to be a tax liability for the purposes of this chapter. All of the provisions of this chapter, including the provisions governing interest and penalties for nonpayment of tax liabilities, liens, levies, and appeals, shall apply to underpayments of estimated tax except as such provisions conflict with the express provisions of this subchapter.
(b) No interest or penalty shall be assessed for underpayment of estimated tax for any taxable year if:
(1) the tax shown on the return for such taxable year (or, if no return is filed, the tax), reduced by the amount deducted and withheld for the taxable year under subchapter 4 of this chapter, is less than $500.00; or
(2) the preceding taxable year was a taxable year of 12 months and the taxpayer did not have any liability for tax for the preceding taxable year.
(Added 1966, No. 61 (Sp. Sess.), eff. Jan. 1, 1966; amended 1967, No. 121, § 12, eff. Jan. 1, 1968; 1985, No. 266 (Adj. Sess.), § 8, eff. June 4, 1986; 1989, No. 119, § 5, eff. June 22, 1989; 1997, No. 156 (Adj. Sess.), § 6, eff. April 29, 1998; 2001, No. 140 (Adj. Sess.), § 10, eff. June 21, 2002.)
Subchapter 5A Quarterly Filing and Payment
§ 5856 Declaration of estimated tax
(a) Every corporate taxpayer shall make a declaration of estimated tax for the taxable year in such form as the Commissioner shall prescribe, if the amount payable as estimated tax can reasonably be expected to be more than $500.00 for the taxable year. The term “estimated tax” shall mean the amount that the taxpayer estimates to be its tax under this title for the taxable year, or in the case of a taxable year of less than 12 months an amount of tax determined in accordance with regulations prescribed by the Commissioner. For the purposes of this chapter, a declaration is a return.
(b) A corporate taxpayer may amend a declaration, under regulations prescribed by the Commissioner.
(Added 1975, No. 1 (Sp. Sess.), § 15, eff. Jan. 1, 1976; amended 1989, No. 119, § 8, eff. June 22, 1989.)
§ 5857 Filing dates
A declaration of estimated tax shall be filed on or before the 15th day of the fourth month of each taxable year, except that if the $500.00 minimum tax requirement is met:
(1) after the fourth month and before the sixth month of the taxable year, the declaration shall be filed on or before the 15th day of the sixth month;
(2) after the fifth and before the ninth month of the taxable year, the declaration shall be filed on or before the 15th day of the ninth month; or
(3) after the eighth month and before the 12th month of the taxable year, the declaration shall be filed for the taxable year on or before the 15th day of the 12th month.
(Added 1975, No. 1 (Sp. Sess.), § 15, eff. Jan. 1, 1976; amended 1989, No. 119, § 9, eff. June 22, 1989.)
§ 5858 Payment dates
A taxpayer required to file a declaration of estimated tax shall pay such estimated tax as follows:
(1) If the declaration is required to be filed on or before the 15th day of the fourth month of the taxable year, the estimated tax shall be paid in four equal installments. The first installment shall be paid at the time of required filing of the declaration, and the second, third, and fourth installments shall be paid on or before the 15th day of the sixth, ninth, and 12th months of the taxable year, respectively.
(2) If the declaration is required to be filed on or before the 15th day of the sixth month of the taxable year, the estimated tax shall be paid in three equal installments. The first installment shall be paid at the time of required filing of the declaration, and the second and third installments shall be paid on or before the 15th day of the ninth and 12th months of the taxable year, respectively.
(3) If the declaration is required to be filed on or before the 15th day of the ninth month of the taxable year, the estimated tax shall be paid in two equal installments, at the time of required filing of the declaration for such taxable year and on or before the 15th day of the 12th month of such taxable year.
(4) If the declaration is required to be filed on or before the 15th day of the 12th month of the taxable year, the estimated tax shall be paid in full at the time of such required filing.
(5) If an amended declaration is filed, the remaining installments, if any, shall be ratably increased or decreased, as the case may be, to reflect the increase or decrease in the estimated tax occasioned by such amendment.
(6) The Commissioner may authorize payment by electronic funds transfer. The Commissioner may require payment by electronic funds transfer from any taxpayer who is required by federal tax law to pay any federal tax in that manner, or from any taxpayer who has submitted to the Department of Taxes two or more protested or otherwise uncollectible checks with regard to any State tax payment in the prior two years.
(Added 1975, No. 1 (Sp. Sess.), § 15, eff. Jan. 1, 1976; amended 1997, No. 156 (Adj. Sess.), § 7, eff. April 29, 1998.)
§ 5859 Assessment date, penalties, interest
(a) Any amount paid as estimated tax shall be deemed assessed upon the due date for the taxpayer’s return for the taxable year (determined without regard to any extensions of time for filing such return).
(b) Except as provided in subsection (c) of this section, the taxpayer shall be liable for interest and penalties pursuant to section 3202 of this title, with interest imposed at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title upon the amount of any underpayment of estimated tax.
(1) For purposes of this subsection, the amount of any underpayment of estimated tax shall be the excess of:
(A) the amount of the installment that would be required to be paid if the estimated tax were equal to 90 percent of the tax shown on the return for the taxable year or, if no return were filed, 90 percent of the tax for such year; over
(B) the amount, if any, of the installment paid on or before the last date prescribed for payment.
(2)(A) The period of the underpayment for which interest and penalties shall apply shall commence on the date the installment was required to be paid and shall terminate on the earlier of the following dates:
(i) the date a U.S. income tax return is required to be filed for that year by that corporation under the laws of the United States; or
(ii) with respect to any portion of the underpayment, the date on which such portion is paid.
(B) For purposes of this subdivision (2), a payment of estimated tax on any installment date shall be considered a payment of any previous underpayment only to the extent such payment exceeds the amount of the installment determined under subdivision (1)(A) of this subsection (b) for such installment date.
(c) No interest for underpayment of any installment or estimated tax shall be imposed if the total amount of all such payments made on or before the last date prescribed for the payment of such installment equals or exceeds the amount that would have been required to be paid on or before such date if the estimated tax were the lesser of:
(1) an amount equal to the tax computed at the rate applicable to the taxable year but otherwise on the basis of the facts shown on the return for, and the law applicable to, the preceding taxable year; or
(2) an amount equal to 90 percent of the tax finally due for the taxable year.
(d) As used in subdivision (b)(1) and subsection (c) of this section, the term “tax” shall mean the excess of the tax imposed by this chapter over all amounts properly credited against such tax for the taxable year.
(e) The application of this subsection to taxable years of less than 12 months shall be in accordance with rules adopted by the Commissioner.
(f) The Commissioner may provide by rule for a credit against estimated taxes for any taxable year of any amount determined by the taxpayer or by the Department to be an overpayment of the tax imposed by this title for a preceding taxable year.
(Added 1975, No. 1 (Sp. Sess.), § 15, eff. Jan. 1, 1976; amended 1979, No. 105 (Adj. Sess.), § 5; 1981, No. 191 (Adj. Sess.), § 7; 2013, No. 73, § 22, eff. June 5, 2013; 2021, No. 105 (Adj. Sess.), § 537, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 5, eff. January 1, 2022; 2023, No. 85 (Adj. Sess.), § 470, eff. July 1, 2024.)
Subchapter 6 Returns
§ 5861 Returns by individuals, trusts, and estates
(a) Every individual, trust, or estate subject to taxation for any taxable year under section 5822 of this title shall file a Vermont personal income tax return for that taxable year if that person is required to file a United States income tax return for that year and (1) earned or received more than $100.00 of Vermont income, or (2) earned or received more than $1,000.00 in gross income from the sources listed in subdivisions 5823(b)(1) through (6) of this title, whether or not a resident, in that year, or has a tax liability under this chapter for that year.
(b) The return required to be filed under this section shall be filed on or before the date a United States income tax return is originally required to be filed by the individual, trust, or estate under the laws of the United States for the taxable year or the date as extended by the Commissioner under section 5868 of this title.
(c) Spouses or a surviving spouse shall file a joint Vermont personal income tax return for any taxable year for which the spouses file or the surviving spouse files a joint federal income tax return under the laws of the United States, unless the Commissioner allows a different filing status.
(d) If a joint Vermont personal income tax return is filed by spouses or by a surviving spouse for any taxable year, the tax under this chapter shall be measured by the joint federal income tax liability of the taxpayers for that taxable year and their liability with respect to the tax under this chapter shall be joint and several.
(e) The Commissioner may require information on a Vermont personal income tax return that is sufficient to identify the school district, as defined in 16 V.S.A. § 11(a)(10), in which the taxpayer resides. The Commissioner may consider a return incomplete if the information required under this subsection is not provided and shall cause the return to be completed.
(f) [Repealed.]
(g) [Repealed.]
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1967, No. 121, § 13, eff. Jan. 1, 1968; 1981, No. 170 (Adj. Sess.), § 5, eff. April 19, 1982; 1987, No. 82, § 3, eff. June 9, 1987; 1993, No. 49, §§ 13, 14, eff. May 28, 1993; 1995, No. 47, § 20, eff. April 20, 1995; 1999, No. 49, § 56, eff. June 2, 1999; 2007, No. 33, § 2, eff. May 18, 2007; 2021, No. 105 (Adj. Sess.), § 538, eff. July 1, 2022; 2025, No. 27, § E.111.2, eff. January 1, 2025.)
§ 5861a Returns by partnerships
(a) Every partnership having any income derived from Vermont sources shall file with the Commissioner a Vermont partnership income tax return and a copy of the federal form 1065, including Schedules K and K-1 (U.S. Partnership Return of Income and Partner’s Share of Income, Credits, Deductions, etc.), required to be filed with the federal authorities at such time as such schedule is required to be filed or is, in fact, filed with the federal authorities. A partnership is considered to have income from Vermont sources if it earned or received more than $100.00 of Vermont income or earned or received more than $1,000.00 of gross income from the sources listed in subdivisions 5823(b)(1) through (6) of this title or associated with or attributable to business activities carried on in Vermont.
(b) The returns and schedules required to be filed under this section shall be treated as a return for all purposes under this chapter.
(Added 1983, No. 59, § 11, eff. April 22, 1983; amended 1989, No. 222 (Adj. Sess.), § 10, eff. May 31, 1990; 1997, No. 50, § 19, eff. June 26, 1997.)
§ 5862 Returns by corporations
(a) Every corporation that is a taxable corporation, for any taxable year, shall file a Vermont corporate income tax return for that taxable year on or before the date a U.S. income tax return is required to be filed for that year by that corporation under the laws of the United States.
(b) If such corporation fails to file such return on or before such date, the corporation shall pay a penalty of $50.00 in addition to any other penalties, interest, or fees provided by this chapter. If a petition is filed under section 5864 of this title in order to force the filing of such return, then a further penalty of $200.00 shall be paid in addition to any other penalties, interest, or fees provided by this chapter and in addition to the $50.00 penalty provided herein. However, if a judge of the Superior Court finds that there was no cause for the Commissioner to file the petition, he or she shall order that the $200.00 penalty not be imposed. Such penalties shall be paid at the time the return is filed, without assessment or demand.
(c) Taxable corporations that received any income allocated or apportioned to this State under the provisions of section 5833 of this title for the taxable year and that under the laws of the United States constitute an affiliated group of corporations may elect to file a consolidated return in lieu of separate returns if such corporations qualify and elect to file a consolidated federal income tax return for that taxable year. Such an election to file a Vermont consolidated return shall continue for five years, including the year the election is made.
(d) A taxable corporation that is part of an affiliated group engaged in a unitary business shall be treated as a single taxpayer and shall file a group return containing the combined net income of the affiliated group and such other informational returns as the Commissioner shall require by rule. A unitary combined return shall include the income and apportionment factors of any taxable corporation incorporated in the United States or formed under the laws of any state, the District of Columbia, or any territory or possession of the United States and in a unitary relationship with the taxpayer. The income, gain, or losses from members of a combined group shall be combined to the extent allowed under the Internal Revenue Code for consolidated filing as if the combined group was a consolidated filing group, provided that a state tax credit shall not be combined and shall be limited to the member to which the credit is attributed.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 73, § 18, eff. April 16, 1971; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1987, No. 82, § 8, eff. June 9, 1987; 1991, No. 67, § 4, eff. June 19, 1991; 2003, No. 152 (Adj. Sess.), § 7, eff. June 7, 2004; 2013, No. 174 (Adj. Sess.), § 2, eff. Jan. 1, 2014; 2021, No. 148 (Adj. Sess.), § 4, eff. January 1, 2023.)
§ 5862a Nongame Wildlife Account checkoff
(a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to reimburse the State, in all or in part, for its General Fund appropriation to the Nongame Wildlife Account.
(b) Amounts so designated shall be deducted from refunds due to, or overpayments made by, the designating taxpayers. All amounts so designated and deducted shall be deposited in the Nongame Wildlife Account by the Commissioner of Taxes. If at any time after the payment of amounts so designated to the Nongame Wildlife Account it is determined that the taxpayer was not entitled to all or any part of the amount so designated, the Commissioner may assess, and the Nongame Wildlife Account shall then pay to the Commissioner, the amount received, together with interest at the rate prescribed by section 3108 of this title, from the date the payment was made until the date of repayment.
(c) The Commissioner of Taxes may encourage taxpayers to make designations to the Account, including explaining the purposes of the Account and how to contribute to it.
(d) If amounts paid with respect to a return are insufficient to cover both the amount owed on the return under this chapter and the amount designated by the taxpayer as a contribution to the Nongame Wildlife Account, the payment shall first be applied to the amount owed on the return under this chapter and the balance, if any, shall be deposited in the Nongame Wildlife Account.
(e) Nothing in this section shall be construed to require the Commissioner to collect any amount designated as a contribution to the Nongame Wildlife Account.
(Added 1985, No. 191 (Adj. Sess.), § 4, eff. May 14, 1986; amended 1987, No. 221 (Adj. Sess.), §§ 1, 2, eff. May 27, 1988.)
§ 5862b Vermont Children’s Trust Foundation checkoff
(a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to the Vermont Children’s Trust Foundation.
(b) Amounts so designated shall be deducted from refunds due to, or overpayments made by, the designating taxpayers. All amounts so designated and deducted shall be deposited in an account by the Commissioner of Taxes for payment to the Vermont Children’s Trust Foundation. If at any time after the payment of amounts so designated to the account it is determined that the taxpayer was not entitled to all or any part of the amount so designated, the Commissioner may assess, and the account shall then pay to the Commissioner, the amount received, together with interest at the rate prescribed by section 3108 of this title, from the date the payment was made until the date of repayment.
(c) The Commissioner of Taxes shall explain to taxpayers the purposes of the account and how to contribute to it. The Commissioner shall make available to taxpayers the annual income and expense report of the Vermont Children’s Trust Foundation and shall provide notice in the instructions for the State individual income tax return that the report is available at the Department of Taxes.
(d) If amounts paid with respect to a return are insufficient to cover both the amount owed on the return under this chapter and the amount designated by the taxpayer as a contribution to the Vermont Children’s Trust Foundation, the payment shall first be applied to the amount owed on the return under this chapter and the balance, if any, shall be deposited in the account.
(e) Nothing in this section shall be construed to require the Commissioner to collect any amount designated as a contribution to the Vermont Children’s Trust Foundation.
(f) The Vermont Children’s Trust Foundation shall use the revenue received under this section to provide funds for community-based primary prevention programs that have been shown to be effective for juveniles. The Foundation shall solicit proposals for grant awards from public and private persons and agencies and shall evaluate the proposals on the basis of the following criteria:
(1) the demonstrated effectiveness of the program upon which the proposal is based;
(2) the need for such services within the community;
(3) other resources available to meet the need for primary prevention services; and
(4) the ability of the applicant to obtain funding from another source to cover a portion of the program costs.
(g) To the extent that funds permit, the Vermont Children’s Trust Foundation shall award and administer grants to applicants of proposals that the Foundation determines to have met the criteria established in subsection (f) of this section. The Foundation shall monitor expenditures by grantees and evaluate the effectiveness of the programs, assistance, or services financed by the revenue received under this section. The Foundation shall develop guidelines for the coordination of community-based primary prevention programs, the application process, and the distribution of grants under this section.
(Added 1995, No. 164 (Adj. Sess.), § 1; amended 2021, No. 179 (Adj. Sess.), § 8, eff. July 1, 2022; 2023, No. 6, § 379, eff. July 1, 2023.)
§ 5862c Repealed
[Repealed]
2009, No. 160 (Adj. Sess.), § 51(c)(1) repealed effective for taxable years beginning on and after January 1, 2010.
§ 5862d Filing of federal form 1099
(a) Any individual or business required to file a federal form 1099 with respect to a nonresident who performed services within the State during the taxable year shall file a copy of the form with the Department. The Commissioner may authorize electronic filing of the form.
(b) Any person required to file information returns pursuant to 26 U.S.C. § 6050W shall, within 30 days of the date the filing is due to the Internal Revenue Service, file with the Commissioner a duplicate of such information returns on which the recipient has a Vermont address. In addition, at the same time the information in this subsection is required, third-party settlement organizations shall report to the Department of Taxes, and to any participating payee with a Vermont address, any information required by 26 U.S.C. § 6050W with respect to third-party network transactions related to that participating payee, as if the de minimis limitations of 26 U.S.C. § 6050W(e) did not apply, but that the de minimis limitations of 26 U.S.C. § 6041(a) did apply. The Commissioner may adopt rules and authorize electronic filing of the information required by this subsection.
(c) A failure to provide the information required by subsections (a) and (b) of this section shall be considered a failure to provide a return or return information required by this chapter, for the purposes of sections 3202, 5863, and 5864 of this title.
(Added 1997, No. 156 (Adj. Sess.), § 8, eff. April 29, 1998; amended 2013, No. 174 (Adj. Sess.), § 1, eff. Jan. 1, 2014; 2017, No. 73, § 22, eff. Jan. 1, 2017.)
§ 5862e Vermont Veterans’ Fund checkoff
(a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to the Vermont Veterans’ Fund.
(b) Amounts designated under subsection (a) of this section shall be deducted from refunds due to, or overpayment made by, the designating taxpayer. All amounts so designated and deducted shall be deposited in an account by the Commissioner of Taxes for payment to the Vermont Veterans’ Fund. If at any time after the payment of amounts so designated to the account it is determined that the taxpayer was not entitled to all or any part of the amount so designated, the Commissioner may assess, and the account shall then pay to the Commissioner, the amount received, together with interest at the rate prescribed by section 3108 of this title, from the date the payment was made until the date of repayment.
(c) The Commissioner of Taxes shall explain to taxpayers the purpose of the account and how to contribute to it. The Commissioner shall provide notice in the instructions for the State individual income tax return as to how to obtain a copy of the annual income and expense report of the Vermont Veterans’ Fund.
(d) If amounts paid with respect to a return are insufficient to cover both the amount owed on the return under this chapter and the amount designated as a contribution to the Vermont Veterans’ Fund, the payment shall first be applied to the amount owed on the return under this chapter and the balance, if any, shall be deposited in the Fund.
(e) Nothing in this section shall be construed to require the Commissioner to collect any amount designated as a contribution to the Vermont Veterans’ Fund.
(Added 2009, No. 160 (Adj. Sess.), § 49.)
§ 5862f Vermont Green Up checkoff
(a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to Vermont Green Up, Inc.
(b) Amounts so designated shall be deducted from refunds due to, or overpayments made by, the designating taxpayers. All amounts so designated and deducted shall be deposited in an account by the Commissioner of Taxes for payment to Vermont Green Up, Inc. If at any time after the payment of amounts so designated to the account it is determined that the taxpayer was not entitled to all or any part of the amount so designated, the Commissioner may assess, and the account shall then pay to the Commissioner, the amount received, together with interest at the rate prescribed by section 3108 of this title, from the date the payment was made until the date of repayment.
(c) The Commissioner of Taxes shall explain to taxpayers the purposes of the account and how to contribute to it. The Commissioner shall make available to taxpayers the annual income and expense report of Vermont Green Up, Inc., and shall provide notice in the instructions for the State individual income tax return that the report is available at the Department of Taxes.
(d) If amounts paid with respect to a return are insufficient to cover both the amount owed on the return under this chapter and the amount designated by the taxpayer as a contribution to Vermont Green Up, Inc., the payment shall first be applied to the amount owed on the return under this chapter and the balance, if any, shall be deposited in the account.
(e) Nothing in this section shall be construed to require the Commissioner to collect any amount designated as a contribution to Vermont Green Up, Inc.
(Added 2013, No. 174 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)
§ 5863 Additional returns
When the Commissioner is of the opinion that a taxpayer has failed to file any return required by this chapter, or to include in any return so filed, either intentionally or through error, information by which the taxpayer’s tax liability may correctly be determined, the Commissioner may, by written notice to the taxpayer, require that the taxpayer file that return, or an additional supplementary return containing such information, verified as provided in section 5867 of this title, in such form as the Commissioner shall prescribe. The filing of that return shall not relieve the taxpayer from any of the penalties to which he or she may be liable under this chapter.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5864 Failure to file a return; petition and computation of tax
(a) Upon the failure of a taxpayer to file any return required under this chapter within 15 days of the date of a notice to the taxpayer under section 5863 of this title, the Commissioner may petition a judge of the Superior Court in the county wherein the taxpayer resides or has a place of business or, if the taxpayer neither resides nor has a place of business in this State, the Commissioner may petition the Washington Superior Court, and upon the petition of the Commissioner and a hearing, the judge shall issue a citation requiring the taxpayer and, if the taxpayer is a corporation, any principal officer of such corporation to file a proper return in accordance with this chapter, upon pain of contempt. The order of notice upon the petition shall be returnable not later than 20 days after the filing of the petition. The petition shall be heard and determined on the return day or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case consistent with the rights of the parties. The judgment shall include costs in favor of the prevailing party.
(b) Upon the failure of a taxpayer to file any return required under this chapter within 15 days of the date of a notice to the taxpayer under section 5863 of this title, whether or not a petition has been or will be filed under subsection (a) of this section, the Commissioner may compute the tax liability of the taxpayer with respect to which the return was required to be filed, according to the Commissioner’s best information and belief. Upon that computation, the Commissioner shall notify the taxpayer of his or her deficiency with respect to the payment of that tax liability, and may assess any penalty or interest with respect thereto, under sections 3202 and 3203 of this title.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2017, No. 74, § 137.)
§ 5865 Repealed
[Repealed]
1991, No. 186 (Adj. Sess.), § 8(g), eff. May 7, 1992.
§ 5866 Supplemental information; changes in federal tax liability or taxable income
(a) If, after the time for filing any return required by this chapter, a taxpayer:
(1) becomes aware of any information that makes that return materially false, inaccurate, or incomplete;
(2) is notified of any assertion by the United States, whether under 26 U.S.C. § 6212 or otherwise, that the taxpayer’s taxable income under the laws of the United States is other than the amount stated in the return; or
(3) files an amended return under the laws of the United States, the taxpayer shall, within 180 days of the receipt of that information or notification of that assertion or filing that amended return, notify the Commissioner thereof, and of such particulars as may be relevant to the amount of any tax liability of the taxpayer under this chapter.
(b) Any notice required to be given to the Commissioner under this section shall be considered to be a return for purposes of this chapter, and a taxpayer required to file any such return shall be subject, with respect thereto, to the provisions of this chapter, including the provisions governing fees for failure to file a return, except as those provisions conflict with the express provisions of this section.
(c) If a change in federal tax liability results from the audit of a partnership or an adjustment of a partnership’s taxable income under 26 U.S.C. subtitle F, chapter 63, subchapter C, the taxpayer shall file and amend returns and pay tax owed pursuant to section 5866a of this title.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2005, No. 94 (Adj. Sess.), § 4, eff. March 8, 2006; 2019, No. 175 (Adj. Sess.), § 17, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 539, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 12, eff. January 1, 2022.)
§ 5866a Reporting adjustments to federal taxable income and federal partnership audits
(a) Definitions. As used in this section:
(1) “Administrative adjustment request” means an administrative adjustment request filed by a partnership under 26 U.S.C. § 6227.
(2) “Audited partnership” means a partnership subject to a partnership-level audit resulting in a federal adjustment.
(3) “Corporate partner” means a partner that is subject to tax under chapter 151, subchapter 3 of this title.
(4) “Direct partner” means a partner that holds an interest directly in a partnership or pass-through entity.
(5) “Exempt partner” means a partner that is exempt from taxation under this chapter but not an entity with federal exempt status having taxable income under subdivision 5811(18) of this title.
(6) “Federal adjustment” means a change to an item or amount determined under the Internal Revenue Code that is used by a taxpayer to compute tax owed, whether that change results from action by the Internal Revenue Service, including a partnership-level audit, or the filing of an amended federal return, federal refund claim, or an administrative adjustment request by the taxpayer. A federal adjustment is positive to the extent that it increases State taxable income as determined under this chapter and is negative to the extent that it decreases State taxable income as determined under this chapter.
(7) “Federal adjustments report” includes methods or forms required by the Commissioner for use by a taxpayer to report final federal adjustments, including an amended tax return, information return, or uniform multistate report.
(8) “Federal partnership representative” means the person that the partnership designates for the taxable year as the partnership’s representative or the person that the Internal Revenue Service appoints to act as the federal partnership representative pursuant to 26 U.S.C. § 6223(a).
(9) “Final determination date” means the following:
(A) Except as provided in subdivisions (B) and (C) of this subdivision (a)(9), if the federal adjustment arises from an audit or other action by the Internal Revenue Service, “final determination date” means the first day on which no federal adjustments arising from that audit or other action remain to be finally determined, whether by Internal Revenue Service decision with respect to which all rights of appeal have been waived or exhausted, by agreement, or, if appealed or contested, by a final decision with respect to which all rights of appeal have been waived or exhausted. For agreements required to be signed by the Internal Revenue Service and the taxpayer, the “final determination date” means the date on which the last party signed the agreement.
(B) For federal adjustments arising from an audit or other action by the Internal Revenue Service, if the taxpayer filed as a member of an affiliated group electing to file a consolidated return under subsection 5862(c) of this title or filed as a member of a unitary combined group under subsection 5862(d) of this title, the “final determination date” means the first day on which no related federal adjustments arising from that audit remain to be finally determined, as described in subdivision (A) of this subdivision (a)(9), for the entire group.
(C) If the federal adjustment results from filing an amended federal return, a federal refund claim, or an administrative adjustment request, or if it is a federal adjustment reported on an amended federal return or other similar report filed pursuant to 26 U.S.C. § 6225(c), the “final determination date” means the day on which the amended return, refund claim, administrative adjustment request, or other similar report was filed.
(10) “Final federal adjustment” means a federal adjustment after the final determination date for that federal adjustment has passed.
(11) “Indirect partner” means a partner in a partnership or pass-through entity that itself holds an interest directly, or through another indirect partner, in a partnership or pass-through entity.
(12) “I.R.C.” means the Internal Revenue Code of 1986, as codified under 26 U.S.C. subtitles A–K, and applicable regulations as promulgated by the U.S. Department of the Treasury. To the extent that the terms used in this section are not defined under this section, it is the intent of the General Assembly to conform to the definitions and terminology used in the amendments to the I.R.C., subtitle F, chapter 63 pertaining to the comprehensive partnership audit regime contained in the Bipartisan Budget Act of 2015, Pub. L. No. 114-74, as amended, and this section shall be interpreted accordingly.
(13) “Nonresident partner” means an individual, trust, or estate partner that is not a resident partner.
(14) “Partner” means a person that holds an interest, directly or indirectly, in a partnership or other pass-through entity.
(15) “Partnership” means an entity subject to taxation under 26 U.S.C. subtitle A, chapter 1, subchapter K.
(16) “Partnership-level audit” means an examination by the Internal Revenue Service at the partnership level pursuant to 26 U.S.C. subtitle F, chapter 63, subchapter C that results in federal adjustments.
(17) “Pass-through entity” means an entity other than a partnership that is not subject to tax under section 5822 or 5832 of this title.
(18) “Reallocation adjustment” means a federal adjustment resulting from a partnership-level audit or an administrative adjustment request that changes the shares of one or more items of partnership income, gain, loss, expense, or credit allocated to direct partners. A positive reallocation adjustment means the portion of a reallocation adjustment that would increase federal income for one or more direct partners, and a negative reallocation adjustment means the portion of a reallocation adjustment that would decrease federal income for one or more direct partners.
(19) “Resident partner” means an individual, trust, or estate partner that is a resident under section 5811 of this title for the relevant tax period.
(20) “Reviewed year” means the taxable year of a partnership that is subject to a partnership-level audit from which federal adjustments arise.
(21) “Taxpayer” means any person or entity required to file a return or pay tax under this chapter and, unless the context clearly indicates otherwise, includes a partnership, including a tiered partner of a partnership, subject to a partnership-level audit and a partnership, including a tiered partner of a partnership, that has made an administrative adjustment request.
(22) “Tiered partner” means any partner that is a partnership or pass-through entity.
(23) “Unrelated business taxable income” has the same meaning as in 26 U.S.C. § 512.
(b) Reporting adjustments to federal taxable income; general rule.
(1) Except in the case of final federal adjustments that are required to be reported by a partnership and its partners using the procedures in subsection (c) of this section, a taxpayer shall report and pay any Vermont tax due with respect to the following final federal adjustments:
(A) arising from an audit or other action by the Internal Revenue Service;
(B) reported by the taxpayer on a timely filed amended federal income tax return, including a return or other similar report filed pursuant to 26 U.S.C. § 6225(c)(2); or
(C) a federal claim for refund.
(2) A taxpayer shall report and pay any tax due under this subsection by filing a federal adjustments report with the Commissioner for the reviewed year and, if applicable, paying the additional Vermont tax owed not later than 180 days after the final determination date.
(c) Reporting federal adjustments; partnership-level audit and administrative adjustment request. Except for negative federal adjustments required under federal law or regulations to be taken into account by the partnership in the partnership return for the adjustment or other year, and the distributive share of adjustments reported as required under subsection (b) of this section, partnerships and partners shall report final federal adjustments arising from a partnership-level audit or an administrative adjustment request and make payments as required under this subsection (c).
(1) State partnership representative.
(A) With respect to an action required or permitted to be taken by a partnership under this subsection and a petition for a hearing under sections 5883, 5884, or 5885 of this title with respect to that action, the State partnership representative for the reviewed year shall have the sole authority to act on behalf of the partnership, and the partnership’s direct partners and indirect partners shall be bound by those actions.
(B) The State partnership representative for the reviewed year is the partnership’s federal partnership representative unless the partnership designates in writing another person as its State partnership representative.
(C) The Commissioner may establish reasonable qualifications and procedures for designating a person, other than the federal partnership representative, to be the State partnership representative.
(2) Reporting and payment requirements for partnerships subject to a final federal adjustment and their direct partners. Final federal adjustments subject to the requirements of this subsection, except for those subject to an election that is properly made under subdivision (3) of this subsection, shall be reported as follows:
(A) Not later than 90 days after the final determination date, the partnership shall:
(i) File a completed federal adjustments report with the Commissioner, including any other information required by the Commissioner. The federal adjustments report shall:
(I) Identify each partner during the reviewed year.
(II) Specify each item addressed by, and the amount included in, the final federal adjustment.
(III) Explain how the final federal adjustment needs to be modified for State tax purposes to reflect relevant differences between federal and State law.
(IV) Provide any other information related to the final determination or modification as the Commissioner may require. If the audited partnership has received an approved modification, the audited partnership shall notify the Commissioner of this approval not later than 90 days after the date of approval. An audited partnership that fails to meet the filing requirements under this subsection (c) shall be subject to the penalties for failure to file under section 3202 of this title. The statute of limitations for assessing a partner or an audited partnership pursuant to this section shall be tolled in any instance in which the audited partnership has not provided the Commissioner with the notice and filing required by this subsection (c).
(ii) Notify each of its direct partners of their distributive share of the final federal adjustments.
(iii) File an amended composite return for direct partners as required under subsections 5914(a) and (b) and 5920(a) and (b) of this title and, as applicable, an amended withholding return for direct partners as required under subchapter 4 of this chapter and pay the additional tax that would have been due had the final federal adjustments been reported properly.
(B) Not later than 180 days after the final determination date, each direct partner that is taxed under sections 5822 and 5832 of this title shall:
(i) file a federal adjustments report reporting their distributive share of the adjustments reported to them under subdivision (A)(ii) of this subdivision (c)(2) as required under this chapter; and
(ii) pay any additional amount of tax that would have been due if final federal adjustments had been reported properly, plus any penalty and interest due under section 3202 of this title, and less any credit for related amounts paid or withheld and remitted on behalf of the direct partner under subdivision (A)(iii) of this subdivision (c)(2).
(3) Election; partnership pays. Subject to the limitations under subdivision (C) of this subdivision, an audited partnership making an election under this subdivision shall do the following:
(A) Not later than 90 days after the final determination date, file a completed federal adjustments report as required by subdivision (2) of this subsection (c) and notify the Commissioner that it is making the election under this subdivision (3).
(B) Not later than 180 days after the final determination date, pay an amount, determined as follows, in lieu of taxes owed by its direct and indirect partners:
(i) Exclude from final federal adjustments the distributive share of these adjustments reported to a direct exempt partner not subject to tax under this chapter.
(ii) For the total distributive shares of the remaining final federal adjustments reported to direct corporate partners subject to tax under section 5832 of this title, apportion and allocate the adjustments as provided under section 5833 of this title, and multiply the result by the highest tax rate imposed under section 5832 of this title.
(iii) For the total distributive shares of the remaining final federal adjustments reported to nonresident direct partners subject to tax under this chapter, determine the amount of the adjustments that is Vermont-source income, and multiply the result by the highest tax rate imposed under section 5822 of this title.
(iv) For the total distributive shares of the remaining final federal adjustments reported to tiered partners:
(I) Determine the amount of the adjustments that is of a type that it would be subject to sourcing to Vermont under this chapter and then determine the portion of the amount that would be sourced to Vermont.
(II) Determine the amount of the adjustments that is of a type that it would not be subject to sourcing to Vermont by a nonresident partner under this chapter.
(III) Determine the portion of the amount determined in subdivision (iv)(II) of this subdivision (3)(B) that can be established as properly allocable to nonresident indirect partners or other partners not subject to tax on the adjustments or that can be excluded under procedures for modified reporting and payment method allowed under subdivision (5) of this subsection (c).
(v) Multiply the total of the amounts determined in subdivisions (iv)(I) and (iv)(II) of this subdivision (3)(B) reduced by the amount determined in subdivision (iv)(III) of this subdivision (3)(B) by the highest tax rate under section 5822 of this title.
(vi) For the total distributive shares of the remaining final federal adjustments reported to resident direct partners subject to tax under section 5822 of this title, multiply the amount reported by the highest tax rate under section 5822 of this title.
(vii) Add the amounts determined in subdivisions (ii), (iii), (v), and (vi) of this subdivision (3)(B), along with penalty and interest as calculated under subsection 3202(a) and subdivisions 3202(b)(2) and (b)(3) of this title.
(C) Final federal adjustments subject to the election under this subdivision (c)(3) exclude:
(i) the distributive share of final audit adjustments that, under subsection 5862(d) of this title, must be included in the unitary combined business income of any direct or indirect corporate partner, provided that the audited partnership can reasonably determine this; and
(ii) any final federal adjustments resulting from an administrative adjustment request.
(D) An audited partnership that is not otherwise subject to any reporting or payment obligations to Vermont and that makes an election under this subdivision (c)(3), consents to be subject to Vermont laws related to reporting, assessment, payment, and collection of Vermont tax calculated under the election.
(4) Tiered partners. The direct and indirect partners of an audited partnership that are tiered partners, and all partners of those tiered partners that are subject to tax under this chapter, are subject to the reporting and payment requirements of subdivision (2) of this subsection, and the tiered partners are entitled to make the elections provided in subdivisions (3) and (5) of this subsection. The tiered partners or their partners shall make required reports and payments not later than 90 days after the time for filing and furnishing statements to tiered partners and their partners as established under 26 U.S.C. § 6226 and the associated regulations. The Commissioner may adopt rules to establish procedures and interim time periods for the reports and payments required by tiered partners and their partners and for making the elections under this subsection.
(5) Alternative reporting and payment methods.
(A) Pursuant to any procedures established by the Commissioner, an audited partnership or tiered partner may request approval by the Commissioner to utilize alternative reporting and payment methods, including modifying applicable time requirements and any other requirement of this subsection (c), provided that:
(i) the audited partnership or tiered partner demonstrates to the Commissioner’s satisfaction that the requested method will reasonably provide for the reporting and payment of taxes, penalties, and interest due under this subsection (c); or
(ii) the audited partnership or tiered partner establishes to the Commissioner’s satisfaction that their direct partners have agreed to allow a refund of the State tax to the entity.
(B) A request for approval of alternative reporting and payment methods by the Commissioner shall be made by the audited partnership or tiered partner within the time for election provided in subdivision (3) or (4) of this subsection (c), as applicable.
(6) Effect of election by audited partnership or tiered partner and payment of amount due.
(A) The election made pursuant to subdivision (3) or (5) of this subsection (c) is irrevocable unless the Commissioner, at the Commissioner’s discretion, determines otherwise.
(B) If reported properly and paid by the audited partnership or tiered partner, the amount determined under subdivision (3)(B) of this subsection (c) or under an optional election under subdivision (5) of this subsection (c) shall be treated as paid in lieu of taxes owed by its direct and indirect partners, to the extent applicable, on the same final federal adjustments. The direct or indirect partners shall not be eligible to take any deduction or credit for this amount or claim a refund of the amount in this State. Nothing in this subdivision (6) shall preclude a direct resident partner from claiming a credit against taxes paid or any amounts paid by the audited partnership or tiered partner on the resident partner’s behalf to another state or local tax jurisdiction pursuant to section 5825 of this title.
(7) Failure of audited partnership or tiered partner to report or pay. Nothing in this subsection prevents the Commissioner from using the best information available to assess a direct or indirect partner for taxes owed by those partners if a partnership or tiered partner fails, for any reason, to make any report or payment required by this subsection in a timely manner.
(d) De minimis exception. The Commissioner may, at the Commissioner’s discretion, adopt rules to establish a de minimis amount below which a taxpayer shall not be required to comply with subsections (b) and (c) of this section.
(e) Assessments of additional tax, interest, and penalties arising from adjustments to federal taxable income; statute of limitations. The Commissioner shall assess additional tax, interest, and penalties arising from final federal adjustments arising from an audit by the Internal Revenue Service, including a partnership-level audit, as reported by the taxpayer on an amended federal income tax return, or as part of an administrative adjustment request, by the following dates:
(1) Timely reported federal adjustments. If a taxpayer files with the Commissioner a federal adjustments report or an amended tax return as required within the period prescribed in subsection (b) or (c) of this section, the Commissioner may assess any amounts, including in-lieu-of amounts, taxes, interest, and penalties arising from those federal adjustments, if a notice of the assessment to the taxpayer is issued not later than:
(A) the expiration of the limitations period prescribed in section 5882 of this title; or
(B) the expiration of the one-year period following the date of filing the federal adjustments report with the Commissioner.
(2) Untimely reported federal adjustments. If the taxpayer fails to file the federal adjustments report within the period prescribed in subsection (b) or (c) of this section, as appropriate, or if the federal adjustments report filed by the taxpayer omits final federal adjustments or understates the correct amount of tax owed, the Commissioner may assess amounts or additional amounts, including in-lieu-of amounts, taxes, interest, and penalties arising from the final federal adjustments, if the Commissioner mails a notice of the assessment to the taxpayer by a date that is the latest of one of the following:
(A) the expiration of the limitations period prescribed in section 5882 of this title;
(B) the expiration of the one-year period following the date of filing the federal adjustments report with the Commissioner; or
(C) absent fraud, the expiration of the six-year period following the final determination date.
(f) Estimated tax payments made during a pending federal audit. A taxpayer may make estimated payments, according to the process prescribed by the Commissioner, of the tax expected to result from a pending Internal Revenue Service audit and prior to the due date of the federal adjustments report, without filing the report with the Commissioner. The estimated tax payments shall be credited against the final Vermont tax liability and shall limit the accrual of further statutory interest on that amount. If the estimated tax payments exceed the final Vermont tax liability and statutory interest ultimately determined to be due, the taxpayer is entitled to a refund or credit for the excess, provided the taxpayer files a federal adjustments report or claim for refund or credit of tax paid pursuant to section 5884 of this title, not later than one year following the final determination date. As used in this subsection, “final Vermont tax liability” means the amount of any Vermont tax liability ultimately found to be due to the State.
(g) Claims for refund or credits of tax paid arising from final federal adjustments made by the Internal Revenue Service or by administrative adjustment request.
(1) Except for negative federal adjustments required by federal law to be taken into account by the partnership in the partnership return for the adjustment or other year, a taxpayer may file a claim for refund or credit of tax paid arising from final federal adjustments on or before the later of:
(A) the expiration of the last day for filing a claim for refund or credit of tax paid pursuant to section 5884 of this title, including any extensions; or
(B) one year from the date a federal adjustments report prescribed in subsection (b) or (c) of this section, as applicable, was due to the Commissioner, including any extensions pursuant to subsection (h) of this section.
(2) The federal adjustments report shall serve as the means for the taxpayer, including a partnership and its tiered partners, direct partners, and indirect partners, to report additional tax due, report a claim for refund or credit of tax paid, and make other adjustments, including to its net operating losses, resulting from adjustments to the taxpayer’s federal taxable income. Any refund granted to the partnership under subsection (c) of this section shall be in lieu of State tax paid that may be owed to the partners.
(h) Scope of adjustments and extensions of time.
(1) Unless otherwise agreed in writing by the taxpayer and the Commissioner, any adjustments made by the Commissioner or the taxpayer after the expiration of the limitations periods prescribed in sections 5882 and 5884 of this title are limited to changes to the taxpayer’s tax liability arising from federal adjustments.
(2) The time periods provided for in this subsection may be extended:
(A) automatically by 60 days for an audited partnership or tiered partner that has 10,000 or more direct partners, upon written notice to the Commissioner; or
(B) by written agreement between the taxpayer and the Commissioner.
(3) Any extension granted under this subsection for filing the federal adjustments report extends the last day prescribed by law for assessing any additional tax arising from the adjustments to federal taxable income and the period for filing a claim for refund or credit of taxes.
(i) Commissioner’s rule-making authority. The Commissioner may adopt rules or issue other guidance to implement or explain the provisions of this section. The rules adopted or guidance issued with regard to this section may apply the principles set forth in 26 U.S.C. subtitle F, chapter 63, subchapter C; federal regulations; and other related guidance issued by the U.S. Department of the Treasury in order to prevent the omission or duplication of State tax due as the result of a partnership-level audit and to account for differences between federal and State law.
(Added 2021, No. 179 (Adj. Sess.), § 13, eff. January 1, 2022; amended 2023, No. 6, § 380, eff. July 1, 2023.)
§ 5867 Form and verification of returns
The returns required to be filed under this chapter shall be in such form and manner as the Commissioner prescribes in order to ensure payment of the taxes imposed by this chapter and shall be filed at the main office of the Department of Taxes. Those returns shall be verified by written declarations that the statements therein are made subject to the pains and penalties of perjury. When a return is made by a corporation, the person signing it shall be considered to be the person who is subject to the pains and penalties of perjury. The Commissioner shall cause to be prepared blank forms for the returns and shall cause them to be distributed throughout the State and to be furnished upon application, but failure to secure or receive such a form shall not relieve a taxpayer from the obligation of filing any return herein required.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5868 Extension of time for filing of returns
The Commissioner may extend the time within which a taxpayer is required to file a return. The Commissioner shall extend the time for filing a taxpayer’s Vermont income tax return to the extended date for filing the United States income tax return if the taxpayer has been granted either an automatic or a good cause extension of time for filing the United States income tax return, except that the time for filing a corporation’s Vermont income tax return shall be extended to one month after the extended date for filing the United States income tax return. An extension of the time in which to file a return will not result in a corresponding extension of the time for the payment of the tax liability with respect to which the return is filed.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1979, No. 105 (Adj. Sess.), § 6; 1981, No. 191 (Adj. Sess.), § 7; 1989, No. 222 (Adj. Sess.), § 11, eff. May 31, 1990; 1991, No. 67, § 5, eff. June 19, 1991; 2019, No. 175 (Adj. Sess.), § 18, eff. Oct. 8, 2020.)
§ 5869 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37.
§ 5870 Reporting use tax on individual income tax returns
(a) The Commissioner of Taxes shall provide that individuals report use tax on their State individual income tax returns. Taxpayers are required to attest to the amount of their use tax liability under chapter 233 of this title for the period of the tax return. Alternatively, they may elect to report an amount that is a percentage of their adjusted gross income determined under subsection (b) of this section, and use tax liability arising from the purchase of each item with a purchase price in excess of $1,000.00 shall be added to the table amount shown under subsection (b) of this section.
(b) The amount of use tax a taxpayer may elect to report under subsection (a) of this section shall be based on the taxpayer’s adjusted gross income as determined by the following tables; provided, however, that a taxpayer shall not be required to pay more than $150.00 for use tax liability under this subsection arising from total purchases of items with a purchase price of $1,000.00 or less.
| If adjusted gross income is: | The tax is: | | --- | --- | | Not over $20,000.00 | $ 0.00 | | $20,001.00 to $30,000.00 | $10.00 | | $30,001.00 to $40,000.00 | $15.00 | | $40,001.00 to $50,000.00 | $20.00 | | $50,001.00 to $60,000.00 | $25.00 | | $60,001.00 to $70,000.00 | $30.00 | | $70,001.00 to $80,000.00 | $35.00 | | $80,001.00 to $90,000.00 | $40.00 | | $90,001.00 to $100,000.00 | $45.00 | | $100,001.00 and over | the lesser of $150.00 or 0.05% of adjusted gross income |
(Added 2003, No. 68, § 35, eff. June 18, 2003; amended 2009, No. 160 (Adj. Sess.), § 37; 2013, No. 174 (Adj. Sess.), § 33, eff. Jan. 1, 2015; 2015, No. 57, § 95, eff. Jan. 1, 2016; 2015, No. 57, § 96, eff. Jan. 1, 2017; 2017, No. 73, § 20, eff. Jan. 1, 2017; 2019, No. 175 (Adj. Sess.), § 8, eff. Jan. 1, 2020.)
Subchapter 7 Payment of Income Taxes
§ 5871 Payments by individuals, trusts, and estates
In the case of individuals, trusts, and estates, the income tax liability imposed by this chapter shall be discharged as follows:
(1) In the case of those taxpayers whose wages are subject to withholding, by periodic withholding within the taxable year for which the tax is imposed, or within such longer period as the Commissioner by regulation may prescribe.
(2) In the case of those taxpayers required to make installment payments of estimated non-withheld tax under subchapter 5 of this chapter by those payments.
(3) All income tax liabilities not theretofore discharged by withholding or installment payments shall be paid on or before the date when the return of the taxpayer for the taxable year is required to be filed.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5872 Payment by corporations
In the case of corporations, if the income tax liability is, or is expected to be, in excess of $500.00, the income tax liability imposed by this chapter shall be discharged in accordance with subchapter 5A of this chapter; any balance due shall be paid on or before the date on which the return of the corporation for the taxable year is required to be filed (determined with regard to any extension of time for filing). Payments made under extension are subject to interest pursuant to section 5868 of this title.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 73, § 19, eff. April 16, 1971; 1975, No. 1 (Sp. Sess.), § 12, eff. Jan. 1, 1976; 1979, No. 105 (Adj. Sess.), § 8; 1989, No. 119, § 7, eff. June 22, 1989.)
§ 5873 Extension of time for payment
For good cause shown, the Commissioner may extend the time for the payment of any tax liability, but the taxpayer shall pay, at the time the tax liability is paid, without assessment or demand, interest computed at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title on the unpaid amount of that tax liability from the time when the liability was originally due to the time of payment.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1979, No. 105 (Adj. Sess.), § 9; 1981, No. 191 (Adj. Sess.), § 7.)
§ 5874 Method of payment
All tax liabilities imposed by this chapter may be paid pursuant to section 3110 of this title. A tax liability may be paid with uncertified check, but if an uncertified check is not honored by the bank on which it is drawn, the taxpayer shall remain liable for the payment of the tax and for all lawful penalties and interest, in the same manner as if the check had not been tendered.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2021, No. 73, § 5.)
§ 5875 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37.
Subchapter 8 Deficiencies, Assessments, Refunds, and Appeals
§ 5881 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37.
§ 5882 Time limitation on notices of deficiency and assessment of penalty and interest
(a) The Commissioner may notify a taxpayer of a deficiency with respect to the payment of any tax liability, or assess a penalty or interest with respect thereto, in accordance with section 3202 of this title, at any time within three years after the date that tax liability was originally required to be paid under this chapter.
(b) Notwithstanding subsection (a) of this section:
(1) If the taxpayer fails to file a proper return with respect to any tax liability at the time prescribed for its filing, the notification or assessment may be made at any time before the end of three years after the taxpayer files such a return.
(2) If the deficiency is caused by reason of fraud or the willful intent of the taxpayer to defeat or evade this chapter, the notification or assessment may be made at any time.
(3) If the notice of deficiency or assessment is founded upon an assertion or determination by the United States that the taxable income, or income tax liability, of the taxpayer under the laws of the United States is greater than the amount of the taxable income or income tax liability reported on any return of the taxpayer filed under the laws of the United States, the notification or assessment under section 3203 of this title may be made within the time prescribed under subsection (a) of this section, or at any time before the expiration of six months after the date the Commissioner is notified, in writing, by the taxpayer or by the United States of the federal assertion or determination, whichever period is the later to expire.
(4) If the taxpayer and Commissioner agree, the notification or assessment may be made at any time before the date so agreed upon.
(5) If a person withholds tax under subchapter 4 of this chapter but underreports the tax withheld by 20 percent or more, the notification or assessment may be made at any time before the expiration of six years from the date of the filing of such return.
(6) If the notice or deficiency is based upon a refund that was paid in error, the notification or assessment under section 3203 of this title may be made within the time prescribed under subsection (a) of this section or at any time before the expiration of one year after the date the refund was paid, whichever period is the later to expire.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1989, No. 119, § 13, eff. June 22, 1989; 2007, No. 190 (Adj. Sess.), § 21, eff. June 6, 2008.)
§ 5883 Determination of deficiency, refund, or assessment
Upon receipt of a notice of deficiency, of denial or reduction of a refund claim, or of assessment of penalty or interest under section 3203 of this title, the taxpayer may, within 60 days after the date of mailing of the notice or assessment, petition the Commissioner in writing for a determination of that deficiency, refund, or assessment. The Commissioner shall thereafter grant a hearing upon the matter and notify the taxpayer in writing of his or her determination concerning the deficiency, refund, or assessment.
(Added 1966 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1975, No. 154 (Adj. Sess.), § 1, eff. date, see note set out below; 1979, No. 105 (Adj. Sess.), § 12; 1989, No. 222 (Adj. Sess.), § 34; 2007, No. 190 (Adj. Sess.), § 22, eff. June 6, 2008; 2013, No. 73, § 23, eff. June 5, 2013.)
§ 5884 Refunds; petitions for refunds
(a) At any time within three years after the date a return is required to be filed under this chapter, six months from the date a tax liability is paid or offset, or six months after a refund was received from the United States with respect to an income tax liability, or an amount of taxable income, under the laws of the United States, reported in a return filed under the laws of the United States for the taxable year, with respect to which that return was filed under this chapter, whichever is later, a taxpayer may petition the Commissioner for the refund of all or any part of the amount of tax paid. Unless the period is extended by agreement of the Commissioner and the taxpayer, the Commissioner shall thereafter, upon notice to the taxpayer, hold a hearing on the claim and shall notify the taxpayer of his or her determination of the claim within 30 days of the hearing. The failure of the Commissioner to refund the amount claimed by a taxpayer within six months of the date of the petition for the refund, under this subsection, shall be considered to be a notification to the taxpayer of the Commissioner’s determination concerning the claim. The notification shall be considered to have been given on the date of the expiration of the six-month period.
(b) If the Commissioner determines, with respect to a timely filed return or otherwise, that a taxpayer has paid an amount of tax under this chapter that, as of the date of the determination, exceeds the amount of tax liability owing from the taxpayer to the State, with respect to the current and all preceding taxable years, under any provision of this title, the Commissioner shall forthwith refund the excess amount to the taxpayer together with interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. That interest shall be computed from 45 days after the date the return was filed or from 45 days after the date the return was due, including any extensions of time thereto, with respect to which the excess payment was made, whichever is the later date.
(c) Notwithstanding subsection (b) of this section, in the case of a refund claimed on a return that is filed after the last date prescribed for filing such return, including any extensions of time thereto, or claimed on an amended return, the interest on the excess amount to be refunded by the Commissioner to the taxpayer shall be computed from 45 days after the date the late or amended return is filed.
(d) Notwithstanding subsection (a) of this section, a report required by subsection 5842(c) of this title may be amended after the due date of such report only for an administrative error. An administrative error is one that does not change the amount of tax withheld.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 73, § 21, eff. April 16, 1971; 1979, No. 105 (Adj. Sess.), § 48, see change of interest rate note set out below; 1983, No. 59, § 4, eff. April 22, 1983; 2003, No. 68, § 81, eff. June 18, 2003; 2011, No. 45, § 3, eff. May 24, 2011; 2019, No. 175 (Adj. Sess.), § 15, eff. Oct. 8, 2020.)
§ 5885 Procedure for hearings by Commissioner; appeals
(a) Any hearing granted by the Commissioner under section 5883 or 5884 of this title shall be subject to and governed by 3 V.S.A. chapter 25.
(b) Any aggrieved taxpayer may, within 30 days after a determination by the Commissioner concerning a notice of deficiency, an assessment of penalty or interest, or a claim to refund, appeal that determination to the Washington Superior Court or the Superior Court of the county in which the taxpayer resides or has a place of business.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 185 (Adj. Sess.), § 224, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1979, No. 105 (Adj. Sess.), § 13; 1997, No. 50, § 20, eff. June 26, 1997.)
§ 5886 Payment and collection of deficiencies and assessments; jeopardy notices
(a) Upon notification to a taxpayer of any deficiency, and upon assessment against the taxpayer of any penalty or interest, under sections 3202 and 3203 of this title, the amount of the assessment shall be payable immediately and the amount of the deficiency and assessment shall be collectible by the Commissioner 60 days after the date of the notification or assessment. The collection by the Commissioner of the deficiency, penalty, or interest shall be stayed:
(1) if the taxpayer files a petition for determination by the Commissioner in accordance with section 5883 of this title, collection shall be stayed until 30 days after the notification of the taxpayer of the determination;
(2) if within 30 days of the notification of determination the taxpayer files a notice of appeal, collection shall be stayed pending judgment of the court upon the appeal; and
(3) under such further circumstances and upon such terms as the Commissioner prescribes.
(b) Notwithstanding subsection (a) of this section, the Commissioner, if he or she believes the collection from a taxpayer of any deficiency, penalty, or interest to be in jeopardy, may demand, in writing, that the taxpayer pay the deficiency, penalty, or interest forthwith. The demand may be made concurrently with, or after, the notice of deficiency or the assessment of penalty, or interest given to the taxpayer under sections 3202 and 3203 of this title. The amount of deficiency, penalty, or interest shall be collectible by the Commissioner on the date of the demand, unless the taxpayer files with the Commissioner a bond in an amount equal to the deficiency, penalty, or interest sought to be collected as security for such amount as finally may be determined. In the event that it is finally determined that the taxpayer was not liable for the amount of the deficiency, penalty, or interest referred to in any demand under this subsection, the Commissioner shall reimburse the taxpayer promptly upon such determination for the reasonable cost to the taxpayer of any bond obtained by him or her for the purposes of this subsection.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 185 (Adj. Sess.), § 225, eff. March 29, 1972; 1979, No. 105 (Adj. Sess.), § 14; 1995, No. 29, § 23, eff. April 14, 1995; 2017, No. 74, § 138; 2021, No. 105 (Adj. Sess.), § 540, eff. July 1, 2022.)
§ 5887 Remedy exclusive; determination final
(a) The exclusive remedy of a taxpayer with respect to the refund of monies paid in connection with a return filed under this chapter shall be the petition for refund provided under section 5884 of this title and the appeal from an adverse determination of the petition for refund provided under section 5885 of this title. The exclusive remedy of a taxpayer with respect to a notification of deficiency or assessment of penalty or interest under sections 3202 and 3203 of this title shall be the petition for determination of the deficiency or assessment provided under section 5883 of this title and the appeal from an adverse determination of deficiency or assessment provided under section 5885 of this title.
(b) Upon the failure of a taxpayer to petition in accordance with section 5883 of this title from a notice of deficiency or assessment under sections 3202 and 3203 of this title, or to appeal in accordance with section 5885 of this title from a determination of a deficiency or assessment of tax liability under section 5883 of this title, the taxpayer shall be bound by the terms of the notification, assessment, or determination, as the case may be. The taxpayer shall not thereafter contest, either directly or indirectly, the tax liability as therein set forth in any proceeding, including a proceeding upon a claim of refund of all or any part of any payment made with respect to the tax liability or a proceeding for the enforcement or collection of all or any part of the tax liability.
(c) Notwithstanding subsections (a) and (b) of this section, the Commissioner may compromise a tax liability arising under this title upon the grounds of doubt as to liability or doubt as to collectibility, or both. Upon acceptance by the Commissioner of an offer in compromise, the liability of the taxpayer in question is conclusively settled, and neither the taxpayer nor the Commissioner may reopen the case except by reason of falsification or concealment of assets by the taxpayer or mutual mistake of a material fact or if, in the opinion of the Commissioner, justice requires it. The decision of the Commissioner to reject an offer in compromise is not subject to review. The Commissioner may adopt rules regarding the procedures to be followed for the submission and consideration of offers in compromise.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2011, No. 45, § 36f, eff. May 24, 2011; 2017, No. 74, § 139.)
§ 5888 Determination of taxable income and income tax liability under the laws of the United States
For purposes of this chapter, a taxpayer’s taxable income or income tax liability under the laws of the United States shall be determined by reference to the judicial decisions and administrative rulings of the United States.
(1) A determination by the United States that establishes the amount of a taxpayer’s taxable income or income tax liability under the laws of the United States for any taxable year shall be binding on the taxpayer and the State in calculating the taxpayer’s liability to Vermont under this chapter. As used in this section, “determination by the United States” means:
(A) a decision by the Tax Court of the United States or a judgment, decree, or other order by any U.S. court of competent jurisdiction that has become final;
(B) a closing agreement under 26 U.S.C. § 7121; or
(C) an agreement executed under 26 U.S.C. § 1313(a)(4).
(2) For any taxable year, the payment to the United States by any taxpayer of an aggregate amount of income tax, whether by withholding or otherwise; whether under a claim of deficiency, demand or otherwise; and whether under protest or otherwise, shall be prima facie evidence, for purposes of this chapter, that such aggregate amount, less any refunds received by the taxpayer from the United States with respect to his or her income tax payments for that year, constitutes the income tax liability of the taxpayer for that taxable year under the laws of the United States, and that the items of income, deductions, exemptions, and credits with respect to which the income tax liability was calculated are the items of income, deductions, exemptions, and credits of the taxpayer for that taxable year under the laws of the United States.
(3) For purposes of this section, the affidavit of any U.S. District Director of Internal Revenue that a taxpayer:
(A) has paid a specified aggregate amount of income tax;
(B) has received a specified amount of refund with respect to the taxpayer’s income tax payments; or
(C) has paid any amount of tax calculated with respect to specified items of income, deductions, exemptions, or credits, shall be prima facie evidence of the truth of those matters set forth in the affidavit.
(4) Notwithstanding any other provision of law:
(A) Any adjustments made to basis or deductions taken under the laws of the United States in connection with the claiming of a federal tax credit shall also be made for the calculation of Vermont tax, whether or not such federal credit is available to the taxpayer in the determination of the amount of the taxpayer’s Vermont tax.
(B) The amount of any Vermont net operating loss shall be available to a taxpayer as a carryforward in the 10 years following the loss year.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 73, § 22, eff. April 16, 1971; 1983, No. 206 (Adj. Sess.), § 2, eff. April 26, 1984; 1985, No. 262 (Adj. Sess.), § 4, eff. June 4, 1986; 1991, No. 32, § 33, eff. May 18, 1991; 1993, No. 89, § 13; 2005, No. 207 (Adj. Sess.), § 17, eff. May 31, 2006; 2021, No. 105 (Adj. Sess.), § 541, eff. July 1, 2022.)
Subchapter 9 Enforcement and Collection
§ 5891 Tax a debt to the State
Any tax liability imposed by this chapter becomes, from the time the tax liability is due and payable, a debt of the taxpayer to the State to be recovered in an action on this title.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5892 Action to collect taxes; limitations
(a) Action may be brought by the Attorney General of the State at the instance of the Commissioner in the name of the State to recover the amount of the tax liability of any taxpayer, if the action is brought within six years after the date the tax liability was collectible under section 5886 of this title. The action shall be returnable in the county where the taxpayer resides or has a place of business, and if the taxpayer neither resides nor has a place of business in this State, the action shall be returnable in Washington County.
(b) Notwithstanding 12 V.S.A. §§ 3167 and 3168, a motion may be brought by the Attorney General of the State at the instance of the Commissioner in the name of the State for issuance of trustee process at the same time as an action is brought under subsection (a) of this section, and, if judgment is granted in that action, the court may proceed immediately to hear and render a decision on the trustee process.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2009, No. 1 (Sp. Sess.), § H.27, eff. June 2, 2009.)
§ 5893 Levy for nonpayment
When all or any portion of a tax liability imposed by this chapter is not paid within 60 days after it becomes collectible under section 5886 of this title, the Commissioner may issue a warrant under his or her hand and official seal directed to the sheriff of any county of this State. The warrant shall command the sheriff to levy upon and sell the real and personal property of the taxpayer for the payment of the unpaid tax liability imposed by this chapter, together with allowable fees and costs. The levy and sale shall be effected in the manner, and shall be subject to the limitations, prescribed for the levy, distraint, and sale of property for the nonpayment of town taxes under sections 5191-5193 and 5253-5263 of this title. The sheriff shall return the warrant to the Commissioner and pay to him or her the money collected thereunder within the time specified in the warrant.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)
§ 5894 Liability for failure or delinquency
(a) Failure to supply information. An individual, fiduciary, or officer or employee of any corporation or partner or employee of any partnership who, with intent to evade any requirement of this chapter or any lawful requirement of the Commissioner hereunder, fails to supply any information required by or under this chapter shall be fined not more than $1,000.00 or be imprisoned not more than one year, or both.
(b) Failure to file. An individual, fiduciary, or officer or employee of any corporation or partner or employee of any partnership who knowingly fails to file a tax return when due shall be imprisoned not more than one year or fined not more than $1,000.00, or both.
(c) Failure to pay. An individual, fiduciary, or officer or employee of any corporation or partner or employee of any partnership who, with intent to evade a tax liability, fails to pay a tax when due shall, if the amount of tax evaded is $500.00 or less in a single calendar year, be imprisoned not more than one year or fined not more than $1,000.00, or both.
(d) Failure to file or failure to pay; in excess of $500.00. An individual, fiduciary, or officer or employee of a corporation or partner or employee of a partnership who, with intent to evade a tax liability, fails to file a tax return when required to do so or fails to pay a tax when due shall, if the amount of tax evaded is in excess of $500.00 in a single calendar year, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(e) False or fraudulent return. An individual, fiduciary, or officer or employee of a corporation or partner or employee of a partnership who knowingly makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall be imprisoned not more than one year or fined not more than $1,000.00, or both. An individual, fiduciary, or officer or employee of a corporation or partner or employee of a partnership who, with intent to evade a tax liability, makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall, if the amount of tax evaded is more than $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(f) Violations from income derived from illegal activity. An individual, fiduciary, officer, or employee of any corporation or a partner or employee of any partnership who violates subsections (a)-(e) of this section based on income derived from illegal activity shall be imprisoned not more than three years or fined not more than $10,000.00, or not more than $100,000.00 if the violation was based on income derived from the unlawful sale of a regulated drug in violation of 18 V.S.A. chapter 84, or both. The penalty provided in this subsection shall be in addition to any other civil or criminal penalties provided by law.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1987, No. 48, § 9; 2013, No. 76, § 7; 2019, No. 40, § 12.)
§ 5895 Tax liability as property lien
(a)(1) If any corporation, partnership, individual, trust, or estate required to pay or remit any tax liability under this chapter neglects or refuses to pay it in accordance with this chapter after notification or assessment thereof under sections 3202 and 3203 of this title, the aggregate amount of the tax liability then due and owing, together with any costs that may accrue in addition thereto, shall be a lien in favor of this State upon all property and rights to property, whether real or personal, belonging to the corporation, partnership, individual, trust, or estate.
(2) The lien shall arise at the time the notification or assessment is made by the Commissioner and shall continue until the aggregate tax liability with costs is satisfied in full or becomes unenforceable by reason of lapse of time. The lien shall be valid as against any subsequent mortgagee, pledgee, purchaser, or judgment creditor when notice of the lien and the sum due has been filed by the Commissioner with the clerk of the town or city in which the property subject to lien is situated or, in the case of an unorganized town, gore, or grant, in the office of the clerk of the county wherein the property is situated. The lien shall be deemed filed when the clerk of the town or city indorses a certificate on the lien pursuant to 24 V.S.A. § 1159.
(3) In the case of a motor vehicle, the lien shall also be valid when a notation of the lien is made on the certificate of title and shall only be valid as against any subsequent mortgagee, pledgee, bona fide purchaser, or judgment creditor when such notation is made.
(4) In the case of any prior mortgage on any real or personal property so written as to secure a present debt and also future advances by the mortgagee to the mortgagor, the lien established pursuant to this section, when notice thereof has been filed in the proper clerk’s office, shall be subject to the prior mortgage unless the Commissioner also notifies the mortgagee of the recording of the lien in writing, in which case any indebtedness thereafter created from the mortgagor to the mortgagee shall be junior to the lien established pursuant to this section.
(b) The Commissioner shall issue to the taxpayer a certificate of release of the lien if:
(1) the Commissioner finds that the liability for the amount demanded, together with costs, has been satisfied or has become unenforceable by reason of lapse of time;
(2) there is furnished to the Commissioner a bond with surety approved by the Commissioner in a sum sufficient to equal the amount demanded, together with costs, the bond to be conditioned upon the payment of any judgment rendered in proceedings regularly instituted by the Commissioner to enforce collection thereof at law or of any amount agreed upon in writing by the Commissioner to constitute the full amount of the liability; or
(3) the Commissioner determines at any time that the interest of this State in the property has no value.
(c) The lien provided for by this section may be foreclosed at any time after the tax liability with respect to which the lien arose becomes collectible under section 5886 of this title. In the case of real property, the lien may be foreclosed in the manner prescribed in 12 V.S.A. chapter 172, subchapters 1–3 and in such rules as the Supreme Court may promulgate for the foreclosure of mortgages on real estate. In the case of personal property, the lien may be satisfied in the manner prescribed in 9A V.S.A. article 9 for the disposition of collateral under a security interest or in the manner provided by law for the foreclosure of other security interests in personal property.
(Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 185 (Adj. Sess.), § 226, eff. March 29, 1972; 1989, No. 119, § 18, eff. June 22, 1989; 2017, No. 74, § 140; 2019, No. 14, § 80, eff. April 30, 2019; 2019, No. 38, § 6; 2021, No. 105 (Adj. Sess.), § 542, eff. July 1, 2022.)
Subchapter 10 Confidential Preparation of Returns
§ 5901 Consent to use or disclosure of information
(a) Any return of the tax imposed by this chapter, other than a declaration of estimated tax required by this chapter, which is prepared by a person other than the taxpayer, shall contain a written declaration, under the penalties of perjury, by the person preparing the return or declaration that the statements therein are true, correct, and complete, based on all information of which the preparer has any knowledge, and that, either:
(1) he or she has not used and will not use any information furnished by the taxpayer for any purpose other than the preparation of the return or declaration, and has not made and will not make any such information available to any other person for any such purpose; or
(2) he or she has obtained a valid consent of the taxpayer to use such information for purposes other than the preparation of the return or declaration or to make such information available to another person or persons for such purposes.
(b) For the purposes of subdivision (a)(2) of this section, a consent of a taxpayer shall be valid only if it:
(1) is set forth in a separate document signed by the taxpayer;
(2) is printed in eight point or larger type or is typed or written in letters of comparable size; and
(3) specifies the information that may be used by the preparer or made available by him or her to another person or persons and the purpose or purposes for which such information may be used or made available.
(Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972; amended 1985, No. 266 (Adj. Sess.), § 6, eff. June 4, 1986.)
§ 5902 Persons preparing returns
A person shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both, if he or she receives any information furnished by a taxpayer to enable such person to prepare or have prepared for such taxpayer a return of the tax imposed by this chapter or a declaration of estimated tax required by this chapter and he or she:
(1) uses any such information for any purpose other than the preparation of the return or declaration or makes any such information available to any other person for any such purpose, unless a valid consent, as described in section 5901 of this title, to so use such information or to so make such information available has been obtained; or
(2) uses any such information, or makes any such information available, for a purpose not specified in such valid consent.
(Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972.)
§ 5903 Exceptions
Section 5902 of this title shall not apply to a disclosure of information if such disclosure is made:
(1) pursuant to subdivision 3102(d)(4) of this title; or
(2) pursuant to an order of a court.
(Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972; amended 2003, No. 70 (Adj. Sess.), § 42, eff. March 1, 2004.)
Subchapter 10A Taxation of S Corporations
§ 5910 Definitions; federal conformity
(a) As used in this subchapter:
(1) “C corporation” means a corporation that is not an S corporation.
(2) “Code” means the Internal Revenue Code of 1986, as amended and as applicable to the taxable period; references to sections of the Code shall be deemed to refer to corresponding provisions of prior and subsequent federal tax laws.
(3) “Income attributable to Vermont” means items of income, loss, deduction, or credit of the S corporation allocated and apportioned to Vermont pursuant to section 5833 of this title.
(4) “Income not attributable to Vermont” means all items of income, loss, deduction, or credit of the S corporation other than income attributable to Vermont.
(5) “Pro rata share” means the portion of any item attributable to an S corporation shareholder for a taxable period determined in the manner provided in, and subject to any election made under, subsection 1377(a) or 1362(e), as the case may be, of the Code.
(6) “S corporation” means a corporation for which a valid election under subsection 1362(a) of the Code is in effect.
(7) “Taxable period” means any taxable year or portion of a taxable year during which a corporation is an S corporation.
(b) Except as otherwise expressly provided or clearly appearing from the context, any term used in this subchapter shall have the same meaning as when used in comparable context in the Code, or in any statute relating to federal income taxes, in effect for the taxable period. Due consideration shall be given in the interpretation of this subchapter to applicable sections of the Code in effect from time to time and to federal rulings and regulations interpreting such sections, provided such Code, rulings, and regulations do not conflict with the provisions of this subchapter.
(Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996; amended 2021, No. 105 (Adj. Sess.), § 543, eff. July 1, 2022.)
§ 5911 Taxation of an S corporation and its shareholders
(a) An S corporation shall not be subject to the tax imposed by section 5832 of this title, except to the extent of income taxable to the corporation under the provisions of the Internal Revenue Code.
(b) For the purposes of section 5823 of this title, each shareholder’s pro rata share of the S corporation’s income attributable to Vermont and each resident shareholder’s pro rata share of the S corporation’s income not attributable to Vermont shall be taken into account by the shareholder in the manner provided in 26 U.S.C. § 1366.
(Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996; amended 2021, No. 105 (Adj. Sess.), § 544, eff. July 1, 2022.)
§ 5912 Repealed
[Repealed]
2015, No. 134 (Adj. Sess.), § 13, eff. May 25, 2016.
§ 5913 Part-year residence
For purposes of this subchapter, if a shareholder of an S corporation is both a resident and nonresident of Vermont during any taxable period, the shareholder’s pro rata share of the S corporation’s income attributable to Vermont and income not attributable to Vermont for the taxable period shall be further prorated between the shareholder’s periods of residence and nonresidence during the taxable period, in accordance with the number of days in each period.
(Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.)
§ 5914 Returns and mandatory payments
(a) An S corporation that engages in activities in Vermont that would subject a C corporation to the requirement to file a return under section 5862 of this title shall file with the Commissioner an annual return, in the form prescribed by the Commissioner, on or before the due date prescribed for the filing of S corporation returns under 26 U.S.C. § 6072(b). The return shall set forth the name, address, and Social Security or federal identification number of each shareholder; the income attributable to Vermont and income not attributable to Vermont with respect to each shareholder as determined under this subchapter; and such other information as the Commissioner may by regulation prescribe. The S corporation shall, on or before the day on which such return is filed, furnish to each person who was a shareholder during the year a copy of such information shown on the return as the Commissioner may by regulation prescribe.
(b) The Commissioner may upon request and for ease of administration permit S corporations to file composite returns and to make composite payments of tax on behalf of some or all of its nonresident shareholders. In addition, the Commissioner may require an S corporation that has in excess of 50 nonresident shareholders to file composite returns and to make composite payments at the second-highest marginal rate on behalf of all of its nonresident shareholders.
(c) With respect to each of its nonresident shareholders, an S corporation shall for each taxable period be liable for all income taxes, together with related interest and penalties, imposed on the shareholder by Vermont with respect to the income of the S corporation. An S corporation shall declare estimated tax, and shall pay estimated tax, including applicable interest and penalties, on such liability in the manner and at the times specified for individuals in subchapter 5 of this chapter; provided, however, that an S corporation with a single shareholder and a tax liability under this section of $250.00 or less in the prior year, and an S corporation with two or more shareholders and a tax liability under this section of $500.00 or less in the prior year, may file the entire estimated amount on or before the fourth payment date, January 15. As used in this subsection, “estimated tax” means an amount equal to the next-to-lowest marginal tax rate prescribed under section 5822 of this title multiplied by the shareholder’s pro rata share of the income attributable to Vermont.
(d) If interest or penalty is imposed on an S corporation for any underpayment of estimated tax under subsection (c) of this section, no interest or penalty shall be imposed upon a shareholder for underpayment of estimated taxes relating to the shareholder’s pro rata share of the income attributable to Vermont to which the interest or penalty relates. If an S corporation shows to the satisfaction of the Commissioner that interest or penalties have been assessed against it in excess of the interest or penalties that would have been applied against the combined, actual tax liabilities of all nonresident shareholders, the Commissioner shall abate such excess interest and penalties. Nothing in this subsection shall be construed as authorizing a corporation to reduce its estimated tax payments.
(e) Any amount paid by the corporation to Vermont pursuant to this section shall be considered to be a payment by the shareholder of the income tax imposed on the shareholder for the taxable period pursuant to section 5822 of this title. An S corporation shall be entitled to recover a payment made pursuant to this section from the shareholder on whose behalf the payment was made.
(Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996; amended 1999, No. 119 (Adj. Sess.), § 3a, eff. May 18, 2000; 2005, No. 14, § 3, eff. May 3, 2005; 2005, No. 207 (Adj. Sess.), § 1, eff. May 31, 2006; 2011, No. 45, § 20, eff. May 24, 2011; 2017, No. 73, § 4, eff. June 13, 2017; 2021, No. 105 (Adj. Sess.), § 545, eff. July 1, 2022; 2023, No. 72, § 19, eff. January 1, 2023.)
§ 5915 Minimum tax
An S corporation that is subject to the provisions of section 5914 of this title shall pay an annual tax of $250.00 to the Commissioner of Taxes on or before the due date prescribed for the filing of S corporation returns under subsection 6072(b) of the Internal Revenue Code.
(Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996; amended 1997, No. 71 (Adj. Sess.), § 27a(a), eff. March 11, 1998; 2015, No. 134 (Adj. Sess.), § 14, eff. May 25, 2016.)
§ 5916 Tax credits
For purposes of section 5825 of this title, no credit shall be available to a resident individual, estate, or trust, for taxes imposed by another state or territory of the United States, the District of Columbia, or a Province of Canada upon an S corporation or the income of an S corporation.
(Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.)
Subchapter 10B Taxation of Partnerships and Limited Liability Companies
§ 5920 Returns and mandatory payments
(a) A partnership or limited liability company, which engages in activities in Vermont that would subject a C corporation to the requirement to file a return under section 5862 of this title, shall file with the Commissioner an annual return, in the form prescribed by the Commissioner, on or before the due date prescribed for the filing of the entity’s federal return. The return shall set forth the name, address, and Social Security or federal identification number of each partner or member; the partnership or limited liability company income attributable to Vermont and the income not attributable to Vermont with respect to each partner or member as determined under this chapter; and such other information as the Commissioner may by rule prescribe. The partnership or limited liability company shall, on or before the day on which such return is filed, furnish to each person who was a partner or member during the year a copy of such information shown on the return as the Commissioner may by rule prescribe.
(b) The Commissioner may permit a partnership or limited liability company to file composite returns and to make composite payments of tax on behalf of some or all of its nonresident partners or members. In addition, the Commissioner may require a partnership or limited liability company that has in excess of 50 nonresident partners or members to file composite returns and to make composite payments at the second-highest marginal rate on behalf of all of its nonresident partners or members.
(c) With respect to each of its nonresident partners or nonresident members, a partnership or limited liability company shall for each taxable period be liable for all income taxes, together with related interest and penalties, imposed on the partner or member by Vermont with respect to the income of the partnership or limited liability company. A partnership or limited liability company shall declare estimated tax, and shall pay estimated tax, including applicable interest and penalties, on such liability in the manner and at the times specified in subchapter 5 of this chapter; provided, however, that a partnership or limited liability company with a single partner or member and a tax liability under this section of $250.00 or less in the prior year, and a partnership or limited liability company with two or more partners or members and a tax liability under this section of $500.00 or less in the prior year, may file the entire estimated amount on or before the fourth payment date, January 15. As used in this subsection, “estimated tax” as used in subchapter 5 of this chapter shall mean an amount equal to the next-to-lowest marginal tax rate prescribed under section 5822 of this title, multiplied by the partner’s or member’s pro rata share of the income attributable to Vermont.
(d) If interest or penalty is imposed upon a partnership or limited liability company for any underpayment of estimated tax under subsection (c) of this section, no interest or penalty shall be imposed upon a partner or member for underpayment of estimated taxes relating to the partner’s or member’s pro rata share of the income attributable to Vermont to which the interest or penalty relates. If a partnership or limited liability company shows to the satisfaction of the Commissioner that interest or penalties have been assessed against it in excess of the interest or penalties that would have been applied against the combined, actual tax liabilities of all nonresident partners or members, the Commissioner shall abate such excess interest and penalties. Nothing in this subsection shall be construed as authorizing a partnership or limited liability company to reduce its estimated tax payments.
(e) Any amount paid by the partnership or limited liability company to Vermont pursuant to this section shall be considered to be a payment by the partner or member on account of the income tax imposed on the partner or member for the taxable period pursuant to section 5822 of this title. A partnership or limited liability company shall be entitled to recover a payment made pursuant to this section from the partner or member on whose behalf the payment was made.
(f)(1) Subsection (c) of this section shall not apply to a partnership or limited liability company engaged solely in the business of operating one or more affordable housing projects in this State, provided such partnership or limited liability company shall notify its nonresident partners or nonresident members of their obligation under subchapter 6 of this chapter to file Vermont personal income tax returns and under subchapter 2 of this chapter to pay a tax on income earned from such investment; instruct each nonresident partner or nonresident member to pay such tax; and in addition to filing copies of all schedules K-1 with its partnership or limited liability company return shall file with the Commissioner segregated duplicate copies of all nonresident schedules K-1. In this subsection, “affordable housing project” means a rental residential development that is intended primarily to benefit low-income Vermont residents throughout the period of the investment and that is subject to one or more of the following:
(A) a housing subsidy covenant that has been granted to the Vermont Housing and Conservation Board;
(B) a regulatory agreement or LIHTC housing subsidy covenant that has been granted to the Vermont Housing Finance Agency;
(C) a housing assistance payment contract with the U.S. Department of Housing and Urban Development pursuant to 24 C.F.R. Part 883; or
(D) a regulatory agreement that has been granted to the Farmers Home Administration of the U.S. Department of Agriculture.
(2) In this subsection, “low income” means income that is less than or equal to area median income based on statistics from State or federal sources.
(g)(1) Subsection (c) of this section shall not apply to a partnership or limited liability company engaged solely in the business of operating one or more federal new market tax credit projects in this State, provided such partnership or limited liability company shall:
(A) notify its nonresident partners or nonresident members of their obligation under subchapter 6 of this chapter to file Vermont personal income tax returns and under subchapter 2 of this chapter to pay a tax on income earned from such investment;
(B) instruct each nonresident partner or nonresident member to pay such tax; and
(C) in addition to filing copies of all schedules K-1 with its partnership or limited liability company return, file with the Commissioner segregated duplicate copies of all nonresident schedules K-1.
(2) As used in this subsection, “federal new market tax credit project” means a business that is intended primarily to benefit low-income Vermont residents throughout the period of investment and that is subject to the following:
(A) has been determined by the U.S. Department of the Treasury to be a community development entity;
(B) has been awarded an allocation of federal new market tax credits under 26 U.S.C. § 45D; and
(C) is a partnership or limited liability corporation that is a pass-through of the federal new market tax credit to the nonresident investor.
(h)(1) Notwithstanding any provisions in this section, a publicly traded partnership as defined in 26 U.S.C. § 7704(b) that is treated as a partnership for the purposes of the Internal Revenue Code is exempt from any income tax liability and any compliance and payment obligations under subsections (b) and (c) of this section if information required by the Commissioner under subdivision (2) of this subsection is provided by the due date of the partnership’s return.
(2) Publicly traded partnerships shall provide to the Commissioner in an electronic format, according to rules or procedures adopted by the Commissioner, an annual return that includes the name, address, taxpayer identification number, and other information requested by the Commissioner for each partner with Vermont-source income in excess of $500.00.
(3) A lower-tier pass-through entity of a publicly traded partnership may request from the Commissioner an exemption from the compliance and payment obligations specified in subsections (b) and (c) of this section. The request for the exemption must be in writing and contain:
(A) the name, the address, and the account number or federal identification number of each of the lower-tier pass-through entity’s partners, shareholders, members, or other owners; and
(B) information that establishes the ownership structure of the lower-tier pass-through entity and the amount of Vermont source income.
(4) The Commissioner may request additional documentation before granting an exemption to a lower-tier pass-through entity. As used in this subsection, a “lower-tier pass-through entity” means a pass-through entity for purposes of the Internal Revenue Code, which can include a partnership, S corporation, disregarded entity, or limited liability company and which allocates income, directly or indirectly, to a publicly traded partnership. The exemption under subdivision (3) of this subsection shall only apply to income allocated, directly or indirectly, to a publicly traded partnership.
(5) If granted, the exemption for the lower-tier pass-through entity shall be effective for three years following the date the exemption is granted. At the end of the three-year period, the lower-tier pass-through entity of a publicly traded partnership shall submit a new exemption request to continue the exemption. The Commissioner may revoke the exemption for the lower-tier pass-through entity if the Commissioner determines that the lower-tier pass-through entity is not satisfying its tax payment and reporting obligations to the State with respect to income allocated, directly or indirectly, to nonresident partners or members that are not publicly traded partnerships.
(Added 1995, No. 169 (Adj. Sess.), § 24, eff. May 15, 1996; amended 1997, No. 50, §§ 21, 22, eff. June 26, 1997; 1999, No. 119 (Adj. Sess.), § 3b, eff. May 18, 2000; 2005, No. 14, § 4, eff. May 3, 2005; 2005, No. 207 (Adj. Sess.), § 2, eff. May 31, 2006; 2011, No. 45, § 21, eff. May 24, 2011; 2011, No. 143 (Adj. Sess.), § 17, eff. May 15, 2012; 2015, No. 57, § 70, eff. June 11, 2015; 2015, No. 97 (Adj. Sess.), § 66; 2019, No. 51, § 10, eff. June 10, 2019; 2023, No. 72, § 20, eff. January 1, 2023.)
§ 5921 Minimum tax
A partnership or a limited liability company that is taxed as a partnership under the Internal Revenue Code and is subject to the provisions of section 5920 of this title shall pay an annual tax of $250.00 to the Commissioner of Taxes on or before the due date prescribed for the filing of the entity’s federal return. The tax shall be submitted together with a form prescribed by the Commissioner. A limited liability company that does not receive partnership treatment under the Internal Revenue Code shall be taxed for State purposes in the same manner as taxed under the Internal Revenue Code. Partnerships whose activities are limited to the maintenance and management of their intangible investments and whose annual investment income does not exceed $5,000.00 and whose total assets are not in excess of $20,000.00 shall be exempt from the tax imposed by this section.
(Added 1995, No. 169 (Adj. Sess.), § 24, eff. May 15, 1996; amended 1997, No. 50, § 23, eff. June 26, 1997; 1997, No. 71 (Adj. Sess.), § 27a(b), eff. March 11, 1998; 1997, No. 156 (Adj. Sess.), § 37a, eff. April 29, 1998.)
Subchapter 11 Financial Services Development Tax Credit
§ 5922 Financial services development tax credit
(a) Definitions. As used in this subchapter:
(1) “Qualified person” means any corporation, partnership, limited liability company, sole proprietor, or trust primarily engaged in business as an investment advisor and registered as such with the Federal Securities Exchange Commissions or primarily engaged in investment management, or an investment company.
(2) “Investment management” means the provision of investment management, research, distribution, or administration services to or on behalf of an investment company, including trustees, and sponsors or participants of employee benefit plans that have accounts in an investment company, or to or on behalf of an investment advisor.
(3) “Investment company” means any person registered under the Federal Investment Company Act of 1940 (the Act) or a company that would be required to register as an investment company under the Act except that such person is exempt to such registration pursuant to Section 3(c)(1) of the Act.
(4) “Qualified payroll expense” means compensation for performance by the qualified person’s employees related to investment advisor, investment management, or investment company services in Vermont.
(5) “Apportioned ratio” means the revenue from assets under management or other investment business for non-Vermont residents who are unrelated persons, divided by the total revenue from assets under management or other investment business for unrelated persons during the tax year.
(6) “Apportioned payroll ratio” means qualified payroll expense divided by total payroll expense compensation for employees’ services related to investment advisor, investment management, or investment company services during the tax year.
(7) “Unrelated persons” means any person other than the person claiming the credit under this section, or his or her spouse, parent, child, or sibling.
(b) Non-Vermont revenue tax credit. Subject to subsections (c) and (d) of this section, a qualified person shall be allowed to claim against its income tax, from sources defined in subsection (a) of this section, a credit in the amount of the qualified person’s Vermont income tax liability from sources defined in subsection (a), times the apportioned ratio and the payroll ratio. As used in this subsection, “Vermont income tax liability” means for an individual, the taxpayer’s Vermont income tax liability as determined under this chapter multiplied by the percentage of the taxpayer’s adjusted gross income from sources defined in subsection (a) of this section; and for a corporation, the taxpayer’s Vermont tax liability as determined under this chapter multiplied by the percentage of the taxpayer’s Vermont net income from sources defined in subsection (a) of this section.
(c) Claims. A credit available in subsection (b) of this section to a qualified person who is a partnership, limited liability company, subchapter S corporation, or trust may not be claimed by the entity, but may be claimed by the entity’s partners, members, shareholders, or beneficiaries on their distributive share of the income from sources defined in subsection (a) of this section. The credit allowed shall be the pre-credit tax on the distributive share of income, multiplied by the qualified person’s apportioned ratio and payroll ratio. No credit shall be allowed under this section based upon income received by the claimant for services as an employee.
(d) Limitations. The credit shall be available in the tax year of the income used to calculate the credit.
(1) The credit may not be applied to reduce the Vermont income tax liability of the person claiming the credit, from sources defined in subsection (a) of this section, to less than 25 percent of pre-credit tax.
(2) Unused credit may not be carried forward or back.
(3) The credit may not be applied as a result of transferring employees or assets among affiliated companies or persons. The Commissioner may adopt rules to define affiliates.
(e) Recapture. In the event a qualified person ceases to employ in Vermont, for a period in excess of 120 consecutive days, at least 65 percent of the number of employees it employed in Vermont as of the year a tax credit was taken under this section, there shall be imposed upon such person a recapture penalty equal to a percentage of the total credits taken, computed in accord with the following table:
| 2 or less | 100% | | --- | --- | | More than 2 and up to 4 | 50% | | More than 4 but no more than 6 | 25% |
The recapture shall be reported on the taxpayer’s income tax return for the tax year in which the 120-day threshold is exceeded.
(f) Applicability of credit. A qualified person who claims and is awarded tax credits under this section shall report, on a form approved by the Commissioner of Taxes, such person’s qualified payroll expenses as of July 1, 1996. No credits shall be available for taxable years beginning on or after January 1, 2007 unless the General Assembly specifically authorizes the allowance of credits under this section for taxable years 2007 and after. The Department of Economic Development shall evaluate the effectiveness of the financial services development tax credit.
(Added 1995, No. 184 (Adj. Sess.), § 10; amended 1999, No. 49, § 96c, eff. June 2, 1999; 2001, No. 138 (Adj. Sess.), § 1, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 43, eff. March 1, 2004; 2011, No. 139 (Adj. Sess.), § 35, eff. May 14, 2012; 2021, No. 105 (Adj. Sess.), § 546, eff. July 1, 2022.)
§§ 5923, 5924 Repealed
[Repealed]
Subchapter 11A Tax Credits Relating to a Job Development Zone
§ 5925 Repealed
[Repealed]
2015, No. 57, § 98, effective June 11, 2015.
§ 5926 Repealed
[Repealed]
2005, No. 75, § 16, eff. June 23, 2005.
Subchapter 11B Research and Development Tax Credit
§§ 5927, 5928 Repealed
[Repealed]
2005, No. 75, § 16, eff. June 23, 2005.
Subchapter 11C New Jobs Tax Credit
§ 5929 Repealed
[Repealed]
2005, No. 94 (Adj. Sess.), § 5, eff. March 8, 2006.
Subchapter 11D Manufacturer's Investment Tax Credit
§ 5930 Repealed
[Repealed]
2005, No. 94 (Adj. Sess.), § 5, eff. March 8, 2006.
Subchapter 11E Economic Advancement Tax Incentives
§§ 5930a, 5930b Repealed
[Repealed]
2015, No. 157 (Adj. Sess.), § H.11, eff. January 1, 2017.
§§ 5930c-5930i Repealed
[Repealed]
2005, No. 184 (Adj. Sess.), § 4(a), eff. January 1, 2017.
§ 5930j Repealed
[Repealed]
2005, No. 184 (Adj. Sess.), § 16.
§ 5930k Repealed
[Repealed]
2005, No. 184 (Adj. Sess.), § 4(a), eff. January 1, 2017.
Subchapter 11F Tax Credit for Rehabilitation of Historic Buildings
§ 5930n Repealed
[Repealed]
2005, No. 183 (Adj. Sess.), § 16(b).
Subchapter 11G Rehabilitation Tax Credit
§§ 5930p-5930r Repealed
[Repealed]
2005, No. 183 (Adj. Sess.), § 16(b).
Subchapter 11H Training Tax Credit
§ 5930t Repealed
[Repealed]
2005, No. 207 (Adj. Sess.), § 12, eff. May 31, 2006.
Subchapter 11I Affordable Housing Tax Credit
§ 5930u Tax credit for affordable housing
(a) Definitions. As used in this section:
(1) “Affordable housing project” or “project” means:
(A) a rental housing project identified in 26 U.S.C. § 42(g); or
(B) owner-occupied housing identified in 26 U.S.C. § 143 (c)(1) or that qualifies under Vermont Housing Finance Agency criteria governing owner-occupied housing.
(2) “Affordable housing tax credits” means the tax credit provided by this subchapter.
(3) “Allocating agency” or “Agency” means the Vermont Housing Finance Agency.
(4) “Committee” means the Joint Committee on Tax Credits consisting of five members: a representative from the Department of Housing and Community Development, the Vermont Housing and Conservation Board, the Vermont Housing Finance Agency, the Vermont State Housing Authority, and the Office of the Governor.
(5) “Credit certificate” means a certificate issued by the allocating agency to a taxpayer that specifies the amount of affordable housing tax credits that can be applied against the taxpayer’s individual or corporate income tax liability or franchise, captive insurance premium, or insurance premium tax liability as provided in this subchapter.
(6) “Eligible applicant” means any municipality, State agency as defined in 10 V.S.A. § 6301a, the Vermont Housing Finance Agency, a for-profit organization, or a nonprofit organization qualifying under 26 U.S.C. § 501(c)(3) or cooperative housing organization, the purpose of which is to create and retain affordable housing for Vermonters with lower income and that has in its bylaws a requirement that the housing the organization creates be maintained as affordable housing for Vermonters with lower income on a perpetual basis or that meets the application requirements of the allocation plan.
(7) “Eligible cash contribution” means an amount of cash:
(A) contributed to the owner, developer, or sponsor of an affordable housing project and determined by the allocating agency as eligible for affordable housing tax credits; or
(B) paid to the Agency in connection with the purchase of affordable housing tax credits.
(8) “Section 42 credits” means tax credits provided by 26 U.S.C. §§ 38 and 42.
(9) “Allocation plan” means the plan recommended by the Committee and approved by the Vermont Housing Finance Agency, which sets forth the eligibility requirements and process for selection of eligible rental housing projects to receive affordable housing tax credits and eligible owner-occupied housing projects to receive loans or grants under this section. The allocation plan shall include:
(A) requirements for creation and retention of affordable housing for persons with low income; and
(B) requirements to ensure that eligible rental housing is maintained as affordable by subsidy covenant, as defined in 27 V.S.A. § 610, on a perpetual basis and that eligible owner-occupied housing or program funds for owner-occupied housing remain as an affordable housing source for future owners or buyers, and meets all other requirements of the Vermont Housing Finance Agency related to affordable housing.
(10) “Taxpayer” means a taxpayer who makes an eligible cash contribution or the assignee or transferee of or successor to such taxpayer as determined by the Department of Taxes.
(b) Eligible tax credit allocations.
(1)(A) An eligible applicant may apply to the allocating agency for an allocation of affordable rental housing tax credits under this section related to an affordable housing project authorized by the allocating agency under the allocation plan. In the case of a specific affordable rental housing project, the eligible applicant shall also be the owner or a person having the right to acquire ownership of the building and shall apply prior to placement of the affordable housing project in service. The allocating agency shall issue a letter of approval if it finds that the applicant meets the priorities, criteria, and other provisions of subdivision (B) of this subdivision (b)(1). The burden of proof shall be on the applicant.
(B) Upon receipt of a completed application, the allocating agency shall award an allocation of affordable housing tax credits with respect to a project to an applicant, provided the applicant demonstrates to the satisfaction of the allocating agency all of the following:
(i) the owner of the project has received from the allocating agency a binding commitment for, a reservation or allocation of, or an out-of-cap determination letter for Section 42 credits, or meets the requirements of the allocation plan; and
(ii) the project has received community support.
(2)(A) The Vermont Housing Finance Agency shall have the authority to allocate affordable housing tax credits to provide funds to make loans or grants to eligible applicants for affordable owner-occupied housing. An eligible applicant may apply to the allocating agency for a loan or grant under this section related to an affordable owner-occupied housing project authorized by the allocating agency under the allocation plan. In the case of a specific affordable owner-occupied housing project, the eligible applicants shall also be the owner or a person having the right to acquire ownership of the unit and shall apply prior to sale of the unit to the homeowner.
(B) The Agency shall require that the loan or grant recipient use such funds to maintain the unit as an affordable owner-occupied unit or as an affordable housing source for future owners or buyers.
(C) The Agency shall use the proceeds of loans or grants made under subdivision (b)(2)(A) of this section for future loans or grants to eligible applicants for affordable owner-occupied housing projects.
(D) The Agency may assign its rights under any loan or grant made under subdivision (b)(2)(A) of this section to the Vermont Housing and Conservation Board or any State agency or nonprofit organization qualifying under 26 U.S.C. § 501(c)(3), provided such assignee acknowledges and agrees to comply with the provisions of subdivision (b)(2) of this section.
(3)(A) The Vermont Housing Finance Agency shall have the authority to allocate affordable housing tax credits to finance down payment assistance loans that meet the following requirements:
(i) the loan is made in connection with a mortgage through an Agency program;
(ii) the borrower is a first-time home buyer of an owner-occupied primary residence; and
(iii) the borrower uses the loan for the borrower’s down payment or closing costs, or both.
(B) The Agency shall require the borrower to repay the loan upon the transfer or refinance of the residence.
(C) The Agency shall use the proceeds of loans made under the Program for future down payment assistance.
(D) The Agency may reserve funding and adopt guidelines to provide grants to first-time homebuyers who are also first-generation homebuyers.
(c) Amount of credit. A taxpayer shall be entitled to claim against the taxpayer’s individual income, corporate, franchise, captive insurance premium, or insurance premium tax liability a credit in an amount specified on the taxpayer’s credit certificate. The first-year allocation of a credit amount to a taxpayer shall also be deemed an allocation of the same amount in each of the following four years.
(d) Availability of credit. The amount of affordable housing tax credit set forth on the taxpayer’s credit certificate shall be available to the taxpayer every year for five consecutive tax years, beginning with the tax year in which the eligible cash contribution is made. Total tax credits available to the taxpayer shall be the amount of the first-year allocation plus the succeeding four years’ deemed allocations.
(e) Claim for credit. A taxpayer claiming affordable housing tax credits shall submit with each return on which such credit is claimed the taxpayer’s credit certificate and, with respect to credits issued under subdivision (b)(1) of this section, a copy of the allocating agency’s credit allocation to the affordable housing project. Any unused affordable housing tax credit may be carried forward to reduce the taxpayer’s tax liability for no more than 14 succeeding tax years, following the first year the affordable housing tax credit is allowed.
(f) [Repealed.]
(g) Credit allocation.
(1) In any fiscal year, the allocating agency may award up to:
(A) $400,000.00 in total first-year credit allocations to all applicants for rental housing projects, for an aggregate limit of $2,000,000.00 over any given five-year period that credits are available under this subdivision (A).
(B) $675,000.00 in total first-year credit allocations for loans or grants for owner-occupied unit financing or down payment loans as provided in subdivision (b)(2) of this section consistent with the allocation plan, including for new construction and manufactured housing, for an aggregate limit of $3,375,000.00 over any given five-year period that credits are available under this subdivision (B). Of the total first-year credit allocations made under this subdivision (B), $250,000.00 shall be used each fiscal year for manufactured home purchase and replacement.
(2) If the full amount of first-year credits authorized by an award are not allocated to a taxpayer, the Agency may reclaim the amount not allocated and re-award such allocations to other applicants, and such re-awards shall not be subject to the limits set forth in subdivision (1) of this subsection.
(h) Credit allocation; Down Payment Assistance Program.
(1) In fiscal year 2016 through fiscal year 2019, the allocating agency may award up to $125,000.00 in total first-year credit allocations for loans through the Down Payment Assistance Program created in subdivision (b)(2) of this section.
(2) In fiscal year 2020 through fiscal year 2026, the allocating agency may award up to $250,000.00 in total first-year credit allocations for loans through the Down Payment Assistance Program created in subdivision (b)(3) of this section.
(Added 1999, No. 159 (Adj. Sess.), § 40; amended 2001, No. 62, § 7; 2003, No. 74 (Adj. Sess.), § 1; 2005, No. 75, § 7; 2005, No. 207 (Adj. Sess.), § 21, eff. May 31, 2006; 2007, No. 176 (Adj. Sess.), § 13, eff. July 1, 2008; 2011, No. 143 (Adj. Sess.), § 21; 2015, No. 51, § G.7; 2015, No. 97 (Adj. Sess.), § 67; 2015, No. 157 (Adj. Sess.), § T.4; 2017, No. 69, § H.10, eff. June 28, 2017; 2019, No. 71, § 3, eff. June 18, 2019; 2021, No. 105 (Adj. Sess.), § 547, eff. July 1, 2022; 2021, No. 138 (Adj. Sess.), § 9, eff. July 1, 2022; 2021, No. 182 (Adj. Sess.), § 1, eff. July 1, 2022; 2023, No. 6, § 382, eff. July 1, 2023.)
§ 5930v Repealed
[Repealed]
2009, No. 1 (Sp. Sess.), § H.28(a), eff. January 1, 2010.
§§ 5930w-5930x Repealed
[Repealed]
2005, No. 184 (Adj. Sess.), § 4(a), eff. January 1, 2017.
§ 5930y Repealed
[Repealed]
2013, No 73, § 24, eff. January 1, 2014.
§ 5930z Repealed
[Repealed]
2019, No. 51, § 40(1), eff. Jan. 1, 2019.
Subchapter 11J Vermont Downtown and Village Center Tax Credit Program
§ 5930aa Definitions
As used in this subchapter:
(1) “Qualified applicant” means an owner or lessee of a qualified building involving a qualified project but does not include a State or federal agency or a political subdivision of either or an instrumentality of the United States.
(2) “Qualified building” means a building built at least 30 years before the date of application, located within a designated downtown, village center, or neighborhood development area, which, upon completion of the project supported by the tax credit, will be an income-producing building not used solely as a single-family residence. Churches and other buildings owned by religious organization may be qualified buildings, but in no event shall tax credits be used for religious worship.
(3) “Qualified code improvement project” means a project:
(A) to install or improve platform lifts suitable for transporting personal mobility devices, limited use or limited application elevators, elevators, sprinkler systems, and capital improvements in a qualified building, and the installations or improvements are required to bring the building into compliance with the statutory requirements and rules regarding fire prevention, life safety, and electrical, plumbing, and accessibility codes as determined by the Department of Public Safety;
(B) to abate lead paint conditions or other substances hazardous to human health or safety in a qualified building; or
(C) to redevelop a contaminated property in a designated downtown, village center, or neighborhood development area under a plan approved by the Secretary of Natural Resources pursuant to 10 V.S.A. § 6615a.
(4) “Qualified expenditures” means construction-related expenses of the taxpayer directly related to the project for which the tax credit is sought but excluding any expenses related to a private residence.
(5) “Qualified façade improvement project” means the rehabilitation of the Façade of a qualified building that contributes to the integrity of the designated downtown, designated village center, or neighborhood development area. Façade improvements to qualified buildings listed, or eligible for listing, in the State or National Register of Historic Places must be consistent with Secretary of the Interior Standards, as determined by the Vermont Division for Historic Preservation.
(6) “Qualified Flood Mitigation Project” means any combination of structural and nonstructural changes to a qualified building that reduces or eliminates flood damage to the building or its contents. This may include relocation of HVAC, electrical, plumbing, and other building systems, and equipment above the flood level; repairs or reinforcement of foundation walls, including flood gates; or elevation of an entire eligible building above the flood level. Further eligible projects may be defined via program guidance. The project shall comply with the municipality’s adopted flood hazard bylaw, if applicable, and a certificate of completion shall be submitted by a registered engineer, architect, qualified contractor, or qualified local official to program staff. Improvements to qualified buildings listed, or eligible for listing, in the State or National Register of Historic Places shall be consistent with Secretary of the Interior’s Standards for Rehabilitation, as determined by the Vermont Division for Historic Preservation.
(7) “Qualified historic rehabilitation project” means an historic rehabilitation project that has received federal certification for the rehabilitation project.
(8) “Qualified project” means a qualified code improvement, qualified façade improvement, or qualified historic rehabilitation project as defined by this subchapter.
(9) “State Board” means the Vermont Downtown Development Board established pursuant to 24 V.S.A. chapter 76A.
(Added 2005, No. 183 (Adj. Sess.), § 12; amended 2013, No. 199 (Adj. Sess.), §§ 8, 9; 2015, No. 57, § 71, eff. June 11, 2015; 2019, No. 71, § 4; 2019, No. 131 (Adj. Sess.), § 294; 2021, No. 182 (Adj. Sess.), § 5, eff. July 1, 2022; 2023, No. 181 (Adj. Sess.), § 69, eff. June 17, 2024.)
§ 5930bb Eligibility and administration
(a) Qualified applicants may apply to the State Board to obtain the tax credits provided by this subchapter for a qualified project at any time before the completion of the qualified project.
(b) To qualify for any of the tax credits under this subchapter, expenditures for the qualified project must exceed $5,000.00.
(c) Application shall be made in accordance with the guidelines set by the State Board.
(d) Beginning on July 1, 2025, under this subchapter no new tax credit may be allocated by the State Board to a qualified building located in a neighborhood development area unless specific funds have been appropriated for that purpose.
(Added 2005, No. 183 (Adj. Sess.), § 12; amended 2011, No. 143 (Adj. Sess.), § 22; 2013, No. 199 (Adj. Sess.), § 10; 2017, No. 69, § H.9, eff. June 28, 2017; 2021, No. 182 (Adj. Sess.), § 6, eff. July 1, 2022; 2023, No. 6, § 381, eff. July 1, 2023; 2023, No. 181 (Adj. Sess.), § 70, eff. June 17, 2024.)
§ 5930cc Downtown and Village Center Program tax credits
(a) Historic rehabilitation tax credit. The qualified applicant of a qualified historic rehabilitation project shall be entitled, upon the approval of the State Board, to claim against the taxpayer’s State individual income tax, corporate income tax, or bank franchise or insurance premiums tax liability a credit of 10 percent of qualified rehabilitation expenditures as defined in 26 U.S.C. § 47(c), properly chargeable to the federally certified rehabilitation.
(b) Façade improvement tax credit. The qualified applicant of a qualified façade improvement project shall be entitled, upon the approval of the State Board, to claim against the taxpayer’s State individual income tax, State corporate income tax, or bank franchise or insurance premiums tax liability a credit of 25 percent of qualified expenditures up to a maximum tax credit of $25,000.00.
(c) Code improvement tax credit. The qualified applicant of a qualified code improvement project shall be entitled, upon the approval of the State Board, to claim against the taxpayer’s State individual income tax, State corporate income tax, or bank franchise or insurance premiums tax liability a credit of 50 percent of qualified expenditures up to a maximum tax credit of $12,000.00 for installation or improvement of a platform lift, a maximum credit of $60,000.00 for the installation or improvement of a limited use or limited application elevator, a maximum tax credit of $75,000.00 for installation or improvement of an elevator, a maximum tax credit of $50,000.00 for installation or improvement of a sprinkler system, and a maximum tax credit of $100,000.00 for the combined costs of all other qualified code improvements.
(d) Flood Mitigation Tax Credit. The qualified applicant of a qualified flood mitigation project shall be entitled, upon the approval of the State Board, to claim against the taxpayer’s State individual income tax, State corporate income tax, or bank franchise or insurance premiums tax liability a credit of 50 percent of qualified expenditures up to a maximum tax credit of $100,000.00.
(Added 2005, No. 183 (Adj. Sess.), § 12; amended 2013, No. 199 (Adj. Sess.), § 11; 2015, No. 57, § 72, eff. June 11, 2015; 2019, No. 71, § 4; 2021, No. 105 (Adj. Sess.), § 548, eff. July 1, 2022; 2021, No. 182 (Adj. Sess.), § 10, eff. July 1, 2022; 2023, No. 181 (Adj. Sess.), § 71, eff. June 17, 2024.)
§ 5930dd Claims; availability
(a) A taxpayer claiming credit under this subchapter shall submit to the Department of Taxes with the first return on which a credit is claimed a copy of the State Board’s tax credit allocation.
(b) A credit under this subchapter shall be available for the first tax year in which the qualified project is complete. In the alternative, the State Board may allocate the credit available under this subchapter and make an allocation available upon completion of any distinct phase of a qualified project. The allocation and distinct phases of the qualified project shall be identified in the application package approved by the State Board.
(c) If within three years after the date of the credit allocation to the applicant no claim for tax credit has been filed, the tax credit allocation shall be rescinded, unless the project has an approved federal application for a phased (60 month) project pursuant to Treasury Regulation § 1.48-12(b)(2)(v), in which case the credit will not be rescinded until five years from the date of the credit allocation.
(d) Any unused credit under this section may be carried forward for no more than nine tax years following the first year for which the tax credit is claimed.
(e) In lieu of using a tax credit to reduce its own tax liability, an applicant may request the credit in the form of a bank credit certificate that a bank may accept in return for cash or may accept for adjusting the rate or term of the applicant’s mortgage or loan related to an ownership or leasehold interest in the qualified building. The amount of the bank credit certificate shall equal the unused portion of the credit allocated under this subchapter, and an applicant requesting a bank credit certificate shall provide to the State Board a copy of any returns on which any portion of the allocated credit under this section was claimed. A bank that purchases a bank credit certificate may use it to reduce its franchise tax liability under section 5836 of this title in the first tax year in which the qualified building is placed back in service after completion of the qualified project or in the subsequent nine years.
(f) In lieu of using a tax credit to reduce its own tax liability, an applicant may request the credit in the form of an insurance credit certificate that an insurance company may accept in return for cash and for use in reducing its tax liability under chapter 211, subchapter 7 of this title in the first tax year in which the qualified building is placed back in service after completion of the qualified project or in the subsequent nine years. The amount of the insurance credit certificate shall equal the unused portion of the credit allocated under this subchapter, and an applicant requesting an insurance credit certificate shall provide to the State Board a copy of any returns on which any portion of the allocated credit under this section was claimed.
(Added 2005, No. 183 (Adj. Sess.), § 12; amended 2009, No. 160 (Adj. Sess.), § 30; 2011, No. 45, § 18, eff. May 24, 2011; 2019, No. 71, § 4.)
§ 5930ee Limitations
Beginning in fiscal year 2010 and thereafter, the State Board may award tax credits to all qualified applicants under this subchapter, provided that:
(1) the total amount of tax credits awarded annually, together with sales tax reallocated under section 9819 of this title, does not exceed $3,000,000.00;
(2) a total annual allocation of no more than 30 percent of these tax credits in combination with sales tax reallocation may be awarded in connection with all of the projects in a single municipality;
(3) façade tax credits shall not be available for projects that qualify for the federal rehabilitation tax credit;
(4) no credit shall be allowed under this subchapter for the cost of acquiring any building or interest in a building;
(5) credit under any one subsection of 5930cc of this subchapter may not be allocated more often than once every two years with respect to the same building; and
(6) credit awarded under section 5930cc of this subchapter that is rescinded or recaptured by the State Board shall be available for the State Board to award to applicants in any subsequent year, in addition to the total amount of tax credits authorized under this section.
(Added 2005, No. 183 (Adj. Sess.), § 12; amended 2007, No. 81, § 23, eff. June 11, 2007; 2009, No. 54, § 29, eff. June 1, 2009; 2011, No. 45, § 19, eff. May 24, 2011; 2013, No. 174 (Adj. Sess.), § 35; 2017, No. 69, § H.8, eff. June 28, 2018; 2019, No. 71, § 4; 2019, No. 154 (Adj. Sess.), § E.802, eff. Oct. 2, 2020.)
§ 5930ff Recapture
If, within five years after completion of the qualified project, either of the following events occurs, the applicant shall be liable for a recapture penalty in an amount equal to the total tax credit claimed plus an amount equal to any value received from a bank for a bank or insurance credit certificate, and any credit allocated but unclaimed shall be disallowed to the applicant:
(1) The State Board finds that any work performed on the qualified project is inconsistent with the approved application; or the applicant knowingly failed to supply any information, or supplied incorrect or untrue information required by the State Board, or failed to comply with any award condition required by the State Board.
(2) The National Park Service revoked certification for unapproved alterations or for work not done as described in the historic preservation certification application.
(Added 2005, No. 183 (Adj. Sess.), § 12; amended 2009, No. 160 (Adj. Sess.), § 31.)
Subchapter 11L Research and Development Tax Credit
§ 5930ii Research and development tax credit
(a) A taxpayer of this State shall be eligible for a credit against the tax imposed under this chapter in an amount equal to 27 percent of the amount of the federal tax credit allowed in the taxable year for eligible research and development expenditures under 26 U.S.C. § 41(a) that are made within this State.
(b) Any unused credit available under subsection (a) of this section may be carried forward for up to 10 years.
(c) Each year, on or before January 15, the Department of Taxes shall publish a list containing the names of the taxpayers who have claimed a credit under this section during the most recent completed calendar year.
(Added 2009, No. 2 (Sp. Sess.), § 22; amended 2013, No. 174 (Adj. Sess.), § 37, eff. Jan. 1, 2014.)
Subchapter 11M Machinery and Equipment Investment Tax Credit
§ 5930ll Machinery and equipment tax credit [Applicable to taxable years beginning on and after January 1, 2012 and repealed effective July 1, 2030]
(a) Definitions. As used in this subchapter:
(1) “Full-time job” means a permanent position filled by an employee who works at least 35 hours per week.
(2) “Investment period” means the period commencing January 1, 2010 and ending December 31, 2014.
(3) “Qualified capital expenditures” means expenditures properly chargeable to a capital account by a qualified taxpayer during the investment period, totaling at least $20 million for machinery and equipment to be located and used in Vermont for creating, producing, or processing tangible personal property for sale.
(4) “Qualified taxpayer” means a taxpayer that:
(A) is an existing business on January 1, 2010 with an aggregate average annual employment, including all employees of its related business units with which it files a combined or consolidated return for Vermont income tax purposes, during the investment period of no fewer than 200 full-time jobs in Vermont;
(B) is a taxable corporation under Subchapter C of the Internal Revenue Code;
(C) is a business whose operations at the time of application to the Vermont Economic Progress Council are located in a Rural Economic Area Partnership (REAP) zone designated by the U.S. Department of Agriculture Rural Development Authority, engaged primarily in the creation, production, or processing of tangible personal property for sale; and
(D) proposes to make qualified capital expenditures in a Vermont REAP zone and such expenditures will contribute substantially to the REAP zone’s economy.
(5) “Qualified taxpayer’s Vermont income tax liability” means the corporate income tax otherwise due on the qualified taxpayer’s Vermont net income after reduction for any Vermont net operating loss as provided for under section 5832 of this title. For a qualified taxpayer that is a member of an affiliated group and that is engaged in a unitary business with one or more other members of that affiliated group, its Vermont net income includes the allocable share of the combined net income of the group.
(b) Certification.
(1) A qualified taxpayer may apply to the Vermont Economic Progress Council for a machinery and equipment investment tax credit certification for all qualified capital expenditures in the investment period on a form prescribed by the council for this purpose.
(2) The Council shall issue a certification upon determining that the applicant meets the requirements set forth in subsection (a) of this section.
(c) Amount of credit. Except as limited by subsections (e) and (f) of this section, a qualified taxpayer shall be entitled to claim against its Vermont income tax a credit in an amount equal to ten percent of the total qualified capital expenditures.
(d) Availability of credit.
(1) The credit earned under this section with respect to qualified capital expenditures shall be available to reduce the qualified taxpayer’s Vermont income tax liability for its tax year beginning on or after January 1, 2012 or, if later, the first tax year within which the qualified taxpayer’s aggregate qualified capital expenditures exceed $20,000,000.00. A taxpayer claiming a credit under this subchapter shall submit with the first return on which a credit is claimed a copy of the qualified taxpayer’s certification from the Vermont Economic Progress Council.
(2) The credit may be used in the year earned or carried forward to reduce the qualified taxpayer’s Vermont income tax liability in succeeding tax years ending on or before December 31, 2030.
(e) Limitations.
(1) The credit earned under this section, either alone or in combination with any other credit allowed by this chapter, may not be applied to reduce the qualified taxpayer’s Vermont income tax liability in any one year by more than 80 percent, and in no event shall the credit reduce the taxpayer’s income tax liability below any minimum tax imposed by this chapter.
(2) The total amount of credit authorized under this section shall be $8,000,000.00, and in no event shall the credit in any one tax year exceed $1,000,000.00. The credit shall be available on a first-come, first-served basis by certification of the Vermont Economic Progress Council pursuant to subsection (b) of this section.
(f) Recapture.
(1) A qualified taxpayer who has earned credit under this section with respect to its qualified capital expenditures shall notify the Vermont Economic Progress Council in writing within 60 days if the taxpayer’s trade or business is substantially curtailed in any calendar year prior to December 31, 2023.
(2) A qualified taxpayer’s business shall be considered to be substantially curtailed when the average number of the taxpayer’s full-time jobs in Vermont for any calendar year prior to December 31, 2023 is less than 60 percent of the highest average number of its full-time jobs in Vermont for any calendar year in the investment period. For purposes of the preceding calculation, the qualified taxpayer’s full-time jobs in Vermont shall include all full-time jobs in Vermont of its related business units with which it files a combined or consolidated return for Vermont income tax purposes. A business shall not be considered to be substantially curtailed when the assets of the business have been sold but the business continues to be located in Vermont, provided that the employment test of this subdivision is met.
(3) In the event that a qualified taxpayer has substantially curtailed its trade or business, then:
(A) the credit certification for such tax year and all succeeding tax years of the taxpayer shall be terminated;
(B) any credit previously earned and carried forward shall be disallowed; and
(C) any credit that has been previously used by the taxpayer to reduce its Vermont income tax liability shall be subject to recapture in accordance with the following table:
| | Years between the close of the tax year credit was earned and year business was substantially curtailed: | Percent of credits to be when repaid (%): | | --- | --- | --- | | | 2 or less | 100 | | | More than 2, up to 4 | 80 | | | More than 4, up to 6 | 60 | | | More than 6, up to 8 | 40 | | | More than 8, up to 10 | 20 | | | More than 10 | 0 |
(4) The recapture shall be reported on the income tax return of the taxpayer who claimed the credit for the tax year in which the taxpayer’s trade or business was substantially curtailed, or the Commissioner may assess the recapture in accordance with the assessment and appeal provisions provided for in subchapter 8 of this chapter.
(5) Within 60 days of the close of the qualified taxpayer’s tax year in which the taxpayer’s trade or business was substantially curtailed, the taxpayer may petition the Commissioner for a reduction in the amount of the credit subject to recapture and the disallowance of credit previously earned and carried forward. The Commissioner shall hold a hearing within 45 days of the receipt of the taxpayer’s petition. The Commissioner shall have the discretion to reduce the amount of the credit subject to recapture and disallowance upon a showing of circumstances that contributed to the substantial curtailment of the taxpayer’s trade or business. The decision of the Commissioner shall be final and shall not be subject to judicial review.
(g) Reporting.
(1) Any qualified taxpayer who has been certified under subsection (b) of this section shall file a report with the Vermont Economic Progress Council on a form prescribed by the Council for this purpose and provide a copy of the report to the Commissioner of Taxes.
(2) The report shall be filed for each year following the certification until the year following the last year the taxpayer claims the credit to reduce its Vermont income tax liability, or 2031, whichever occurs first.
(3) The report shall be filed by the due date of the taxpayer’s tax return, including extensions, in each year for activity the previous calendar year and include, at a minimum:
(A) the number of full-time jobs in each quarter and the average number of hours worked per week;
(B) the level of qualifying capital investments made if reporting on a year within an investment period; and
(C) the amount of tax credit earned and applied during the previous calendar year.
(Added 2009, No. 156 (Adj. Sess.), § H.1; amended 2015, No. 157 (Adj. Sess.), § H.8, eff. Jan. 1, 2017; repealed on July 1, 2030 pursuant to 2009, No. 156 (Adj. Sess.), § H.2; 2023, No. 144 (Adj. Sess.), § 16, eff. July 1, 2024.)
§ 5930ll Repealed
[Repealed]
(Added 2009, No. 156 (Adj. Sess.), § H.1; amended 2015, No. 157 (Adj. Sess.), § H.8, eff. Jan. 1, 2017; repealed on July 1, 2030 pursuant to 2009, No. 156 (Adj. Sess.), § H.2; 2023, No. 144 (Adj. Sess.), § 16, eff. July 1, 2024.)
Subchapter 11N Recently Deployed Veteran Tax Credit
§ 5930nn Recently deployed veteran tax credit
(a) A qualified employer shall be eligible for a nonrefundable credit against the income tax liability imposed under this chapter in an amount equal to $2,000.00 for each new full-time employee hired after May 24, 2011 but on or before December 31, 2012 for a position, the majority of the duties of which are at a business location within Vermont.
(b) A recently deployed veteran shall be eligible for a nonrefundable credit against the income tax liability imposed under this chapter in an amount up to a total of $2,000.00 for expenses associated with one start-up business in which the recently deployed veteran holds at least a 50-percent ownership interest. A credit under this subsection may only be taken for a business started after May 24, 2011 but on or before December 31, 2012, that is located within Vermont, and that shows a net profit of at least $3,000.00 for the year in which the credit is taken.
(c) A credit earned under this section shall be claimed in the tax year following the new full-time employee’s date of hire, or in the tax year following the date that the start-up business was created, and may be carried forward one year.
(d) In this section:
(1) “Expense associated with a start-up business” means the following expenses:
(A) expenses associated with the development of a business plan;
(B) professional services associated with the formation of the business (e.g., attorney and accounting services);
(C) an analysis or survey of potential markets, products, labor supply, or transportation facilities;
(D) advertisements for the opening of the business;
(E) salaries and wages for employees who are being trained and their instructors;
(F) travel and other necessary costs for securing prospective distributors, suppliers, or customers; and
(G) salaries and fees for executives and consultants, or for similar professional services.
(2) “New full-time employee” means a recently deployed veteran:
(A) who works at least 35 hours per week for not less than 45 of the 52 weeks following the individual’s date of hire;
(B) whose compensation equals or exceeds the prevailing compensation level, including wages and benefits, for the particular employment sector and region of the State as determined by the Commissioner of Labor;
(C) who has certification by the Department of Labor at the time of hire of:
(i) collecting or being eligible to collect unemployment benefits; or
(ii) having exhausted his or her unemployment benefits; and
(D) who has not been employed by the qualified employer for 90 days prior to the date of hire.
(3) “Qualified employer” means a person who:
(A) is in good standing with respect to applicable registration, fee, and filing requirements with the Secretary of State, the Department of Taxes, and the Department of Labor; and
(B) has in place a valid workers’ compensation policy.
(4) “Recently deployed veteran” means an individual who:
(A)(i) was a resident of Vermont at the time of entry into military service; or
(ii) was mobilized to active, federal military service while a member of the Vermont National Guard or other reserve unit located in Vermont, regardless of the resident’s home of record;
(B) received an honorable or general discharge from active, federal military service within the two-year period preceding the date of hire; and
(C) for the purposes of the credit in subsection (b) of this section, a person who at the time of starting up a new business has been certified by the Department of Labor as:
(i) collecting or being eligible to collect unemployment benefits; or
(ii) having exhausted his or her unemployment benefits.
(e) The Department of Labor, in coordination with the Department of Taxes, the Agency of Commerce and Community Development, and the Office of Veterans’ Affairs, shall:
(1) promote awareness of the recently deployed veteran tax credit authorized in this section to employers and eligible veterans;
(2) establish procedures for prequalifying an individual as a recently deployed veteran and for providing notice to the Department of Labor when a new full-time employee is hired;
(3) establish procedures for certifying a qualified employer’s compliance or, in the case of a credit under subsection (b) of this section, a recently deployed veteran’s compliance, with the eligibility and expense verification requirements to claim the credit authorized under this section;
(4) adopt measurable goals, performance measures that demonstrate results, and an audit strategy to assess the utilization and performance of the credit authorized in this section; and
(5) engage in efforts to promote the hiring of recently deployed veterans through the hiring practices of the State of Vermont.
(6) [Repealed.]
(f) An employer shall not claim the credit in subsection (a) of this section for an employee who has claimed the credit under subsection (b) of this section, and a recently deployed veteran shall not claim the credit in subsection (b) if an employer has claimed his or her hire for the credit in subsection (a).
(Added 2011, No. 44, § 1, eff. May 24, 2011; amended 2015, No. 11, § 34.)
Subchapter 12 Setoff Debt Collection
§ 5931 Short title
This subchapter may be cited as the Vermont Setoff Debt Collection Act.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982.)
§ 5932 Definitions
As used in this chapter:
(1) “Claimant agency” means any unit of State government, including agencies, departments, boards, commissions, authorities, or public corporations, including the Vermont Student Assistance Corporation and a collection agency under contract with the Court Administrator pursuant to 4 V.S.A. § 1109(d) or 13 V.S.A. § 7171. Notwithstanding the foregoing, the Department of Taxes shall not be considered a claimant agency and shall not be subject to the limitations contained in this chapter when it applies a refund to the outstanding Vermont State tax liability of a taxpayer, including a taxpayer’s liability for interest, penalties, and fees.
(2) “Debtor” means any individual owing a debt to a claimant agency or owing any support debt that may be collected by the Department for Children and Families.
(3) “Nondebtor spouse” means any individual who is not a debtor, but has filed a joint income tax return or claim under chapter 154 of this title with a debtor.
(4) “Debt” means any obligation to pay a sum of money to a claimant agency, the amount of which is fixed by agreement between the debtor and the claimant agency or by operation of law.
(5) “Department” means the Vermont Department of Taxes.
(6) “Refund” means any individual’s State income tax refund under chapter 151 of this title and any payment due a claimant under chapter 154 of this title.
(7) “Support debt” means a support delinquency pursuant to an obligation determined under a court order or as a result of an administrative process established by this or another state.
(8) “Court” means a Superior Court or the Judicial Bureau.
(9) “Judgment debtor” means any person who has not paid in full a court judgment for payment of a fine, penalty, surcharge, or fee, but not damages, due and payable to the State or a political subdivision thereof.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 1985, No. 63, §§ 15, 15a; 1987, No. 278 (Adj. Sess.), § 14, eff. June 21, 1988; 1999, No. 147 (Adj. Sess.), § 4; 2001, No. 144 (Adj. Sess.), § 26, eff. June 21, 2002; 2003, No. 57, § 13, eff. July 1, 2004; 2005, No. 38, § 11, eff. June 2, 2005; 2005, No. 167 (Adj. Sess.), § 4, eff. Sept. 1, 2006; 2005, No. 174 (Adj. Sess.), § 64; 2007, No. 33, § 3, eff. May 18, 2007; 2009, No. 4, § 115, eff. April 24, 2009; 2009, No. 154 (Adj. Sess.), § 216.)
§ 5933 Collection of debts through setoff
(a) A claimant agency may submit any debt of $45.00 or more to the Department for collection under the procedure established by this chapter. This setoff debt collection remedy is in addition to and not in substitution for any other remedy available by law.
(b) The Department shall, upon request of a claimant agency, set off any refund that it owes to a debtor against the amount of debt certified by a claimant agency in accordance with the procedure established by section 5934 of this chapter.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2019, No. 175 (Adj. Sess.), § 25a, eff. Oct. 8, 2020.)
§ 5934 Procedure for setoff
(a) Annually, on or before a date specified by the Department, a claimant agency shall supply the Department with information necessary to identify each debtor whose refund is sought to be set off and shall certify in writing the amount of each debt submitted to the Department for collection through setoff.
(b) If a debtor identified by a claimant agency is entitled to a refund, the Department shall transfer to the claimant agency an amount equal to the refund owed or the amount of the debt certified by the claimant agency, whichever is less.
(c) Prior to requesting the Department to reduce a taxpayer’s refund by the amount of certified debt in accord with this subchapter, the claimant agency shall notify the debtor at the debtor’s last known address. The notice shall state that the agency intends to request a setoff and shall advise the debtor of the procedure, the amount and basis for the alleged debt, and that the debtor may contest the validity and amount of the debt sought to be collected through setoff by applying in writing for a hearing before the claimant agency within 30 days of the date of mailing of the notice. The notice shall also include the name and mailing address of the claimant agency to which the application for a hearing must be sent and shall advise the taxpayer that failure to apply in writing for a hearing within the 30-day period will be deemed a waiver of the opportunity to contest the setoff.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 1997, No. 156 (Adj. Sess.), § 9, eff. April 29, 1998.)
§ 5935 Joint returns
(a) With respect to State income tax refunds under chapter 151 of this title and renter credit payments due a claimant under chapter 154 of this title, when the Department transfers funds payable on a joint return to a claimant agency and only one of the spouses filing the return is identified as a debtor of the claimant agency, the nondebtor spouse may, within 30 days after the date of mailing of the notice to the taxpayer described in subsection 5934(c) of this subchapter, petition the Department in writing for a return of that portion of the refund attributable to the income of the nondebtor spouse. The Commissioner shall thereafter conduct a hearing at which the nondebtor spouse shall bear the burden of establishing what portion of a refund transferred to a claimant agency, if any, is attributable to the nondebtor’s income.
(b) With respect to payments due a claimant under chapter 154 of this title based on property ownership, when the Department transfers funds payable on a claim filed with a joint return to a claimant agency and only one of the spouses filing the return is identified as a debtor of the claimant agency, the nondebtor spouse may, within 30 days of the date of mailing of the notice to the taxpayer described in subsection 5934(c) of this title, petition the Department in writing for a return of that portion of the claim equal to the ownership share that the nondebtor spouse holds in the property upon which the claim is based. If the property is held as tenancy by the entirety, the claim shall be divided equally. The Commissioner shall thereafter conduct a hearing at which the nondebtor spouse shall bear the burden of establishing his or her ownership interest in the property.
(c) The final determination of the Commissioner regarding the amount of a refund attributable to the income of a nondebtor spouse or the ownership interest of a nondebtor spouse may be appealed in the same manner as income tax appeals under subsection 5885(b) of this title.
(d) Upon receipt of a petition under this section, the Department shall notify each claimant agency to which funds payable on a joint return or claim have been transferred that the petition is pending. If it is established that any amount of a refund or claim transferred to a claimant agency is attributable to the income or ownership interest of a nondebtor spouse, that amount shall be refunded to the nondebtor spouse.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2003, No. 70 (Adj. Sess.), § 45, eff. March 1, 2004; 2021, No. 105 (Adj. Sess.), § 549, eff. July 1, 2022; 2023, No. 6, § 383, eff. July 1, 2023.)
§ 5936 Hearing procedure
(a) If a debtor applies in writing for a hearing before a claimant agency within 30 days of the date of mailing of the notice described in subsection 5934(c) of this chapter, the claimant agency shall conduct a hearing to determine the validity and amount of debt owed by the debtor. The hearing shall be held in accordance with 3 V.S.A. §§ 809 through 813.
(b) The final determination of any claimant agency regarding the validity and amount of any debt may be appealed within 30 days to the Civil Division of the Superior Court of the unit in which the taxpayer resides, except that if the claimant agency is the Office of Child Support, the appeal shall be to the Family Division of the Superior Court. Upon appeal, the provisions of the Vermont Rules of Civil Procedure or the Vermont Rules for Family Proceedings, as appropriate, shall apply, and the court shall proceed de novo to determine the debt owed.
(c) Upon conclusion of the hearings and appeals granted under this section, and upon notification by the Commissioner of the result of any appeal under section 5935 of this chapter, a claimant agency shall notify each taxpayer whose refund is set off that a final setoff has occurred. The notice shall include the amount of refund transferred to the claimant agency, the amount of debt finally determined to be owed to the claimant agency, the amount of refund, if any, returned to a non-debtor spouse, and the amount of any outstanding balance due the debtor after final setoff. The claimant agency shall disburse any outstanding balance due the debtor along with the notice of the final setoff.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 1997, No. 63, § 20, eff. Sept. 1, 1997; 2009, No. 154 (Adj. Sess.), § 217.)
§ 5937 Priorities in claims to setoff
(a) Priority in multiple claims to refunds allowed to be set off under the provisions of this chapter shall be in descending order of magnitude.
(b) Notwithstanding the priority set forth in subsection (a) of this section, the Department may apply a refund to the outstanding Vermont State tax liability of a taxpayer, including a taxpayer’s liability for interest, penalties, and fees, before any portion of a refund is transferred to a claimant agency.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2021, No. 105 (Adj. Sess.), § 550, eff. July 1, 2022.)
§ 5938 Collection assistance fees
Annually, the Department shall determine the actual per-offset costs incurred by the Department in setting off debts and, notwithstanding section 502 of this title, the Department may assess against a debtor a collection assistance fee equal to the per-offset cost so determined.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2009, No. 160 (Adj. Sess.), § 6.)
§ 5939 Confidentiality exemption; nondisclosure
(a) Notwithstanding any other provision of law prohibiting disclosure by the Department of the contents of taxpayer records or information and notwithstanding any confidentiality statute of any claimant agency, disclosure of the name, address, and Social Security number of a debtor; amount of refund owed to a debtor; amount of debt owed by a debtor; and amount of refund attributable to the income of non-debtor spouse, between the Department and the claimant agency as necessary to effectuate the intent of this chapter, is lawful.
(b) The information obtained by a claimant agency from the Department in accordance with the exemption allowed by this section shall only be used by a claimant agency in the pursuit of its debt collection duties and practices, and any person employed by, or formerly employed by, a claimant agency who discloses any such information for any other purpose, except as otherwise allowed by law, shall be penalized in accordance with the terms of section 3102 of this title as if that person were an agent of the Commissioner. The claimant agency to which information is disclosed shall provide for the protection and security of the information as required by the Commissioner.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2005, No. 14, § 12, eff. May 3, 2005.)
§ 5940 Rules and regulations
The Commissioner of Taxes and the head of any claimant agency are authorized to prescribe forms and make procedural rules and regulations under 3 V.S.A. chapter 25 that they deem necessary to effectuate the purposes of this subchapter, to include identification of any information regarding the debtor and the debt, holding of hearings, assessment and transfer of funds, and exchange and security of information.
(Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982.)
§ 5941 Procedure for setoff of court judgments
(a) The court shall include in any judgment a notice that any unpaid amount of a fine, penalty, surcharge, or fee, but not damages, may be certified to the Department for a setoff on the judgment debtor’s income tax refund and property tax credit under chapter 154 of this title, and the notice shall explain how the judgment debtor may challenge the certification.
(b) Subsection 5934(c) and section 5936 of this title, relating to the procedure for contesting the debt, shall not apply to a court seeking setoff from a judgment debtor under this subchapter.
(c) Notwithstanding section 502 of this title, the Department may assess against the judgment debtor a collection assistance fee in an amount established pursuant to section 5938 of this title.
(d) If a judgment debtor identified by the court clerk is entitled to a refund, the Department shall retain the collection assistance fee and then transfer to the court in which the judgment was issued an amount equal to the refund owed or the amount unpaid, whichever is less.
(e) The Court Administrator may contract with one or more collection agencies to serve as a claimant agency on behalf of a court for purposes of this subchapter.
(Added 2005, No. 167 (Adj. Sess.), § 5, eff. Sept. 1, 2006; amended 2007, No. 33, § 4, eff. May 18, 2007; 2009, No. 4, § 116, eff. April 24, 2009; 2021, No. 105 (Adj. Sess.), § 551, eff. July 1, 2022.)
§ 5942 Offset for taxes owed in another state; reciprocity
(a) Upon the request and certification of a tax officer of a claimant state to the Commissioner that a taxpayer owes taxes to the claimant state and that the debt is fixed and no longer subject to appeal under the laws of that state, the Commissioner may set off any refund that it owes to the taxpayer against the amount of the certified debt and pay that amount to the requesting state.
(b) The Commissioner shall not set off any debt unless the laws of the requesting state allow the Commissioner, in cases where the taxpayer owes taxes to this State, to certify that a tax is owed and to request a tax officer of the requesting state to set off any refund owed to the taxpayer and pay that amount to this State.
(Added 2009, No. 160 (Adj. Sess.), § 7, eff. June 4, 2010.)
Subchapter 13 Franchise Tax on Waste Facilities
§ 5951 Definitions; general provisions
(a) As used in this subchapter, all terms defined in 10 V.S.A. § 6602 shall have the same meaning that they have for purposes of 10 V.S.A. chapter 159.
(b) To the extent that they are not in conflict with the provisions of this section, the provisions of subchapters 1, 6, 7, 8, 9, and 10 of this chapter shall apply to the tax imposed by this subchapter.
(Added 1987, No. 78, § 17.)
§ 5952 Imposition of tax
(a)(1) A tax is imposed for each calendar quarter or part thereof upon the franchise or privilege of doing business of every person required by 10 V.S.A. chapter 159 to obtain certification for a facility. The tax shall be imposed in the amount of $6.00 per ton of waste delivered for disposal or incineration at the facility, regardless of the amount charged by the operator to recoup its expenses of operation, including the expense of this tax.
(2) The tax shall be similarly imposed on waste delivered to a transfer facility for shipment to an incinerator or other treatment facility or disposal facility that is located outside the State. However, if the transfer station is located within a district that is authorized by an interstate compact to enter into cooperative agreements with a district in another state, the tax shall only be imposed if the treatment or disposal facility is located outside the State and also outside the cooperating district in another state. For purposes of this determination, a treatment or disposal facility may be considered to be located within a district only if that district existed before July 1, 1987.
(3) The tax shall be similarly imposed on waste shipped to an incinerator or other treatment facility or disposal facility that is located outside the State, without having been delivered to a transfer station located in this State. In this situation, the tax is imposed for each calendar quarter or part thereof upon the franchise or privilege of doing business of every person regulated under 10 V.S.A. § 6607a as a commercial hauler of solid waste. This tax shall not be imposed on waste exempt under subdivision (2) of this subsection.
(b) The tax imposed by this section shall be in addition to any other taxes imposed on the taxpayer.
(c) If a return required by this chapter is not filed or if a return, when filed, is incorrect or insufficient, the Commissioner shall determine the amount of tax due from any information available. If adequate information is not available to determine the tax otherwise due under this section, the Commissioner may assess a tax at the rate of $3.50 per year per person served by the facility. The number of persons served by a facility shall be determined by the Commissioner based upon any available information and with regard given to seasonal and recreational use.
(d) Every person required to pay the tax imposed by this subchapter shall use a weight scale that accurately gauges the weight of the waste and shall keep accurate contemporaneous records of the volume or weight of all waste delivered for disposal; provided, however, that a landfill receiving less than 1,000 tons of municipal solid waste per year that does not have scales that accurately gauge the weight of the waste may compute weight indirectly from volume using accurate records of the volume of waste delivered for disposal and a conversion rate approved by the Commissioner. The taxpayer’s records relating to imposition of the tax imposed by this subchapter shall be available for inspection or examination at any time upon demand by the Commissioner of Taxes or the Secretary of Natural Resources, their duly authorized agents, or employees and shall be preserved for a period of three years.
(Added 1987, No. 78, § 17; amended 1987, No. 246 (Adj. Sess.), § 5, eff. June 13, 1988; 1987, No. 278 (Adj. Sess.), §§ 7, 8, eff. June 21, 1988; 1989, No. 218 (Adj. Sess.), § 5; 1993, No. 81, § 6; 1995, No. 186 (Adj. Sess.), § 21; 2005, No. 94 (Adj. Sess.), § 6, eff. March 8, 2006.)
§ 5953 Exemptions
The following shall not be subject to the tax imposed by section 5952 of this title:
(1) wastes delivered to a recycling or composting facility and accepted by the facility for recycling or composting, but not wastes generated by that facility;
(2) septage or sludge delivered to a facility other than a landfill or incinerator;
(3) hazardous wastes subject to the tax imposed under 32 V.S.A. chapter 237;
(4) solid waste delivered to a facility certified pursuant to 10 V.S.A. § 6605c;
(5) roadside wastes delivered to a landfill when the landfill operator certifies that he or she has accepted those wastes without fee on a duly designated green-up day or the business day immediately following;
(6) waste delivered to a transfer station for transfer to a disposal facility located inside the State and waste delivered to a facility for storage as defined in 10 V.S.A. § 6602(7); and
(7) solid waste resulting from mining, extraction, or mineral processing operations delivered to a facility certified solely for the treatment, storage, recycling, or disposal of such waste.
(Added 1987, No. 78, § 17; amended 1987, No. 139 (Adj. Sess.), eff. April 8, 1988; 1987, No. 278 (Adj. Sess.), §§ 9, 10, eff. June 21, 1988; 1995, No. 186 (Adj. Sess.), § 22; 2005, No. 65, § 4.)
§ 5954 Filing of return and payment of tax
(a) Every person required to pay this tax shall, on or before the 30th day of the month following each calendar quarter, file a return with the Commissioner of Taxes and pay the amount of tax due. The Commissioner may require a return to be filed for quarters in which no tax is due.
(b) Copies of this return shall be filed with the Secretary of Natural Resources at the same time, or as otherwise required by the Secretary. Information filed with the Secretary under this section shall be a public record and made available by the Agency in accordance with the provisions of 1 V.S.A. chapter 5 without being subject to the exception created by 1 V.S.A. § 317(c)(6).
(Added 1987, No. 78, § 17; amended 1995, No. 186 (Adj. Sess.), § 23, eff. May 22, 1996; 2015, No. 134 (Adj. Sess.), § 15.)
Chapter 153 Property Tax Rebates and Credits
§§ 5961-5978 Repealed
[Repealed]
1997, No. 60, § 52b, eff. Jan. 1, 1999.
Chapter 154 Homestead property tax exemption, municipal property tax credit, and renter credit
§ 6061 Definitions [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
As used in this chapter unless the context requires otherwise:
(1) “Property tax credit” means a credit of the prior tax year’s statewide or municipal property tax liability or a homestead owner credit, as authorized under section 6066 of this title, as the context requires.
(2) [Repealed.]
(3)(A) “Household” means, for any individual and for any taxable year, the individual and such other persons as resided with the individual in the principal dwelling at any time during the taxable year.
(B) The following shall not be considered members of the household:
(i) a person who is not related to any member of the household and who is residing in the household under a written homesharing agreement pursuant to a nonprofit homesharing program;
(ii) a person residing in the household who was granted humanitarian parole to enter the United States pursuant to 8 U.S.C. § 1182(d)(5), who is seeking or has been granted asylum pursuant to 8 U.S.C. § 1158, or who qualifies as a refugee pursuant to 8 U.S.C. § 1101(a)(42), provided the person is not eligible under the laws of the United States to apply for adjustment of status to lawful permanent resident; or
(iii) a person residing in a household who is hired as a bona fide employee to provide personal care to a member of the household and who is not related to the person for whom the care is provided.
(4)(A) “Household income” means modified adjusted gross income, but not less than zero, received in a calendar year by:
(i) all persons of a household while members of that household; and
(ii) the spouse of the claimant who is not a member of that household and who is not legally separated from the claimant in the taxable year as defined in subdivision (9) of this section, unless the spouse is at least 62 years of age and has moved to a nursing home or other care facility with no reasonable prospect of returning to the homestead.
(B) “Household income” does not mean:
(i) the modified adjusted gross income of the spouse or former spouse of the claimant for any period that the spouse or former spouse is not a member of the household, if the claimant is legally separated or divorced from the spouse in the taxable year as defined in subdivision (9) of this section; or
(ii) the modified adjusted gross income of the spouse of the claimant, if the spouse is subject to a protection order as defined in 15 V.S.A. § 1101(5) that is in effect at the time the claimant reports household income to the Department of Taxes.
(5) “Modified adjusted gross income” means “federal adjusted gross income”:
(A) Before the deduction of any trade or business loss from a sole proprietorship, loss from a partnership, loss from a limited liability company or “subchapter S” corporation, loss from a rental property, or capital loss, except that in the case of a business that sells a business property with respect to which it is required, under the Internal Revenue Code, to report a capital gain, a business loss incurred in the same tax year with respect to the same business may be netted against such capital gain, and except that a business loss from a sole proprietorship may be netted against a business gain from a sole proprietorship, as long as the loss and the gain are incurred in the same tax year with respect to different business.
(B) With the addition of the following, to the extent not included in adjusted gross income: alimony, support money other than gifts, gifts received by the household in excess of a total of $6,500.00 in cash or cash-equivalents, cash public assistance and relief (not including relief granted under this subchapter), cost of living allowances paid to federal employees, allowances received by dependents of servicemen and women, the portion of Roth IRA distributions representing investment earnings and not included in adjusted gross income, railroad retirement benefits, payments received under the federal Social Security Act, all benefits under Veterans’ Acts, federal pension, and annuity benefits not included in adjusted gross income, nontaxable interest received from the state or federal government or any of its instrumentalities, workers’ compensation, the gross amount of “loss of time” insurance, and the amount of capital gains excluded from adjusted gross income, less the net employment and self-employment taxes withheld from or paid by the individual (exclusive of any amounts deducted to arrive at adjusted gross income or deducted on account of excess payment of employment taxes) on account of income included under this section, less any amounts paid as child support money if substantiated by receipts or other evidence that the Commissioner may require.
(C) Without the inclusion of: any gifts from nongovernmental sources other than those described in subdivision (B) of this subdivision (5), surplus food or other relief in kind supplied by a governmental agency, or the first $6,500.00 of income earned by a full-time student who qualifies as a dependent of the claimant under the federal Internal Revenue Code, the first $6,500.00 of income received by a person who qualifies as a dependent of the claimant under the Internal Revenue Code and who is the claimant’s parent or adult child with a disability, any income attributable to cancellation of debt, or payments made by the State pursuant to 33 V.S.A. chapters 49 and 55 for foster care, or payments made by the State or an agency designated in 18 V.S.A. § 8907 for adult foster care or to a family for the support of a person who is eligible and who has a developmental disability. If the Commissioner determines, upon application by the claimant, that a person resides with a claimant who has a disability or was at least 62 years of age as of the end of the year preceding the claim, for the primary purpose of providing attendant care services as defined in 33 V.S.A. § 6321 or homemaker or companionship services, with or without compensation, which allow the claimant to remain in his or her home or avoid institutionalization, the Commissioner shall exclude that person’s modified adjusted gross income from the claimant’s household income. The Commissioner may require that a certificate in a form satisfactory to him or her be submitted that supports the claim.
(D) Without the inclusion of adjustments to total income except certain business expenses of reservists, one-half of self-employment tax paid, alimony paid, deductions for tuition and fees, health insurance costs of self-employed individuals, and health savings account deductions.
(E) With the addition of an asset adjustment of 1 times the sum of interest and dividend income included in household income above $10,000.00 for claimants under age 65, regardless of whether that dividend or interest income is included in federal adjusted gross income.
(6) “Property tax” means the amount of ad valorem taxes, exclusive of special assessments, interest, penalties, and charges for service, assessed on real property in this State used as the claimant’s housesite, or that would have been assessed if the homestead had been properly declared at the time of assessment.
(7)(A) “Allocable rent” means, for any housesite and for any taxable year, 21 percent of the gross rent.
(B) “Gross rent” means the rent actually paid during the taxable year by the claimant solely for the right of occupancy of the housesite during the taxable year.
(C) “Fair market rent” means the monthly fair market rent for the area in which the claimant resides as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. § 1437f as of June 30 of the taxable year multiplied by 12, provided that for claimants who reside in Franklin or Grand Isle county, “fair market rent” means the average of the fair market rents for the State as determined by the U.S. Department of Housing and Urban Development.
(8) “Annual tax levy” means the property taxes levied on property taxable on April 1 and without regard to the year in which those taxes are due or paid.
(9) “Taxable year” means the calendar year preceding the year in which the claim is filed.
(10) [Repealed.]
(11) “Housesite” means that portion of a homestead, as defined under subdivision 5401(7) of this title but not under subdivision 5401(7)(G) of this title, that includes as much of the land owned by the claimant surrounding the dwelling as is reasonably necessary for use of the dwelling as a home, but in no event more than two acres per dwelling unit, and, in the case of multiple dwelling units, not more than two acres per dwelling unit up to a maximum of 10 acres per parcel.
(12) “Claim year” means the year in which a claim is filed under this chapter.
(13) “Homestead” means a homestead as defined under subdivision 5401(7) of this title, but not under subdivision 5401(7)(G) of this title, and declared on or before October 15 in accordance with section 5410 of this title.
(14) “Statewide education tax rate” means the homestead education property tax rate multiplied by the municipality’s education spending adjustment under subdivision 5402(a)(2) of this title and used to calculate taxes assessed in the municipal fiscal year that began in the taxable year.
(15) “Adjusted property tax” means the amount of education and municipal property taxes on the homestead parcel after reduction for any property tax credit under section 6066a of this chapter.
(16) “Unadjusted property tax” means the amount of education and municipal property taxes on the homestead parcel before any reduction for a property tax credit under section 6066a of this chapter.
(17) “Equalized value of the housesite in the taxable year” means the value of the housesite on the grand list for April 1 of the taxable year, divided by the number resulting from dividing the municipality’s common level of appraisal of the taxable year by the statewide adjustment of the taxable year as defined in subdivision 5401(17) of this title.
(18) Notwithstanding subdivisions (4) and (5) of this section, for the purposes of the renter credit, “income” means federal adjusted gross income increased by the following:
(A) trade or business loss from a sole proprietorship, loss from a partnership, loss from a limited liability company or “subchapter S” corporation, loss from a rental property, capital loss, loss from an estate or trust, loss from a real estate mortgage investment conduit, farm rental loss, any loss associated with the sale of business property, and farm losses included in adjusted gross income;
(B) exempt interest received or accrued during the taxable year;
(C) 75 percent of the portion of Social Security benefits as defined under 26 U.S.C. § 86(d) that is excluded from gross income under 26 U.S.C. § 86 for the taxable year; and
(D) to the extent excluded from federal adjusted gross income, educator expenses; certain business expenses of reservists, performing artists, and fee-basis government officials; health savings account deductions; moving expenses for members of the U.S. Armed Forces; the deductible part of self-employment tax; self-employed SEP, SIMPLE, and qualified plan deductions; self-employed health insurance deductions; the penalty for early withdrawal of savings; alimony paid; certain IRA retirement savings deductions; student loan interest deductions; and tuition and fees deductions.
(19) “Extremely low-income limit” means the limit as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. § 1437a as of June 30 of the taxable year, provided that for claimants who reside in Franklin or Grand Isle county, “extremely low-income limit” means the average of the extremely low-income limits for the State as determined by the U.S. Department of Housing and Urban Development.
(20) “Very low-income limit” means an amount of income 1.3 times the amount of the income limit for very low-income families as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. § 1437a as of June 30 of the taxable year, provided that for claimants who reside in Franklin or Grand Isle County, “very low-income limit” means 1.3 times the average of the very low-income limits for the State as determined by the U.S. Department of Housing and Urban Development.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 15, eff. Jan. 1, 1998; 1999, No. 49, §§ 9, 15, eff. June 2, 1999; 2001, No. 63, § 163b; 2001, No. 144 (Adj. Sess.), § 15, eff. June 21, 2002; 2003, No. 68, §§ 8, 9, eff. June 18, 2003; 2003, No. 68, § 7, eff. July 1, 2004; 2003, No. 76 (Adj. Sess.), §§ 4, 15, 16, eff. Feb. 17, 2004; 2005, No. 38, § 7, eff. Jan. 1, 2006; 2005, No. 38, § 12, eff. June 2, 2005; 2005, No. 38, § 18; 2005, No. 94 (Adj. Sess.), § 7, eff. March 8, 2006; 2005, No. 185 (Adj. Sess.), §§ 1, 7, 13; 2007, No. 33, § 9, eff. May 18, 2007; 2007, No. 37, § 3; 2007, No. 65, § 292, eff. June 4, 2007; 2009, No. 160 (Adj. Sess.), §§ 23, 24, 51; 2011, No. 45, § 13, eff. Jan. 1, 2012; 2011, No. 143 (Adj. Sess.), §§ 10, 26, 31a, eff. Jan. 1, 2013; 2013, No. 96 (Adj. Sess.), § 197; 2015, No. 134 (Adj. Sess.), § 16, eff. May 25, 2016; 2019, No. 51, §§ 23, 30; 2019, No. 160 (Adj. Sess.), § 1, eff. Jan. 1, 2021; 2021, No. 96 (Adj. Sess.), § 1, eff. January 1, 2021; 2021, No. 105 (Adj. Sess.), § 552, eff. July 1, 2022; 2023, No. 144 (Adj. Sess.), § 5, eff. June 3, 2024; 2025, No. 24, § 2, eff. July 1, 2025.)
§ 6061 Definitions [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
As used in this chapter:
(1) “Municipal property tax credit” means a credit of the prior tax year’s municipal property tax liability as authorized under subdivision 6066(a)(2) of this chapter.
(2) [Repealed.]
(3)(A) “Household” means, for any individual and for any taxable year, the individual and such other persons as resided with the individual in the principal dwelling at any time during the taxable year.
(B) The following shall not be considered members of the household:
(i) a person who is not related to any member of the household and who is residing in the household under a written homesharing agreement pursuant to a nonprofit homesharing program;
(ii) a person residing in the household who was granted humanitarian parole to enter the United States pursuant to 8 U.S.C. § 1182(d)(5), who is seeking or has been granted asylum pursuant to 8 U.S.C. § 1158, or who qualifies as a refugee pursuant to 8 U.S.C. § 1101(a)(42), provided the person is not eligible under the laws of the United States to apply for adjustment of status to lawful permanent resident; or
(iii) a person residing in a household who is hired as a bona fide employee to provide personal care to a member of the household and who is not related to the person for whom the care is provided.
(4)(A) “Household income” means modified adjusted gross income, but not less than zero, received in a calendar year by:
(i) all persons of a household while members of that household; and
(ii) the spouse of the claimant who is not a member of that household and who is not legally separated from the claimant in the taxable year as defined in subdivision (9) of this section, unless the spouse is at least 62 years of age and has moved to a nursing home or other care facility with no reasonable prospect of returning to the homestead.
(B) “Household income” does not mean:
(i) the modified adjusted gross income of the spouse or former spouse of the claimant for any period that the spouse or former spouse is not a member of the household, if the claimant is legally separated or divorced from the spouse in the taxable year as defined in subdivision (9) of this section; or
(ii) the modified adjusted gross income of the spouse of the claimant, if the spouse is subject to a protection order as defined in 15 V.S.A. § 1101(5) that is in effect at the time the claimant reports household income to the Department of Taxes.
(5) “Modified adjusted gross income” means “federal adjusted gross income”:
(A) Before the deduction of any trade or business loss from a sole proprietorship, loss from a partnership, loss from a limited liability company or “subchapter S” corporation, loss from a rental property, or capital loss, except that in the case of a business that sells a business property with respect to which it is required, under the Internal Revenue Code, to report a capital gain, a business loss incurred in the same tax year with respect to the same business may be netted against such capital gain, and except that a business loss from a sole proprietorship may be netted against a business gain from a sole proprietorship, as long as the loss and the gain are incurred in the same tax year with respect to different business.
(B) With the addition of the following, to the extent not included in adjusted gross income: alimony, support money other than gifts, gifts received by the household in excess of a total of $6,500.00 in cash or cash-equivalents, cash public assistance and relief (not including relief granted under this subchapter), cost of living allowances paid to federal employees, allowances received by dependents of servicemen and women, the portion of Roth IRA distributions representing investment earnings and not included in adjusted gross income, railroad retirement benefits, payments received under the federal Social Security Act, all benefits under Veterans’ Acts, federal pension, and annuity benefits not included in adjusted gross income, nontaxable interest received from the state or federal government or any of its instrumentalities, workers’ compensation, the gross amount of “loss of time” insurance, and the amount of capital gains excluded from adjusted gross income, less the net employment and self-employment taxes withheld from or paid by the individual (exclusive of any amounts deducted to arrive at adjusted gross income or deducted on account of excess payment of employment taxes) on account of income included under this section, less any amounts paid as child support money if substantiated by receipts or other evidence that the Commissioner may require.
(C) Without the inclusion of: any gifts from nongovernmental sources other than those described in subdivision (B) of this subdivision (5), surplus food or other relief in kind supplied by a governmental agency, or the first $6,500.00 of income earned by a full-time student who qualifies as a dependent of the claimant under the federal Internal Revenue Code, the first $6,500.00 of income received by a person who qualifies as a dependent of the claimant under the Internal Revenue Code and who is the claimant’s parent or adult child with a disability, any income attributable to cancellation of debt, or payments made by the State pursuant to 33 V.S.A. chapters 49 and 55 for foster care, or payments made by the State or an agency designated in 18 V.S.A. § 8907 for adult foster care or to a family for the support of a person who is eligible and who has a developmental disability. If the Commissioner determines, upon application by the claimant, that a person resides with a claimant who has a disability or was at least 62 years of age as of the end of the year preceding the claim, for the primary purpose of providing attendant care services as defined in 33 V.S.A. § 6321 or homemaker or companionship services, with or without compensation, which allow the claimant to remain in his or her home or avoid institutionalization, the Commissioner shall exclude that person’s modified adjusted gross income from the claimant’s household income. The Commissioner may require that a certificate in a form satisfactory to him or her be submitted that supports the claim.
(D) Without the inclusion of adjustments to total income except certain business expenses of reservists, one-half of self-employment tax paid, alimony paid, deductions for tuition and fees, health insurance costs of self-employed individuals, and health savings account deductions.
(E) With the addition of an asset adjustment of 1 times the sum of interest and dividend income included in household income above $10,000.00 for claimants under age 65, regardless of whether that dividend or interest income is included in federal adjusted gross income.
(6) “Property tax” means the amount of ad valorem taxes, exclusive of special assessments, interest, penalties, and charges for service, assessed on real property in this State used as the claimant’s housesite, or that would have been assessed if the homestead had been properly declared at the time of assessment.
(7)(A) “Allocable rent” means, for any housesite and for any taxable year, 21 percent of the gross rent.
(B) “Gross rent” means the rent actually paid during the taxable year by the claimant solely for the right of occupancy of the housesite during the taxable year.
(C) “Fair market rent” means the monthly fair market rent for the area in which the claimant resides as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. § 1437f as of June 30 of the taxable year multiplied by 12, provided that for claimants who reside in Franklin or Grand Isle county, “fair market rent” means the average of the fair market rents for the State as determined by the U.S. Department of Housing and Urban Development.
(8) [Repealed.]
(9) “Taxable year” means the calendar year preceding the year in which the claim is filed.
(10) [Repealed.]
(11) “Housesite” means that portion of a homestead, as defined under subdivision 5401(7) of this title but not under subdivision 5401(7)(G) of this title, that includes as much of the land owned by the claimant surrounding the dwelling as is reasonably necessary for use of the dwelling as a home, but in no event more than two acres per dwelling unit, and, in the case of multiple dwelling units, not more than two acres per dwelling unit up to a maximum of 10 acres per parcel.
(12) “Claim year” means the year in which a claim is filed under this chapter.
(13) “Homestead” means a homestead as defined under subdivision 5401(7) of this title, but not under subdivision 5401(7)(G) of this title, and declared on or before October 15 in accordance with section 5410 of this title.
(14) [Repealed.]
(15) “Adjusted property tax” means the amount of education and municipal property taxes on the homestead parcel after reduction for any property tax credit under section 6066a of this chapter.
(16) “Unadjusted property tax” means the amount of education and municipal property taxes on the homestead parcel before any reduction for a property tax credit under section 6066a of this chapter.
(17) “Equalized value of the housesite in the taxable year” means the value of the housesite on the grand list for April 1 of the taxable year, divided by the number resulting from dividing the municipality’s common level of appraisal of the taxable year by the statewide adjustment of the taxable year as defined in subdivision 5401(17) of this title.
(18) Notwithstanding subdivisions (4) and (5) of this section, for the purposes of the renter credit, “income” means federal adjusted gross income increased by the following:
(A) trade or business loss from a sole proprietorship, loss from a partnership, loss from a limited liability company or “subchapter S” corporation, loss from a rental property, capital loss, loss from an estate or trust, loss from a real estate mortgage investment conduit, farm rental loss, any loss associated with the sale of business property, and farm losses included in adjusted gross income;
(B) exempt interest received or accrued during the taxable year;
(C) 75 percent of the portion of Social Security benefits as defined under 26 U.S.C. § 86(d) that is excluded from gross income under 26 U.S.C. § 86 for the taxable year; and
(D) to the extent excluded from federal adjusted gross income, educator expenses; certain business expenses of reservists, performing artists, and fee-basis government officials; health savings account deductions; moving expenses for members of the U.S. Armed Forces; the deductible part of self-employment tax; self-employed SEP, SIMPLE, and qualified plan deductions; self-employed health insurance deductions; the penalty for early withdrawal of savings; alimony paid; certain IRA retirement savings deductions; student loan interest deductions; and tuition and fees deductions.
(19) “Extremely low-income limit” means the limit as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. § 1437a as of June 30 of the taxable year, provided that for claimants who reside in Franklin or Grand Isle County, “extremely low-income limit” means the average of the extremely low-income limits for the State as determined by the U.S. Department of Housing and Urban Development.
(20) “Very low-income limit” means an amount of income 1.3 times the amount of the income limit for very low-income families as determined by the U.S. Department of Housing and Urban Development pursuant to 42 U.S.C. § 1437a as of June 30 of the taxable year, provided that for claimants who reside in Franklin or Grand Isle County, “very low-income limit” means 1.3 times the average of the very low-income limits for the State as determined by the U.S. Department of Housing and Urban Development.
(21) “Homestead property tax exemption” means a reduction in the amount of housesite value subject to the statewide education tax and the supplemental district spending tax in the claim year as authorized under sections 6066 and 6066a of this chapter.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 15, eff. Jan. 1, 1998; 1999, No. 49, §§ 9, 15, eff. June 2, 1999; 2001, No. 63, § 163b; 2001, No. 144 (Adj. Sess.), § 15, eff. June 21, 2002; 2003, No. 68, §§ 8, 9, eff. June 18, 2003; 2003, No. 68, § 7, eff. July 1, 2004; 2003, No. 76 (Adj. Sess.), §§ 4, 15, 16, eff. Feb. 17, 2004; 2005, No. 38, § 7, eff. Jan. 1, 2006; 2005, No. 38, § 12, eff. June 2, 2005; 2005, No. 38, § 18; 2005, No. 94 (Adj. Sess.), § 7, eff. March 8, 2006; 2005, No. 185 (Adj. Sess.), §§ 1, 7, 13; 2007, No. 33, § 9, eff. May 18, 2007; 2007, No. 37, § 3; 2007, No. 65, § 292, eff. June 4, 2007; 2009, No. 160 (Adj. Sess.), §§ 23, 24, 51; 2011, No. 45, § 13, eff. Jan. 1, 2012; 2011, No. 143 (Adj. Sess.), §§ 10, 26, 31a, eff. Jan. 1, 2013; 2013, No. 96 (Adj. Sess.), § 197; 2015, No. 134 (Adj. Sess.), § 16, eff. May 25, 2016; 2019, No. 51, §§ 23, 30; 2019, No. 160 (Adj. Sess.), § 1, eff. Jan. 1, 2021; 2021, No. 96 (Adj. Sess.), § 1, eff. January 1, 2021; 2021, No. 105 (Adj. Sess.), § 552, eff. July 1, 2022; 2023, No. 144 (Adj. Sess.), § 5, eff. June 3, 2024; 2025, No. 24, § 2, eff. July 1, 2025; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6062 Number and identity of claimants; apportionment [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
(a) In the case of a renter credit claim, the claimant shall have rented property for the right of occupancy during at least six calendar months, which need not be consecutive, in the taxable year to be eligible for a credit under this chapter. More than one renter credit claimant per household per year may be entitled to relief under this chapter.
(b) Only one property tax credit claimant per household per year shall be entitled to relief under this chapter.
(c) When a homestead is owned by two or more persons as joint tenants, tenants by the entirety, or tenants in common and one or more of these persons are not members of the claimant’s household, the property tax is the same proportion of the property tax levied on that homestead as the proportion of ownership of the homestead by the claimant and members of the claimant’s household; provided, however, that:
(1) the property tax of a claimant who is 62 years of age or older is the same proportion of the property tax levied on that homestead as the proportion of ownership of the homestead by the claimant, members of the claimant’s household, and the claimant’s descendants, and the claimant’s siblings or spouse who have moved on an indefinite basis from the homestead to a residential care or nursing home and who claim no rebate or credit for such year under this chapter;
(2) the property tax of a claimant who is a joint tenant or tenant by the entirety with, and legally separated from, a spouse who is not a member of the household is the tax on the housesite for which the claimant is responsible pursuant to a court-approved settlement agreement;
(3) the property tax of a claimant who is a joint tenant with a former spouse and who has possession of the homestead pursuant to the joint owners’ final divorce decree is the property tax for which the claimant is responsible under the joint owners’ final divorce decree or any modifying orders; and
(4) if the homestead is a portion of a duplex and all owners of the duplex occupy some portion of the building as their principal residence, the property tax of the claimant shall be that percentage of the total property tax equal to the ratio of the claimant’s principal residence value to the total duplex building value.
(d) Whenever a housesite is an integral part of a larger unit such as a farm or a multi-purpose or multi-dwelling building, property taxes paid shall be that percentage of the total property tax as the value of the housesite is to the total value. Upon a claimant’s request, the listers shall certify to the claimant the value of the claimant’s homestead and housesite.
(e) A dwelling owned by a trust is not the homestead of the beneficiary unless the claimant is the sole beneficiary of the trust, and:
(1) the claimant or the claimant’s spouse was the grantor of the trust, and the trust is revocable or became irrevocable solely by reason of the grantor’s death; or
(2) the claimant is the parent, grandparent, child, grandchild, or sibling of the grantor, the claimant is mentally disabled or severely physically disabled, and the grantor’s modified adjusted gross income is included in the household income calculation.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1999, No. 49, § 14, eff. June 2, 1999; 1999, No. 159 (Adj. Sess.), § 35; 2001, No. 144 (Adj. Sess.), § 16, eff. June 21, 2002; 2003, No. 76 (Adj. Sess.), § 17, eff. Feb. 17, 2004; 2005, No. 38, § 15; 2009, No. 160 (Adj. Sess.), § 27; 2019, No. 160 (Adj. Sess.), § 2, eff. Jan. 1, 2021; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6062 Number and identity of claimants; apportionment [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
(a) In the case of a renter credit claim, the claimant shall have rented property for the right of occupancy during at least six calendar months, which need not be consecutive, in the taxable year to be eligible for a credit under this chapter. More than one renter credit claimant per household per year may be entitled to relief under this chapter.
(b) Only one property tax credit claimant per household per year shall be entitled to relief under this chapter.
(c) When a homestead is owned by two or more persons as joint tenants, tenants by the entirety, or tenants in common and one or more of these persons are not members of the claimant’s household, the property tax is the same proportion of the property tax levied on that homestead as the proportion of ownership of the homestead by the claimant and members of the claimant’s household; provided, however, that:
(1) the property tax of a claimant who is 62 years of age or older is the same proportion of the property tax levied on that homestead as the proportion of ownership of the homestead by the claimant, members of the claimant’s household, and the claimant’s descendants, and the claimant’s siblings or spouse who have moved on an indefinite basis from the homestead to a residential care or nursing home and who claim no rebate or credit for such year under this chapter;
(2) the property tax of a claimant who is a joint tenant or tenant by the entirety with, and legally separated from, a spouse who is not a member of the household is the tax on the housesite for which the claimant is responsible pursuant to a court-approved settlement agreement;
(3) the property tax of a claimant who is a joint tenant with a former spouse and who has possession of the homestead pursuant to the joint owners’ final divorce decree is the property tax for which the claimant is responsible under the joint owners’ final divorce decree or any modifying orders; and
(4) if the homestead is a portion of a duplex and all owners of the duplex occupy some portion of the building as their principal residence, the property tax of the claimant shall be that percentage of the total property tax equal to the ratio of the claimant’s principal residence value to the total duplex building value.
(d) Whenever a housesite is an integral part of a larger unit such as a farm or a multi-purpose or multi-dwelling building, property taxes paid shall be that percentage of the total property tax as the value of the housesite is to the total value. Upon a claimant’s request, the listers shall certify to the claimant the value of his or her homestead and housesite.
(e) A dwelling owned by a trust is not the homestead of the beneficiary unless the claimant is the sole beneficiary of the trust, and:
(1) the claimant or the claimant’s spouse was the grantor of the trust, and the trust is revocable or became irrevocable solely by reason of the grantor’s death; or
(2) the claimant is the parent, grandparent, child, grandchild, or sibling of the grantor, the claimant is mentally disabled or severely physically disabled, and the grantor’s modified adjusted gross income is included in the household income calculation.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1999, No. 49, § 14, eff. June 2, 1999; 1999, No. 159 (Adj. Sess.), § 35; 2001, No. 144 (Adj. Sess.), § 16, eff. June 21, 2002; 2003, No. 76 (Adj. Sess.), § 17, eff. Feb. 17, 2004; 2005, No. 38, § 15; 2009, No. 160 (Adj. Sess.), § 27; 2019, No. 160 (Adj. Sess.), § 2, eff. Jan. 1, 2021.)
§ 6063 Claim as personal; credit amount at time of transfer [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
(a) The right to file a claim under this chapter is personal to the claimant and shall not survive his or her death, but the right may be exercised on behalf of a claimant by his or her legal guardian or attorney-in-fact. When a claimant dies after having filed a timely claim, the property tax credit amount shall be credited to the homestead property tax liability of the claimant’s estate as provided in section 6066a of this title.
(b) In case of sale or transfer of a residence, any property tax credit amounts related to that residence shall be allocated to the seller at closing unless the parties otherwise agree.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2003, No. 70 (Adj. Sess.), § 46, eff. March 1, 2004; 2007, No. 65, § 293, eff. June 4, 2007; 2007, No. 81, § 8; 2007, No. 190 (Adj. Sess.), § 17, eff. June 6, 2008.)
§ 6063 Claim as personal; credit and exemption amount at time of transfer [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
(a) The right to file a claim under this chapter is personal to the claimant and shall not survive the claimant’s death, but the right may be exercised on behalf of a claimant by the claimant’s legal guardian or attorney-in-fact. When a claimant dies after having filed a timely claim, the municipal property tax credit and the homestead exemption amount shall be applied to the property tax liability of the claimant’s estate as provided in section 6066a of this title.
(b) In case of sale or transfer of a residence after April 1 of the claim year:
(1) any municipal property tax credit amount related to that residence shall be allocated to the transferor at closing unless the parties otherwise agree;
(2) any homestead property tax exemption related to that residence based on the transferor’s household income under subdivision 6066(a)(1) of this chapter shall cease to be in effect upon transfer; and
(3) a transferee who is eligible to declare the residence as a homestead but for the requirement to own the residence on April 1 of the claim year shall, notwithstanding subdivision 5401(7) and subsection 5410(b) of this title, be eligible to apply for a homestead property tax exemption in the claim year when the transfer occurs by filing with the Commissioner of Taxes a homestead declaration pursuant to section 5410 of this title and a claim for exemption on or before the due date prescribed under section 6068 of this chapter.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2003, No. 70 (Adj. Sess.), § 46, eff. March 1, 2004; 2007, No. 65, § 293, eff. June 4, 2007; 2007, No. 81, § 8; 2007, No. 190 (Adj. Sess.), § 17, eff. June 6, 2008; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6064 Claim applied against outstanding liabilities
The amount of any property tax credit resulting under this chapter may be applied by the Commissioner, beginning July 1 of the calendar year in which the claim is filed, against any State tax liability outstanding against the claimant.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2005, No. 185 (Adj. Sess.), § 22.)
§ 6064 Claim applied against outstanding liabilities
The amount of any property tax credit resulting under this chapter may be applied by the Commissioner, beginning July 1 of the calendar year in which the claim is filed, against any State tax liability outstanding against the claimant.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2005, No. 185 (Adj. Sess.), § 22.)
§ 6065 Forms; tables; notices [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
(a) In administering this chapter, the Commissioner shall provide suitable claim forms with tables of allowable claims, instructions, and worksheets for claiming a homestead property tax credit.
(b) Prior to June 1, the Commissioner shall also prepare and supply to each town in the State notices describing the homestead property tax credit for inclusion in property tax bills. The notice shall be in simple, plain language and shall explain how to file for a property tax credit, where to find assistance filing for a credit, and any other related information as determined by the Commissioner. The notice shall direct taxpayers to a resource where they can find versions of the notice translated into the five most common non-English languages in the State. A town shall include such notice in each tax bill and notice of delinquent taxes that it mails to taxpayers who own in that town a residential property, without regard for whether the property was declared a homestead pursuant to subdivision 5401(7) of this title.
(c) Notwithstanding the provisions of subsection (b) of this section, towns that use envelopes or mailers not able to accommodate notices describing the homestead tax credit may distribute such notices in an alternative manner.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 77, eff. January 1, 1999; 1999, No. 1, § 60f, eff. March 31, 1999; 2023, No. 106 (Adj. Sess.), § 3, eff. May 13, 2024.)
§ 6065 Forms; tables; notices [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
(a) In administering this chapter, the Commissioner shall provide suitable claim forms with tables of allowable claims, instructions, and worksheets for claiming a homestead property tax exemption and municipal property tax credit.
(b) Prior to June 1, the Commissioner shall also prepare and supply to each town in the State notices describing the homestead property tax exemption and municipal property tax credit for inclusion in property tax bills. The notice shall be in simple, plain language and shall explain how to file for a homestead property tax exemption and a municipal property tax credit, where to find assistance filing for a credit or an exemption, or both, and any other related information as determined by the Commissioner. The notice shall direct taxpayers to a resource where they can find versions of the notice translated into the five most common non-English languages in the State. A town shall include such notice in each tax bill and notice of delinquent taxes that it mails to taxpayers who own in that town a residential property, without regard for whether the property was declared a homestead pursuant to subdivision 5401(7) of this title.
(c) Notwithstanding the provisions of subsection (b) of this section, towns that use envelopes or mailers not able to accommodate notices describing the homestead property tax exemption and municipal property tax credit may distribute such notices in an alternative manner.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 77, eff. January 1, 1999; 1999, No. 1, § 60f, eff. March 31, 1999; 2023, No. 106 (Adj. Sess.), § 3, eff. May 13, 2024; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6066 Computation of homestead property tax exemption, municipal property tax credit, and renter credit [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
(a)(1) An eligible claimant who owned the homestead on April 1 of the claim year and whose household income does not exceed $115,000.00 shall be entitled to a homestead property tax exemption in the claim year in an amount determined as follows:
| | If household income (rounded to the nearest dollar) is: | then the claimant is entitled to a homestead property tax exemption against the first $425,000.00 in housesite value of this percent: | | --- | --- | --- | | | $0.00 — 25,000.00 | 95.00 | | | $25,001.00 — 40,000.00 | 90.00 | | | $40,001.00 — 50,000.00 | 80.00 | | | $50,001.00 — 60,000.00 | 70.00 | | | $60,001.00 — 70,000.00 | 60.00 | | | $70,001.00 — 80,000.00 | 50.00 | | | $80,001.00 — 90,000.00 | 40.00 | | | $90,001.00 — 100,000.00 | 30.00 | | | $100,001.00 — 110,000.00 | 20.00 | | | $110,001.00 — 115,000.00 | 10.00 |
(2) An eligible claimant who owned the homestead on April 1 of the claim year and whose household income does not exceed $47,000.00 shall also be entitled to a credit amount against the claimant’s municipal taxes for the upcoming fiscal year that is equal to the amount by which the municipal property taxes for the municipal fiscal year that began in the taxable year upon the claimant’s housesite exceeds a percentage of the claimant’s household income for the taxable year as follows:
| | If household income (rounded to the nearest dollar) is: | then the taxpayer is entitled to credit for the reduced property tax in excess of this percent of that income: | | --- | --- | --- | | | $0.00 — 9,999.00 | 1.50 | | | $10,000.00 — 47,000.00 | 3.00 |
(3) In no event shall the homestead property tax exemption provided for in subdivision (1) of this subsection reduce the housesite value below zero. In no event shall the municipal property tax credit provided for in subdivision (2) of this subsection exceed the amount of the reduced municipal property tax.
(4) Each dollar amount in subdivision (1) of this subsection shall be adjusted for inflation annually on or before November 15 by the Commissioner of Taxes. As used in this subdivision, “adjusted for inflation” means adjusting the dollar amount by the National Income and Product Accounts (NIPA) implicit price deflator for state and local government consumption expenditures and gross investment published by the U.S. Department of Commerce, Bureau of Economic Analysis, from fiscal year 2025 through the fiscal year for which the amount is being determined, and rounding upward to the nearest whole dollar amount.
(b)(1) An eligible claimant who rented the homestead shall be entitled to a credit for the taxable year in an amount not to exceed $2,500.00, to be calculated as follows:
(A) If the claimant’s income is less than or equal to the extremely low-income limit, the claimant shall be entitled to a credit in the amount of 10 percent of fair market rent.
(B) If the claimant’s income is greater than the extremely low-income limit but less than or equal to the very low-income limit, the claimant shall be entitled to a percentage of the credit that is proportional to the claimant’s income that is less than the very low-income limit, determined by:
(i) subtracting the claimant’s income from the very low-income limit;
(ii) dividing the value under subdivision (i) of this subdivision (1)(B) by the difference between the extremely low-income limit and the very low-income limit; and
(iii) multiplying the value under subdivision (ii) of this subdivision (1)(B) by 10 percent of fair market rent.
(C) If the claimant’s income is greater than the very low-income limit, the claimant shall not be entitled to a renter credit.
(D) A claimant who is eligible for a renter credit, including pursuant to this subsection (b), and who receives a rental subsidy shall be entitled to a credit in the amount of 10 percent of gross rent paid.
(E) A renter credit shall be prorated by the number of calendar months in the taxable year during which the claimant rented the homestead, except for a credit based on gross rent paid under subdivision (D) of this subdivision (b)(1), and by the portion of the principal dwelling used for business purposes, if the portion used for business purposes includes more than 25 percent of the floor space of the dwelling.
(2) The Commissioner shall calculate the credit under subdivision (1) of this subsection (b) using the fair market rent corresponding to a number of bedrooms equal to the number of personal exemptions allowed under subdivision 5811(21)(C) of this title for the taxable year, provided that for claimants who resided with any person who was neither the claimant’s dependent nor jointly filing spouse at any time during the taxable year, the Commissioner shall reduce the credit by 50 percent.
(c) To be eligible for an exemption or credit under this chapter, the claimant:
(1) must have been domiciled in this State during the entire taxable year;
(2) may not be a person claimed as a dependent by any taxpayer under the federal Internal Revenue Code during the taxable year; and
(3) in the case of a renter, shall have rented property for at least six calendar months, which need not be consecutive, during the taxable year.
(d) The owner of a mobile home that is sited on a lot not owned by the homeowner may include an amount determined under subdivision 6061(7) of this title as allocable rent paid on the lot with the amount of property taxes paid by the homeowner on the home for the purpose of computation of the municipal property tax credit under subdivision (a)(2) of this section, unless the homeowner has included in the claim an amount of property tax on common land under the provisions of subsection (e) of this section.
(e) Property taxes paid by a cooperative, not including a mobile home park cooperative, allocable to property used as a homestead shall be attributable to the co-op member for the purpose of computing the property tax liability of the co-op member under this section. Property owned by a cooperative declared as a homestead may only include the homestead and a pro rata share of any common land owned or leased by the cooperative, not to exceed the two-acre housesite limitation. The share of the cooperative’s assessed value attributable to the housesite shall be determined by the cooperative and specified annually in a notice to the co-op member. Property taxes paid by a mobile home park cooperative, allocable to property used as a housesite, shall be attributed to the owner of the housesite for the purpose of computing the property tax liability of the housesite owner under this section. Property owned by the mobile home park cooperative and declared as a housesite may only include common property of the cooperative contiguous with at least one mobile home lot in the park, not to exceed the two-acre housesite limitation. The share attributable to any mobile home lot shall be determined by the cooperative and specified in the cooperative agreement. A co-op member who is the housesite owner shall be entitled to a property tax credit in an amount determined by multiplying the property taxes allocated under this subsection by the percentage of the exemption for which the housesite owner’s household income qualifies under subdivision (a)(1) of this section.
(f) [Repealed.]
(g) Notwithstanding subsection (d) of this section, if the land surrounding a homestead is owned by a nonprofit corporation or community land trust with tax exempt status under 26 U.S.C. § 501(c)(3), the homeowner may include an allocated amount as property tax paid on the land with the amount of property taxes paid by the homeowner on the home for the purposes of computation of property tax liability under this section. The allocated amount shall be determined by the nonprofit corporation or community land trust on a proportional basis. The nonprofit corporation or community land trust shall provide to that homeowner, by January 31, a certificate specifying the allocated amount. The certificate shall indicate the proportion of total property tax on the parcel that was assessed for municipal property tax and for statewide property tax and the proportion of total value of the parcel. A homeowner under this subsection shall be entitled to a property tax credit in an amount determined by multiplying the property taxes allocated under this subsection by the percentage of the exemption for which the homeowner’s household income qualifies under subdivision (a)(1) of this section.
(h) A homestead owner shall be entitled to an additional property tax credit amount equal to one percent of the amount of income tax refund that the claimant elects to allocate to payment of statewide education property tax under section 6068 of this title.
(i) The homestead property tax exemption and the municipal property tax credit under subsection (a) of this section shall be calculated without regard to any exemption under subdivision 3802(11) of this title.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 16, eff. Jan. 1, 1998; 1999, No. 49, § 11, eff. June 2, 1999; 2001, No. 63, § 163c; 2001, No. 144 (Adj. Sess.), §§ 17, 22, eff. June 21, 2002; 2003, No. 68, § 10, eff. July 1, 2004; 2003, No. 70 (Adj. Sess.), §§ 47, 48; 2005, No. 38, §§ 25, 26; 2005, No. 185 (Adj. Sess.), §§ 2, 2a, eff. January 1, 2007; 2005, No. 185 (Adj. Sess.), § 12; 2007, No. 33, § 10, eff. May 18, 2007; 2007, No. 190 (Adj. Sess.), § 18, eff. Jan. 1, 2008; 2009, No. 160 (Adj. Sess.), §§ 25, 27; 2011, No. 45, § 13b, eff. Jan. 1, 2012; 2011, No. 143 (Adj. Sess.), § 31; 2013, No. 73, § 40, eff. June 5, 2013; 2013, No. 174 (Adj. Sess.), § 64, eff. Jan. 1, 2016; 2015, No. 46, §§ 29, 30; 2018, No. 11 (Sp. Sess.), § H.11, eff. Jan. 1, 2017; 2018, No. 11 (Sp. Sess.), § H.12, eff. July 1, 2019; 2019, No. 6, § 86, eff. April 22, 2019; 2019, No. 51, § 31, eff. June 10, 2019; 2019, No. 51, § 27a, eff. July 2, 2019; 2019, No. 160 (Adj. Sess.), § 3, eff. Jan. 1, 2021; 2021, No. 105 (Adj. Sess.), § 553, eff. July 1, 2022; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6066 Computation of property tax credit and renter credit [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
(a) An eligible claimant who owned the homestead on April 1 of the year in which the claim is filed shall be entitled to a credit for the prior year’s homestead property tax liability amount determined as follows:
(1)(A) For a claimant with household income of $90,000.00 or more:
(i) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year;
(ii) minus (if less) the sum of:
(I) the income percentage of household income for the taxable year; plus
(II) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $225,000.00.
(B) For a claimant with household income of less than $90,000.00 but more than $47,000.00, the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year, minus (if less) the sum of:
(i) the income percentage of household income for the taxable year; plus
(ii) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $400,000.00.
(C) For a claimant whose household income does not exceed $47,000.00, the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year, minus the lesser of:
(i) the sum of the income percentage of household income for the taxable year plus the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $400,000.00; or
(ii) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year reduced by $15,000.00.
(2) “Income percentage” in this section means two percent, multiplied by the education income tax spending adjustment under subdivision 5401(13)(B) of this title for the property tax year that begins in the claim year for the municipality in which the homestead residence is located.
(3) A claimant whose household income does not exceed $47,000.00 shall also be entitled to an additional credit amount from the claimant’s municipal taxes for the upcoming fiscal year that is equal to the amount by which the municipal property taxes for the municipal fiscal year that began in the taxable year upon the claimant’s housesite exceeds a percentage of the claimant’s household income for the taxable year as follows:
| If household income (rounded | then the taxpayer is entitled to | | --- | --- | | to the nearest dollar) is: | credit for the reduced property tax in excess of this percent of that income: | | $0.00 — 9,999.00 | 1.50 | | $10,000.00 — 47,000.00 | 3.00 |
(4) A claimant whose household income does not exceed $47,000.00 shall also be entitled to an additional credit amount from the claimant’s statewide education tax for the upcoming fiscal year that is equal to the amount by which the education property tax for the municipal fiscal year that began in the taxable year upon the claimant’s housesite, reduced by the credit amount determined under subdivisions (1) and (2) of this subsection, exceeds a percentage of the claimant’s household income for the taxable year as follows:
| If household income (rounded | then the taxpayer is entitled to | | --- | --- | | to the nearest dollar) is: | credit for the reduced property tax in excess of this percent of that income: | | $0.00 — 9,999.00 | 0.5 | | $10,000.00 — 24,999.00 | 1.5 | | $25,000.00 — 47,000.00 | 2.0 |
(5) In no event shall the credit provided for in subdivision (3) or (4) of this subsection exceed the amount of the reduced property tax. The credits under subdivision (4) of this subsection shall be calculated considering only the tax due on the first $400,000.00 in equalized housesite value.
(b)(1) An eligible claimant who rented the homestead shall be entitled to a credit for the taxable year in an amount not to exceed $2,500.00, to be calculated as follows:
(A) If the claimant’s income is less than or equal to the extremely low-income limit, the claimant shall be entitled to a credit in the amount of 10 percent of fair market rent.
(B) If the claimant’s income is greater than the extremely low-income limit but less than or equal to the very low-income limit, the claimant shall be entitled to a percentage of the credit that is proportional to the claimant’s income that is less than the very low-income limit, determined by:
(i) subtracting the claimant’s income from the very low-income limit;
(ii) dividing the value under subdivision (i) of this subdivision (1)(B) by the difference between the extremely low-income limit and the very low-income limit; and
(iii) multiplying the value under subdivision (ii) of this subdivision (1)(B) by 10 percent of fair market rent.
(C) If the claimant’s income is greater than the very low-income limit, the claimant shall not be entitled to a renter credit.
(D) A claimant who is eligible for a renter credit, including pursuant to this subsection (b), and who receives a rental subsidy shall be entitled to a credit in the amount of 10 percent of gross rent paid.
(E) A renter credit shall be prorated by the number of calendar months in the taxable year during which the claimant rented the homestead, except for a credit based on gross rent paid under subdivision (D) of this subdivision (b)(1), and by the portion of the principal dwelling used for business purposes, if the portion used for business purposes includes more than 25 percent of the floor space of the dwelling.
(2) The Commissioner shall calculate the credit under subdivision (1) of this subsection (b) using the fair market rent corresponding to a number of bedrooms equal to the number of personal exemptions allowed under subdivision 5811(21)(C) of this title for the taxable year, provided that for claimants who resided with any person who was neither the claimant’s dependent nor jointly filing spouse at any time during the taxable year, the Commissioner shall reduce the credit by 50 percent.
(c) To be eligible for an adjustment or credit under this chapter, the claimant:
(1) must have been domiciled in this State during the entire taxable year;
(2) may not be a person claimed as a dependent by any taxpayer under the federal Internal Revenue Code during the taxable year; and
(3) in the case of a renter, shall have rented property for at least six calendar months, which need not be consecutive, during the taxable year.
(d) The owner of a mobile home that is sited on a lot not owned by the homeowner may include an amount determined under subdivision 6061(7) of this title as allocable rent paid on the lot with the amount of property taxes paid by the homeowner on the home for the purpose of computation of credits under subdivision (a)(3) of this section, unless the homeowner has included in the claim an amount of property tax on common land under the provisions of subsection (e) of this section.
(e) Property taxes paid by a cooperative, not including a mobile home park cooperative, allocable to property used as a homestead shall be attributable to the co-op member for the purpose of computing the credit of property tax liability of the co-op member under this section. Property owned by a cooperative declared as a homestead may only include the homestead and a pro rata share of any common land owned or leased by the cooperative, not to exceed the two-acre housesite limitation. The share of the cooperative’s assessed value attributable to the housesite shall be determined by the cooperative and specified annually in a notice to the co-op member. Property taxes paid by a mobile home park cooperative, allocable to property used as a housesite, shall be attributed to the owner of the housesite for the purpose of computing the credit of property tax liability of the housesite owner under this section. Property owned by the mobile home park cooperative and declared as a housesite may only include common property of the cooperative contiguous with at least one mobile home lot in the park, not to exceed the two-acre housesite limitation. The share attributable to any mobile home lot shall be determined by the cooperative and specified in the cooperative agreement.
(f) [Repealed.]
(g) Notwithstanding subsection (d) of this section, if the land surrounding a homestead is owned by a nonprofit corporation or community land trust with tax exempt status under 26 U.S.C. § 501(c)(3), the homeowner may include an allocated amount as property tax paid on the land with the amount of property taxes paid by the homeowner on the home for the purposes of computation of the credit under this section. The allocated amount shall be determined by the nonprofit corporation or community land trust on a proportional basis. The nonprofit corporation or community land trust shall provide to that homeowner, by January 31, a certificate specifying the allocated amount. The certificate shall indicate the proportion of total property tax on the parcel that was assessed for municipal property tax and for statewide property tax.
(h) A homestead owner shall be entitled to an additional property tax credit amount equal to one percent of the amount of income tax refund that the claimant elects to allocate to payment of homestead property tax under section 6068 of this title.
(i) Adjustments under subsection (a) of this section shall be calculated without regard to any exemption under subdivision 3802(11) of this title.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 16, eff. Jan. 1, 1998; 1999, No. 49, § 11, eff. June 2, 1999; 2001, No. 63, § 163c; 2001, No. 144 (Adj. Sess.), §§ 17, 22, eff. June 21, 2002; 2003, No. 68, § 10, eff. July 1, 2004; 2003, No. 70 (Adj. Sess.), §§ 47, 48; 2005, No. 38, §§ 25, 26; 2005, No. 185 (Adj. Sess.), §§ 2, 2a, eff. January 1, 2007; 2005, No. 185 (Adj. Sess.), § 12; 2007, No. 33, § 10, eff. May 18, 2007; 2007, No. 190 (Adj. Sess.), § 18, eff. Jan. 1, 2008; 2009, No. 160 (Adj. Sess.), §§ 25, 27; 2011, No. 45, § 13b, eff. Jan. 1, 2012; 2011, No. 143 (Adj. Sess.), § 31; 2013, No. 73, § 40, eff. June 5, 2013; 2013, No. 174 (Adj. Sess.), § 64, eff. Jan. 1, 2016; 2015, No. 46, §§ 29, 30; 2018, No. 11 (Sp. Sess.), § H.11, eff. Jan. 1, 2017; 2018, No. 11 (Sp. Sess.), § H.12, eff. July 1, 2019; 2019, No. 6, § 86, eff. April 22, 2019; 2019, No. 51, § 31, eff. June 10, 2019; 2019, No. 51, § 27a, eff. July 2, 2019; 2019, No. 160 (Adj. Sess.), § 3, eff. Jan. 1, 2021; 2021, No. 105 (Adj. Sess.), § 553, eff. July 1, 2022.)
§ 6066a Determination of property tax credit [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
(a) Annually, the Commissioner shall determine the property tax credit amount under section 6066 of this title, related to a homestead owned by the claimant, based on the prior taxable year’s income and crediting property taxes paid in the prior year. The Commissioner shall notify the municipality in which the housesite is located of the amount of the property tax credit for the claimant for homestead property tax liabilities on a monthly basis. The tax credit of a claimant who was assessed property tax by a town that revised the dates of its fiscal year, however, is the excess of the property tax that was assessed in the last 12 months of the revised fiscal year, over the adjusted property tax of the claimant for the revised fiscal year, as determined under section 6066 of this title, related to a homestead owned by the claimant.
(b) The Commissioner shall include in the total property tax credit amount determined under subsection (a) of this section, for credit to the taxpayer for homestead property tax liabilities, any income tax overpayment remaining after allocation under section 3112 of this title and setoff under section 5934 of this title, which the taxpayer has directed to be used for payment of property taxes.
(c) The Commissioner shall notify the municipality of any claim and refund amounts unresolved by November 1 at the time of final resolution, including adjudication, if any; provided, however, that towns will not be notified of any additional credit amounts after November 1 of the claim year, and such amounts shall be paid to the claimant by the Commissioner.
(d) [Repealed.]
(e) At the time of notice to the municipality, the Commissioner shall notify the taxpayer of the property tax credit amount determined under subdivision 6066(a)(1) of this title, the amount determined under subdivision 6066(a)(3) of this title, any additional credit amounts due the homestead owner under section 6066 of this title, the amount of income tax refund, if any, allocated to payment of homestead property tax liabilities, and any late-claim reduction amount.
(f)(1) For taxpayers and amounts stated in the notice to towns on or before July 1, municipalities shall create and send to taxpayers a homestead property tax bill, instead of the bill required under subdivision 5402(b)(1) of this title, providing the total amount allocated to payment of homestead education property tax liabilities and notice of the balance due. Nothing in this subdivision, however, shall be interpreted as altering the requirement under subdivision 5402(b)(2) of this title that the statewide education homestead tax be billed in a manner that is stated clearly and separately from any other tax. Municipalities shall apply the amount allocated under this chapter to current year property taxes in equal amounts to each of the taxpayers’ property tax installments that include education taxes. Notwithstanding section 4772 of this title, if a town issues a corrected bill as a result of the notice sent by the Commissioner under subsection (a) of this section, issuance of the corrected new bill does not extend the time for payment of the original bill nor relieve the taxpayer of any interest or penalties associated with the original bill. If the corrected bill is less than the original bill, and there are also no unpaid current year taxes, interest, or penalties, and no past year delinquent taxes or penalties and interest charges, any overpayment shall be reflected on the corrected tax bill and refunded to the taxpayer.
(2) For property tax credit amounts for which municipalities receive notice after November 1, municipalities shall issue a new homestead property tax bill with notice to the taxpayer of the total amount allocated to payment of homestead property tax liabilities and notice of the balance due.
(3) The property tax credit amount determined for the taxpayer shall be allocated first to current year property tax on the homestead parcel, next to current-year homestead parcel penalties and interest, next to any prior year homestead parcel penalties and interest, and last to any prior year property tax on the homestead parcel. No credit shall be allocated to a property tax liability for any year after the year for which the claim or refund allocation was filed. No municipal tax-reduction incentive for early payment of taxes shall apply to any amount allocated to the property tax bill under this chapter.
(4) If the property tax credit amount as described in subsection (e) of this section exceeds the property tax, penalties, and interest due for the current and all prior years, the municipality shall refund the excess to the taxpayer, without interest, within 20 days of the first date upon which taxes become due and payable or 20 days after notification of the credit amount by the Commissioner of Taxes, whichever is later.
(g) The Commissioner of Taxes shall pay monthly to each municipality the amount of property tax credit of which the municipality was last notified related to municipal property tax on homesteads within that municipality, as determined by the Commissioner of Taxes.
(Added 1999, No. 49, § 37, eff. Jan. 1, 2000, § 37a, eff. Jan. 1, 2001; amended 2001, No. 63, § 163d; 2001, No. 144 (Adj. Sess.), § 18, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 49, eff. March 1, 2004; 2005, No. 185 (Adj. Sess.), § 3; eff. Jan. 1, 2007; 2007, No. 65, § 50b; 2007, No. 65, § 291, eff. June 4, 2007; 2007, No. 190 (Adj. Sess.), §§ 14-16, eff. June 6, 2008; 2009, No. 1 (Sp. Sess.), § H.29; 2009, No. 160 (Adj. Sess.), § 15, eff. June 4, 2010; 2011, No. 143 (Adj. Sess.), § 11, eff. May 15, 2012; 2011, No. 143 (Adj. Sess.), § 27, eff. Jan. 1, 2013; 2013, No. 174 (Adj. Sess.), § 19; 2018, No. 11 (Sp. Sess.), § H.15, eff. July 1, 2019; 2019, No. 14, § 81, eff. April 30, 2019; 2019, No. 51, §§ 28, 32; 2023, No. 144 (Adj. Sess.), § 6, eff. June 3, 2024; 2025, No. 73, § 65, eff. July 1, 2025.)
§ 6066a Determination of homestead property tax exemption and municipal property tax credit [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
(a) Annually, the Commissioner shall determine the homestead property tax exemption and the municipal property tax credit amount under section 6066 of this title, related to a homestead owned by the claimant, based on the prior taxable year’s income and for the municipal property tax credit, crediting property taxes paid in the prior year, and for the homestead property tax exemption, exempting the housesite value in the claim year. The Commissioner shall notify the municipality in which the housesite is located of the amount of the homestead property tax exemption and municipal property tax credit for the claimant for property tax liabilities on a monthly basis. The municipal property tax credit of a claimant who was assessed property tax by a town that revised the dates of its fiscal year, however, is the excess of the property tax that was assessed in the last 12 months of the revised fiscal year, over the adjusted property tax of the claimant for the revised fiscal year, as determined under section 6066 of this title, related to a homestead owned by the claimant.
(b) The Commissioner shall include in the total homestead property tax exemption and municipal property tax credit amount determined under subsection (a) of this section, for credit to the taxpayer for statewide education property tax and supplemental district spending tax liabilities, any income tax overpayment remaining after allocation under section 3112 of this title and setoff under section 5934 of this title, which the taxpayer has directed to be used for payment of property taxes.
(c) The Commissioner shall notify the municipality of any claim and refund amounts unresolved by November 1 at the time of final resolution, including adjudication, if any; provided, however, that towns will not be notified of any additional credit amounts after November 1 of the claim year, and such amounts shall be paid to the claimant by the Commissioner.
(d) [Repealed.]
(e) At the time of notice to the municipality, the Commissioner shall notify the taxpayer of the homestead property tax exemption amount determined under subdivision 6066(a)(1) of this title; any municipal property credit amount due the homestead owner under subdivision 6066(a)(2) of this title; the amount of income tax refund, if any, allocated to payment of statewide education property tax liabilities; and any late-claim reduction amount.
(f)(1) For taxpayers and amounts stated in the notice to towns on or before July 1, municipalities shall create and send to taxpayers a property tax bill, instead of the bill required under subdivision 5402(b)(1) of this title, providing the total amount allocated to payment of statewide education property tax liabilities and notice of the balance due. Municipalities shall apply the amount of the homestead property tax exemption allocated under this chapter to current year property taxes in equal amounts to each of the taxpayers’ property tax installments that include education taxes and the amount of the municipal property tax credit allocated under this chapter to current year municipal property taxes in equal amounts to each of the taxpayers’ property tax installments that include municipal taxes. Notwithstanding section 4772 of this title, if a town issues a corrected bill as a result of the notice sent by the Commissioner under subsection (a) of this section, issuance of the corrected new bill does not extend the time for payment of the original bill nor relieve the taxpayer of any interest or penalties associated with the original bill. If the corrected bill is less than the original bill, and there are also no unpaid current year taxes, interest, or penalties, and no past year delinquent taxes or penalties and interest charges, any overpayment shall be reflected on the corrected tax bill and refunded to the taxpayer.
(2) For homestead property tax exemption and municipal property tax credit amounts for which municipalities receive notice after November 1, municipalities shall issue a new property tax bill with notice to the taxpayer of the total amount allocated to payment of property tax liabilities and notice of the balance due.
(3) The homestead property tax exemption and municipal property tax credit amount determined for the taxpayer shall be allocated first to current year housesite value and property tax on the homestead parcel, next to current-year homestead parcel penalties and interest, next to any prior year homestead parcel penalties and interest, and last to any prior year housesite value and property tax on the homestead parcel. No homestead property tax exemption or municipal credit shall be allocated to a housesite value or property tax liability for any year after the year for which the claim or refund allocation was filed. No municipal tax-reduction incentive for early payment of taxes shall apply to any amount allocated to the property tax bill under this chapter.
(4) If the homestead property tax exemption or the municipal property tax credit amount as described in subsection (e) of this section exceeds the property tax, penalties, and interest due for the current and all prior years, the municipality shall refund the excess to the taxpayer, without interest, within 20 days of the first date upon which taxes become due and payable or 20 days after notification of the exemption or credit amount by the Commissioner of Taxes, whichever is later.
(g) The Commissioner of Taxes shall pay monthly to each municipality the amount of municipal property tax credit of which the municipality was last notified related to municipal property tax on homesteads within that municipality, as determined by the Commissioner of Taxes.
(Added 1999, No. 49, § 37, eff. Jan. 1, 2000, § 37a, eff. Jan. 1, 2001; amended 2001, No. 63, § 163d; 2001, No. 144 (Adj. Sess.), § 18, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 49, eff. March 1, 2004; 2005, No. 185 (Adj. Sess.), § 3; eff. Jan. 1, 2007; 2007, No. 65, § 50b; 2007, No. 65, § 291, eff. June 4, 2007; 2007, No. 190 (Adj. Sess.), §§ 14-16, eff. June 6, 2008; 2009, No. 1 (Sp. Sess.), § H.29; 2009, No. 160 (Adj. Sess.), § 15, eff. June 4, 2010; 2011, No. 143 (Adj. Sess.), § 11, eff. May 15, 2012; 2011, No. 143 (Adj. Sess.), § 27, eff. Jan. 1, 2013; 2013, No. 174 (Adj. Sess.), § 19; 2018, No. 11 (Sp. Sess.), § H.15, eff. July 1, 2019; 2019, No. 14, § 81, eff. April 30, 2019; 2019, No. 51, §§ 28, 32; 2023, No. 144 (Adj. Sess.), § 6, eff. June 3, 2024; 2025, No. 73, § 65, eff. July 1, 2025; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6067 Claim limitations [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
(a) Claimant. Only one individual per household per taxable year shall be entitled to a homestead exemption claim or property tax credit claim, or both, under this chapter.
(b) Other states. An individual who received a homestead exemption or credit with respect to property taxes assessed by another state for the taxable year shall not be entitled to receive a credit under this chapter.
(c) Dollar amount. No claimant shall receive a renter credit under subsection 6066(b) of this title in excess of $2,500.00. No claimant shall receive a municipal property tax credit under subdivision 6066(a)(2) of this title greater than $2,400.00.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1999, No. 49, § 10, eff. June 2, 1999; 2005, No. 185 (Adj. Sess.), § 9; 2007, No. 82, § 2, eff. July 1, 2008; 2011, No. 143 (Adj. Sess.), § 30, eff. Jan. 1, 2013; 2018, No. 11 (Sp. Sess.), § H.13, eff. July 1, 2019; 2019, No. 160 (Adj. Sess.), § 5, eff. Jan. 1, 2021; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6067 Credit limitations [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
Only one individual per household per taxable year shall be entitled to a property tax credit under this chapter. An individual who received a homestead exemption or credit with respect to property taxes assessed by another state for the taxable year shall not be entitled to receive a credit under this chapter. No taxpayer shall receive a renter credit under subsection 6066(b) of this title in excess of $2,500.00. No taxpayer shall receive a property tax credit under subdivision 6066(a)(3) of this title greater than $2,400.00 or cumulative credit under subdivisions 6066(a)(1)-(2) and (4) of this title greater than $5,600.00.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1999, No. 49, § 10, eff. June 2, 1999; 2005, No. 185 (Adj. Sess.), § 9; 2007, No. 82, § 2, eff. July 1, 2008; 2011, No. 143 (Adj. Sess.), § 30, eff. Jan. 1, 2013; 2018, No. 11 (Sp. Sess.), § H.13, eff. July 1, 2019; 2019, No. 160 (Adj. Sess.), § 5, eff. Jan. 1, 2021.)
§ 6068 Application and time for filing [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
(a) A property tax credit claim or request for allocation of an income tax refund to homestead property tax payment shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension, and shall describe the school district in which the homestead property is located and shall particularly describe the homestead property for which the credit or allocation is sought, including the school parcel account number prescribed in subsection 5404(b) of this title. A renter credit claim shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension.
(b) If the claimant files a claim after October 15 but on or before March 15 of the following calendar year, the property tax credit under this chapter:
(1) shall be reduced in amount by $150.00, but not below $0.00;
(2) shall be issued directly to the claimant; and
(3) shall not require the municipality where the claimant’s property is located to issue an adjusted homestead property tax bill.
(c) No request for allocation of an income tax refund or for a renter credit claim may be made after October 15. No property tax credit claim may be made after March 15 of the calendar year following the due date under subsection (a) of this section.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 17, eff. Jan. 1, 1998; 2001, No. 144 (Adj. Sess.), § 19, eff. June 21, 2002; 2005, No. 185 (Adj. Sess.), § 5; 2007, No. 33, § 5, eff. May 18, 2007; 2011, No. 143 (Adj. Sess.), § 29, eff. Jan. 1, 2013; 2019, No. 131 (Adj. Sess.), § 295; 2019, No. 160 (Adj. Sess.), § 6, eff. Jan. 1, 2021; 2023, No. 72, § 22, eff. June 19, 2023; 2023, No. 144 (Adj. Sess.), § 7, eff. June 3, 2024.)
§ 6068 Application and time for filing [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
(a) A homestead property tax exemption or municipal property tax credit claim or request for allocation of an income tax refund to statewide education property tax payment shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension, and shall describe the school district in which the homestead property is located and shall particularly describe the homestead property for which the exemption or credit is sought, including the school parcel account number prescribed in subsection 5404(b) of this title. A renter credit claim shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension.
(b)(1) If a claimant files a municipal property tax credit claim after October 15 but on or before March 15 of the following calendar year, the municipal property tax credit under this chapter:
(A) shall be reduced in amount by $150.00, but not below $0.00;
(B) shall be issued directly to the claimant; and
(C) shall not require the municipality where the claimant’s property is located to issue an adjusted property tax bill.
(2) If a claimant files a homestead property tax exemption claim under this chapter after October 15 but on or before March 15 of the following calendar year, the claimant shall pay a penalty of $150.00 and the municipality where the claimant’s property is located shall not be required to issue an adjusted property tax bill.
(c) No request for allocation of an income tax refund or for a renter credit claim may be made after October 15. No homestead property tax exemption or municipal property tax credit claim may be made after March 15 of the calendar year following the due date under subsection (a) of this section.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 17, eff. Jan. 1, 1998; 2001, No. 144 (Adj. Sess.), § 19, eff. June 21, 2002; 2005, No. 185 (Adj. Sess.), § 5; 2007, No. 33, § 5, eff. May 18, 2007; 2011, No. 143 (Adj. Sess.), § 29, eff. Jan. 1, 2013; 2019, No. 131 (Adj. Sess.), § 295; 2019, No. 160 (Adj. Sess.), § 6, eff. Jan. 1, 2021; 2023, No. 72, § 22, eff. June 19, 2023; 2023, No. 144 (Adj. Sess.), § 7, eff. June 3, 2024; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6069 Landlord certificate
(a) On or before January 31 of each year, the owner of land rented as a portion of a homestead in the prior calendar year shall furnish a certificate of rent to the Department of Taxes and to each claimant who owned a portion of the homestead and rented that land as a portion of a homestead in the prior calendar year. The certificate shall indicate the proportion of total property tax on that parcel that was assessed for municipal property tax and for statewide property tax.
(b) The owner of each rental property shall, on or before January 31 of each year, furnish a certificate of rent to the Department of Taxes.
(c) A certificate under this section shall be in a form prescribed by the Commissioner and shall include the following:
(1) the name of each renter;
(2) the address and the School Property Account Number of the rental property;
(3) the name of the owner or landlord of the rental property;
(4) the phone number, email address, and mailing address of the owner or landlord of the rental property, as available;
(5) the type or types of rental units on the rental property;
(6) the number of rental units on the rental property;
(7) the number of ADA-accessible units on the rental property; and
(8) any additional information that the Commissioner determines is appropriate.
(d) An owner who knowingly fails to furnish a certificate to the Department as required by this section shall be liable to the Commissioner for a penalty of $200.00 for each failure to act. Penalties under this subsection shall be assessed and collected in the manner provided in chapter 151 of this title for the assessment and collection of the income tax.
(e) [Repealed.]
(f) Annually on or before December 15, the Department shall submit a report on the aggregated data collected under this section to the House Committee on General and Housing and the Senate Committee on Economic Development, Housing and General Affairs.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2009, No. 160 (Adj. Sess.), § 26; 2015, No. 134 (Adj. Sess.), § 17, eff. May 25, 2016; 2017, No. 188 (Adj. Sess.), § 6, eff. July 1, 2019; 2019, No. 160 (Adj. Sess.), § 4, eff. Jan. 1, 2021; 2021, No. 105 (Adj. Sess.), § 554, eff. July 1, 2022; 2023, No. 6, § 384, eff. July 1, 2023; 2025, No. 69, § 8, eff. July 1, 2025.)
§ 6069 Landlord certificate
(a) On or before January 31 of each year, the owner of land rented as a portion of a homestead in the prior calendar year shall furnish a certificate of rent to the Department of Taxes and to each claimant who owned a portion of the homestead and rented that land as a portion of a homestead in the prior calendar year. The certificate shall indicate the proportion of total property tax on that parcel that was assessed for municipal property tax and for statewide property tax.
(b) The owner of each rental property shall, on or before January 31 of each year, furnish a certificate of rent to the Department of Taxes.
(c) A certificate under this section shall be in a form prescribed by the Commissioner and shall include the following:
(1) the name of each renter;
(2) the address and the School Property Account Number of the rental property;
(3) the name of the owner or landlord of the rental property;
(4) the phone number, email address, and mailing address of the owner or landlord of the rental property, as available;
(5) the type or types of rental units on the rental property;
(6) the number of rental units on the rental property;
(7) the number of ADA-accessible units on the rental property; and
(8) any additional information that the Commissioner determines is appropriate.
(d) An owner who knowingly fails to furnish a certificate to the Department as required by this section shall be liable to the Commissioner for a penalty of $200.00 for each failure to act. Penalties under this subsection shall be assessed and collected in the manner provided in chapter 151 of this title for the assessment and collection of the income tax.
(e) [Repealed.]
(f) Annually on or before December 15, the Department shall submit a report on the aggregated data collected under this section to the House Committee on General and Housing and the Senate Committee on Economic Development, Housing and General Affairs.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2009, No. 160 (Adj. Sess.), § 26; 2015, No. 134 (Adj. Sess.), § 17, eff. May 25, 2016; 2017, No. 188 (Adj. Sess.), § 6, eff. July 1, 2019; 2019, No. 160 (Adj. Sess.), § 4, eff. Jan. 1, 2021; 2021, No. 105 (Adj. Sess.), § 554, eff. July 1, 2022; 2023, No. 6, § 384, eff. July 1, 2023; 2025, No. 69, § 8, eff. July 1, 2025.)
§ 6070 Disallowed claims [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
A claim shall be disallowed if the claimant received title to his or her homestead primarily for the purpose of receiving benefits under this chapter.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998.)
§ 6070 Disallowed claims [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
A claim shall be disallowed if the claimant received title to the claimant’s homestead primarily for the purpose of receiving benefits under this chapter.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6071 Excessive and fraudulent claims [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
(a) In any case in which it is determined under the provisions of this title that a claim is or was excessive and was filed with fraudulent intent, the claim shall be disallowed in full and the Commissioner may impose a penalty equal to the amount claimed. A disallowed claim may be recovered by assessment as income taxes are assessed. The assessment, including assessment of penalty, shall bear interest from the date the claim was credited against property tax or income tax or paid by the State until repaid by the claimant at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. The claimant in that case, and any person who assisted in the preparation of filing of such excessive claim or supplied information upon which the excessive claim was prepared, with fraudulent intent, shall be fined not more than $1,000.00 or be imprisoned not more than one year, or both.
(b) In any case in which it is determined that a claim is or was excessive, the Commissioner may impose a 10 percent penalty on such excess, and if the claim has been paid or credited against property tax or income tax otherwise payable, the municipal property tax credit or homestead exemption shall be reduced or canceled and the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed, and such assessment shall bear interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title from the date of payment or, in the case of credit of a municipal property tax bill under section 6066a of this title, from December 1 of the year in which the claim is filed until refunded or paid.
(c) In any case in which a homestead is rented by a person from another person under circumstances deemed by the Commissioner to be not at arms-length, the Commissioner may determine the rent constituting property tax for purposes of this chapter.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2007, No. 190 (Adj. Sess.), § 45; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6071 Excessive and fraudulent claims [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
(a) In any case in which it is determined under the provisions of this title that a claim is or was excessive and was filed with fraudulent intent, the claim shall be disallowed in full and the Commissioner may impose a penalty equal to the amount claimed. A disallowed claim may be recovered by assessment as income taxes are assessed. The assessment, including assessment of penalty, shall bear interest from the date the claim was credited against property tax or income tax or paid by the State until repaid by the claimant at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. The claimant in that case, and any person who assisted in the preparation of filing of such excessive claim or supplied information upon which the excessive claim was prepared, with fraudulent intent, shall be fined not more than $1,000.00 or be imprisoned not more than one year, or both.
(b) In any case in which it is determined that a claim is or was excessive, the Commissioner may impose a 10 percent penalty on such excess, and if the claim has been paid or credited against property tax or income tax otherwise payable, the credit shall be reduced or canceled and the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed, and such assessment shall bear interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title from the date of payment or, in the case of credit of a property tax bill under section 6066a of this title, from December 1 of the year in which the claim is filed until refunded or paid.
(c) In any case in which a homestead is rented by a person from another person under circumstances deemed by the Commissioner to be not at arms-length, the Commissioner may determine the rent constituting property tax for purposes of this chapter.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2007, No. 190 (Adj. Sess.), § 45.)
§ 6072 Appeals
Any person aggrieved by the denial, in whole or in part, of relief claimed under this chapter, except when the denial is based upon late filing of claim for relief, may appeal to the Commissioner by filing a petition of appeal within 60 days after the denial. This appeal shall be a person’s exclusive remedy for denial of a benefit claimed under this chapter. The Commissioner’s determination may be further appealed in the manner described in subsection 5885(b) of this title.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2003, No. 70 (Adj. Sess.), § 50, eff. March 1, 2004.)
§ 6072 Appeals
Any person aggrieved by the denial, in whole or in part, of relief claimed under this chapter, except when the denial is based upon late filing of claim for relief, may appeal to the Commissioner by filing a petition of appeal within 60 days after the denial. This appeal shall be a person’s exclusive remedy for denial of a benefit claimed under this chapter. The Commissioner’s determination may be further appealed in the manner described in subsection 5885(b) of this title.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2003, No. 70 (Adj. Sess.), § 50, eff. March 1, 2004.)
§ 6073 Rules of the Commissioner [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
The Commissioner may, from time to time, adopt, amend, and withdraw rules interpreting and implementing this chapter.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6073 Regulations of the Commissioner [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
The Commissioner may, from time to time, issue, amend and withdraw regulations interpreting and implementing this chapter.
(Added 1997, No. 60, § 51, eff. Jan. 1, 1998.)
§ 6074 Amendment of certain claims [Effective until contingency met; see also 32 V.S.A. chapter 154 effective July 1, 2028 if contingency met, set out below]
At any time within three years after the date for filing claims under subsection 6068(a) of this chapter, a claimant who filed a claim by October 15 may file to amend that claim with regard to housesite value, housesite education tax, housesite municipal tax, and ownership percentage or to correct the amount of household income reported on that claim.
(Added 2001, No. 144 (Adj. Sess.), § 20, eff. June 21, 2002; amended 2007, No. 81, § 4; 2011, No. 143 (Adj. Sess.), § 28, eff. Jan. 1, 2013; 2021, No. 73, § 3.)
§ 6074 Amendment of certain claims [Effective July 1, 2028 if contingency met; see also 32 V.S.A. chapter 154 effective until contingency met, set out above]
At any time within three years after the date for filing claims under subsection 6068(a) of this chapter, a claimant who filed a claim by October 15 may file to amend that claim with regard to housesite value, housesite municipal tax, and ownership percentage or to correct the amount of household income reported on that claim.
(Added 2001, No. 144 (Adj. Sess.), § 20, eff. June 21, 2002; amended 2007, No. 81, § 4; 2011, No. 143 (Adj. Sess.), § 28, eff. Jan. 1, 2013; 2021, No. 73, § 3; 2025, No. 73, § 52, contingently eff. July 1, 2028.)
§ 6075 Repealed
[Repealed]
2013, No. 179 (Adj. Sess.), § D.105(b), eff. July 1, 2017.
§ 6075 Repealed
[Repealed]
2013, No. 179 (Adj. Sess.), § D.105(b), eff. July 1, 2017.
§ 6075a Repealed
[Repealed]
2019, No. 72, § E.500.
§ 6075a Repealed
[Repealed]
2019, No. 72, § E.500.
Chapter 181 Inheritance Taxes
§§ 6501-6592 Repealed
[Repealed]
Chapter 183 Additional Estate Tax
§§ 7001-7005 Repealed
[Repealed]
Chapter 185 Interstate Arbitration of Death Taxes
§ 7101 Definitions
As used in this chapter, the following words or phrases shall mean and include:
(1) “Death taxes,” estate taxes, inheritance taxes, succession taxes, taxes upon transfers made in contemplation of death, or any tax that arises because an individual has deceased;
(2) “State,” any state, territory, or possession of the United States, and the District of Columbia.
§ 7102 Agreement to arbitrate
When the Commissioner of Taxes claims that a decedent was domiciled in this State at the time of his or her death and the taxing authorities of another state or states make a like claim on behalf of their state or states, the Commissioner of Taxes may, with the approval of the Attorney General, make a written agreement with the other taxing authorities and with the executor or administrator to submit the controversy to the decision of a board consisting of one or any uneven number of arbitrators. The executor or administrator is hereby authorized to make the agreement. The parties to the agreement shall select the arbitrator or arbitrators.
§ 7103 Hearing
The Board shall hold hearings at such times and places as it may determine, upon reasonable notice to the parties to the agreement all of whom shall be entitled to be heard, to present evidence and to examine and cross-examine witnesses.
§ 7104 Powers of Board
The Board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of books, papers, and documents, and issue Commissions to take testimony. Subpoenas may be signed by any member of the Board.
(Amended 1983, No. 230 (Adj. Sess.), § 15.)
§ 7105 Determination of domicile
The Board shall, by majority vote, determine the domicile of the decedent at the time of his or her death. This determination shall be final for purposes of imposing and collecting death taxes, but for no other purpose.
§ 7106 Majority vote
Except as provided in section 7104 of this title in respect of the issuance of subpoenas, all questions arising in the course of the proceeding shall be determined by majority vote of the Board.
§ 7107 Filing of determination, record, and other documents
The Commissioner of Taxes, the Board, or the executor or administrator shall file the determination of the Board as to domicile, the record of the Board’s proceedings, and the agreement, or a duplicate, made pursuant to section 7102 of this title, with the authority having jurisdiction to determine the death taxes in the state determined to be the domicile and shall file copies of all such documents with the authorities that would have been empowered to determine the death taxes in each of the other states involved.
§ 7108 Compromise by parties
Nothing contained herein shall prevent at any time a written compromise, if otherwise lawful, by all parties to the agreement made pursuant to section 7102 of this title, fixing the amounts to be accepted by this State and any other state involved in full satisfaction of death taxes.
§ 7109 Compensation of Board and employees
The compensation and expenses of the members of the Board and its employees may be agreed upon among such members and the executor or administrator and, if they cannot agree, shall be fixed by the proper Probate Division of the Superior Court of the state determined by the Board to be the domicile of the decedent. The amounts so agreed upon or fixed shall be deemed an administration expense and shall be payable by the executor or administrator.
(Amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
§ 7110 Reciprocal application
This chapter shall apply only to cases in which each of the states involved has a law identical with or substantially similar to this chapter.
§ 7111 Uniform interpretation
This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states that enact it.
Chapter 187 Interstate Compromise of Death Taxes
§ 7201 Definitions
As used in this chapter, the following words or phrases shall mean and include:
(1) “Death taxes,” estate taxes, inheritance taxes, succession taxes, taxes upon transfers made in contemplation of death, or any tax which arises because an individual has deceased;
(2) “State,” any state, territory, or possession of the United States, and the District of Columbia.
§ 7202 Agreement; filing; interest and penalties
When the Commissioner of Taxes claims that a decedent was domiciled in this State at the time of his or her death and the taxing authorities of another state or states make a like claim on behalf of their state or states, the Commissioner of Taxes may, with the approval of the Attorney General, make a written agreement of compromise with the other taxing authorities and the executor or administrator that a certain sum shall be accepted in full satisfaction of any and all death taxes imposed by this State, including any interest or penalties to the date of filing agreement. The agreement shall also fix the amount to be accepted by the other states in full satisfaction of death taxes. The executor or administrator is hereby authorized to make such agreement. Either the Commissioner of Taxes or the executor or administrator shall file the agreement, or a duplicate, with the authority that would be empowered to determine death taxes for this State if there had been no agreement; and thereupon the tax shall be deemed conclusively fixed as therein provided. Unless the tax is paid within 30 days after filing the agreement, interest or penalties shall thereafter accrue upon the amount fixed in the agreement, but the time between the decedent’s death and the filing shall not be included in computing the interest or penalties.
§ 7203 Uniform interpretation
This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.
Chapter 189 Uniform Estate Tax Apportionment Act
§ 7301 Definitions
As used in this chapter:
(1) “Estate” means the gross estate of a decedent as determined for the purpose of federal estate tax and the estate tax payable to this State.
(2) “Person” means any individual, partnership, association, joint stock company, corporation, government, political subdivision, governmental agency, or local governmental agency.
(3) “Person interested in the estate” means any person entitled to receive, or who has received, from a decedent or by reason of the death of a decedent any property or interest therein included in the decedent’s estate. It includes a personal representative, guardian, and trustee.
(4) “State” means any state, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.
(5) “Tax” means the federal estate tax and the estate tax payable to this State and interest and penalties imposed in addition to the tax.
(6) “Fiduciary” means executor, administrator of any description, and trustee.
(Added 1975, No. 240 (Adj. Sess.), § 11.)
§ 7302 Apportionment
Unless the will otherwise provides, the tax shall be apportioned among all persons interested in the estate. The apportionment shall be made in the proportion that the value of the interest of each person interested in the estate bears to the total value of the interests of all persons interested in the estate. The values used in determining the tax shall be used for that purpose.
(Added 1975, No. 240 (Adj. Sess.), § 11.)
§ 7303 Procedure for determining apportionment
(a) The Probate Division of the Superior Court having jurisdiction over the administration of the estate of a decedent shall determine the apportionment of the tax. If there are no probate proceedings, the Probate Division of the Superior Court of the county wherein the decedent was domiciled at death upon the application of the person required to pay the tax shall determine the apportionment of the tax.
(b) If the Probate Division of the Superior Court finds that it is inequitable to apportion interest and penalties in the manner provided in section 7302 of this title, because of special circumstances, it may direct apportionment thereof in the manner it finds equitable.
(c) The expenses reasonably incurred by any fiduciary and by other persons interested in the estate in connection with the determination of the amount and apportionment of the tax shall be apportioned as provided in section 7302 of this title and charged and collected as a part of the tax apportioned. If the Probate Division of the Superior Court finds it is inequitable to apportion the expenses as provided in section 7302 of this title, it may direct apportionment thereof equitably.
(d) If the Probate Division of the Superior Court finds that the assessment of penalties and interest assessed in relation to the tax is due to delay caused by the negligence of the fiduciary, the court may charge the fiduciary with the amount of the assessed penalties and interest.
(e) In any suit or judicial proceeding to recover from any person interested in the estate the amount of the tax apportioned to the person in accordance with this chapter, the determination of the Probate Division of the Superior Court in respect thereto shall be prima facie correct.
(Added 1975, No. 240 (Adj. Sess.), § 11; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. February 1, 2011.)
§ 7304 Method of proration
(a) The fiduciary or other person in possession of the property of the decedent required to pay the tax may withhold from any property distributable to any person interested in the estate, upon its distribution to him or her, the amount of tax attributable to his or her interest. If the property in possession of the fiduciary or other person required to pay the tax and distributable to any person interested in the estate is insufficient to satisfy the proportionate amount of the tax determined to be due from the person, the fiduciary or other person required to pay the tax may recover the deficiency from the person interested in the estate. If the property is not in the possession of the fiduciary or other person required to pay the tax, the fiduciary or the other person required to pay the tax may recover from any person interested in the estate the amount of the tax apportioned to the person in accordance with this chapter.
(b) If property held by the fiduciary is distributed prior to final apportionment of the tax, the distributee shall provide a bond or other security for the apportionment liability in the form and amount prescribed by the fiduciary, with the approval of the Probate Division of the Superior Court having jurisdiction of the administration of the estate.
(Added 1975, No. 240 (Adj. Sess.), § 11; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
§ 7305 Allowance for exemptions, deductions, and credits
(a) In making an apportionment, allowances shall be made for any exemptions granted, any classification made of persons interested in the estate, and for any deductions and credits allowed by the law imposing the tax.
(b) Any exemption or deduction allowed by reason of the relationship of any person to the decedent or by reason of the purposes of the gift shall inure to the benefit of the person bearing such relationship or receiving the gift, except that when an interest is subject to a prior present interest that is not allowable as a deduction, the tax apportionable against the present interest shall be paid from principal.
(c) Any deduction for property previously taxed and any credit for gift taxes or death taxes of a foreign country paid by the decedent or the decedent’s estate shall inure to the proportionate benefit of all persons liable to apportionment.
(d) Any credit for inheritance, succession, or estate taxes or taxes in the nature thereof in respect to property or interests includable in the estate shall inure to the benefit of the persons or interests chargeable with the payment thereof to the extent that, or in proportion as, the credit reduces the tax.
(e) To the extent that property passing to or in trust for a surviving spouse or any charitable, public, or similar gift or bequest does not constitute an allowable deduction for purposes of the tax solely by reason of an inheritance tax or other death tax imposed upon and deductible from the property, the property shall not be included in the computation provided for in section 7302 of this title, and to that extent no apportionment shall be made against the property. The sentence immediately preceding shall not apply to any case where the result will be to deprive the estate of a deduction otherwise allowable under 26 U.S.C. § 2053(d) relating to deductions for State death taxes on transfers for public, charitable, or religious uses.
(Added 1975, No. 240 (Adj. Sess.), § 11; amended 2021, No. 105 (Adj. Sess.), § 555, eff. July 1, 2022.)
§ 7306 No apportionment between temporary and remainder interests
No interest in income and no estate for years or for life or other temporary interest in any property or fund shall be subject to apportionment as between the temporary interest and the remainder. The tax on the temporary interest and the tax, if any, on the remainder shall be chargeable against the corpus of the property or funds subject to the temporary interest and remainder.
(Added 1975, No. 240 (Adj. Sess.), § 11.)
§ 7307 Exoneration of fiduciary
Neither the fiduciary nor other person required to pay the tax shall be under any duty to institute any suit or proceeding to recover from any person interested in the estate the amount of the tax apportioned to the person until the expiration of the three months next following final determination of the tax. A fiduciary or other person required to pay the tax who institutes the suit or proceeding within a reasonable time after the three months’ period shall not be subject to any liability or surcharge because any portion of the tax apportioned to any person interested in the estate was collectible at a time following the death of the decedent but thereafter became uncollectable. If the fiduciary or other person required to pay the tax cannot collect from any person interested in the estate the amount of the tax apportioned to the person, the amount not recoverable shall be equitably apportioned by the court among the other persons interested in the estate, who are subject to apportionment.
(Added 1975, No. 240 (Adj. Sess.), § 11.)
§ 7308 Action by nonresident; reciprocity
Subject to this section, a fiduciary acting in another state or a person required to pay the tax who is a resident in another state may institute an action in the courts of this State and may recover a proportionate amount of the federal estate tax or an estate tax payable to another state or of a death duty due by a decedent’s estate to another state from a person interested in the estate who is either a resident in this State or who owns property in this State subject to attachment or execution. For the purposes of the action, the determination of apportionment by the court having jurisdiction of the administration of the decedent’s estate in the other state shall be prima facie correct. The provisions of this section shall apply only if the state in which such apportionment was made affords a substantially similar remedy.
(Added 1975, No. 240 (Adj. Sess.), § 11; amended 2021, No. 105 (Adj. Sess.), § 556, eff. July 1, 2022.)
§ 7309 Short title
This chapter may be cited as the Uniform Estate Tax Apportionment Act.
(Added 1975, No. 240 (Adj. Sess.), § 11.)
Chapter 190 Estate and Gift Taxes
Subchapter 1 Purpose; Definitions
§ 7401 Purpose
(a) This chapter is intended to conform the Vermont estate tax laws with the estate and gift tax provisions of the U.S. Internal Revenue Code, except as otherwise expressly provided, in order to simplify the taxpayer’s filing of returns, reduce the taxpayer’s accounting burdens, and facilitate the collection and administration of these taxes. Because federal estate and gift tax law does not recognize a civil union in the same manner as Vermont law, and because a reduction in the Vermont estate tax liability for parties to a civil union based upon the federal marital deduction would not reduce the total estate tax liability, estates of parties to a civil union shall be subject to tax based on their actual federal estate tax liability and, notwithstanding the provisions of section 7442a of this title, the actual federal credit for state death taxes as provided under the Economic Growth and Tax Relief Reconciliation Act of 2001. Beginning with estates of decedents with a date of death on or after January 1, 2005, this chapter shall apply to parties to a civil union and surviving parties to a civil union as if federal estate tax law recognized a civil union in the same manner as Vermont law.
(b) It is intended that taxpayers shall be taxed only upon the Vermont taxable estate or upon Vermont taxable gifts for any calendar year, but that the rate at which the Vermont taxable estate or Vermont taxable gifts are taxed under this chapter shall reflect the taxpayer’s ability to pay as measured by the value of his or her federal taxable estate or federal taxable gifts for the taxable year.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note below; amended 1999, No. 91 (Adj. Sess.), § 22; 2001, No. 140 (Adj. Sess.), § 17, eff. June 21, 2002.)
§ 7402 Definitions
As used in this chapter unless the context requires otherwise:
(1) “Commissioner” means the Commissioner of Taxes appointed under 3 V.S.A. § 2251.
(2) “Executor” means the executor or administrator of the estate of the decedent or, if there is no executor or administrator appointed, qualified, and acting within Vermont, then any person in actual or constructive possession of any property of the decedent.
(3) “Federal estate tax liability” means for any decedent’s estate the federal estate tax payable by the estate under the laws of the United States after the allowance of all credits against the estate tax provided by the laws of the United States.
(4) [Repealed.]
(5) “Federal gross estate” means the gross estate as determined under the laws of the United States.
(6) “Federal taxable estate” means the taxable estate as determined under the laws of the United States.
(7) “Federal taxable gifts” means taxable gifts as determined under the laws of the United States.
[Subdivision (8) shall apply to taxable years on and after January 1, 2024.]
(8) “Laws of the United States” means the U.S. Internal Revenue Code of 1986, as amended through December 31, 2024. As used in this chapter, “Internal Revenue Code” has the same meaning as “laws of the United States” as defined in this subdivision. The date through which amendments to the U.S. Internal Revenue Code of 1986 are adopted under this subdivision shall continue in effect until amended, repealed, or replaced by act of the General Assembly.
(9) “Nonresident of Vermont” means a person whose domicile is not Vermont.
(10) “Resident of Vermont” means a person whose domicile is Vermont.
(11) “Taxpayer” means the executor of an estate, the estate itself, the donor of a gift, or any person or entity or combination of these who is liable for the payment of any tax, interest, penalty, fee, or other amount under this chapter.
(12) [Repealed.]
(13) “Vermont gross estate” means for any decedent the value of the federal gross estate as provided under 26 U.S.C. § 2031, excluding the value of property that has its situs outside Vermont.
(14) “Vermont taxable estate” means the federal taxable estate as provided under 26 U.S.C. § 2051, without regard to whether the estate is subject to the federal estate tax:
(A) Increased by the amount of the deduction for state death taxes allowed under 26 U.S.C. § 2058, to the extent deducted in computing the federal taxable estate.
(B) Increased by the amount of the deduction for foreign death taxes allowed under 26 U.S.C. § 2053(d), to the extent deducted in computing the federal taxable estate.
(C) Increased by the aggregate amount of taxable gifts as defined in 26 U.S.C. § 2503, made by the decedent within two years of the date of death. For purposes of this subdivision (14), the amount of the addition equals the value of the gift under 26 U.S.C. § 2512 and excludes any value of the gift included in the federal gross estate.
(15) “Situs of property” means, with respect to:
(A) real property, the state or country in which it is located;
(B) tangible personal property, the state or country in which it was normally kept or located at the time of the decedent’s death or for a gift of tangible personal property within two years of death, the state or country in which it was normally kept or located when the gift was executed;
(C) a qualified work of art, as defined in 26 U.S.C. § 2503(g)(2), owned by a nonresident decedent and that is normally kept or located in this State because it is on loan to an organization, qualifying as exempt from taxation under 26 U.S.C. § 501(c)(3), that is located in Vermont, the situs of the art is deemed to be outside Vermont; and
(D) intangible personal property, the state or country in which the decedent was domiciled at death or for a gift of intangible personal property within two years of death, the state or country in which the decedent was domiciled when the gift was executed.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2001, No. 140 (Adj. Sess.), § 13, eff. June 21, 2002; 2015, No. 146 (Adj. Sess.), § 1, eff. Jan. 1, 2016; 2017, No. 113 (Adj. Sess.), § 188; 2019, No. 51, § 6, eff. Jan. 1, 2019; 2019, No. 175 (Adj. Sess.), § 14, eff. Jan. 1, 2020; 2021, No. 9, § 23a, eff. Jan. 1, 2021; 2021, No. 73, § 24, eff. Jan. 1, 2021; 2021, No. 105 (Adj. Sess.), § 557, eff. July 1, 2022; 2021, No. 148 (Adj. Sess.), § 8, eff. January 1, 2022; 2023, No. 72, § 2, eff. January 1, 2023; 2023, No. 144 (Adj. Sess.), § 4, eff. January 1, 2024; 2025, No. 27, § E.111.1, eff. January 1, 2025.)
§ 7403 Repealed
[Repealed]
1987, No. 278 (Adj. Sess.), § 4, eff. June 21, 1988.
Subchapter 2 Gift Tax
§§ 7411-7418 Repealed
[Repealed]
1979, No. 140 (Adj. Sess.), § 2, eff. date, see note below.
Subchapter 3 Estate Tax
§ 7441 Name of tax
The tax imposed by this subchapter shall be known as the Vermont estate tax.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7442 Repealed
[Repealed]
1979, No. 140 (Adj. Sess.), § 3, eff. date, see note below.
§ 7442a Imposition of a Vermont estate tax and rate of tax
(a) A tax is hereby imposed on the transfer of the estates of decedents as prescribed by this chapter.
(b) The tax shall be computed as follows. The following rates shall be applied to the Vermont taxable estate:
| Amount of Vermont Taxable Estate | Rate of Tax | | --- | --- | | Under $5,000,000.00 | None | | $5,000,000.00 or more | 16 percent of the excess over $5,000,000.00 |
The resulting amount shall be multiplied by a fraction not greater than one, where the numerator of which is the value of the Vermont gross estate plus the value of gifts under subdivision 7402(14)(C) of this title with a Vermont situs, and the denominator of which is the federal gross estate plus the value of gifts under subdivision 7402(14)(C) of this title.
(c) All values shall be as finally determined for federal estate tax purposes.
(d) [Repealed.]
(Added 1979, No. 140 (Adj. Sess.), § 1; amended 1995, No. 29, § 11, eff. April 14, 1995; 2001, No. 140 (Adj. Sess.), § 12, eff. June 21, 2002; 2009, No. 1 (Sp. Sess.), § H.31; 2009, No. 160 (Adj. Sess.), § 33a; 2015, No. 146 (Adj. Sess.), § 2, eff. Jan. 1, 2016; 2017, No. 73, § 8, eff. Jan. 1, 2016; 2017, No. 113 (Adj. Sess.), § 189; 2019, No. 71, § 5, eff. Jan. 1, 2020; 2019, No. 71, § 6, eff. Jan. 1, 2021.)
§ 7443 Estate tax reduction for estate of a farmer
The amount of tax determined under section 7442a of this chapter on an estate that qualifies for installment payment of estate taxes under 26 U.S.C. § 6166, and in which the closely held business is the business of farming in Vermont, shall be reduced by the percentage that the value of the closely held farm business, as determined for federal estate tax purposes, bears to the value of the federal adjusted gross estate.
(Added 2001, No. 140 (Adj. Sess.), § 21, eff. June 21, 2002; amended 2003, No. 70 (Adj. Sess.), § 51, eff. March 1, 2004.)
§ 7444 Return by executor
(a) An executor shall submit a Vermont estate tax return to the Commissioner, on a form prescribed by the Commissioner, when a decedent has an interest in property with a situs in Vermont and one or both of the following apply:
(1) a federal estate tax return is required to be filed under 26 U.S.C. § 6018; or
(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 26 U.S.C. § 2001(b), made within two years of the date of the decedent’s death exceeds $2,750,000.00.
(b) If the executor is unable to make a complete return as to any part of the gross estate of the decedent, the executor shall include in the executor’s return, to the extent of the executor’s knowledge or information, a description of such part and the name of every person holding a legal or beneficial interest therein. Upon notice from the Commissioner, such person shall in like manner make a return as to such part of the gross estate. A return made by one of two or more joint fiduciaries shall be sufficient compliance with the requirements of this section. A return made pursuant to this section shall contain a statement that the return is, to the best of the knowledge and belief of the fiduciary, true and correct.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2003, No. 70 (Adj. Sess.), § 52, eff. March 1, 2004; 2009, No. 1 (Sp. Sess.), § H.32; 2015, No. 146 (Adj. Sess.), § 3, eff. Jan. 1, 2016; 2021, No. 105 (Adj. Sess.), § 558, eff. July 1, 2022.)
§ 7445 Copies of federal estate tax returns to be filed
It shall be the duty of the executor of every person who may die a resident of Vermont or a nonresident with real estate or tangible personal property having an actual situs in Vermont to file with the Commissioner a duplicate of all federal estate tax returns that he or she is required to make to the federal authorities or, if no federal estate tax return is required, a pro forma federal estate tax return for the estate of a decedent with a Vermont estate tax liability shall be filed with the Commissioner.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 1 (Sp. Sess.), § H.33.)
§ 7446 When returns to be filed
The estate tax return required under section 7444 of this title shall be filed within nine months of the death of the decedent. Prior to expiration of the filing period, executors may apply for a six-month extension.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 1 (Sp. Sess.), § H.34.)
§ 7447 When tax payable
The tax imposed by this subchapter shall be due and payable by the executor at the time the Vermont estate tax return is required to be filed under section 7446 of this title, without extension.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1995, No. 29, § 12, eff. April 14, 1995; 2003, No. 70 (Adj. Sess.), § 53, eff. March 1, 2004.)
§ 7448 Extension of time for payment
(a) If the Commissioner finds that the payment on the due date of any part of the amount determined by the executor as the tax imposed by this subchapter would result in undue hardship to the estate, he or she may extend the time for payment for a reasonable period not in excess of five years from the date prescribed by section 7447 of this title.
(b) For good cause shown, the Commissioner may extend the time for the payment of any tax liability, but the taxpayer shall pay, at the time the tax liability is paid, without assessment or demand, interest computed at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title on the unpaid amount of that tax liability from the time when the liability was originally due to the time of payment. However, no interest shall be required in the case of an extension granted in case of hardship under subsection (a) of this section.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1979, No. 105 (Adj. Sess.), § 16; 1981, No. 191 (Adj. Sess.), § 7.)
§ 7449 Probate Division to send Commissioner notice of estate
The Probate Division shall send to the Commissioner by mail at the time of granting letters of administration in any estate and upon forms to be furnished by the Commissioner the name of the decedent, the date of his or her death, and the name and address of the administrator or executor.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2017, No. 28, § 7, eff. May 10, 2017.)
§ 7450 Powers and duties of executor or administrator appointed for nonresident
When real or personal estate within Vermont or any interest therein belonging to a person who is not a resident of Vermont shall pass by will or otherwise so that it may be subject to tax under the provisions of this subchapter and an executor or administrator of the estate of the decedent is appointed by a Probate Division of the Superior Court of Vermont upon ancillary proceedings or otherwise, such executor or administrator shall, for the purpose of this subchapter, have the same powers and be subject to the same duties and liabilities with reference to such estate as though the decedent had been a resident of Vermont.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
§ 7451 Appointment of resident administrator for nonresident’s estate
In the absence of administration in Vermont upon the estate of a nonresident, the Commissioner may, at the request of an executor or administrator duly appointed and qualified in the state of the decedent’s domicile or at the request of a donee, devisee, legatee, distributee, or grantee under a conveyance or transfer made during the grantor’s lifetime, and upon satisfactory evidence furnished him or her by such executor, administrator, donee, devisee, legatee, distributee or grantee, or otherwise, determine whether or not any part of the estate of such decedent within Vermont is subject to tax under the provisions of this subchapter and may apply to the proper Probate Division of the Superior Court for the appointment of an administrator in Vermont.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
§ 7452 Personal liability of recipient of property; effect of transfer of property to bona fide purchaser, etc
If the estate taxes imposed by this subchapter are not paid when due, then the spouse, transferee, trustee, surviving tenant, person in possession of the property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, who receives, or has on the date of the decedent’s death property included in the federal gross estate to the extent of the value, at the time of the decedent’s death, of such property, shall be personally liable for such tax. Any part of such property transferred by, or transferred by a transferee of, such spouse, transferee, trustee, surviving tenant, person in possession of property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money’s worth shall be divested of the lien provided by law and a like lien shall then attach to all the property of such spouse, transferee, trustee, surviving tenant, person in possession, beneficiary, or transferee of any such person, except any part transferred to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money’s worth.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7453 Reimbursement of person other than executor paying tax
(a) If the tax or any part thereof imposed by this subchapter is paid by, or collected out of, that part of the estate passing to, or in possession of, any person other than the executor in his or her capacity as such, such person shall be entitled to reimbursement out of any part of the estate still undistributed or by a just and equitable contribution by the persons whose interest in the estate of the decedent would have been reduced if the tax had been paid before the distribution of the estate or whose interest is subject to equal or prior liability for the payment of taxes, debts, or other charges against the estate, it being the purpose and intent of this subchapter that, so far as is practicable and unless otherwise directed by the will of the decedent, the tax shall be paid out of the estate before its distribution.
(b) Any person entitled to reimbursement or contribution under this section may enforce his or her right thereto by action brought in the courts of this State.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7454 Discharge of executor; income tax clearance; notice of proceedings in court
(a) Upon the final settlement of the account of an administrator, executor, or trustee, the Probate Division of the Superior Court shall make the amount of estate taxes imposed by this chapter a part of the final decree of distribution, a copy of which decree shall be sent forthwith to the Commissioner by the judge of probate. An administrator, executor, or trustee shall not be finally discharged or relieved from his or her bond until he or she has paid such taxes as he or she is required to pay to the Commissioner and has filed with the Probate Division of the Superior Court a receipt issued by the Commissioner for the receipt of such taxes.
(b) A final account of an administrator, executor, or trustee shall not be allowed unless such account shows and the judge of probate finds that all income taxes imposed by chapter 151 of this title, which have become payable, have been paid. The certificate of the Commissioner and the receipt for the amount of tax therein certified shall be conclusive as to the payment of the tax, to the extent of such certificate. On behalf of the State, for the purpose of facilitating the settlement and distribution of estates, the Commissioner may agree upon the amount of income taxes at any time due from such administrator, executor, or trustee under the provisions of chapter 151 of this title, and payment in accordance with such agreement shall be full satisfaction of the taxes to which the agreement relates.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
§§ 7455-7459 [Reserved for future use]
§ 7460 Generation-skipping transfers
(a) As used in this section, unless the context indicates otherwise:
(1) “Generation-skipping transfer” means every transfer subject to the federal generation-skipping transfer tax in which the original transferor is a resident of the State at the date of original transfer or the property transferred is real or personal property in the State.
(2) “Original transferor” means any grantor, donor, settlor, or testator who by grant, gift, trust, or will makes a transfer of real or personal property that results in federal generation-skipping transfer tax.
(b) A tax is hereby imposed upon every generation-skipping transfer in which the original transferor is a resident of the State at the date of original transfer, in an amount equal to the amount allowable as a credit for State death taxes under 26 U.S.C. § 2604, as in effect on January 1, 2001.
(c) A tax is hereby imposed upon every generation-skipping transfer in which the original transferor is not a resident of the State at the date of the original transfer, in an amount equal to the amount allowable as a credit, with regard to the real or tangible personal property in Vermont, for State death taxes under 26 U.S.C. § 2604, as in effect on January 1, 2001.
(d) Every person required to file a return reporting a generation-skipping transfer under applicable federal law and regulations shall file with the Commissioner, on or before the last day prescribed for filing the federal return, a return in such form as the Commissioner may prescribe, including a duplicate copy of the federal return.
(e) The person liable for payment of the federal generation-skipping transfer tax shall be liable for the tax imposed by this section, which tax is due upon a taxable distribution or taxable termination as determined under the applicable provisions of the federal generation-skipping transfer tax and shall be paid to the Commissioner.
(f) Any person failing to file any payment of tax required by this section when due shall be subject to the interest and penalty provision of section 3202 of this title.
(g) If, after a duplicate copy of the federal return of a generation-skipping transfer has been filed with the Commissioner, the amount of the federal generation-skipping transfer tax is increased or decreased by the federal government, an amended return shall be filed with the Commissioner showing all changes made in the original return and the amount of increase or decrease in the federal generation-skipping transfer tax and in the State death tax credit relating thereto.
(Added 1999, No. 49, § 57, eff. June 2, 1999; amended 2001, No. 140 (Adj. Sess.), § 16, eff. June 21, 2002; 2021, No. 105 (Adj. Sess.), § 559, eff. July 1, 2022.)
Subchapter 4 General Provisions
§ 7470 Administration of chapter
The Commissioner shall administer and enforce this chapter.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7471 Regulations
The Commissioner may adopt, prescribe, and from time to time alter and amend and enforce reasonable rules, orders, and regulations for the purpose of implementing this title.
(Added 1969, No. 269 (Adj. See.), § 1, eff. date, see note under § 7401 of this title.)
§ 7472 Abatement of tax liabilities
The Commissioner may, upon making a record of his or her reasons therefor, waive, reduce, or compromise any of the taxes, penalties, or interest or other amounts provided in this chapter.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7473 Allocation of payments
(a) Any payment received by the Commissioner from any taxpayer with respect to a tax liability of the taxpayer may be applied to any tax liability in the following order of priority, notwithstanding any direction by the taxpayer to the contrary:
(1) first, against any portion of any tax liability initially incurred with respect to a preceding taxable year, with the portion incurred with respect to the earliest preceding taxable year to be satisfied before any portion incurred with respect to any succeeding taxable year; and
(2) next, against any portion of any tax liability incurred with respect to the current taxable year.
(b) As to each portion, the payment shall be applied as follows:
(1) first, to the amount of any interest;
(2) next, to the amount of any penalty;
(3) next, to the amount of any fee; and
(4) next, to the amount of any unpaid tax, incurred with respect to the taxable year.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2021, No. 105 (Adj. Sess.), § 560, eff. July 1, 2022.)
§ 7474 Inconsistent provisions
Notwithstanding any provisions of the statutes of this State to the contrary, no person or other taxpayer, and no item of gift or of an estate, shall be exempt from taxation under this chapter unless the person or other taxpayer or item of gift or of an estate, as the case may be, is expressly exempted from taxation by this chapter.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7475 Repealed
[Repealed]
2015, No. 146 (Adj. Sess.), § 4, eff. January 1, 2016.
§ 7476 Additional returns
When the Commissioner is of the opinion that a taxpayer has failed to file any return required by this chapter or to include in any return so filed, either intentionally or through error, information by which the taxpayer’s tax liability may correctly be determined, the Commissioner may, by written notice to the taxpayer, require that the taxpayer file that return or an additional supplementary return containing such information, verified as provided in section 7480 of this title, in such form as the Commissioner shall prescribe. The filing of that return shall not relieve the taxpayer from any of the penalties to which he or she may be liable under this chapter.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7477 Failure to file a return; petition and computation of tax
(a) Upon the failure of a taxpayer to file any return required under this chapter within 15 days of the date of a notice to the taxpayer under section 7476 of this title, the Commissioner may petition a judge of the Superior Court in the county wherein the taxpayer resides or has a place of business or, if the taxpayer neither resides nor has a place of business in this State, the Commissioner may petition the Washington Superior Court, and upon the petition of the Commissioner and a hearing, the judge shall issue a citation requiring the taxpayer and, if the taxpayer is a corporation, any principal officer of such corporation, to file a proper return in accordance with this chapter, upon pain of contempt. The order of notice upon the petition shall be returnable not later than 20 days after the filing of the petition. The petition shall be heard and determined on the return day or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case consistent with the rights of the parties. The judgment shall include costs in favor of the prevailing party.
(b) Upon the failure of a taxpayer to file any return required under this chapter within 15 days after the date of a notice to the taxpayer under section 7476 of this title, whether or not a petition has been or will be filed under subsection (a) of this section, the Commissioner may compute the tax liability of the taxpayer with respect to which the return was required to be filed, according to the Commissioner’s best information and belief. Upon that computation, the Commissioner shall notify the taxpayer of his or her deficiency with respect to the payment of that tax liability, and may assess any penalty or interest with respect thereto, under sections 3202 and 3203 of this title.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2019, No. 14, § 82, eff. April 30, 2019.)
§ 7478 Examination of records and witnesses
The Commissioner, for the purpose of ascertaining the correctness of any return or for the purpose of making a determination of the tax liability of any taxpayer, may examine or cause to be examined by any agent or representative designated by him or her for that purpose, any books, papers, records, or memoranda of the taxpayer bearing upon the matters required to be included in any return. The Commissioner or such officers as he or she may designate may require the attendance of the taxpayer or of any other person having knowledge in the premises, at any place in the county where the taxpayer or person resides or has a place of business, or in Washington County if the taxpayer is a nonresident individual, estate, or trust or is a corporation not having a place of business in this State, and may take testimony and require proof material for his or her information, and may administer oaths or take acknowledgment in respect of any return or other information required by this title or the rules, regulations, and decisions of the Commissioner.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7479 Supplemental information; changes in federal tax liability or in taxable gifts or estate
(a) If, after the time for filing any return required by this chapter, a taxpayer:
(1) becomes aware of any information that makes that return materially false, inaccurate, or incomplete; or
(2) is notified of any assertion by the United States, whether under section 6212 of the Internal Revenue Code of 1986 or otherwise, that his or her taxable gifts or taxable estate, or any tax liability under the laws of the United States, is other than the amount stated in the return; or
(3) files an amended return under the laws of the United States, the taxpayer shall, within 30 days of the receipt of that information or notification of that assertion or filing that amended return, notify the Commissioner thereof, and of such particulars as may be relevant to the amount of any tax liability of the taxpayer under this chapter.
(b) Any notice required to be given to the Commissioner under this section shall be considered to be a return for purposes of this chapter, and a taxpayer required to file any such return shall be subject, with respect thereto, to the provisions of this chapter, including the provisions governing fees for failure to file a return, except as those provisions conflict with the express provisions of this section.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7480 Form and verification of returns
The returns required to be filed under this chapter shall be in such form and manner as the Commissioner prescribes in order to ensure payment of the taxes imposed by this chapter and shall be filed at the main office of the Department of Taxes. Those returns shall be verified by written declarations that the statements therein are made subject to the pains and penalties of perjury. When a return is made by a corporation, the person signing it shall be considered to be the person who is subject to the pains and penalties of perjury. The Commissioner shall cause to be prepared blank forms for the returns and shall cause them to be distributed throughout the State and to be furnished upon application, but failure to secure or receive such a form shall not relieve a taxpayer from the obligation of filing any return herein required.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7481 Extension of time for filing of returns
For good cause shown, the Commissioner may extend the time within which a taxpayer is required to file a return. An extension of the time in which to file a return will result in a corresponding extension of the time for the payment of the tax liability with respect to which the return is filed, provided that the taxpayer shall pay, at the date that tax liability is paid, without assessment or demand, interest computed at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title on the unpaid amount of that tax liability from the time when the tax liability was originally required to be paid to the time of payment.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1979, No. 105 (Adj. Sess.), § 17; 1981, No. 191 (Adj. Sess.), § 7.)
§ 7482 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.
§ 7483 Method of payment
All tax liabilities imposed by this chapter may be paid pursuant to section 3110 of this title. A tax liability may be paid with uncertified check, but if an uncertified check is not honored by the bank on which it is drawn, the taxpayer shall remain liable for the payment of the tax and for all lawful penalties and interest in the same manner as if the check had not been tendered.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2021, No. 73, § 6.)
§§ 7484, 7485 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.
§ 7486 Time limitation on notices of deficiency and assessment of penalty and interest
(a) The Commissioner may notify a taxpayer of a deficiency with respect to the payment of any tax liability, or assess a penalty or interest with respect thereto, in accordance with sections 3202 and 3203 of this title, at any time within three years after the date that tax liability was originally required to be paid under this chapter.
(b) Notwithstanding subsection (a) of this section:
(1) if the taxpayer fails to file a proper return with respect to any tax liability at the time prescribed for its filing, the notification or assessment may be made at any time before the end of three years after the taxpayer files such a return;
(2) if the deficiency is caused by reason of fraud or the willful intent of the taxpayer to defeat or evade this chapter, the notification or assessment may be made at any time;
(3) if the notice of deficiency or assessment is founded upon an assertion or determination by the United States that the taxable gifts or estate, or estate or gift tax liability of the taxpayer under the laws of the United States, is greater than such amount reported on any return of the taxpayer filed under the laws of the United States, the notification or assessment under sections 3202 and 3203 of this title may be made within the time prescribed under subsection (a) of this section, or at any time before the expiration of six months after the date the Commissioner is notified, in writing, by the taxpayer or by the United States of the federal assertion or determination, whichever period is the later to expire;
(4) if the taxpayer and the Commissioner agree, the notification or assessment may be made at any time before the date so agreed upon; and
(5) the running of the period of limitations for assessment or collection of any estate tax imposed by this chapter shall be suspended in respect of the estate of a decedent claiming a deduction under 26 U.S.C. § 2055(b)(2) as amended until 30 days after the expiration of the period for assessment or collection of the tax imposed by this chapter on the estate of the surviving spouse.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2017, No. 113 (Adj. Sess.), § 190.)
§ 7487 Determination of deficiency, penalty, or interest
Upon receipt of a notice of deficiency or assessment of penalty or interest under sections 3202 and 3203 of this title, the taxpayer may, within 60 days after the date of the notice or assessment, petition the Commissioner in writing for a determination of that deficiency or assessment. The Commissioner shall thereafter grant a hearing upon the matter and notify the taxpayer in writing of his or her determination concerning the deficiency, penalty, or interest.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1975, No. 154 (Adj. Sess.), § 2, eff. date, see note below; 1989, No. 222 (Adj. Sess.), § 35; 2017, No. 113 (Adj. Sess.), § 191.)
§ 7488 Refunds; petitions for refunds
(a) At any time within three years after the date a return is required to be filed under this chapter, or six months after a refund was received from the United States with respect to an estate or gift tax liability, or an amount of taxable gifts or of a taxable estate under the laws of the United States, reported in a return filed under the laws of the United States, whichever is later, a taxpayer may petition the Commissioner for the refund of all or any part of the amount of tax paid with respect to the return. Unless the period is extended by agreement of the Commissioner and the taxpayer, the Commissioner shall thereafter, upon notice to the taxpayer, hold a hearing on the claim and shall notify the taxpayer of his or her determination of the claim within 30 days of the hearing. The failure of the Commissioner to refund the amount claimed by a taxpayer within six months of the date of the petition for the refund, under this subsection, shall be considered to be a notification to the taxpayer of the Commissioner’s determination concerning the claim. The notification shall be considered to have been given on the date of the expiration of the six-month period.
(b) If the Commissioner determines, on a petition for refund or otherwise, that a taxpayer has paid an amount of tax under this chapter that, as of the date of the determination, exceeds the amount of tax liability owing from the taxpayer to the State with respect to the current and all preceding taxable years, under any provision of this title, the Commissioner shall forthwith refund the excess amount to the taxpayer together with interest at the rate per annum established pursuant to section 3108 of this title. That interest shall be computed from the latest of 45 days after the date the return was filed or was due, including any extensions of time thereto or, if the taxpayer filed an amended return or otherwise requested a refund, 45 days after the date the petition or amended return was filed.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1979, No. 105 (Adj. Sess.), § 48; 1993, No. 49, § 15, eff. May 28, 1993; 2009, No. 160 (Adj. Sess.), § 32; 2013, No. 73, § 16, eff. June 5, 2013.)
§ 7489 Procedure for hearings by Commissioner; appeals
(a) Any hearing granted by the Commissioner under section 7487 or 7488 of this title shall be subject to and governed by 3 V.S.A. chapter 25.
(b) Any aggrieved taxpayer may, within 30 days, appeal a determination by the Commissioner concerning a notice of deficiency, an assessment of penalty or interest, or claim to refund, to the Washington Superior Court or the Superior Court of the county in which the taxpayer resides or has a place of business.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1971, No. 185 (Adj. Sess.), § 229, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1979, No. 105 (Adj. Sess.), § 21.)
§ 7490 Payment and collection of deficiencies and assessments; jeopardy notices
(a) Upon notification to a taxpayer of any deficiency, and upon assessment against the taxpayer of any penalty or interest, under sections 3202 and 3203 of this title, the amount of the assessment shall be payable forthwith and the amount of the deficiency and assessment shall be collectible by the Commissioner 30 days after the date of the notification or assessment. The collection by the Commissioner of the deficiency, penalty, or interest shall be stayed:
(1) if within 30 days after the notification of deficiency or the assessment under sections 3202 and 3203 of this title the taxpayer files a petition for determination by the Commissioner in accordance with section 7487 of this title, collection shall be stayed until 30 days after the notification of the taxpayer of the determination; and
(2) if within 30 days of the notification of determination the taxpayer files a notice of appeal in such manner as the Supreme Court may by rule provide, collection shall be stayed pending judgment of the Court upon the appeal; and
(3) under such further circumstances and upon such terms as the Commissioner prescribes.
(b) Notwithstanding subsection (a) of this section, the Commissioner, if he or she believes the collection from a taxpayer of any deficiency, penalty, or interest to be in jeopardy, may demand in writing that the taxpayer pay the deficiency, penalty, or interest forthwith. The demand may be made concurrently with or after the notice of deficiency or the assessment of penalty or interest given to the taxpayer under sections 3202 and 3203 of this title. The amount of deficiency, penalty, or interest shall be collectible by the Commissioner on the date of the demand, unless the taxpayer files with the Commissioner a bond in an amount equal to the deficiency, penalty, or interest sought to be collected as security for such amount as finally may be determined. In the event that it is finally determined that the taxpayer was not liable for the amount of the deficiency, penalty, or interest referred to in any demand under this subsection, the Commissioner shall reimburse the taxpayer promptly upon such determination for the reasonable cost to the taxpayer of any bond obtained by him or her for the purposes of this subsection.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1971, No. 185 (Adj. Sess.), § 230, eff. March 29, 1972; 1979, No. 105 (Adj. Sess.), § 22; 2017, No. 113 (Adj. Sess.), § 192.)
§ 7491 Remedy exclusive; determination final
(a) The exclusive remedy of a taxpayer with respect to the refund of monies paid in connection with a return filed under this chapter shall be the petition for refund provided under section 7488 of this title and the appeal from an adverse determination of the petition for refund provided under section 7489 of this title. The exclusive remedy of a taxpayer with respect to a notification of deficiency or assessment of penalty or interest under sections 3202 and 3203 of this title shall be the petition for determination of the deficiency or assessment provided under section 7487 of this title and the appeal from an adverse determination of deficiency or assessment provided under section 7489 of this title.
(b) Upon the failure of a taxpayer to petition in accordance with section 7487 of this title from a notice of deficiency or assessment under sections 3202 and 3203 of this title, or to appeal in accordance with section 7489 of this title from a determination of a deficiency of assessment of tax liability under section 7487 of this title, the taxpayer shall be bound by the terms of the notification, assessment, or determination, as the case may be. The taxpayer shall not thereafter contest, either directly or indirectly, the tax liability as therein set forth in any proceeding, including a proceeding upon a claim of refund of all or any part of any payment made with respect to the tax liability or a proceeding for the enforcement or collection of all or any part of the tax liability.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2017, No. 113 (Adj. Sess.), § 193.)
§ 7492 Determination of taxable gifts or estate and gift and estate tax liability under the laws of the United States
For purposes of this chapter, a taxpayer’s taxable gifts or taxable estate or gift or estate tax liability under the laws of the United States shall be determined by reference to the judicial decisions and administrative rulings of the United States.
(1) A determination by the United States that establishes the amount of a taxpayer’s taxable gifts or taxable estate or gift or estate tax liability under the laws of the United States shall be binding on the taxpayer and the State in calculating the taxpayer’s liability to Vermont under this chapter. For purposes of this section, “determination by the United States” means:
(A) a decision by the Tax Court of the United States or a judgment, decree, or other order by any U.S. court of competent jurisdiction that has become final; or
(B) a closing agreement under 26 U.S.C. § 7121.
(2) For any taxable year, the payment to the United States by any taxpayer of an aggregate amount of gift or estate tax, whether under a claim of deficiency, demand, or otherwise, and whether under protest or otherwise, shall be prima facie evidence for purposes of this chapter that the aggregate amount, less any refunds received by the taxpayer from the United States with respect to gift or estate tax payments for that year, as the case may be, constitutes the gift or estate tax liability of the taxpayer under the laws of the United States, and that the items of gifts or of an estate, or of income, deductions, exemptions, and credits with respect to which the gift or estate tax liability was calculated are the items of gifts or of an estate, or of income, deductions, exemptions, and credits of the taxpayer under the laws of the United States.
(3) For purposes of this section, the affidavit of any U.S. district director of internal revenue that a taxpayer:
(A) has paid a specified aggregate amount of gift or estate tax;
(B) has received a specified amount of refund with respect to his or her gift or estate tax payments; or
(C) has paid any amount of tax calculated with respect to specified items of gifts or of an estate, or of income, deductions, exemptions, or credits, shall be prima facie evidence of the truth of those matters set forth in the affidavit.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2021, No. 105 (Adj. Sess.), § 561, eff. July 1, 2022; 2023, No. 6, § 385, eff. July 1, 2023.)
§ 7493 Tax a debt to the State
Any tax liability imposed by this chapter becomes, from the time the tax liability is due and payable, a debt of the taxpayer to the State to be recovered in an action on this title.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.)
§ 7494 Action to collect taxes; limitations
Action may be brought by the Attorney General of the State at the instance of the Commissioner in the name of the State to recover the amount of the tax liability of any taxpayer, if the action is brought within six years after the date the tax liability was collectible under section 7490 of this title. The action shall be returned in the county where the taxpayer resides or has a place of business, and if the taxpayer neither resides nor has a place of business in the State, the action shall be returnable in Washington Superior Court.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 7495 Levy for nonpayment
When all or any portion of a tax liability imposed by this chapter is not paid within 60 days after it becomes collectible under section 7490 of this title, the Commissioner may issue a warrant under the Commissioner’s hand and official seal directed to the sheriff of any county in this State. The warrant shall command the sheriff to levy upon and sell the real and personal property of the taxpayer for the payment of the unpaid tax liability imposed by this chapter, together with allowable fees and costs. The levy and sale shall be effected in the manner, and shall be subject to the limitations, prescribed for the levy, distraint, and sale of property for the nonpayment of the taxes under sections 5191–5193 and 5253–5263 of this title. The sheriff shall return the warrant to the Commissioner and pay to the Commissioner the money collected thereunder within time specified in the warrant.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2021, No. 105 (Adj. Sess.), § 562, eff. July 1, 2022.)
§ 7496 Liability for failure or delinquency
An individual, fiduciary, or officer or employee of any corporation, or partner or employee of any partnership who, with intent to evade any requirement of this chapter or any lawful requirement of the Commissioner hereunder, fails to pay or remit a tax liability when due or to make, sign, verify, or file a return when required so to do, or to supply any information required by or under this chapter who, with like intent, makes, renders, signs, verifies, or files a false or fraudulent return or information, shall be fined not more than $1,000.00 or be imprisoned not more than one year, or both.
(Added 1969, No. 269 (Adj. Sess.) § 1, eff. date, see note under § 7401 of this title.)
§ 7497 Tax liability as property lien
(a) If any corporation, partnership, individual, trust, or estate required to pay or remit any tax liability under this chapter neglects or refuses to pay it in accordance with this chapter after notification or assessment thereof under sections 3202 and 3203 of this title, the aggregate amount of the tax liability then due and owing, together with any costs that may accrue in addition thereto, shall be a lien in favor of this State upon all property and rights to property, whether real or personal, belonging to the corporation, partnership, individual, trust, or estate. The lien shall arise at the time the notification or assessment is made by the Commissioner and shall continue until the aggregate tax liability with costs is satisfied in full or becomes unenforceable by reason of lapse of time. The lien shall be valid as against any subsequent mortgagee, pledgee, purchaser, or judgment creditor when notice of the lien and the sum due has been filed by the Commissioner with the clerk of the town or city in which the property subject to lien is situated or, in the case of an unorganized town, gore, or grant, in the office of the clerk of the county wherein the property is situated. In the case of a motor vehicle, the lien shall also be valid when a notation of the lien is made on the certificate of title and shall only be valid as against any subsequent mortgagee, pledgee, bona fide purchaser, or judgment creditor when such notation is made. In the case of any prior mortgage on any real or personal property so written as to secure a present debt and also future advances by the mortgagee to the mortgagor, the lien herein provided, when notice thereof has been filed in the proper clerk’s office, shall be subject to the prior mortgage unless the Commissioner also notifies the mortgagee of the recording of the lien in writing, in which case any indebtedness thereafter created from the mortgagor to the mortgagee shall be junior to the lien herein provided for.
(b) The Commissioner shall issue to the taxpayer a certificate of release of the lien if:
(1) the Commissioner finds that the liability for the amount demanded, together with costs, has been satisfied or has become unenforceable by reason of lapse of time; or
(2) there is furnished to the Commissioner a bond with surety approved by the Commissioner in a sum sufficient to equal the amount demanded, together with costs, the bond to be conditioned upon the payment of any judgment rendered in proceedings regularly instituted by the Commissioner to enforce collection thereof at law or of any amount agreed upon in writing by the Commissioner to constitute the full amount of the liability; or
(3) the Commissioner determines at any time that the interest of this State in the property has no value.
(c) The lien provided for by this section may be foreclosed at any time after the tax liability with respect to which the lien arose becomes collectible under section 7490 of this title. In the case of real property, the lien may be foreclosed in the manner prescribed in 12 V.S.A. chapter 172 and in such rules as the Supreme Court may promulgate for the foreclosure of mortgages on real estate. In the case of personal property, the lien may be satisfied in the manner prescribed in 9A V.S.A. article 9 for the disposition of collateral under a security interest or in the manner provided by law for the foreclosure of other security interests in personal property.
(Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1971, No. 185 (Adj. Sess.), § 231, eff. March 29, 1972; 1989, No. 119, § 19, eff. June 22, 1989; 2017, No. 113 (Adj. Sess.), § 194; 2021, No. 105 (Adj. Sess.), § 563, eff. July 1, 2022.)
Chapter 201 Amusement Machines
§§ 7501-7504 Repealed
[Repealed]
2003, No. 152 (Adj. Sess.), § 11, eff. June 7, 2004.
Chapter 203 Auctioneers
§§ 7601-7606 Repealed
[Repealed]
2001, No. 151 (Adj. Sess.), § 44, eff. June 27, 2002.
Chapter 205 Cigarettes and Tobacco Products
Subchapter 1 General Provisions
§ 7701 Administration of chapter
The administration of this chapter is vested in the Commissioner. All forms necessary and proper for the enforcement of this chapter shall be prescribed and furnished by the Commissioner. The Commissioner shall appoint such agents, clerks, stenographers, and other assistants as he or she may deem necessary for effecting the purposes of this chapter, but their salaries shall be fixed by the Commissioner with the approval of the Governor. The Commissioner may require any such agent, clerk, stenographer, or other assistant to execute a bond in such sum as such Commissioner shall determine for the faithful discharge of his or her duties. Any such agent, clerk, stenographer, or other assistant may be removed by the Commissioner. The Commissioner may prescribe regulations and rulings not inconsistent with law to carry into effect the provisions of this chapter, which regulations and rulings, when reasonably designed to carry out the intent and purpose of this chapter, shall be prima facie evidence of its proper interpretation. The Commissioner, from time to time, may publish for distribution such regulations prescribed by him or her and such rulings as he or she shall deem to be of general interest.
§ 7702 Definitions
As used in this chapter unless the context otherwise requires:
(1) “Cigarette” means:
(A) any roll of tobacco wrapped in paper or any substance not containing tobacco; and
(B) any roll of tobacco wrapped in substance containing tobacco that, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in subdivision (A) of this subdivision (1).
(2) “Commissioner” shall mean the Commissioner of Taxes.
(3) “Dealer” means any wholesale dealer and retail dealer as herein defined.
(4) [Repealed.]
(5) “Licensed wholesale dealer” shall mean a wholesale dealer licensed under the provisions of this chapter.
(6) “Little cigars” means any rolls of tobacco wrapped in leaf tobacco or any substance containing tobacco, other than any roll of tobacco that is a cigarette within the meaning of subdivision (1) of this section, and as to which 1,000 units weigh not more than four and one-half pounds.
(7) “Manufacturer” means a person who manufactures and sells cigarettes, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco, and other tobacco products.
(8) “Person” shall mean any individual, firm, fiduciary, partnership, corporation, trust, or association, however formed.
(9) “Place of business” means any place where tobacco products are sold or where tobacco products are manufactured, stored, or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train, or vending machine.
(10) “Retail dealer” shall mean a person licensed pursuant to 7 V.S.A. § 1002.
(11) “Roll-your-own tobacco” means any tobacco that, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes.
(12) “Sale” or “sell” means any transfer, exchange, or barter in any manner or by any means whatever, of any cigarettes or tobacco products.
(13) “Snuff” means any finely cut, ground, or powdered tobacco that is not intended to be smoked, has a moisture content of not less than 45 percent, and is not offered in individual single-dose tablets or other discrete single-use units.
(14) “Stamp” shall mean any impression, stamp, label, or print manufactured, printed, or made as prescribed by the Commissioner.
(15) “Other tobacco products” means any product manufactured from, derived from, or containing tobacco or nicotine, whether natural or synthetic, including nicotine alkaloids and nicotine analogs, that is intended for human consumption by smoking, chewing, or in any other manner, including products sold as a tobacco substitute, as defined in 7 V.S.A. § 1001(8), and including any liquids, whether nicotine based or not, or delivery devices sold separately for use with a tobacco substitute, but shall not include cigarettes, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco as defined in this section, or cannabis products as defined in 7 V.S.A. § 831.
(16) “Wholesale dealer” means a person who imports or causes to be imported into the State any cigarettes, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco, or other tobacco product for sale or who sells or furnishes any of these products to other wholesale dealers or retail dealers for the purpose of resale, but not by small quantity or parcel to consumers thereof.
(17) “Wholesale dealer’s license” shall mean the license granted under the provisions of this chapter to a wholesale dealer for a wholesale outlet.
(18) “Wholesale outlet” shall mean any premises where cigarettes, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco, or other tobacco products are sold, transferred, displayed, or held for sale by a wholesale dealer.
(19) “Wholesale price” means the price at which a licensed wholesale dealer sells or furnishes cigarettes, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco, or other tobacco products to any retail dealer.
(20) “New smokeless tobacco” means any tobacco product manufactured from, derived from, or containing tobacco or nicotine, whether natural or synthetic, including nicotine alkaloids and nicotine analogs, that is not intended to be smoked, has a moisture content of less than 45 percent, or is offered in individual single-dose tablets or other discrete single-use units.
(21) “Cigar” means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco, other than any roll of tobacco that is a cigarette within the meaning of subdivision (1) of this section or is a little cigar within the meaning of subdivision (6) of this section.
(Amended 1959, No. 231, § 2; 1967, No. 346 (Adj. Sess.), § 4; 1981, No. 31, § 1; 1995, No. 29, § 13, eff. April 14, 1995; 2005, No. 191 (Adj. Sess.), § 36; 2009, No. 1 (Sp. Sess.), § H.36; 2009, No. 160 (Adj. Sess.), § 34; 2011, No. 143 (Adj. Sess.), § 13a, eff. May 15, 2012; 2011, No. 166 (Adj. Sess.), § 8, eff. May 16, 2012; 2013, No. 14, § 8; 2019, No. 28, § 1; 2021, No. 105 (Adj. Sess.), § 564, eff. July 1, 2022; 2023, No. 6, § 386, eff. July 1, 2023; 2023, No. 65, § 23, eff. June 14, 2023; 2025, No. 56, § 13a, eff. July 1, 2025.)
Subchapter 2 Licenses
§ 7731 License required
Each wholesale dealer shall secure a license from the Commissioner of Taxes before engaging in the business of selling cigarettes, roll-your-own tobacco, little cigars, snuff, new smokeless tobacco, or other tobacco products in this State. Licensed wholesale dealers shall sell these products only to other Vermont licensed wholesale dealers or to retailers licensed pursuant to 7 V.S.A. § 1002.
(Amended 1959, No. 231, § 3; 1981, No. 31, § 2; 2013, No. 14, § 9.)
§ 7732 Application for and issuance of license
(a) A separate application and license shall be required for each wholesale outlet when a wholesale dealer shall own or control more than one such outlet.
(b) Such license shall be issued by the Commissioner on application without charge, on forms prescribed by him or her, stating the name and address of the applicant, the address of the place of business at which it is proposed to engage in such business, the type of business, and such other information as the Commissioner may require for the proper administration of this chapter. Each license so issued shall be prominently displayed on the premises covered by the license.
(Amended 1981, No. 31, § 3; 2013, No. 14, § 10.)
§ 7733 Repealed
[Repealed]
1981, No. 31, § 18.
§ 7734 Penalties for sales without license
Any licensed wholesale dealer who shall sell, offer for sale, or possess with intent to sell any cigarettes, roll-your-own tobacco, little cigars, snuff, new smokeless tobacco, or other tobacco products, or any combination thereof, without having first obtained a license as provided in this subchapter shall be fined not more than $25.00 for the first offense and not more than $200.00 nor less than $25.00 for each subsequent offense.
(Amended 1959, No. 231, § 4; 1981, No. 31, § 4; 2013, No. 14, § 11; 2015, No. 57, § 73, eff. June 11, 2015.)
§ 7735 Term of licenses
Each license issued under the provisions of this subchapter shall be valid as long as the licensee continues to do business at the place named unless revoked or suspended by the Commissioner as provided in section 7736 of this title. If the business with respect to which such license was issued shall be sold or transferred or if the licensee ceases to do business at the place named, the license shall immediately be returned to the Commissioner for cancellation.
(Amended 1971, No. 73, § 26, eff. April 16, 1971; 1981, No. 31, § 5.)
§ 7736 Revocation and suspension of licenses
The Commissioner may revoke or suspend the license of any licensed wholesale dealer for failure to comply with any provision of this chapter, for failure to comply with the provisions of 11 V.S.A. chapter 15, or for failure to comply with the provisions of 33 V.S.A. chapter 19, subchapter 1B. Any person aggrieved by such revocation or suspension may apply to the Commissioner for a hearing as provided in section 7782 of this title and may further appeal to the courts as provided in section 7783 of this title.
(Amended 1971, No. 73, § 27, eff. April 16, 1971; 1981, No. 31, § 6; 2003, No. 14, § 3; 2013, No. 14, § 12.)
§ 7737 Bonding
When the Commissioner, in his or her discretion, deems it necessary to protect the revenues to be obtained under this chapter, he or she may require any licensed wholesale dealer to file with him or her a bond, issued by a surety company authorized to transact business in this State, and approved by the Commissioner of Financial Regulation of this State as to its solvency and responsibility, in an amount fixed by the Commissioner, to secure the payment of any tax or penalties or interest due or that may become due from that licensed wholesale dealer under this chapter. In the event that the Commissioner determines that a licensed wholesale dealer is to file a bond, he or she shall give notice to him or her to that effect, specifying the amount of the bond required. The licensed wholesale dealer shall file the bond within 15 days after the giving of the notice unless within those 15 days he or she shall request in writing a hearing before the Commissioner at which the necessity, propriety, and amount of the bond shall be determined by the Commissioner. The determination shall be final and shall be complied with within 15 days after the giving of notice thereof. In lieu of a bond, securities approved by the Commissioner or cash in such amount as he or she may prescribe may be deposited, which shall be kept in the custody of the State Treasurer, who may, at any time, upon instruction from the Commissioner without notice to the depositor, apply them to any tax or interest or penalties due, and for that purpose the securities may be sold by him or her at public or private sale without notice to the depositor thereof. In determining whether a person should be required to obtain a bond, the Commissioner is specifically authorized to consider the filing and payment history, with respect to any tax administered by the Commissioner, of the person or any individual, corporation, partnership, or other legal entity with which the person is or was associated as principal, partner, officer, director, employee, agent, or incorporator.
(Added 1981, No. 31, § 7; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2001, No. 140 (Adj. Sess.), § 40; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2013, No. 14, § 13.)
Subchapter 3 Stamp Tax
§ 7771 Rate of tax
(a) A tax is imposed on all cigarettes, little cigars, and roll-your-own tobacco held in this State by any person for sale, unless such products shall be:
(1) in the possession of a licensed wholesale dealer;
(2) in the course of transit and consigned to a licensed wholesale dealer or retail dealer; or
(3) in the possession of a retail dealer who has held the products for 24 hours or less.
(b) Payment of the tax on cigarettes under this section shall be evidenced by the affixing of stamps to the packages containing the cigarettes. Where practicable, the Commissioner may also require that stamps be affixed to packages containing little cigars or roll-your-own tobacco. Any cigarette, little cigar, or roll-your-own tobacco on which the tax imposed by this section has been paid, such payment being evidenced by the affixing of such stamp or such evidence as the Commissioner may require, shall not be subject to a further tax under this chapter. Nothing contained in this chapter shall be construed to impose a tax on any transaction the taxation of which by this State is prohibited by the constitution of the United States. The amount of taxes advanced and paid by a licensed wholesale dealer as herein provided shall be added to and collected as part of the retail sale price on the cigarettes, little cigars, or roll-your-own tobacco.
(c) A tax is also imposed on all cigarettes, little cigars, and roll-your-own tobacco possessed in this State by any person for any purpose other than sale as follows:
(1) This tax shall not apply to:
(A) Products bearing a stamp affixed pursuant to this chapter.
(B) Products bearing a tax stamp affixed pursuant to the laws of another jurisdiction with a tax rate equal to or greater than the rate set forth in this subsection (c).
(C) Products purchased outside the State by an individual in quantities of 400 or fewer cigarettes, little cigars, and 0.0325 ounce units of roll-your-own tobacco, and brought into the State for that individual’s own use or consumption. Products that are ordered from a source outside the State and delivered into this State are not “purchased outside the State” within the meaning of this subsection (c).
(2) There is allowed a credit against the tax under this subsection for cigarette, little cigars, or roll-your-own tobacco tax paid to another jurisdiction and evidenced by tax stamps affixed to the subject products pursuant to the laws of that jurisdiction.
(3) A person taxable under this section shall, within 30 days of first possessing the products in this State, file a return with the Commissioner showing the quantity of products brought into the State. The return must be made in the form and manner prescribed by the Commissioner and be accompanied by remittance of the tax due.
(d) The tax imposed under this section shall be at the rate of 154 mills per cigarette or little cigar and for each 0.0325 ounces of roll-your-own tobacco. The interest and penalty provisions of section 3202 of this title shall apply to liabilities under this section.
(Amended 1959, No. 243, § 1; 1963, No. 226, § 1, eff. July 3, 1963; 1965, No. 41, § 1, eff. April 28, 1965; 1965, No. 131, § 1; 1969, No. 144, § 12, eff. June 1, 1969; 1981, No. 31, § 8; 1983, No. 2 (Sp. Sess.), § 3, eff. July 28, 1983; 1991, No. 32, § 23-25; 1995, No. 14, § 6, eff. April 12, 1995; 1995, No. 29, § 14, eff. April 14, 1995; 2001, No. 140 (Adj. Sess.), §§ 24, 26, eff. June 21, 2002; 2005, No. 191 (Adj. Sess.), § 37; 2005, No. 207 (Adj. Sess.), § 3, eff. May 31, 2006; 2009, No. 1 (Sp. Sess.), § H.37; 2009, No. 160 (Adj. Sess.), § 35; 2011, No. 45, § 27; 2013, No. 174 (Adj. Sess.), § 38; 2015, No. 54, § 49; 2015, No. 57, § 74, eff. June 11, 2015; 2021, No. 105 (Adj. Sess.), § 565, eff. July 1, 2022; 2023, No. 6, § 387, eff. July 1, 2023.)
§ 7772 Form and sale of stamps
(a) The Commissioner shall secure stamps of such designs and denominations as he or she shall prescribe to be affixed to packages of cigarettes as evidence of the payment to the tax imposed by this chapter. The Commissioner shall sell such stamps to licensed wholesale dealers at a discount of two and three-tenths percent of their face value for payment at time of sale.
(b) At the purchaser’s request, the Commissioner may sell stamps to be affixed to packages of cigarettes as evidence of the payment to the tax imposed by this chapter to licensed wholesale dealers for payment within 10 days, at a discount of one and five-tenths percent of their face value if timely paid. In determining whether to sell stamps for payment within 10 days, the Commissioner shall consider the credit history of the dealer and the filing and payment history, with respect to any tax administered by the Commissioner, of the dealer or any individual, corporation, partnership, or other legal entity with which the dealer is or was associated as principal, partner, officer, director, employee, agent, or incorporator.
(c) The Commissioner shall keep accurate records of all stamps sold to each wholesale dealer and shall pay over all receipts from the sale of stamps to the State Treasurer.
(Amended 1959, No. 243, § 3; 1963, No. 226, § 3, eff. July 3, 1963; 1965, No. 131, § 2; 1981, No. 31, § 9; 1983, No. 2 (Sp. Sess.), § 4, eff. July 28, 1983; 2001, No. 140 (Adj. Sess.), § 37; 2013, No. 73, § 9, eff. June 5, 2013; 2015, No. 57, § 75, eff. June 11, 2015.)
§ 7773 Use and redemption of stamps
No licensed wholesale dealer shall sell or transfer any stamps issued under the provisions of this chapter. The Commissioner shall redeem at the amount paid therefor by the licensed wholesale or retail dealer any unused stamps issued under the provisions of this chapter, which are presented to him or her at his or her office in Montpelier.
(Amended 1981, No. 31, § 10; 2013, No. 14, § 14; 2015, No. 57, § 76, eff. June 11, 2015.)
§ 7774 Affixing stamps
Each licensed wholesale dealer shall affix or cause to be affixed to each individual package of cigarettes sold or distributed by him or her stamps of the proper denomination as required by section 7771 of this title and in such manner as the Commissioner may specify in regulations issued pursuant to this chapter. The stamps may be affixed by a licensed wholesale dealer at any time before the cigarettes are transferred out of his or her possession.
(Amended 1971, No. 73, § 28, eff. April 16, 1971; 1981, No. 31, § 11; 2013, No. 14, § 15.)
§ 7775 Retail dealers
Within 24 hours after coming into possession of any cigarettes not bearing proper stamps evidencing payment of the tax imposed by this chapter and before selling the same, each retail dealer shall affix or cause to be affixed stamps of the proper denomination to each individual package of cigarettes as required by section 7771 of this title and in such manner as the Commissioner may specify in regulations issued pursuant to this chapter.
(Amended 2015, No. 57, § 77, eff. June 11, 2015.)
§ 7776 Collection of cigarette tax through nonresident licensed wholesale dealers
(a) When the Commissioner of Taxes finds that the collection of the tax imposed by this chapter would be facilitated thereby, the Commissioner may, in the Commissioner’s discretion, authorize any resident or nonresident person engaged in the business of manufacturing cigarettes or any resident or nonresident person who ships cigarettes into this State for sale to retail dealers in this State as defined in section 7702 of this title and who qualifies as a licensed wholesale dealer as defined in section 7702 of this title, but need not have a place of business in this State, upon complying with the requirements of the Commissioner to affix or cause to be affixed the stamps required by this chapter on behalf of the purchasers of such cigarettes who would otherwise be taxable therefor, and the Commissioner may sell such stamps to such person as provided in section 7772 of this title.
(b) A nonresident person shall agree to submit the nonresident person’s books, accounts, and records to examination during reasonable business hours by the Commissioner or the Commissioner’s duly authorized agent.
(c) A nonresident person authorized pursuant to subsection (a) of this section, other than a foreign corporation that the Secretary of State has authorized to do business in this State, shall, in writing, appoint the Secretary of State and the Secretary’s successors in office to be the nonresident person’s agent for service of process. Service upon the Secretary pursuant to this subsection constitutes sufficient service upon the nonresident person and may be made by delivering duplicate attested copies of the process to the Secretary. When legal process against the nonresident person is served upon the Secretary of State, the Secretary shall notify the nonresident person in the manner specified and shall collect the fee provided in 12 V.S.A. § 852 .
(d) Any person complying with the provisions of this section shall thereupon become a licensed wholesale dealer within the meaning of this chapter and shall be subject to all provisions of the chapter applicable to wholesale dealers, including the furnishing of a bond specified in subchapter 2 of this chapter.
(Amended 1959, No. 231, § 5; 1971, No. 73, § 29, eff. April 16, 1971; 1981, No. 31, § 12; 2013, No. 14, § 16; 2021, No. 105 (Adj. Sess.), § 566, eff. July 1, 2022.)
§ 7777 Records required; inspection and examination; assessment of tax deficiency
(a) Each licensed wholesale dealer and each retail dealer shall keep complete and accurate records of all cigarettes, little cigars, and roll-your-own tobacco manufactured, produced, purchased, transferred, and sold by the dealer. The records shall be of such kind and in such form as the Commissioner may prescribe and shall be safely preserved for six years in such manner as to ensure permanency and accessibility for inspection by the Commissioner and authorized agents. The Commissioner or authorized agents of the Commissioner may enter in or upon any premises where the Commissioner or they have reason to believe that cigarettes, little cigars, or roll-your-own tobacco are possessed, stored, or sold, for the purpose of determining whether the provisions of this chapter or 33 V.S.A. chapter 19, subchapter 1A or 1B are being obeyed and may examine and copy the books, papers, records, and the stock of any licensed wholesale dealer or retail dealer, for the purpose of determining whether the tax imposed by this chapter has been fully paid.
(b) If the Commissioner determines that a licensed wholesale dealer has not purchased sufficient stamps to cover sales of cigarettes and little cigars, or that a retail dealer has made sales of unstamped cigarettes or little cigars or untaxed roll-your-own tobacco, the Commissioner shall thereupon assess the deficiency in tax, plus interest and penalties as provided in section 3202 of this title.
(c) In any case in which a licensed wholesale dealer cannot produce evidence of sufficient stamp purchases to cover the dealer’s receipts and sales or other disposition of cigarettes or little cigars, it shall be presumed that the cigarettes or little cigars were sold without having the proper stamps affixed. In any case in which a licensed wholesale dealer cannot produce proper evidence of payment of the tax on roll-your-own tobacco to cover the dealer’s receipts and sales or other disposition of roll-your-own tobacco, it shall be presumed that the roll-your-own tobacco was sold without the proper tax having been paid.
(d) If a licensed wholesale dealer has failed to timely pay for stamps obtained for payment within 10 days or to pay the tax imposed on roll-your-own tobacco, the dealer shall be subject to assessment, collection, and enforcement in the same manner as provided under subchapter 4 of this chapter.
(e) Any dealer who fails to pay the required tax to the Commissioner as required under this chapter shall be personally and individually liable for the amount of such tax, together with interest and penalties under the provisions of section 3202 of this title, and if the dealer is a corporation or other entity, the personal liability shall extend and be applicable to any officer or agent of the corporation or entity who, as an officer or agent, is under a duty to pay or transmit the tax to the Commissioner.
(f) As an additional or alternate remedy, the Commissioner may issue a warrant directed to the sheriff of any county commanding him or her to levy upon and sell the real and personal property that may be found within the sheriff’s county of any person liable for tax under this chapter for the payment of the amount of the tax, penalties, and interest, and the cost of executing the warrant, and the sheriff shall return the warrant to the Commissioner and pay to the Commissioner the money collected by virtue thereof within 60 days after the receipt of the warrant. The sheriff shall, within five days after the receipt of the warrant, file with the county clerk a copy thereof, and thereupon the clerk shall enter in the judgment docket the name of the person mentioned in the warrant and the amount of the tax, penalties, and interest for which the warrant is issued and the date when the copy is filed. Thereupon the amount of the warrant so docketed shall become a lien upon the title to and interest in real and personal property of the person against whom the warrant is issued. The sheriff shall then proceed upon the warrant in the same manner and with like effect as that provided by law in respect to executions issued against property upon judgments of a court of record, and for services in executing the warrant, the sheriff shall be entitled to the same fees, which may be collected in the same manner. If a warrant is returned not satisfied in full, the Commissioner may from time to time issue new warrants and shall also have the same remedies to enforce the amount due thereunder as if the State had recovered judgment therefor and execution thereon had been returned unsatisfied.
(g) If any dealer required to pay and transmit a tax under this chapter neglects or refuses to pay the same after demand, the amount, together with all penalties and interest provided for in this chapter and together with any costs that may accrue in addition thereto, shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to such dealer. Such lien shall arise at the time demand is made by the Commissioner of Taxes and shall continue until the liability for such sum with interest, penalties, and costs is satisfied or becomes unenforceable. Such lien shall have the same force and effect as the lien for taxes withheld under the withholding provisions of the Vermont income tax law as provided under section 5895 of this title, and notice of such lien shall be recorded as is provided in that section. Certificates of release of such lien shall also be given by the Commissioner as in the case of the aforesaid tax liens.
(Amended 1971, No. 73, § 30, eff. April 16, 1971; 1981, No. 31, § 13; 1995, No. 169 (Adj. Sess.), § 18, eff. May 15, 1996; 2001, No. 140 (Adj. Sess.), § 38; 2003, No. 14, § 4; 2013, No. 14, § 17; 2015, No. 57, § 78, eff. June 11, 2015.)
§ 7778 Unstamped packages—Penalties
(a) No person shall possess more than 10,000 cigarettes, or possess with the intent to sell any cigarettes, that do not bear stamps evidencing payment of tax imposed by this chapter. It shall be an affirmative defense to a charge under this subsection that such cigarettes are:
(1) in the possession of a licensed wholesale dealer;
(2) in the course of transit and consigned to a licensed wholesale dealer or retail dealer; or
(3) in the possession of a retail dealer who has held them for 24 hours or less.
(b) No person shall sell or transfer or offer for sale or display for sale any cigarettes that do not bear stamps evidencing payment of the tax imposed by this chapter.
(c) No person shall use more than once any stamp provided for and required by this chapter.
(d) Any person who shall violate any provision of this section shall, if the tax that may be imposed on such cigarettes is $500.00 or less, be imprisoned not more than one year or fined not more than $1,000.00, or both, or, if the tax that may be imposed on such cigarettes is more than $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(Amended 1965, No. 194, § 10, operative February 1, 1967; 1971, No. 73, § 31, eff. April 16, 1971; 1973, No. 249 (Adj. Sess.), § 103, eff. April 9, 1974; 1981, No. 31, § 14; 1995, No. 29, § 15, eff. April 14, 1995.)
§ 7779 Seizure
(a) Any cigarettes found at any place in this State without stamps affixed thereto as required by this chapter or any tobacco products found at any place in this State upon which the tax imposed by this chapter has not been paid, are declared to be contraband goods and may be seized without a warrant by the Commissioner, the Commissioner’s agents or employees, or by any peace officer of this State when directed by the Commissioner to do so, unless such cigarettes or tobacco products shall be in the possession of a licensed wholesale dealer, or unless they shall be in the course of transit and consigned to a licensed wholesale dealer or a retail dealer, or unless they shall have been received by a retail dealer within 24 hours. Nothing herein shall be construed to require the Commissioner to confiscate unstamped cigarettes or tobacco products when the Commissioner shall have reason to believe that the owner thereof has possession of the same for personal consumption or is not willfully or intentionally evading the tax imposed by this chapter.
(b) Any cigarettes found at any place in this State with stamps affixed thereto which stamps have not been paid for as required by this chapter, are declared to be contraband goods and may be seized without a warrant by the Commissioner, the Commissioner’s agents or employees, or by any peace officer of this State when directed by the Commissioner to do so.
(c) Any cigarettes or tobacco products seized under the provisions of this chapter shall be destroyed by the Commissioner. The seizure of any cigarettes or tobacco products under the provisions of this section shall not relieve any person from a fine or other penalty for violation of this chapter.
(Amended 1981, No. 31, § 15; 1995, No. 29, § 16, eff. April 14, 1995; 2001, No. 140 (Adj. Sess.), § 39.)
§ 7780 Hearing
When any cigarettes or tobacco products shall have been seized under the provisions of section 7779 of this title, any person claiming an interest in such cigarettes or tobacco products who has not previously been heard or who has not waived hearing may make written application to the Commissioner for a hearing, stating an interest in the cigarettes or tobacco products and reasons why they should not be forfeited. Further proceedings on such application for hearing shall be taken as provided in sections 7782 and 7783 of this title. No cigarettes or tobacco products seized under the provisions of section 7779 of this title shall be destroyed while an application for a hearing is pending before the Commissioner, but the pendency of an appeal under the provisions of section 7783 of this title shall not prevent destruction of the cigarettes or tobacco products unless the appellant shall post a satisfactory bond, with surety, in an amount double the estimated value of the cigarettes or tobacco products conditioned upon the successful termination of the appeal.
(Amended 1995, No. 29, § 17, eff. April 14, 1995.)
§ 7781 Powers of officer conducting hearings
The Commissioner and any agent of the Commissioner duly authorized to conduct any inquiry, investigation, or hearing hereunder shall have power to administer oaths and take testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by the Commissioner, the Commissioner or his or her agent authorized to conduct such hearing and having authority by law to issue such process may subpoena witnesses and require the production of books, papers, and documents pertinent to such inquiry. No witness under subpoena authorized to be issued by the provisions of this chapter shall be excused from testifying or from producing books or papers on the ground that such testimony or the production of such books or other documentary evidence would tend to incriminate him or her, but such evidence or the books or papers so produced shall not be used in any criminal proceeding against him or her. Officers who serve subpoenas issued by the Commissioner or under his or her authority and witnesses attending hearings conducted by him or her hereunder shall receive fees and compensation at the same rates as officers and witnesses in causes before a Criminal Division of the Superior Court, to be paid on vouchers of the Commissioner on order of the Commissioner of Finance and Management from the proper appropriation for the administration of this chapter.
(Amended 1965, No. 194, § 10, operative February 1, 1967; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1983, No. 195 (Adj. Sess.), § 5(b); 1983, No. 230 (Adj. Sess.), § 16; 2009, No. 154, § 238.)
§ 7782 Application for hearing
Any person aggrieved by any action of the Commissioner or his or her authorized agent under this chapter for which hearing is not elsewhere provided may apply in writing to the Commissioner within 10 days after the notice of such action is delivered or mailed to him or her for a hearing, setting forth the reasons why such hearing should be granted and the manner of relief sought. The Commissioner shall promptly consider each such application and may grant or deny the hearing requested. If the hearing be denied, the applicant shall be notified thereof forthwith. If it be granted, the Commissioner shall notify the applicant of the time and place fixed for such hearing. After such hearing, the Commissioner may make such order in the premises as may appear to him or her just and lawful and shall furnish a copy of such order to the applicant. The Commissioner may, at any time and by notice in writing, order a hearing on his or her own initiative and require the taxpayer or any other individual whom he or she believes to be in possession of information concerning any manufacture, importation, possession, or sale of cigarettes or tobacco products, or both, which have escaped taxation to appear before him or her or his or her duly authorized agent with any specific books of account, paper, or other documents for examination relative thereto.
(Amended 1959, No. 231, § 6.)
§ 7783 Appeals
Any person aggrieved because of any action or decision of the Commissioner under the provisions of this chapter may appeal therefrom within 30 days to the Superior Court of the county in which such person resides. The appellant shall give security, approved by the Commissioner, conditioned to pay the tax levied, if it remains unpaid, with interest and costs.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1997, No. 161 (Adj. Sess.), § 22, eff. Jan. 1, 1998; 2013, No. 73, § 11, eff. June 5, 2013.)
§ 7784 Counterfeiting stamps
Any person who shall fraudulently make or utter or who shall forge or counterfeit any stamp prescribed by the Commissioner under the provisions of this chapter, or who shall cause or procure the same to be done, or who shall willfully utter, publish, pass, or render as true any false, altered, forged, or counterfeit stamp, or who shall knowingly possess any such false, altered, forged, or counterfeit stamp for the purpose of evading the tax hereby imposed shall be imprisoned for not more than five years nor less than one year.
(Amended 1971, No. 199 (Adj. Sess.), § 17.)
§ 7785 Monthly report
Each licensed wholesale dealer shall file with the Commissioner, on or before the 15th day of each month, a report for the calendar month immediately preceding, in a form prescribed by the Commissioner, showing the amount and source of cigarettes acquired; the amount of stamps purchased; a list identifying the brand families of a tobacco product manufacturer, as that term is defined in 33 V.S.A. chapter 19, subchapters 1A and 1B; the total number of cigarettes upon which stamps were affixed or, in the case of roll-your-own tobacco, the equivalent stick count, as determined by the formula set forth in 33 V.S.A. chapter 19, subchapter 1A, upon which the applicable tax was paid; and such other information as the Commissioner may require.
(Added 1981, No. 31, § 16; amended 2003, No. 14, § 5; 2013, No. 14, § 18.)
§ 7786 Gray marketed cigarettes
(a) No person shall affix a cigarette stamp to or sell or offer for sale in this State any package or container of cigarettes if:
(1) the container or package does not comply with all the requirements of the federal Cigarette Labeling and Advertising Act (15 U.S.C. § 1331 et seq.) for the placement of labels, warnings, or any other information upon a package of cigarettes that is to be sold within the United States;
(2) the container or package has been imported into the United States after January 1, 2000, in violation of 26 U.S.C. § 5754;
(3) the container or package, including a container of individually stamped containers or packages is labeled “For Export Only,” “U.S. Tax Exempt,” “For Use Outside U.S.,” or similar wording indicating that the manufacturer did not intend that the product be sold in the United States; or
(4) the container or package has been altered by marking or deleting the wording described in subdivision (3) of this subsection.
(b) Any cigarettes described in subdivision (a)(1), (2), (3), or (4) of this section and found in this State are declared to be contraband goods and may be seized without a warrant by the Commissioner, the Commissioner’s agents or employees, or by any peace officer of this State when directed by the Commissioner to do so, unless the owner of the cigarettes produces sufficient evidence that the cigarettes are in transit through the State for sale outside the United States. Nothing herein shall be construed to require the Commissioner to confiscate cigarettes when the Commissioner shall have reason to believe that the owner thereof has possession of the same for personal consumption. Any cigarettes seized under this section shall be destroyed by the Commissioner. The seizure of any cigarettes under the provisions of this section shall not relieve any person from a fine or other penalty for violation of this chapter.
(c) A violation of any provision of this section shall also constitute an unfair or deceptive act and practice in commerce prohibited under 9 V.S.A. § 2453 and shall be subject to enforcement and to the rights and remedies provided for under 9 V.S.A. chapter 63.
(d) Any person may bring an action for appropriate injunctive or other equitable relief for a violation of this section; actual damages, if any, sustained by reason of the violation; and, as determined by the court, interest on the damages from the date of the complaint, taxable costs, and reasonable attorney’s fees. If the trier of fact finds that the violation is flagrant, it may increase recovery to any amount not in excess of three times the actual damages sustained by reason of the violation.
(Added 1999, No. 101 (Adj. Sess.), § 2.)
Subchapter 4 Tobacco Products Tax
§ 7811 Imposition of tobacco products tax
(a) There is hereby imposed and shall be paid a tax on all other tobacco products, snuff, and new smokeless tobacco possessed in the State of Vermont by any person for sale on and after July 1, 1959 that were imported into the State or manufactured in the State after that date, except that no tax shall be imposed on tobacco products sold under such circumstances that this State is without power to impose such tax, or sold to the United States, or sold to or by a voluntary unincorporated organization of the U.S. Armed Forces operating a place for the sale of goods pursuant to regulations promulgated by the appropriate executive agency of the United States. The tax is intended to be imposed only once upon the wholesale sale of any other tobacco product and shall be at the rate of 92 percent of the wholesale price for all tobacco products except snuff, which shall be taxed at $2.57 per ounce or fractional part thereof; new smokeless tobacco, which shall be taxed at the greater of $2.57 per ounce or, if packaged for sale to a consumer in a package that contains less than 1.2 ounces of the new smokeless tobacco, at the rate of $3.08 per package; and cigars with a wholesale price greater than $2.17, which shall be taxed at the rate of $2.00 per cigar if the wholesale price of the cigar is greater than $2.17 and less than $10.00 and at the rate of $4.00 per cigar if the wholesale price of the cigar is $10.00 or more. Provided, however, that upon payment of the tax within 10 days, the distributor or dealer may deduct from the tax two percent of the tax due. It shall be presumed that all other tobacco products, snuff, and new smokeless tobacco within the State are subject to tax until the contrary is established and the burden of proof that any other tobacco products, snuff, and new smokeless tobacco are not taxable hereunder shall be upon the person in possession thereof. Licensed wholesalers of other tobacco products, snuff, and new smokeless tobacco shall state on the invoice whether the price includes the Vermont tobacco products tax.
(b) The tax established in this section shall not be imposed on:
(1) cannabis-related supplies sold by a dispensary registered under 7 V.S.A. chapter 37 to registered patients and registered caregivers, as those terms are defined in 7 V.S.A. § 972;
(2) cannabis products, as defined in 7 V.S.A. § 831, that do not contain tobacco; or
(3) hemp or hemp products, as defined in 6 V.S.A. § 562, that do not contain tobacco.
(Added 1959, No. 231, § 7; amended 1995, No. 14, § 7, eff. April 12, 1995; 2005, No. 191 (Adj. Sess.), § 38; 2007, No. 81, § 6, eff. June 11, 2007; 2009, No. 1 (Sp. Sess.), § H.38; 2009, No. 160 (Adj. Sess.), § 36; 2011, No. 45, § 22; 2013, No. 14, § 19, eff. June 30, 2013; 2013, No. 174 (Adj. Sess.), § 39; 2015, No. 54, § 50; 2019, No. 28, § 2; 2023, No. 3, § 91, eff. July 1, 2023.)
§ 7812 Liability for collection of tax
The licensed wholesale dealer shall be liable for the payment of the tax on tobacco products that he or she imports or causes to be imported into the State or that he or she manufactures in this State, and every licensed wholesale dealer authorized by the Commissioner to make returns and pay the tax on tobacco products sold, shipped, or delivered by him or her to any person in the State shall be liable for the collection and payment of the tax on all tobacco products sold, shipped, or delivered. Every retail dealer shall be liable for the collection of the tax on all tobacco products in his or her possession at any time, upon which the tax has not been paid by a licensed wholesale dealer, and the failure of any retail dealer to produce and exhibit to the Commissioner or his or her authorized representative, upon demand, an invoice by a licensed wholesale dealer for any tobacco products in his or her possession shall be presumptive evidence that the tax thereon has not been paid and that such retail dealer is liable for the collection of the tax thereon. The amount of taxes advanced and paid by a licensed wholesale dealer or retail dealer as hereinabove provided shall be added and collected as part of the sales price of the tobacco products.
(Added 1959, No. 231, § 7; amended 1971, No. 73, § 32, eff. April 16, 1971; 2015, No. 57, § 79, eff. June 11, 2015.)
§ 7813 Returns and payment of tax by licensed wholesale dealer
Every licensed wholesale dealer shall, on or before the 15th day of each month, file with the Commissioner a return on forms to be prescribed and furnished by the Commissioner showing the quantity and wholesale price of all tobacco products sold, shipped, or delivered by him or her to any person in the State during the preceding calendar month. Such returns shall contain such further information as the Commissioner of Taxes may require. Every licensed wholesale dealer shall pay to the Commissioner with the filing of such return the tax on tobacco products for such month imposed under this subchapter. When the licensed wholesale dealer files the return and pays the tax within the time specified in this section, he or she may deduct therefrom two percent of the tax due.
(Added 1959, No. 231, § 7; amended 1967, No. 346 (Adj. Sess.), § 5; 2015, No. 57, § 80, eff. June 11, 2015.)
§ 7814 Floor stock tax
(a) Snuff. A floor stock tax is hereby imposed upon every retail dealer of snuff in this State in the amount by which the new tax exceeds the amount of the tax already paid on the snuff. The tax shall apply to snuff in the possession or control of the retail dealer at 12:01 a.m. on July 1, 2015, but shall not apply to retail dealers who hold less than $500.00 in wholesale value of such snuff. Each retail dealer subject to the tax shall, on or before July 25, 2015, file a report to the Commissioner in such form as the Commissioner may prescribe showing the snuff on hand at 12:01 a.m. on July 1, 2015, and the amount of tax due thereon. The tax imposed by this section shall be due and payable on or before August 25, 2015, and thereafter shall bear interest at the rate established under section 3108 of this title. In case of timely payment of the tax, the retail dealer may deduct from the tax due two percent of the tax. Any snuff with respect to which a floor stock tax has been imposed and paid under this section shall not again be subject to tax under section 7811 of this title.
(b) Cigarettes, little cigars, or roll-your-own tobacco. Notwithstanding the prohibition against further tax on stamped cigarettes, little cigars, or roll-your-own tobacco under section 7771 of this title, a floor stock tax is hereby imposed upon every dealer of cigarettes, little cigars, or roll-your-own tobacco in this State who is either a wholesaler or a retailer who, at 12:01 a.m. on July 1, 2015, has more than 10,000 cigarettes or little cigars or who has $500.00 or more of wholesale value of roll-your-own tobacco, for retail sale in his or her possession or control. The amount of the tax shall be the amount by which the new tax exceeds the amount of the tax already paid for each cigarette, little cigar, or roll-your-own tobacco in the possession or control of the wholesaler or retail dealer at 12:01 a.m. on July 1, 2015, and on which cigarette stamps have been affixed before July 1, 2015. A floor stock tax is also imposed on each Vermont cigarette stamp in the possession or control of the wholesaler at 12:01 a.m. on July 1, 2015 and not yet affixed to a cigarette package, and the tax shall be at the rate of $0.33 per stamp. Each wholesaler and retail dealer subject to the tax shall, on or before July 25, 2015, file a report to the Commissioner in such form as the Commissioner may prescribe showing the cigarettes, little cigars, or roll-your-own tobacco and stamps on hand at 12:01 a.m. on July 1, 2015 and the amount of tax due thereon. The tax imposed by this section shall be due and payable on or before July 25, 2015, and thereafter shall bear interest at the rate established under section 3108 of this title. In case of timely payment of the tax, the wholesaler or retail dealer may deduct from the tax due two and three-tenths of one percent of the tax. Any cigarettes, little cigars, or roll-your-own tobacco with respect to which a floor stock tax has been imposed under this section shall not again be subject to tax under section 7771 of this title.
(Added 1959, No. 231, § 7; amended 1995, No. 14, § 10, eff. April 12, 1995; 2001, No. 140 (Adj. Sess.), § 25; 2001, No. 140 (Adj. Sess.), § 27, eff. July 1, 2003; 2005, No. 191 (Adj. Sess.), § 39; 2009, No. 1 (Sp. Sess.), § H.39; 2011, No. 45, § 27a; 2013, No. 174 (Adj. Sess.), § 40; 2015, No. 54, § 51.)
§ 7815 Licensed wholesale dealers
All resident licensed wholesale dealers within the State are required to pay the tax on tobacco products for which they may be liable. A person outside this State who ships or transports tobacco products to retailers in this State, to be sold by those retailers, may make application for license as a nonresident licensed wholesale dealer, be granted such license by the Commissioner, and thereafter be subject to all the provisions of this chapter so far as the same pertain to tobacco products, and be entitled to act as a licensed wholesale dealer, provided he or she files proof with his or her application that he or she has appointed the Secretary of State as his or her agent for service of process relating to any matter or issue arising under this chapter. Such nonresident person shall also agree to submit his or her books, accounts, and records to examination during reasonable business hours by the Commissioner or his or her duly authorized agent.
(Added 1959, No. 231, § 7; amended 1981, No. 31, § 17; 2013, No. 14, § 20.)
§ 7816 Records to be kept; examination
At the time of delivering other tobacco products, snuff, or new smokeless tobacco to any person, each licensed wholesale dealer shall make a true duplicate invoice showing the date of delivery; and the items; and the wholesale price of each item in each shipment of other tobacco products, snuff, and new smokeless tobacco delivered; and the name of the purchaser to whom delivery is made and shall retain the same for a period of three years, subject to the use and inspection of the Commissioner. Each licensed wholesale dealer shall procure and retain invoices showing the items and wholesale price of each item in each shipment of other tobacco products, snuff, or new smokeless tobacco received by him or her; the date of receipt; and the name of the shipper and shall retain the same for a period of three years, subject to the use and inspection of the Commissioner. The Commissioner, by regulation, may provide that whenever other tobacco products, snuff, or new smokeless tobacco are shipped into the State, the railroad company, express company, trucking company, or other carrier transporting any shipment thereof shall file with the Commissioner a copy of the freight bill within 10 days after the delivery in the State of each shipment. All licensed wholesale dealers shall maintain and keep for a period of three years such other records of tobacco products received, sold, or delivered within the State as may be required by the Commissioner. The Commissioner or authorized agents of the Commissioner are hereby authorized to examine the books, papers, invoice, and other records; stock of other tobacco products, snuff, and new smokeless tobacco in and upon any premises where the same are placed, stored, and sold; and equipment of any such dealer pertaining to the sale and delivery of other tobacco products, snuff, and new smokeless tobacco taxable under this subchapter. To verify the accuracy of the tax imposed and assessed by this subchapter, each such person is hereby directed and required to give to the Commissioner or authorized agents of the Commissioner the means, facilities, and opportunity for such examinations as are herein provided for and required.
(Added 1959, No. 231, § 7; amended 2013, No. 14, § 21.)
§ 7817 Determination of tax on failure to file return
(a) When the Commissioner discovers, by examination of the records of the taxpayer as provided in section 7816 of this title or otherwise, that a person required to file a return under this subchapter has filed an incorrect or insufficient return, the Commissioner may, at any time within three years after the date the return was due, determine the correct amount of tax and shall give notice to the taxpayer of the amount of any deficiency in such tax, together with penalty and interest as hereinafter provided. If no return has been filed as provided by law, the tax may be assessed at any time. When, before the expiration of the period prescribed herein for assessment of an additional tax, a taxpayer has consented in writing that the period be extended, the amount of the additional tax due may be determined at any time within the extended period. The period so extended may be further extended by subsequent consents in writing made before the expiration of the extended period.
(b) A determination by the Commissioner in accordance with subsection (a) of this section shall fix the tax, unless the person against whom it is assessed shall, within 60 days after receiving the notice of such determination, apply to the Commissioner for a hearing as is herein provided. The decision of the Commissioner after the hearing may be reviewed as provided in this chapter.
(Added 1959, No. 231, § 7; amended 1971, No. 73, § 33, eff. April 16, 1971; 1989, No. 222 (Adj. Sess.), § 13; 2007, No. 81, § 5, eff. June 11, 2007; 2013, No. 73, § 10, eff. June 5, 2013.)
§ 7818 Tax as debt to the State
A tax on tobacco products imposed by this subchapter and all increases, interest, and penalties thereon shall become, from the date it is due and payable, a personal debt from the person liable to pay the same to the State of Vermont, to be recovered in a civil action under this section.
(Added 1959, No. 231, § 7.)
§ 7819 Refunds
Whenever any tobacco products upon which the tax has been paid have been sold and shipped into another state for sale or use there, or have become unfit for use and consumption or unsalable, or have been destroyed, the licensed wholesale dealer shall be entitled to a refund of the actual amount of tax paid with respect thereto. If the Commissioner is satisfied that any licensed wholesale dealer is entitled to a refund, he or she shall so certify to the Commissioner of Finance and Management who shall issue his or her warrant in favor of the licensed wholesale dealer entitled to receive such refund.
(Added 1959, No. 231, § 7; amended 1983, No. 195 (Adj. Sess.), § 5(b); 2015, No. 57, § 81, eff. June 11, 2015.)
§ 7820 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.
§ 7821 Criminal penalties
Any person who shall fail, neglect, or refuse to comply with or shall violate the provisions of this chapter relating to the tax on tobacco products or the rules adopted by the Commissioner under this chapter relating to such tax shall be guilty of a misdemeanor and upon conviction for a first offense shall be sentenced to pay a fine of not more than $250.00 or to be imprisoned for not more than 60 days, or both, such fine and imprisonment in the discretion of the court, and for a second or subsequent offense shall be sentenced to pay a fine of not less than $250.00 nor more than $500.00 or be imprisoned for not more than six months, or both, such fine and imprisonment in the discretion of the court. This section shall not apply to violations of sections 7731–7734 and 7776 of this title.
(Added 1959, No. 231, § 7; amended 2015, No. 57, § 82, eff. June 11, 2015; 2021, No. 105 (Adj. Sess.), § 567, eff. July 1, 2022.)
§ 7822 Application of provisions
The provisions of subchapters 1-3 of this chapter shall apply to the tobacco products tax imposed by this subchapter unless they are clearly applicable only to the tax on cigarettes and the enforcement thereof.
(Added 1959, No. 231, § 7.)
§ 7823 Deposit of revenue
The revenue generated by the taxes imposed under this chapter shall be credited to the General Fund.
(Added 1995, No. 14, § 8; amended 1999, No. 152 (Adj. Sess.), § 272a; 2005, No. 215 (Adj. Sess.), § 314; 2009, No. 1 (Sp. Sess.), § E.307.3, eff. June 2, 2009; 2011, No. 75 (Adj. Sess.), § 109; 2019, No. 6, § 70, eff. April 22, 2019.)
Chapter 207 Cannabis Excise Tax and Cannabis Sales Tax Revenue
§ 7901 Definitions
As used in this chapter:
(1) “Cannabis” has the same meaning as in 7 V.S.A. § 831.
(2) “Cannabis cultivator” has the same meaning as in 7 V.S.A. § 861.
(3) “Cannabis product” has the same meaning as in 7 V.S.A. § 831.
(4) “Cannabis product manufacturer” has the same meaning as in 7 V.S.A. § 861.
(5) “Cannabis retailer” has the same meaning as in 7 V.S.A. § 861.
(6) “Cannabis wholesaler” has the same meaning as in 7 V.S.A. § 861.
(7) “Integrated licensee” has the same meaning as in 7 V.S.A. § 861.
(8) “Retail sale” or “sold at retail” means any sale for any purpose other than for resale by a cannabis retailer or integrated licensee.
(9) “Sales price” has the same meaning as in section 9701 of this title.
(Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7902 Cannabis excise tax
(a) There is imposed a cannabis excise tax equal to 14 percent of the sales price of each retail sale in this State of cannabis and cannabis products, including food or beverages.
(b) The tax imposed by this section shall be paid by the purchaser to the retailer or integrated licensee. Each retailer or integrated licensee shall collect from the purchaser the full amount of the tax payable on each taxable sale.
(c) The tax imposed by this section is separate from and in addition to the general sales and use tax imposed by chapter 233 of this title. The tax imposed by this section shall not be part of the sales price to which the general sales and use tax applies. The cannabis excise tax shall be separately itemized from the general sales and use tax on the receipt provided to the purchaser.
(d) The following sales shall be exempt from the tax imposed under this section:
(1) sales under any circumstances in which the State is without power to impose the tax; and
(2) sales made by any dispensary as authorized under 7 V.S.A. chapter 37 or any retailer licensed with a medical-use endorsement as authorized under 7 V.S.A. chapter 33, provided that the cannabis or cannabis product is sold only to registered patients directly or through their registered caregivers. A retailer that sells cannabis or cannabis products that are exempt from tax pursuant to this subdivision shall retain information pertaining to each exempt transaction as required by the Commissioner of Taxes.
(Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022; amended 2023, No. 166 (Adj. Sess.), § 13, eff. June 10, 2024.)
§ 7903 Liability for tax
(a) Any tax collected in accordance with this chapter shall be deemed to be held by the retailer or integrated licensee in trust for the State of Vermont. Any tax collected under this chapter shall be accounted for separately so as clearly to indicate the amount of tax collected and that the same are the property of the State of Vermont.
(b) Every retailer or integrated licensee required to collect and remit the tax under this chapter to the Commissioner shall be personally and individually liable for the amount of such tax, together with such interest and penalty as has accrued under the provisions of section 3202 of this title. If the retailer or integrated licensee is a corporation or other entity, the personal liability shall extend to any officer or agent of the corporation or entity who as an officer or agent of the same has the authority to collect and remit tax to the Commissioner of Taxes as required in this chapter.
(c) A retailer or integrated licensee shall have the same rights in collecting tax from his or her purchaser or regarding nonpayment of tax by the purchaser as if the tax were a part of the purchase price of cannabis or cannabis products and payable at the same time; provided, however, if the retailer or integrated licensee required to collect tax has failed to remit any portion of the tax to the Commissioner of Taxes, the Commissioner of Taxes shall be notified of any action or proceeding brought by the retailer or integrated licensee to collect tax and shall have the right to intervene in such action or proceeding.
(d) A retailer or integrated licensee required to collect tax may also refund or credit to the purchaser any tax erroneously, illegally, or unconstitutionally collected. No cause of action that may exist under State law shall accrue against the retailer or integrated licensee for tax collected unless the purchaser has provided written notice to a retailer or integrated licensee and the retailer or integrated licensee has had 60 days to respond.
(Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7904 Returns; records
(a) Any retailer or integrated licensee required to collect the tax imposed by this chapter shall, on or before the 25th day of every month, return to the Department of Taxes, under oath of a person with legal authority to bind the retailer or integrated licensee, a statement containing its name and place of business, the total amount of sales subject to the cannabis excise tax made in the preceding month, and any information required by the Department of Taxes, along with the total tax due. Retailers and integrated licensees shall not remit the tax collected to the Department of Taxes in cash absent the issuance of a waiver by the Commissioner of Taxes, and the Commissioner may require that returns be submitted electronically.
(b) Every retailer and integrated licensee shall maintain, for not less than three years, accurate records showing all transactions subject to tax liability under this chapter. The records are subject to inspection by the Department of Taxes at all reasonable times during normal business hours.
(Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7905 Bundled transactions
(a) Except as provided in subsection (b) of this section, a retail sale of a bundled transaction that includes cannabis or a cannabis product is subject to the cannabis excise tax imposed by this chapter on the entire sales price of the bundled transaction. If there is a conflict with the bundling transaction provisions applicable to another tax type, this section shall apply.
(b) If the sales price is attributable to products that are taxable and products that are not taxable under this chapter, the portion of the price attributable to the products that are nontaxable is subject to the tax imposed by this chapter unless the retailer or integrated licensee can identify by reasonable and verifiable standards the portion that is not subject to tax from its books and records that are kept in the regular course of business, and any discounts applied to the bundle must be attributed to the products that are nontaxable under this chapter.
(c) As used in this section, “bundled transaction” means:
(1) the retail sale of two or more products where the products are otherwise distinct and identifiable, are sold for one nonitemized price, and at least one of the products is or contains cannabis; or
(2) cannabis or a cannabis product that is provided free of charge with the required purchase of another product.
(Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7906 License
(a) Any retailer or integrated licensee required to collect tax imposed by this chapter must apply for and receive a cannabis retail tax license from the Commissioner for each place of business within the State where he or she sells cannabis or cannabis products prior to commencing business. The Commissioner shall issue without charge a license, or licenses, empowering the retailer or integrated licensee to collect the cannabis excise tax, provided that a retailer’s or integrated licensee’s application is properly submitted and the retailer or integrated licensee is otherwise in compliance with applicable laws, rules, and provisions.
(b) Each cannabis retail tax license shall state the place of business to which it is applicable and be prominently displayed in the place of business. The licenses shall be nonassignable and nontransferable and shall be surrendered to the Commissioner immediately upon the registrant ceasing to do business in the place named. A cannabis retail tax license shall be separate from and in addition to any licenses required by sections 9271 (meals and rooms tax) and 9707 (sales and use tax) of this title.
(c) The Cannabis Control Board may require the Commissioner of Taxes to suspend or revoke the tax licenses issued under this section for any retailer or integrated licensee that fails to comply with 7 V.S.A. chapter 33 or any rules adopted by the Board.
(Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7907 Administration of the cannabis excise tax
(a) The Commissioner of Taxes shall administer and enforce this chapter. The Commissioner may adopt rules pursuant to 3 V.S.A. chapter 25 to carry out such administration and enforcement.
(b) To the extent not inconsistent with this chapter, the provisions for the assessment, collection, enforcement, and appeals of the sales and use tax in chapter 233 of this title shall apply to the cannabis excise tax imposed by this chapter.
(Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7908 Statutory purpose
The statutory purpose of the exemption for cannabis and cannabis products sold by any dispensary as authorized under 7 V.S.A. chapter 37 in subdivision 7902(d)(2) of this title is to lower the cost of medical products in order to support the health and welfare of Vermont residents.
(Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7909 Repealed
[Repealed]
(Added 2021, No. 62, § 18, eff. March 1, 2022; amended 2021, No. 185 (Adj. Sess.), § E.240.2, eff. July 1, 2023; § E.313.3.)
§ 7910 Cannabis sales tax revenue; Universal Afterschool and Summer Special Fund
Notwithstanding 16 V.S.A. § 4025, revenue from the sales and use tax imposed by chapter 233 of this title on retail sales of cannabis or cannabis products in Vermont shall be deposited into the Universal Afterschool and Summer Special Fund established pursuant to 16 V.S.A. § 51.
(Added 2023, No. 87 (Adj. Sess.), § 98, eff. March 13, 2024.)
Chapter 209 Corporation Fees
§§ 8001-8005 Repealed
[Repealed]
1981 No. 217 (Adj. Sess.), § 11.
Chapter 211 Corporation Taxes
Subchapter 1 General Provisions
§ 8101 Imposition of tax
A State tax for the payment of State expenses is hereby assessed upon the property, business, or corporate franchises of railroad, insurance, guaranty, transportation, mortgage, loan, or investment companies and shall be payable in money to the Commissioner of Taxes for the use of the State as hereinafter provided.
(Amended 1997, No. 156 (Adj. Sess.), § 10, eff. April 29, 1998.)
§ 8102 Taxes a lien
All taxes imposed by this chapter shall be a first lien upon all property of the person or corporation required to pay such taxes, except as otherwise provided in this chapter, until the same are fully paid. All persons or corporations that purchase or otherwise acquire title to any of such property, except in the due course of business for which such corporation owning the same has been chartered, shall be liable to the State for all such taxes due or accrued at the time of such purchase or transfer of title.
§ 8121 Formulation and distribution of returns
The Commissioner shall formulate forms requiring the statement of facts necessary to determine the amount of each tax prescribed in this chapter. On request, he or she shall furnish such forms by mail or otherwise to each person or corporation required to pay such tax. If he or she deems it necessary, he or she shall furnish forms to any person who may have acted as an agent or broker in this State for a foreign insurance or guaranty company not making returns to this State for the purpose of taxation, or who within this State may have solicited, arranged for, or effected a contract of insurance, guarantyship, or suretyship for another person with such foreign company.
§ 8122 Execution of returns
A person or corporation required by this chapter to pay a tax and all persons or corporations to whom the Commissioner sends forms shall fill out such forms, answer all interrogatories therein contained, and return the same as hereinafter provided. Such forms, so filled out, shall be subscribed and sworn to by the person making the return, if made by an individual or firm or, if made by a corporation, by its clerk, treasurer, or other proper officer.
§ 8123 Time and place of filing
One copy of the form filled out and sworn to as provided in section 8122 of this title shall be returned at the expense of the party making the same to the Commissioner, and one copy shall be retained by the person or corporation making the return. When required to be made annually, such return shall be made and filed, except as otherwise provided in this chapter, on or before September 15 for the fiscal year ending with June 30 next preceding. When required to be made semiannually, such return shall be made and filed, except as otherwise provided in this chapter, on or before March 15 and September 15 for the semiannual periods ending with the last day of December and June next preceding, respectively.
§ 8124 Time for payment of tax
Within 30 days after making returns, except as otherwise provided in this chapter, the person or corporation making same shall forward to the Commissioner the amount of the annual or semiannual tax for the period covered by the returns.
§ 8141 Examination of documents
The Commissioner may examine any book, record, or paper of a corporation or person required by this chapter to make returns and pay a tax, concerning any matter as to which information is required to carry out the provisions of this chapter.
§ 8142 Examination of officers, agents, and stockholders
On application of the Commissioner, a Justice of the Supreme Court or a Superior judge shall designate a master who may cite any officer, stockholder, agent, or clerk of a corporation or person required by this chapter to make returns or pay a tax to appear before him or her for examination upon oath by the Commissioner or to produce any book, record, or paper for inspection by the Commissioner concerning any matter as to which information is required to carry out the provisions of this chapter. By order of such Justice or judge, such testimony may be taken stenographically and transcribed in whole or in part for the use of the Commissioner, at the expense of the State. The fees and necessary expenses of a master so designated shall be fixed by the Justice or judge making the designation and paid by the State.
§ 8143 Form and service of citation for examination
Such citation shall issue and be served like a writ of summons and shall require the person therein named to appear within a reasonable time that shall be stated therein. When books, records, or papers are required to be produced, the same shall be designated in the citation. When it appears during a hearing that an inspection should be had of books, records, or papers other than those named in such citation, the master may order that such books, records, or papers be forthwith produced for such inspection by the Commissioner.
§ 8144 Witness fees
Excepting an officer, stockholder of a corporation, or a person required by this chapter to file a return and pay a tax, a person cited to appear before a master, designated pursuant to section 8142 of this title, shall be allowed the same attendance and travel fees as witnesses in Superior Court. Such fees shall be paid by the State on the certificate of the Commissioner.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 8145 Failure to appear, be sworn, or testify
An officer, agent, clerk, or person who refuses to appear and be sworn or to testify as required by article 3 of this subchapter or to show the Commissioner the books, records, or papers as required by article 3 of this subchapter shall be fined not more than $5,000.00 nor less than $500.00.
§ 8146 Additional tax; refunds
When the Commissioner finds that, owing to the incorrectness of a return or any other cause, a tax paid pursuant to this chapter is too small, he or she shall assess an additional tax sufficient to cover the deficit and shall forthwith notify the parties so assessed. The administrative provisions of chapters 103 and 151 of this title shall apply to assessments and refund claims under this chapter, including those provisions governing interest and penalties in section 3202 of this title, appeals, and collection of assessments.
(Amended 2015, No. 57, § 87, eff. June 11, 2015; 2015, No. 134 (Adj. Sess.), § 18, eff. May 25, 2016.)
§ 8147 False swearing outside the State
When an officer of a corporation whose returns to the Commissioner are sworn to in another state willfully makes a false statement as to a material fact required in such returns, such corporation shall forfeit to this State the sum of $300.00.
§ 8148 False swearing
A person who willfully swears falsely to any return, statement, or certificate mentioned in this chapter or upon an examination before a master as provided in section 8142 of this title shall be guilty of perjury.
§ 8162 Foreign corporations
When a foreign insurance, surety, or guaranty company, or an agent thereof fails to make returns or to pay the taxes as required in this chapter, the Commissioner shall notify the Commissioner of Financial Regulation thereof, who shall thereupon revoke the license of such company and its agents to do business in this State. Notice in writing of such revocation shall be mailed by the Commissioner of Financial Regulation to such company addressed to its principal office or place of business in the United States and to the Commissioner of Taxes. In the discretion of the Commissioner of Financial Regulation, such notice may be sent by mail or otherwise to any or all of the agents of such company residing in this State. The license of foreign loan, mortgage, or investment companies in like manner and for like causes shall be revoked by the Commissioner of Financial Regulation, and like notice thereof shall be given by such Commissioner.
(Amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
§ 8171 Recovery of taxes and penalties
Taxes imposed by this chapter may be recovered in the name of the State in a civil action, on the statute imposing them, returnable to any Superior Court. The penalties so imposed may be so recovered in a civil action on the statute imposing them. The amount of taxes assessed or penalties accrued up to the time of trial may be recovered in such suit, but a court wherein an action is pending to recover a forfeiture, in its discretion, may remit such part thereof as it shall deem just and equitable in the circumstances. The State shall not be required in any proceeding under this chapter to furnish recognizance or bond for costs, nor injunction bonds. Upon final judgment, the court may make such order relating to the payment of costs, by the State or the defendant, as it shall deem just and equitable.
(Amended 1965, No. 194, § 10, operative February 1, 1967; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 219.)
§ 8172 Inconsistent laws repealed
So much of the charter of any corporation or company organized under the laws of this State as exempts such corporation from taxation, so far as it conflicts with this chapter, is hereby repealed.
Subchapter 2 Railroads
§ 8211 Rate of tax and time of payment
(a) For each taxable year, there is assessed upon the appraised value of the property and corporate franchise of each person or corporation owning or operating a railroad located in whole or in part within this State a tax at the rate of one percent. The appraised value shall be obtained and established as provided under this subchapter. One-half of the tax imposed by this section, covering the six months ending with June 30 in each year, shall be paid to the Commissioner on or before the following October 15 by the person or corporation then owning or operating the railroad. The remaining one-half of the tax covering the six months ending with December 31 in each year shall be paid to the Commissioner on or before the following April 15 by the person or corporation then owning or operating the railroad.
(b) Not later than May 15 in each year, the State shall pay to each town wherein railroad real estate is located 50 percent of that portion of the tax revenue that has been collected upon the property of the railroad in that town for the immediately preceding taxable year. Delinquent taxes, when collected, shall be treated in the same fashion.
(Amended 1971, No. 79, § 1, eff. date, see note set out below; 2021, No. 105 (Adj. Sess.), § 568, eff. July 1, 2022.)
§ 8212 Liability of lessees
When a railroad is operated in this State by a person or corporation under a lease or other contract, taxes assessed thereon under the provisions of section 8211 of this title shall be paid by the lessee of such railroad or holder of such contract and be charged against and deducted from any payment due or to become due under such lease or contract, unless it is otherwise expressly stipulated therein.
§ 8241 Annual report required; contents
A person or corporation owning or operating a railroad located in whole or in part in this State, annually, on or before July 1, shall file with the Commissioner a sworn copy of the Interstate Commerce Commission report and, upon forms to be prepared and furnished at the expense of the State, a report for the year ending December 31 next preceding. The report shall show, among other things, the amount of gross and net earnings of the person or corporation. If any portion of such railroad is outside this State, the returns shall give the amount of gross and net earnings per mile of the road; the length of the entire main line of road and the number of miles thereof in this State; the kind and weight of rail used on its main line; the kind and number of ties per mile; the kind of ballast; the number of miles of side and spur tracks; a list of its equipment; the amount and the value of its capital stock; its funded and floating debt; its surplus; its bonds secured by mortgage or other securities on the property of such person or corporation; the market value of its stock and bonds; and the amount of dividends, interest, or indebtedness paid annually or semiannually. If a railroad is leased and operated by the lessee, the returns shall also give the amount paid for the rental of the railroad and any other matter required by the Commissioner to carry out the provisions of this chapter. Whenever required in writing by the Commissioner, the person or corporation shall render a sworn statement of other and further facts relating to its financial or physical condition as shall be required in making the appraisal under this subchapter.
(Amended 1975, No. 43, § 1, eff. April 14, 1975; 2021, No. 105 (Adj. Sess.), § 569, eff. July 1, 2022.)
§ 8242 Reports on fiscal year basis
The Commissioner may permit a person or corporation required to report to him or her under the provisions of section 8241 of this title, which has an established system of bookkeeping or accounting covering a fiscal year ending at a time other than December 31, to make its report covering its fiscal year last prior to the time of making such report in lieu of the fiscal year ending December 31.
(Amended 1975, No. 43, § 2, eff. April 14, 1975.)
§ 8261 Railroad property
The words “property acquired, constructed, or used for railroad business or purposes” as used in this chapter and except as otherwise provided shall include all franchises, rights-of-way, roadbeds, tracks, bridges, stations, terminals, rolling stock, equipment, and all other real and personal property of whatever character used or employed in the operation of a railroad or in conducting its business and shall include all title and interest in such property as owner, lessee, or otherwise.
§ 8281 Railroad operating wholly in State
The Director shall appraise at its fair and just value all property acquired, constructed, or used for railroad business or purposes held, possessed, or owned by a person or corporation operating a railroad located entirely within this State.
(Amended 1977, No. 105, § 14(a).)
§ 8282 Road operating within and outside the State
When a person or corporation operates a line of railroad located partly within and partly outside this State, except as otherwise provided, the Director shall appraise at its fair and just value all property within this State acquired, constructed, or used in this State for railroad business or purposes held, possessed, or owned by the person or corporation operating the line of railroad. In making the appraisal, the Director may take into consideration the value of the entire railroad system operated by the person or corporation; the mileage both within and outside this State; its engines, cars, and other equipment; and other information, facts, and circumstances as will aid the Director.
(Amended 1977, No. 105, § 14(a); 2021, No. 105 (Adj. Sess.), § 570, eff. July 1, 2022.)
§ 8283 Single or separate appraisals
In appraising the property specified in sections 8281 and 8282 of this title, except as otherwise provided, the Director may include in a single appraisal and valuation all such property so held, possessed, or owned by such person or corporation. In his or her discretion, he or she may include in two or more separate appraisals and valuations such portion or portions of such property so held, possessed, or owned by such person or corporation as he or she shall designate. As hereinafter provided, he or she shall make a record of such separate appraisals and valuations and of the aggregate appraisals and valuations of each person or corporation.
(Amended 1977, No. 105, § 14(a).)
§ 8284 Appraised value as true value
For the purpose of taxation under the provisions of section 8211 of this title, such appraised valuation when made as aforesaid, except as otherwise provided, shall be taken to be the true value of such properties and franchises within this State so acquired, constructed, or used.
§ 8285 Defective, insufficient, or invalid appraisals
When for any cause an appraisal required under the provisions of this article or article 6 of this subchapter is omitted or is found to be defective, insufficient, or invalid, the Director thereupon may make a new appraisal of the property whose appraisal has been so omitted or is defective, insufficient, or invalid. A record of such appraisal on the date thereof shall be made in the manner provided in section 8341 of this title and notice thereof given to the person or corporation specified in section 8343 of this title.
(Amended 1977, No. 105, § 14(a).)
§ 8286 Property exempt from appraisal
The aforesaid appraisals shall not include the following classes of property owned by railroad companies: tenement houses and the lands whereon the same are located; lands or buildings leased to or occupied by another person or corporation for other than railroad purposes; timber, farming, meadow, or pasture lands; and water power or electric plants not used for railroad purposes. The section of the North Stratford, New Hampshire to Beecher Falls, Vermont railroad line owned by the State of New Hampshire and situated in the Town of Canaan shall be exempt from taxation under this subchapter when this section of railroad line is used solely for public recreation purposes, and not for railroad purposes, during the entire taxable year. Each railroad company that owns property coming within the scope of this section shall maintain with the clerk of each town or city wherein such property is located a certified list describing all such property within the town or city. When the status of any railroad property changes, the railroad shall notify forthwith the town clerk in the town where the property is located of such change.
(Amended 1959, No. 28, eff. March 11, 1959; 1989, No. 222 (Adj. Sess.), § 32, eff. May 31, 1990.)
§§ 8301-8306 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 11, eff. April 29, 1998.
§ 8321 General rule
All appraisals made under the provisions of article 4 of this subchapter shall be made in each even year on or before December 31.
(Amended 1975, No. 43, § 3, eff. April 14, 1975; 1997, No. 156 (Adj. Sess.), § 12, eff. April 29, 1998.)
§ 8322 Subsequent appraisals
(a) When, subsequent to the date whereon such appraisals are required to be made, trains, other than construction trains, commence running on a railroad located in whole or in part within this State or on any extension or branch of a railroad theretofore appraised, on or before December 31 in the year in which such trains so commence running, the Commissioner shall appraise such railroad, extension, or branch in the manner hereinbefore provided for appraising such property.
(b) When, subsequent to the time thereof appraisals are required to be made in an even year, a person or corporation operating a railroad constructs, acquires, or begins to use one or more electric power plants subject to the appraisal under the provisions of article 4 of this subchapter, the Commissioner shall, on or before December 31 in the year in which such plant was constructed, acquired, or first used in whole or in part for railroad purposes, appraise such plants in the manner hereinbefore provided for appraising such property.
(c) If, during the period between the appraisals, extensive repairs, improvements, or additions through acquisition or new construction have been made to the property of a railroad operating in this State, or if during such period there has been a large depreciation in the value of the property of such a railroad by reason of fire, flood, or other accident or disaster, or by reason of abandonment of lines or tracks, on or before December 31 in any odd year, the Commissioner may increase or decrease the amount of the last appraisal as he or she deems just. Notice of such action of the Commissioner, shall be given, and a party aggrieved thereby may appeal in the manner provided in respect to the regular biennial appraisals, and the taxes payable on or before October 15 next following and thereafter, until a new appraisal becomes effective, shall be based on such increased or decreased appraisal.
(Amended 1997, No. 156 (Adj. Sess.), § 13, eff. April 29, 1998.)
§ 8341 Record of appraisals
On or before January 15 following any appraisal made under the provisions of articles 4 and 6 of this subchapter, the Commissioner shall make a record thereof in a book kept in the Commissioner’s office for that purpose.
(Amended 1997, No. 156 (Adj. Sess.), § 14, eff. April 29, 1998.)
§ 8342 Sufficiency of record and notice
A record of notice of such appraisals showing, among other things, that all of the property within this State acquired, constructed, or used for railroad business or purposes and held, possessed, or owned by a person or corporation so operating a railroad, other than such as is enumerated in section 8286 of this title, has been appraised at the amount therein named, shall be deemed a sufficient and valid record and notice.
§ 8343 Notice of appraisal; time appraisal in force
On or before January 15 following such appraisals, the Commissioner shall notify in writing, by mail or otherwise, every person or corporation operating a railroad located in whole or in part within this State of the amount of all appraisals of property so operated by them and required to be appraised under the provisions of articles 4 and 6 of this subchapter and the amount of taxes annually assessed therein. Failure on the part of the Commissioner to give such notice, or of the person or corporation to receive the same, shall not invalidate such appraisal. An appraisal of such property made pursuant to the provisions of this chapter shall remain in full force and effect until a subsequent appraisal has been lawfully made and established.
(Amended 1997, No. 156 (Adj. Sess.), § 15, eff. April 29, 1998.)
§ 8344 Definition of representative; notice
The person or corporation operating a railroad in this State shall be the representative of every title and interest in property acquired, constructed, or used in the operation and business thereof as owner, lessee, or otherwise. Notice to the operating person or corporation shall be notice to all interests in the railroad property for the purpose of taxation. The appraisal and taxation of property so acquired, constructed, or used in the name of the owner, lessee, or operating person or corporation shall be deemed an appraisal and taxation of all title and interest in such property of every kind and nature.
§ 8361 General rules for appeals
(a) A party aggrieved, including the State represented by the State Treasurer, on or before February 15 following such an appraisal, may appeal therefrom to a Superior judge designated by the Chief Superior Judge, not excluding themselves, who shall hear such appeal.
(b) In the manner prescribed in this section and within 15 days from the date of notice prescribed in section 8285 of this title, appeals to the Superior judge may be taken from appraisals made agreeably to the provisions of such section 8285. Such proceedings shall be had in relation thereto as are prescribed in this section and section 8362 of this title and shall be heard and determined within 60 days from the date whereon the same are instituted.
(c) Such Superior judge shall appraise at its fair and just value all property required to be appraised by the Commissioner under the provisions of sections 8281-8286, 8321, and 8322 of this title, from the appraisal of which an appeal has been taken. Such appraisal shall be made pursuant to the provisions of this chapter and shall stand in lieu of the appraisal made by the Commissioner from which such appeal is taken.
(d) Upon establishing its appraisal, such Superior judge shall notify, in writing, the State Treasurer and the Commissioner of the amount thereof, and a record thereof shall be made by the Commissioner in the book wherein appraisals of railroad property are recorded. Notice in writing shall likewise be given to the person or corporation operating the property thus appraised.
(e) A party aggrieved by any action of the Superior judge may appeal to the Supreme Court.
(Amended 1971, No. 185 (Adj. Sess.), § 232, eff. March 29, 1972; 1973, No. 106, § 13, eff. May 25, 1973; 1979, No. 181 (Adj. Sess.), § 19; 1997, No. 156 (Adj. Sess.), § 16, eff. April 29, 1998; 2021, No. 147 (Adj. Sess.), § 29, eff. May 31, 2022.)
§ 8362 Procedure
The judge shall establish rules and regulations relative to the time and method of hearing and determining appeals as the judge shall deem just, provided that the appeal shall be finally determined and the appraisal by the judge made and established on or before June 1 following the appeals. The cost of the appeals shall be paid as the judge shall determine. The State Treasurer and the Attorney General shall represent the State in all such appeal proceedings unless the Attorney General is disqualified to act in the proceedings. In case of disqualification, the State shall be represented by the State Treasurer and by counsel as the State Treasurer may select with the approval of the Governor. Selected counsel shall be paid upon a warrant issued by the Commissioner of Finance and Management.
(Amended 1983, No. 195 (Adj. Sess.), § 5(b); 2021, No. 105 (Adj. Sess.), § 571, eff. July 1, 2022.)
§ 8363 Appraisal invalid in part
When an action is pending to recover a tax assessed upon an appraisal made under the provisions of articles 4 and 6 of this subchapter and it shall be therein determined that such appraisal is valid in part, the court shall render judgment for so much of such tax as is based upon that portion of such appraisal so determined to be valid.
(Amended 1997, No. 156 (Adj. Sess.), § 17, eff. April 29, 1998.)
§§ 8391-8393 Repealed
[Repealed]
1961, No. 275, § 4, eff. Aug. 1, 1961.
§ 8394 Petition and hearing for relief from taxes
Upon the written petition of any railroad corporation operating a railroad located in whole or in part within this State, setting forth that the financial condition of such corporation is such that the payment of any taxes assessed against it under the provisions of this chapter would imperil the continued operation of such railroad and would be detrimental to the general good of the State, the Public Utility Commission shall fix a time and place for hearing thereon and give due notice thereof, including notice to the Attorney General who shall attend such hearing and represent the interests of the State.
(Amended 1961, No. 275, § 1, eff. Aug. 1, 1961.)
§ 8395 Findings
Upon hearing, if the Commission finds that the enforced payment of the taxes would imperil the continued operation of the railroad and that the suspension of collection thereof would promote the general good of the State, it shall certify its findings to the Governor in writing, together with its recommendations in connection therewith. Thereupon, the Governor, by executive order, may suspend the collection thereof for the period of one year. The suspension may be extended by the Governor from year to year upon certification of reviewed findings and recommendations by the Commission. Any unpaid tax, the payment of which is suspended under this section, shall continue to constitute a first lien upon the property of the railroad in accordance with section 8102 of this title, except that in the case of the sale of a part of the real property of any railroad whose taxes have been suspended under this section, the Governor, upon recommendation of the Commission, may release such lien from such real estate sold upon payment of a reasonable share of the proceeds towards such suspended taxes, and the balance of taxes remaining shall continue to constitute such a first lien upon the remaining property of the railroad.
(Amended 1961, No. 275, § 2, eff. Aug. 1, 1961.)
§ 8396 Reducing tax claims in reorganization plans
In the event that a plan for the financial reorganization of any such railroad corporation shall be proposed, involving as an element thereof, a compromise or reduction of the claim of the State for unpaid taxes, and notice thereof, together with the details of such plan or reorganization, including the method proposed for the liquidation of such claim for taxes be given to the Governor, he or she shall forthwith refer the matter to such Commission, which, with the assistance of the Attorney General, shall investigate the same and certify its findings in respect thereto to the Governor in writing, together with its recommendations thereon.
§ 8397 Acceptance of plan
If the Commission finds and reports that the proposed plan of reorganization is fair, feasible, and practicable; that, if consummated, it will result in the continuous operation of the railroad for the benefit of the public served thereby; that there is a reasonable probability that it will be able to pay, when due, all taxes thereafter assessed against it by the State; that reduction of the claim for unpaid taxes due the State, in such amount as the Commission may recommend, is essential to the effective consummation of the plan; that the acceptance of the proposed compromise, the reduction of the claim in the amount recommended, and the cooperation by the State to the extent stated in carrying the proposed plan into effect will promote the general good of the State, the Governor, with the approval of the Emergency Board, may compromise, adjust, and settle the claim in accordance therewith.
(Amended 1961, No. 275, § 3, eff. Aug. 1, 1961.)
§ 8398 Revocation of waiver or compromise upon failure of railroad
Should any such railroad cease operation, whether because of failure of consummation of any feasible plan of reorganization or for any other reason, then and in such event the provisions of this article relating to suspension of collection of taxes and to waiver or remission of penalties or forfeitures shall not be operative. In such case, the provisions of this chapter relating thereto shall apply in all respects, anything herein to the contrary notwithstanding.
Subchapter 3 Steamboat, Car, and Transportation Companies
§§ 8431-8435 Repealed
[Repealed]
2006, No. 152 (Adj. Sess.), § 9, eff. June 7, 2006.
Subchapter 4 Express Companies
§ 8461 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 18, eff. April 29, 1998.
Subchapter 5 Telegraph Companies
§§ 8491-8493 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 18, eff. April 29, 1998.
Subchapter 6 Telephone Companies
§ 8521 Imposition and rate of tax [Repealed effective July 1, 2026]
(Amended 1961, No. 118, § 1, eff. Jan. 1, 1962; 1969, No. 144, § 14; 1985, No. 165 (Adj. Sess.), § 3, eff. May 5, 1986; 1987, No. 210 (Adj. Sess.), § 1; 1991, No. 32, § 38, eff. May 18, 1991; 1995, No. 29, § 18, eff. Jan. 1, 1996; 1995, No. 169 (Adj. Sess.), § 19, eff. May 15, 1996; 2015, No. 134 (Adj. Sess.), § 38, eff. Jan. 1, 2017.)
§ 8522 Alternative tax [Repealed effective July 1, 2027]
(Amended 1961, No. 118, § 2, eff. Jan. 1, 1962; 1961, No. 144, § 15; 1987, No. 210 (Adj. Sess.), § 2; 1995, No. 29, § 19, eff. Jan. 1, 1996; 2003, No. 152 (Adj. Sess.), § 10, eff. June 7, 2004.)
§ 8522 Repealed
[Repealed]
(Amended 1961, No. 118, § 2, eff. Jan. 1, 1962; 1961, No. 144, § 15; 1987, No. 210 (Adj. Sess.), § 2; 1995, No. 29, § 19, eff. Jan. 1, 1996; 2003, No. 152 (Adj. Sess.), § 10, eff. June 7, 2004.)
§ 8523 Repealed
[Repealed]
1987, No. 210 (Adj. Sess.), § 3.
Subchapter 7 Insurance Companies
§ 8551 Imposition, rate, and basis of tax
A domestic or foreign insurance company, association, or society, other than life, or a surety or guaranty company, doing business in this State, shall pay a tax to the State, which is hereby assessed at the rate of two percent per annum on the gross amount of premiums and assessments written on its business in this State, but not including premiums received for reinsurance. A domestic or foreign life insurance company doing business in this State shall pay a tax to the State, which is hereby assessed at the rate of two percent per annum on the gross amount of premiums and assessments collected on its business in this State, but not including premiums received for reinsurance.
§ 8552 Returns
A domestic insurance company, association, or society, other than life, or surety or guaranty company shall pay a tax to the State on the gross amount of premiums and assessments written and not taxed in other states, and shall pay a tax to the State on the gross amount of premiums and assessments collected and not taxed in other states, and shall include such business in its returns. A domestic life insurance company shall pay a tax to the State on the gross amount of premiums and assessments collected and not taxed in other states and shall include such business in its returns. The term “taxed in other states” means:
(1)(A) a tax imposed by another state on premiums and paid directly by the company, association, society, surety, guaranty, or life insurance company to such other state under an insurance premiums tax of the same general kind as found in chapter 211, subchapter 7 of this title; or
(B) a corporate income or franchise tax in which the premiums taxed under subdivision (A) of this subdivision (1) are a factor in the computation thereof; or
(2) a tax of the same general kind as found in 8 V.S.A. § 5035, imposed by another state upon surplus lines premiums, which is paid directly or indirectly to that state by agents or brokers of the Vermont domestic insurer that is not itself authorized to do business in that state.
(Amended 1975, No. 185 (Adj. Sess.), § 1, eff. March 25, 1976.)
§ 8553 Time of payment
Such tax shall be based upon the business of such company, association, or society during the year terminating with December 31 preceding. It shall be paid quarterly on or before the last day of the second calendar month following the quarter ending the last day of March, June, September, and December of each calendar year and shall be computed either upon the business of such company, association, or society during the quarter for which the payment is made or upon an estimated basis predicated upon prior years business, upon forms to be prescribed by the Commissioner of Taxes. Where the aggregate tax imposed upon a company, association, or society is reasonably expected to be less than $500.00 for the calendar year, it may be paid on an annual basis not later than the last day of February following the close of the year. Such company, association, or society shall annually make a final reconciliation return on or before the last day of February in the manner provided in section 8123 of this title.
(Amended 1975, No. 67, § 1, eff. Jan. 1, 1976.)
§ 8554 Deductions
In determining the amount of taxes to be assessed under the provisions of sections 8551 and 8552 of this title, there shall be deducted from the full amount of such premiums and assessments all sums paid for return premiums on cancelled policies upon risk located in this State and dividends actually paid or allowed to policyholders residing therein. Nothing in this section shall be construed to allow dividends in scrip, in stock, mutual or mixed companies, or surrender values for life policies to be considered return premiums.
§ 8555 Reciprocal provisions
If another state or country imposes upon or requires of a domestic insurance, surety, or guaranty company or its agents doing business therein, taxes exceeding those imposed by this State upon or required of foreign insurance, surety, or guaranty companies doing business herein, an insurance, surety, or guaranty company organized under the laws of such other state or country and its agents doing business in this State, shall be subject to taxes similar to those so imposed in such other state or country, and the same shall be imposed, required, and enforced as like taxes are under the laws of this State.
§ 8556 Exemption
For the purposes of this subchapter, a continuing care retirement community certified under 8 V.S.A. chapter 151 shall not be deemed to be an insurance company or other entity subject to the tax imposed by this subchapter.
(Added 1987, No. 247 (Adj. Sess.), § 2.)
§ 8557 Vermont Fire Service Training Council
(a)(1) Sums for the expenses of the operation of training facilities and curriculum of the Vermont Fire Service Training Council not to exceed $1,500,000.00 per year shall be paid to the Fire Safety Special Fund created by 20 V.S.A. § 3157 by insurance companies, writing fire, homeowners multiple peril, allied lines, farm owners multiple peril, commercial multiple peril (fire and allied lines), private passenger and commercial auto, and inland marine policies on property and persons situated within the State of Vermont within 30 days after notice from the Commissioner of Financial Regulation of such estimated expenses. Captive companies shall be excluded from the effect of this section.
(2) The Commissioner shall annually, on or before July 1, apportion such charges among all such companies and shall assess them for the charges on a fair and reasonable basis as a percentage of their gross direct written premiums on such insurance written during the second prior calendar year on property situated in the State. The Department of Taxes shall collect all assessments under this section.
(3) An amount not less than $100,000.00 shall be specifically allocated to the provision of what are now or formerly referred to as Level I, units I, II, and III (basic) courses for entry-level firefighters.
(4) An amount not less than $450,000.00 shall be specifically allocated to the Emergency Medical Services Special Fund established under 18 V.S.A. § 908 for the provision of training programs for certified Vermont EMS first responders and licensed emergency medical responders, emergency medical technicians, advanced emergency medical technicians, and paramedics.
(5) The Department of Health shall present a plan to the Joint Fiscal Committee that shall review the plan prior to the release of any funds.
(b) All administrative provisions of chapter 151 of this title, including those relating to the collection and enforcement of the income tax by the Commissioner, shall apply to this section.
(Added 1993, No. 87, § 1; amended 1995, No. 180 (Adj. Sess.), § 38(a); 1993, No. 186 (Adj. Sess.), § 29, eff. May 22, 1996; 2001, No. 143 (Adj. Sess.), § 6, eff. June 21, 2002; 2007, No. 190 (Adj. Sess.), §§ 33, 34; 2009, No. 42, §§ 13, 14; 2009, No. 137 (Adj. Sess.), § 28a; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012; 2011, No. 143 (Adj. Sess.), § 62, eff. May 15, 2012; 2015, No. 134 (Adj. Sess.), § 19, eff. July 1, 2017; 2019, No. 51, § 35, eff. June 10, 2019; 2019, No. 166 (Adj. Sess.), § 30, eff. Oct. 1, 2020; 2023, No. 157 (Adj. Sess.), § 7, eff. June 6, 2024; 2023, No. 143 (Adj. Sess.), § 4, eff. July 1, 2024.)
Chapter 213 Electrical Energy
Subchapter 1 General Provisions
§§ 8601-8603 Repealed
[Repealed]
1961, No. 232, § 3.
Subchapter 2 Imposition, Payment, and Collection of Tax
§§ 8631-8639 Repealed
[Repealed]
1961, No. 232, § 3.
Subchapter 3 Taxation of Electrical Generating Plants
§ 8661 Repealed
[Repealed]
2019, No. 51, § 40(2), eff. June 10, 2019.
§ 8662 Repealed
[Repealed]
1999, No. 49, § 89b(a), eff. January 1, 2000.
Chapter 215 Renewable Energy
§ 8701 Uniform capacity tax
(a) As used in this section, the terms “energy storage facility,” “kW,” “kWh,” “plant,” “plant capacity,” and “renewable energy” shall be as defined in 30 V.S.A. §§ 201(4) and 8002; provided, however, that any tax or exemption under this chapter shall only apply to the fixtures and personal property of a plant and not to the underlying land.
(b)(1) There is assessed on any renewable energy plant in Vermont commissioned to generate solar power an annual tax of $4.00 per kW of plant capacity.
(2) There is assessed on any stationary grid-connected energy storage facility in Vermont that has a plant energy rating of 600 kWh or larger and that is not connected to a renewable energy plant an annual tax of $0.50 per kWh of plant energy rating.
(3) The tax imposed under this section shall be paid to the Department of Taxes not later than April 15 of each year and accompanied by a return with such information as the Department of Taxes may require. The Department of Taxes shall deposit the taxes collected under this section into the Education Fund. The Department of Taxes may adopt procedures and rules necessary to implement the tax in this section.
(c) A renewable energy plant that generates electricity from solar power shall be exempt from taxation under this section if it has a plant capacity of less than 50kW. An energy storage facility shall be exempt from taxation under this section if it has a plant energy rating of less than 600 kWh.
(d) The existence of a renewable energy plant or energy storage facility subject to tax under subsection (b) of this section shall not:
(1) alter the exempt status of any underlying property under section 3802 or subdivision 5401(10)(F) of this title; or
(2) alter the taxation of the underlying property under chapters 121–135 of this title.
(Added 2011, No. 127 (Adj. Sess.), § 1, eff. Jan. 1, 2013; amended 2013, No. 73, § 41, eff. June 5, 2013; 2013, No. 174 (Adj. Sess.), § 29, eff. Jan. 1, 2015; 2021, No. 54, § 16; 2021, No. 179 (Adj. Sess.), § 14, eff. July 1, 2021.)
§§ 8702-8707 Repealed
[Repealed]
1977, No. 237 (Adj. Sess.), § 5.
Chapter 217 Gasoline and Other Motor Fuels
§§ 8801-8811 Repealed
[Repealed]
1985, No. 207 (Adj. Sess.), § 3.
§§ 8871-8874 Repealed
[Repealed]
1985, No. 207 (Adj. Sess.), § 3.
Chapter 219 Motor Vehicle Purchase and Use Tax
§ 8900 Statutory purposes
(a) The statutory purpose of the exemption for pious or charitable institutions or volunteer fire companies in subdivision 8911(3) of this title is to lower the operating costs of pious and charitable organizations considered exempt under subdivision 3802(4) of this title to allow them to dedicate more of their financial resources to furthering their public-service missions.
(b) The statutory purpose of the exemption for nonregistered vehicles in subdivision 8911(5) of this title is to exclude from the tax vehicles that are not entitled to use the State highway system.
(c) The statutory purpose of the exemption for gifts in subdivision 8911(8) of this title is to avoid the intrusion of a tax into sharing transactions that are common within families.
(d) The statutory purpose of the exemption for persons with disabilities in subdivision 8911(12) of this title is to lessen the cost of purchasing a vehicle that has been modified to meet the physical needs of a qualifying Vermonter.
(e) The statutory purpose of the exemption for veterans in subdivision 8911(14) of this title is to remove every cost to a qualifying veteran receiving a vehicle granted by the Veterans’ Administration.
(f) The statutory purpose of the general exemption of trade-in value in subdivisions 8902(4) and (5) of this title is to ensure the use value of a vehicle is taxed only once.
(Added 2013, No. 200 (Adj. Sess.), § 20.)
§ 8901 Purpose
This chapter imposes a purchase and use tax on motor vehicles in addition to any other tax or registration fees. The purpose of this chapter is to improve and maintain the State and interstate highway systems, to pay the principal and interest on bonds issued for the improvement and maintenance of those systems, and to pay the cost of administering this chapter. The administration of this chapter is vested in the Commissioner of Motor Vehicles and the Commissioner’s authorized representatives. The Commissioner may adopt rules to effect the provisions of this chapter that, when reasonably designed to carry out the intent of this chapter, shall have the same force as if enacted under this chapter.
(Added 1959, No. 327 (Adj. Sess.), § 1, eff. March 1, 1960; amended 2021, No. 105 (Adj. Sess.), § 572, eff. July 1, 2022.)
§ 8902 Definitions
Unless otherwise expressly provided, as used in this chapter:
(1) “Commissioner” means the Commissioner of Motor Vehicles.
(2) “Resident” shall include all legal residents of this State and in addition thereto any person who accepts employment or engages in a trade, profession, or occupation in this State for a period of at least six months. Also, in addition thereto, any foreign partnership, firm, association, or corporation doing business in this State shall be deemed to be a resident as to all vehicles owned or leased and ordinarily used by it in connection with its place of business in this State. “Resident” shall not include any person, firm, or corporation not required to register motor vehicles by reason of any reciprocity provision with any other state.
(3) “Purchase or purchasing, sale or selling” means any transfer of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, of a motor vehicle for a consideration, including leases and transactions whereby the possession of the property is transferred but the seller retains the title as security for the payment of the purchase price.
(4) “Purchase price” means the gross consideration, exclusive of the tax hereby imposed, that is to be paid for the motor vehicle, expressed in terms of U.S. currency as of the time of the sale, and shall include the cash consideration, if any, plus the value of any services or property given or to be given, or both, in exchange for the motor vehicle. In the case of a lease, the purchase price shall mean an amount computed by subtracting the lease end value of the motor vehicle from the original acquisition cost of the motor vehicle. For purposes of this subdivision, the original acquisition cost of a motor vehicle is the gross consideration that the lessee would pay for the motor vehicle if the lessee purchased the motor vehicle on the date of execution of the lease contract, as stated in the lease contract or worksheet, and the lease end value is the value of the motor vehicle at the end of the lease period, as stated in the lease contract or worksheet or as determined under section 8907 of this title.
(5)(A) “Taxable cost” means the purchase price as defined in subdivision (4) of this section or the taxable cost as determined under section 8907 of this title.
(B) For any purchaser who has paid tax on the purchase or use of a motor vehicle that was sold or traded by the purchaser or for which the purchaser received payment under a contract of insurance, the taxable cost of the replacement motor vehicle other than a leased vehicle shall exclude:
(i) The value allowed by the seller on any motor vehicle accepted by the seller as part of the consideration of the motor vehicle, provided the motor vehicle accepted by the seller is owned and previously or currently registered or titled by the purchaser, with no change of ownership since registration or titling, except for motor vehicles for which registration is not required under the provisions of Title 23 or motor vehicles received under the provisions of subdivision 8911(8) of this title.
(ii) The amount received from the sale of a motor vehicle last registered or titled in the seller’s name, the amount not to exceed the clean trade-in value of the same make, type, model, and year of manufacture as designated by the manufacturer and as shown in the J.D. Power Values, or any comparable publication, provided the sale occurs within three months after the taxable purchase. However, this three-month period shall be extended day-for-day for any time that a member of a guard unit or of the U.S. Armed Forces, as defined in 38 U.S.C. § 101(10), spends outside Vermont due to activation or deployment and an additional 60 days following the individual’s return from activation or deployment. The amount shall be reported on forms supplied by the Commissioner of Motor Vehicles.
(iii) The amount actually paid to the purchaser within three months prior to the taxable purchase by any insurer under a contract of collision, comprehensive, or similar insurance with respect to a motor vehicle owned by the purchaser, provided that the vehicle is not subject to the tax imposed by subsection 8903(d) of this title and provided that one of these events occur:
(I) the motor vehicle with respect to which the payment is made by the insurer is accepted by the seller as a trade-in on the purchased motor vehicle before the repair of the damage giving rise to insurer’s payment; or
(II) the motor vehicle with respect to which the payment is made to the insurer is treated as a total loss and is sold for dismantling.
(C) A purchaser shall be entitled to a partial or complete refund of taxes paid under subsection 8903(a) or (b) of this title if an insurer makes a payment to the purchaser under contract of collision, comprehensive, or similar insurance after the purchaser has paid the tax imposed by this chapter, if the payment by the insurer is either:
(i) on account of damages to a motor vehicle that was accepted by seller as a trade-in on the purchased vehicle before repairs of the damage giving rise to the insurer’s payment; or
(ii) on account of damages for the total destruction of a vehicle arising from an accident that occurred within three months prior to the taxable purchase.
(D) The purchase price of a motor vehicle subject to the tax imposed by subsections 8903(a) and (b) of this title shall not be reduced by the value received or allowed in connection with the transfer of a vehicle that was registered for use as a short-term rental vehicle.
(6) “Motor vehicle” has the same meaning as in 23 V.S.A. § 4(21).
(7) “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, estate, trust, fiduciary, receiver, trustee, or corporation.
(8) “Title” shall include possession under a sale or purchase that reserves title as security to the seller.
(9) “Rental of pleasure cars on a short-term basis,” or words of similar import, means rentals of pleasure cars for a rental period of less than one year. It shall also mean rentals of trailer coaches and trucks having a gross vehicle weight of 26,000 pounds or less, and of trailers and semi-trailers having a gross weight of 3,000 pounds or less, for a rental period of less than one year. It shall not apply to school buses.
(10) “Rental company” means any person offering pleasure cars for rent on a short-term basis.
(11) “Motor home” means a new or used pleasure car designed to provide temporary living quarters, built into as an integral part of, or permanently attached to, a self-propelled motor vehicle chassis or van. The vehicle must contain at least four of the following facilities: cooking, refrigeration or ice box, self-contained toilet, heating and/or air conditioning, a portable water supply system including a sink and faucet, separate 110-125 volt electrical power supply, and/or an LP gas supply.
(12) “Mail” has the same meaning as in 23 V.S.A. § 4(87).
(Added 1959, No. 327 (Adj. Sess.), § 2, eff. March 1, 1960; amended 1963, No. 229; 1966, No. 66 (Sp. Sess.), § 1; 1967, No. 116 § 1, eff. April 17, 1967; 1969, No. 263 (Adj. Sess.), § 1, eff. April 6, 1970; 1981, No. 87, § 22; 1983, No. 251 (Adj. Sess.), §§ 1, 9 eff. Jan. 1, 1985; 1985, No. 187 (Adj. Sess.), § 1; 1985, No. 218 (Adj. Sess.), §§ 1, 2, eff. June 2, 1986; 1991, No. 67, § 26b; 1995, No. 19, § 1, eff. April 17, 1995; 1995, No. 80 (Adj. Sess.), §§ 1, 3, eff. Feb. 28, 1996; 1999, No. 110 (Adj. Sess.), § 9; 2011, No. 46, § 16, eff. May 24, 2011; 2017, No. 71, § 21; 2021, No. 105 (Adj. Sess.), § 573, eff. July 1, 2022; 2023, No. 41, § 38, eff. July 1, 2023; 2025, No. 66, §§ 22, 35, eff. July 1, 2025.)
§ 8903 Tax imposed
(a)(1) There is hereby imposed upon the purchase in Vermont of a motor vehicle by a resident a tax at the time of such purchase, payable as hereinafter provided. The amount of the tax shall be six percent of the taxable cost of a:
(A) pleasure car as defined in 23 V.S.A. § 4;
(B) motorcycle as defined in 23 V.S.A. § 4;
(C) motor home as defined in subdivision 8902(11) of this title; or
(D) vehicle weighing up to 10,099 pounds, registered pursuant to 23 V.S.A. § 367, other than a farm truck.
(2) For any other motor vehicle, it shall be six percent of the taxable cost of the motor vehicle or $2,486.00 for each motor vehicle, whichever is smaller, except that pleasure cars that are purchased, leased, or otherwise acquired for use in short-term rentals shall be subject to taxation under subsection (d) of this section.
(b)(1) There is hereby imposed upon the use within this State a tax of six percent of the taxable cost of a:
(A) pleasure car as defined in 23 V.S.A. § 4;
(B) motorcycle as defined in 23 V.S.A. § 4;
(C) motor home as defined in subdivision 8902(11) of this title; or
(D) vehicle weighing up to 10,099 pounds, registered pursuant to 23 V.S.A. § 367, other than a farm truck.
(2) For any other motor vehicle, it shall be six percent of the taxable cost of the motor vehicle or $2,486.00 for each motor vehicle, whichever is smaller, by a person at the time of first registering or transferring a registration to such motor vehicle payable as hereinafter provided, except no use tax shall be payable hereunder if the tax imposed by subsection (a) of this section has been paid, or the vehicle is a pleasure car that was purchased, leased, or otherwise acquired for use in short-term rentals, in which case the vehicle shall be subject to taxation under subsection (d) of this section.
(c) The Vermont registration, transfer of Vermont registration, or the issuance of a Vermont certificate of title of a motor vehicle shall be conclusive evidence that the purchase and use tax applies, except as provided in section 8911 of this title.
(d) There is hereby imposed a use tax on the rental charge of each transaction, in which the renter takes possession of the vehicle in this State, during the life of a pleasure car purchased for use in short-term rentals, which tax is to be collected by the rental company from the renter and remitted to the Commissioner. The amount of the tax shall be nine percent of the rental charge. Rental charge means the total rental charge for the use of the pleasure car, but does not include a separately stated charge for insurance, or recovery of refueling cost, or other separately stated charges that are not for the use of the pleasure car. In the event of resale of the vehicle in this State for use other than short-term rental, such transaction shall be subject to the tax imposed by subsection (a) of this section.
(e)(1) Any person registering a pleasure car in this State subject to the tax imposed by subsection (d) of this section must pay the tax imposed by subsection (a) or (b) upon demand of the Commissioner if:
(A) the vehicle is rented for less than 30 days in a continuous period of 365 days or for less than 60 days in a continuous period of 730 days; or
(B) the vehicle is no longer used in short-term rentals; and
(C) the vehicle has not been stolen, converted, or abandoned.
(2) For taxation purposes, the value of the vehicle shall be fixed in accordance with section 8907 of this title as of the time the event causing the imposition of the tax under subsection (a) or (b) of this section occurs.
(f) There is hereby imposed a tax at the rate prescribed in subsection (a) of this section on any amount charged at the end of a motor vehicle lease contract resulting from excess wear and tear or excess mileage.
(g)(1) There is hereby imposed upon the titling in this State a tax at the rate provided for in subsection (a) or (b) of this section of the taxable cost of a:
(A) pleasure car as defined in 23 V.S.A. § 4;
(B) motorcycle as defined in 23 V.S.A. § 4;
(C) motor home as defined in subdivision 8902(11) of this title; or
(D) vehicle weighing up to 10,099 pounds, registered pursuant to 23 V.S.A. § 367, other than a farm truck.
(2) For any other motor vehicle, it shall be at the rate provided for in subsection (a) or (b) of this section and paid by a person at the time of obtaining a certificate of title to the vehicle, except no tax shall be payable hereunder if the tax imposed by subsection (a) or (b) of this section has been paid, or the vehicle is a pleasure car that was purchased, leased, or otherwise acquired for use in short-term rentals, in which case the vehicle shall be subject to taxation under subsection (d) of this section.
(Added 1959, No. 327 (Adj. Sess.), § 3, eff. March 1, 1960; amended 1961, No. 230 eff. Aug. 1, 1961; 1966, No. 66 (Sp. Sess.), § 2; 1967, No. 116 § 2, eff. April 17, 1967; No 380 (Adj. Sess.), § 2; 1979, No. 202 (Adj. Sess.), § 3, Pt. V, eff. Sept. 1, 1980, 1981, No. 87, § 23; 1981, No. 172 (Adj. Sess.), § 11b; 1983, No. 251 (Adj. Sess.), §§ 2, 3, 8, eff. Jan. 1, 1985; 1985, No. 187 (Adj. Sess.), § 2; 1985, No. 218 (Adj. Sess.), § 3, eff. June 2, 1986; 1987, No. 112, § 2; 1989, No. 51, § 50; 1991, No. 73, § 1; 1993, No. 1 (Sp. Sess.), § 7, eff. Sept. 1, 1993; 1995, No. 19, §§ 2, 3, eff. April 17, 1995; 1999, No. 159 (Adj. Sess.), § 28; 2001, No. 102 (Adj. Sess.), § 35, eff. May 15, 2002; 2003, No. 109 (Adj. Sess.), § 15; 2005, No. 175 (Adj. Sess.), § 42; 2009, No. 50, § 55, eff. May 29, 2009; 2015, No. 159 (Adj. Sess.), § 4; 2021, No. 105 (Adj. Sess.), § 574, eff. July 1, 2022; 2023, No. 78, § G.141, eff. January 1, 2024.)
§ 8904 Completion of form
(a) Every person selling or leasing a motor vehicle in Vermont shall at the time of selling or leasing a motor vehicle compute for the purchaser or lessee the tax imposed by subsection 8903(a), (b), (f), or (g) of this title and complete in its entirety the tax form prescribed and furnished by the Commissioner.
(b) When the seller or lessor of a motor vehicle fails to fill out the tax form as required in subsection (a) of this section, he or she shall be subject to the penalties under section 8909 of this title or, if he or she is a registered dealer, the Commissioner may suspend the dealer registration. Such suspension shall be for a reasonable time and shall not exceed 10 days for each offense and shall be made only after a finding that the failure of such dealer is willful and intentional and not the result of inadvertence.
(Added 1959, No. 327 (Adj. Sess.), § 4, eff. March 1, 1960; amended 1963, No. 113, eff. May 28, 1963; 1995, No. 19, § 4, eff. April 17, 1995.)
§ 8905 Collection of tax; education; appeals
(a) Every purchaser of a motor vehicle subject to a tax under subsection 8903(a) of this title shall forward the tax form to the Commissioner, together with the amount of tax due at the time of first registering or transferring a registration to the motor vehicle as a condition precedent to registration of the vehicle.
(b) Every person subject to a use tax under subsection 8903(b) of this title shall forward the tax form and the tax due to the Commissioner with the registration application or transfer, as the case may be, and fee at the time of first registering or transferring a registration to the motor vehicle as a condition precedent to registration of the vehicle.
(c) If the tax due under subsection (a), (b), (e), or (f) of this section is not paid as provided, a penalty of an additional one percent of taxable cost or $150.00, whichever is smaller, shall be added to the tax due.
(d) Every person required to collect the use tax under subsection 8903(d) of this title shall forward the tax and a report of the tax on forms prescribed and furnished by the Commissioner at the frequency determined by the Commissioner.
(e) Every lessor of a motor vehicle shall collect the tax imposed by subsection 8903(a) or (b) of this title from the lessee and remit it to the Commissioner at the time of registration of the motor vehicle, in the case of the first lease of a motor vehicle, and within 30 days after any extension of the lease or any subsequent lease of the motor vehicle. Every lessor of a motor vehicle shall collect the tax imposed by subsection 8903(f) of this title from the lessee and remit it to the Commissioner within 30 days after the end of the motor vehicle lease contract. If the lessor fails to collect the tax imposed by subsection 8903(a), (b), or (f) of this title, the lessee shall pay the tax directly to the Commissioner within the time prescribed for payment.
(f) Every person subject to the tax imposed by subsection 8903(g) of this title shall forward the tax form and the tax due to the Commissioner along with the title application and fee at the time of applying for a certificate of title to the motor vehicle as a condition precedent to the titling of the motor vehicle.
(g) The Commissioner shall establish procedures for taxpayers to file an appeal regarding the taxpayer’s liability for the tax due pursuant to section 8903 of this chapter and compliance with the requirements of this section. The procedures shall include a process by which a taxpayer can resolve the dispute prior to the issuance of a final administrative decision on the appeal.
(h) The Commissioner shall create educational and outreach materials for taxpayers that provide information regarding the appeal process established pursuant to subsection (g) of this section and opportunities to resolve disputes.
(Added 1959, No. 327 (Adj. Sess.), § 5, eff. March 1, 1960; 1966, No. 66 (Sp. Sess.), § 3; 1967, No. 6, § 1, eff. Feb. 17, 1967; 1969, No. 276 (Adj. Sess.), § 9; 1975, No. 96, § 2, eff. July 1, 1976; 1983, No. 251 (Adj. Sess.), § 4, eff. Jan. 1, 1985; 1989, No. 127 (Adj. Sess.), § 6, eff. March 15, 1990; amended 1995, No. 19, §§ 5, 6, eff. April 17, 1995; 2025, No. 66, § 36, eff. July 1, 2025.)
§ 8906 Tax form contents
Except as otherwise provided pursuant to subsection 8905(d) of this title, the tax form shall require the following information as to the purchase price of the motor vehicle:
(1) the value of any motor vehicle accepted in trade together with its make, type, serial or identification number, and year of manufacture; and
(2) the make, type, serial or identification number, and year of manufacture of the motor vehicle purchased.
(Added 1959, No. 327 (Adj. Sess.), § 6, eff. March 1, 1960; amended 1983, No. 251 (Adj. Sess.), § 5, eff. Jan. 1, 1985; 2021, No. 105 (Adj. Sess.), § 575, eff. July 1, 2022.)
§ 8907 Commissioner; computation of taxable costs
(a) The Commissioner may investigate the taxable cost of any motor vehicle transferred subject to the provisions of this chapter. If the motor vehicle is not acquired by purchase in Vermont or is received for an amount that does not represent actual value, or if no tax form is filed or it appears to the Commissioner that a tax form contains fraudulent or incorrect information, the Commissioner may, in the Commissioner’s discretion, fix the taxable cost of the motor vehicle at the clean trade-in value of vehicles of the same make, type, model, and year of manufacture as designated by the manufacturer, as shown in J.D. Power Values or any comparable publication, less the lease end value of any leased vehicle. The Commissioner may develop a process to determine the value of vehicles that do not have clean trade-in value in J.D. Power Values. The Commissioner may compute and assess the tax due and notify the purchaser verbally, if the purchaser is at a DMV location, or immediately by mail, and the purchaser shall remit the same within 15 days after notice is sent or provided.
(b) The Commissioner may investigate the lease end value of any motor vehicle transferred subject to the provisions of this chapter. If the listed lease end value of a motor vehicle does not represent a commercially reasonable value, the Commissioner shall establish a reasonable, commercial value for the end of the lease period. The Commissioner may adopt, amend, and repeal rules under 3 V.S.A. chapter 25 to establish the lease end value and may require and accept any satisfactory evidence of such value.
(Added 1959, No. 327 (Adj. Sess.), § 7, eff. March 1, 1960; amended 1967, No. 116, § 3, eff. April 17, 1967; 1995, No. 19, § 7, eff. April 17, 1995; 1995, No. 80 (Adj. Sess.), § 2, eff. Feb. 28, 1996; 2017, No. 71, § 22; 2021, No. 105 (Adj. Sess.), § 576, eff. July 1, 2022; 2025, No. 66, § 23, eff. July 1, 2025.)
§ 8908 Rules
Notwithstanding any other provision of law, the Commissioner may from time to time adopt rules to provide that “taxable cost” shall not reflect a diminution for trade-in arising from a purchase of a motor vehicle in a state that does not allow a deduction for trade-in in the computation of the “taxable cost” or similar tax base in the computation of taxes imposed by a motor vehicle sales and use tax in that state.
(Added 1967, No. 116, § 6, eff. April 17, 1967; amended 2021, No. 105 (Adj. Sess.), § 577, eff. July 1, 2022; 2023, No. 6, § 388, eff. July 1, 2023.)
§ 8909 Enforcement
If the tax due under subsection 8903(d) of this title is not paid as hereinbefore provided, the Commissioner shall suspend the rental company’s license to act as a rental company and motor vehicle registrations within the State of Vermont until such tax is paid, and such tax may be recovered with costs in an action brought in the name of the State on this statute.
(Added 1959, No. 327 (Adj. Sess.), § 8, eff. March 1, 1960; amended 1966, No. 66 (Sp. Sess.), § 4; 1967, No. 116, § 4, eff. April 17, 1967; 1983, No. 251, (Adj. Sess.), § 6, eff. Jan. 1, 1985; 2015, No. 147 (Adj. Sess.), § 15, eff. May 31, 2016.)
§ 8910 Penalties
Any person who willfully makes a false statement on such tax form prescribed and furnished by the Commissioner or any person who willfully attempts to evade the tax herein imposed shall be fined not more than $500.00.
(Added 1959, No. 327 (Adj. Sess.), § 9, eff. March 1, 1960.)
§ 8911 Exceptions
The tax imposed by this chapter shall not apply to:
(1) Motor vehicles owned or registered, or motor vehicles rented, by any state or province or any political subdivision thereof.
(2) Motor vehicles owned and operated by the United States of America.
(3) Motor vehicles owned or leased by religious or charitable institutions or volunteer fire companies.
(4) Motor vehicles owned and operated by a dealer and registered and operated under the provisions of 23 V.S.A. §§ 451-468 inclusive.
(5) Nonregistered motor vehicles other than tow or repairman vehicles.
(6) [Repealed.]
(7) Motor vehicles, title to which on the effective date of this chapter is in the owner seeking registration thereof.
(8) Motor vehicles transferred to the spouse, mother, father, child, sibling, grandparent, or grandchild of the donor during the donor’s life or following his or her death, or to a trust established for the benefit of any such persons or for the benefit of the donor, or subsequently transferred among such persons, including transfers following a death, provided the motor vehicle has been registered or titled in this State in the name of the original donor. Transfers exempt under this subdivision (8) include eligible transfers resulting by operation of the law governing intestate estates.
(9) Motor vehicles on which a state sales or use tax has been paid by the person applying for a registration in Vermont, or paid by a person who, at the time of tax payment to another state, was the spouse of the person now applying for Vermont registration. If the tax paid in another state is less than the Vermont tax, the tax due shall be the difference. An applicant for credit under this subdivision shall bear the burden of proving the amount of tax paid in the other state, and acceptable proof shall include a valid certificate of title from that state and a cancelled check to that Department of Motor Vehicles in an amount at least equal to the total purchase and use tax due to that state.
(10) Motor vehicles registered in Vermont by the transferor and transferred between that person and a business entity controlled by the transferor, if the transfer is exempt under 26 U.S.C. § 351, as amended.
(11) [Repealed.]
(12) One motor vehicle owned or leased and operated by a person with a permanent physical disability for whom the vehicle’s controls have been altered to enable the person to drive, or owned or leased by a person with a permanent disability or by a parent or guardian of a person with a permanent disability for whom a mechanical lifting device has been installed to allow for entry and exit of the vehicle, provided that the person with a disability has been certified exempt from the tax by the Commissioner of Motor Vehicles under the provisions of section 8901 of this title.
(13) Motor vehicles obtained from the government as excess government property, or vehicles purchased with 100 percent federal funds and used for federally supported local programs.
(14) A motor vehicle acquired by a veteran with financial assistance from the U.S. Department of Veterans Affairs, or a vehicle obtained as a replacement to one acquired with such assistance, when accompanied by a copy of an approved VA Form 21-4502 issued by the U.S. Department of Veterans Affairs certifying the veteran to be entitled to the financial assistance.
(15) Motor vehicles registered in this State by nonresidents under the International Registration Plan.
(16) Motor vehicles registered or titled in Vermont and transferred from an individual to, or in trust for the benefit of, a former spouse if the transfer is incident to the divorce. A transfer of a motor vehicle is incident to the divorce if the transfer occurs within one year after the date on which the divorce becomes final.
(17) Any motor vehicle acquired by the owner for use in leases for a period of one year or longer, provided that the motor vehicle is not registered before it is leased.
(18) Motor vehicles, the titles of which have passed to the holder of a certificate of abandoned motor vehicle pursuant to 23 V.S.A. § 2156.
(19) Motor vehicles for which salvage certificates of title are obtained pursuant to 23 V.S.A. § 2092.
(20) Titles issued to the manufacturer of a vehicle that has been returned to that manufacturer pursuant to any proceeding brought under 9 V.S.A. chapter 115.
(21) [Repealed.]
(22) Motor vehicles that have been registered to the applicant in a jurisdiction that imposes a state sales or use tax on motor vehicles. An applicant for exemption under this subdivision shall bear the burden of establishing to the satisfaction of the Commissioner that the vehicle was registered in a qualifying jurisdiction.
(23) The following motor vehicles used for timber cutting, timber removal, and processing of timber or other solid wood forest products intended to be sold ultimately at retail: skidders with grapple and cable, feller bunchers, cut-to-length processors, forwarders, delimbers, loader slashers, log loaders, whole-tree chippers, stationary screening systems, and firewood processors, elevators, and screens.
(Added 1959, No. 327 (Adj. Sess.), § 10, eff. March 1, 1960; amended 1966, No. 66 (Sp. Sess.), § 5; 1967, No. 116, § 5, eff. April 17, 1967; 1975, No. 96, § 1, eff. April 30, 1975; 1977, No. 258 (Adj. Sess.), § 4, eff. April 19, 1978; 1979, No. 202 (Adj. Sess.), § 3, Pt. VI, eff. Sept. 1, 1980; 1981, No. 201 (Adj. Sess.), §§ 1, 2, eff. April 22, 1982; 1985, No. 118 (Adj. Sess.), § 3; 1985, No. 124 (Adj. Sess.), § 3; 1987, No. 124 (Adj. Sess.), eff. Feb. 16, 1988; 1987, No. 241 (Adj. Sess.), § 11; 1991, No. 91; 1993, No. 26, § 1; 1993, No. 223 (Adj. Sess.), §§ 1, 2, eff. June 20, 1994; 1995, No. 19, §§ 8, 9, 11a, eff. April 17, No. 40, § 2, eff. April 17, 1995; 1995, No. 80 (Adj. Sess.), § 4, eff. Feb. 28, 1996; 1995, No. 112 (Adj. Sess.), § 15; 1997, No. 55, § 10, eff. June 26, 1997; 1999, No. 159 (Adj. Sess.), §§ 29, 30; 2001, No. 143 (Adj. Sess.), § 64; No. 144 (Adj. Sess.), § 31, eff. June 21, 2002; 2003, No. 101 (Adj. Sess.), § 4; 2005, No. 188 (Adj. Sess.), § 9; 2013, No. 96 (Adj. Sess.), § 198; 2017, No. 194 (Adj. Sess.), § 10; 2017, No. 206 (Adj. Sess.), §§ 7, 13; 2021, No. 105 (Adj. Sess.), § 578, eff. July 1, 2022; 2023, No. 41, § 39, eff. July 1, 2023.)
§ 8912 Allocation of funds
The taxes collected under this chapter shall be paid into and accounted for in the Transportation Fund.
(Added 1959, No. 327 (Adj. Sess.), § 11, eff. March 1, 1960; amended 1981, No. 87, § 4.)
§ 8913 Fraudulent collection of tax
No person, except the Commissioner and his or her authorized representatives, including rental companies as provided in subsection 8903(d) of this title, may collect or accept payment of any tax imposed by this chapter. Any person so doing shall be presumed to have the intent to convert it to his or her own use. Any unauthorized person who willfully collects or accepts payment of such a tax, upon conviction for a first offense, shall be fined not more than $200.00 or imprisoned for not more than 90 days, or both. Upon each subsequent conviction, he or she shall be fined not more than $500.00 or imprisoned for not more than one year, or both.
(Added 1959, No. 327 (Adj. Sess.), § 12, eff. March 1, 1960; amended 1983, No. 251 (Adj. Sess.), § 7, eff. Jan. 1, 1985.)
§ 8914 Refund
Any overpayment of such tax as determined by the Commissioner shall be refunded. To be eligible to receive a refund, a person shall submit a request for a refund within one year after paying the tax.
(Added 1959, No. 327 (Adj. Sess.), § 13, eff. March 1, 1960; amended 2025, No. 66, § 24, eff. July 1, 2025.)
§ 8915 Reciprocal agreements
The Commissioner may enter into reciprocal agreements with appropriate officials of any other state or province under which he or she may waive all or any part of the tax imposed by this chapter upon a similar waiver by such state or province.
(Added 1966, No. 66 (Sp. Sess.), § 6.)
§ 8916 Bonds
(a) When the Commissioner deems it necessary to protect the revenues to be obtained under this chapter, he or she may require a rental company to file with him or her a bond issued by a surety company authorized to transact business in this State and approved by the Commissioner of Financial Regulation of this State as to solvency and responsibility, in an amount fixed by the Commissioner, but not to exceed the total potential liability of such person, to secure the payment of any tax or penalties or interest due or that may become due from a rental company under this chapter. In the event that the Commissioner determines that such person is to file a bond, he or she shall give notice to him or her to that effect, specifying the amount of the bond required. That person shall file a bond within 15 days after the giving of the notice unless within those 15 days he or she shall request in writing a hearing before the Commissioner at which the necessity, propriety, and amount of the bond shall be determined by the Commissioner. The determination shall be final and shall be complied with within 15 days after the giving of notice thereof. In lieu of a bond, securities approved by the Commissioner, or cash in such amount as he or she may prescribe may be deposited, which shall be kept in the custody of the State Treasurer who may at any time upon instructions from the Commissioner without notice to the depositor apply them to any tax or interest or penalties due, and for that purpose the securities may be sold by him or her at public or private sale without notice to the depositor thereof.
(b) The total amount of the bond required of a rental company may be fixed by the Commissioner and may be increased or decreased by him or her at any time subject to the limitations imposed by this section.
(c) If the liability upon a bond filed by a rental company with the Commissioner becomes discharged or reduced, whether by judgment rendered, payment made, or otherwise, or if in the opinion of the Commissioner any surety on a bond has become unsatisfactory or unacceptable, the Commissioner shall require the rental company to file a new bond with satisfactory sureties in the same amount and, upon failure to do so, the Commissioner shall forthwith suspend the right to operate a motor vehicle in this State.
(d) If a rental company fails or refuses to increase the amount of a bond or file a bond as required by the Commissioner within 15 days after notice mailed to him or her, his or her right to operate a motor vehicle in this State shall be suspended forthwith.
(Added 1983, No. 251 (Adj. Sess.), § 10, eff. Jan. 1, 1985; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)
§ 8917 Bonds; discharge
Any surety on a bond furnished by a rental company shall be discharged from any liability to the State accruing on the bond after expiration of 60 days from the date the surety shall have filed with the Commissioner a written request to be released and discharged, but the surety shall not be released or discharged from liability already accrued or that shall accrue before the expiration of the 60-day period. The Commissioner, upon receipt of such a request, shall promptly notify by mail the rental company who furnished the bond. Unless the rental company, prior to the expiration of the 60-day period, files a new bond satisfactory to the Commissioner, the Commissioner shall suspend his or her right to operate a motor vehicle in this State.
(Added 1983, No. 251 (Adj. Sess.), § 11, eff. Jan. 1, 1985.)
§ 8918 Records
(a) Each rental company shall keep and retain for a period of not less than three years such records as may be prescribed by the Commissioner that are reasonably necessary to substantiate the reports required by subsection 8905(d) of this title.
(b) The Commissioner or his or her agents may examine the books and records of any rental company during the usual business hours of the day to verify the truth and accuracy of any statement, report, or return or to determine if the tax imposed by this chapter has been paid.
(Added 1983, No. 251 (Adj. Sess.), § 12, eff. Jan. 1, 1985.)
§ 8919 Additional assessments
(a) If the Commissioner is not satisfied that the report filed or the amount of tax paid by a rental company is accurate, after investigating and finding such inaccuracy, he or she may make an additional assessment of taxes due from such rental company based upon his or her investigation. A penalty equal to 10 percent and interest at the rate of one and one-half percent per month shall be payable on the additional assessment, with interest computed from the date the tax payment was due. The Commissioner shall give notice by mail to the rental company of the additional assessment, penalty, and interest and shall designate the error or reason for such assessment. Payment shall be due within 30 days of the date of mailing the notice.
(b) When no report or payment of tax has been made as required by subsection 8905(d) of this title, or when a willfully false or fraudulent report has been filed, the tax may be assessed at any time; in all other cases, no assessment of additional tax, and the mailing of notice thereof, shall be made after the expiration of three years from the date of filing a report.
(Added 1983, No. 251 (Adj. Sess.), § 13, eff. Jan. 1, 1985.)
§ 8920 Interest; penalties
(a) Any person who fails to file a report when due shall pay a fee of $10.00 as partial compensation for the added administrative costs.
(b) In addition to the fee prescribed in subsection (a) of this section, any person who fails to pay any tax when due shall pay, in addition to the tax, interest calculated at one and one-half percent per month on the tax from the due date, until paid. In addition, if the taxpayer fails to pay the tax liability in full within 30 days, a penalty equal to five percent of the outstanding tax liability for each month or portion thereof shall be paid; provided, however, that in no event shall the amount of the penalty imposed hereunder exceed 25 percent of the tax liability unpaid on the prescribed date of payment. The Commissioner may remit all or any part of the penalty if he or she is satisfied that the delay was excusable.
(Added 1983, No. 251 (Adj. Sess.), § 14, eff. Jan. 1, 1985.)
§ 8921 Assessments
If a rental company neglects or refuses to file any report required by this chapter, the Commissioner shall make an estimate of the tax due, based upon information available to the Commissioner, for the period for which the rental company failed to make the report, and shall assess the tax due from the rental company, adding to the amount thus determined a penalty of 50 percent of the tax due. The assessment shall bear interest at the rate of one and one-half percent per month from the date the tax payment was due until paid. The Commissioner shall give the rental company notice by mail of the assessment, and payment shall be due within 15 days of the date of the mailing of the notice.
(Added 1983, No. 251 (Adj. Sess.), § 15, eff. Jan. 1, 1985; amended 2021, No. 105 (Adj. Sess.), § 579, eff. July 1, 2022.)
§ 8922 Assessment; hearing
A rental company against whom assessment is made pursuant to section 8919 or 8920 of this title may appear in person or by counsel in the Office of the Commissioner within 15 days after the mailing to him or her of notice of the assessment then and there to show cause why the assessment is in error or to present any other facts or testimony that would bear on the amount of the assessment or the manner in which it was made. The hearing may be continued from time to time. If the rental company or his or her agent does not appear within the 15 days, the assessment shall become final.
(Added 1983, No. 251 (Adj. Sess.), § 16, eff. Jan. 1, 1985.)
§ 8923 License required
(a) It is unlawful for any person to act as a rental company without being licensed as such.
(b) On or before January 1 of each year, an applicant for a rental company license shall file with the Commissioner an application prepared and furnished by the Commissioner. The application shall not be under oath but shall contain a declaration that it is made under the penalties of perjury.
(c) Upon receipt of an application in proper form and the other conditions and requirements of this chapter having been complied with, the Commissioner may issue a license to an applicant that will remain in effect for one year or until such time as surrendered or revoked.
(Added 1983, No. 251 (Adj. Sess.), § 17, eff. Jan. 1, 1985.)
Chapter 221 Itinerant Photographers
§§ 9001-9008 Repealed
[Repealed]
1991, No. 167 (Adj. Sess.), § 66(3).
Chapter 223 Itinerant Vendors
§§ 9101-9115 Repealed
[Repealed]
1991, No. 167 (Adj. Sess.), § 66(4).
Chapter 225 Meals and Rooms Tax
Subchapter 1 General Provisions
§ 9201 Statutory purposes
(a) The statutory purpose of the exemption for grocery-type items furnished for take-out in subdivision 9202(10)(D)(i) of this title is to limit the cost of goods that are necessary for the health and welfare of all people in Vermont.
(b) The statutory purpose of the exemption for meals served or furnished on the premises of a nonprofit organization in subdivision 9202(10)(D)(ii)(I) of this title is to allow more of the revenues generated by certain activities to be dedicated to furthering the public-service missions of the organizations.
(c) The statutory purpose of the exemption for meals provided on school premises in subdivision 9202(10)(D)(ii)(II) of this title is to reduce the overall cost of education in Vermont.
(d) The statutory purpose of the exemption for meals provided at hospitals in subdivision 9202(10)(D)(ii)(IV) of this title and nursing homes, residential care homes, assisted living residences, homes for the terminally ill, therapeutic community residences, and independent living facilities in subdivision 9202(10)(D)(ii)(XII) of this title is to reduce the overall costs of health care and senior care in Vermont.
(e) The statutory purpose of the exemption for summer camps for children in subdivision 9202(10)(D)(ii)(VI) of this title is to reduce the cost of summer education and outdoor activities for youth.
(f) The statutory purpose of the exemption for nonprofits at fairs, bazaars, picnics, and similar events in subdivision 9202(10)(D)(ii)(VII) of this title is to allow more of the revenues generated by certain activities to be dedicated to furthering the public-service missions of the organizations.
(g) The statutory purpose of the exemption for meals furnished to an employee of a hotel or restaurant operator as remuneration for his or her employment in subdivision 9202(10)(D)(ii)(VIII) of this title is to avoid the taxation of in-kind benefits.
(h) The statutory purpose of the exemption for meals served on the premises of a continuing care retirement community in subdivision 9202(10)(D)(ii)(XI) is to exclude meals prepared in a person’s home from taxation.
(i) The statutory purpose of the exemption for student housing in subdivision 9202(8) of this title is to reduce the overall costs of education in Vermont.
(j) The statutory purpose of the exemption for rooms furnished to an employee of a hotel or restaurant operator as remuneration for his or her employment in subdivision 9202(6) of this title is to exclude the taxation of in-kind benefits.
(k) The statutory purpose of the exemption for summer camps for children in subdivision 9202(6) of this title is to reduce the cost of summer education and outdoor activities for youth.
(l) The statutory purpose of the exemption for rooms on the premises of a nonprofit in subdivision 9202(3)(C) of this title is to allow more of the revenues generated by certain activities to be dedicated to furthering the public-service missions of the organizations.
(m) The statutory purpose of the exemption for rooms on the premises of a continuing care retirement community in subdivision 9202(3)(D) of this title is to exclude from taxation rooms that are a person’s residence.
(n) The statutory purpose for the exemption for cannabis and cannabis products in subdivision 9202(10)(D)(iv) of this title is to avoid having both the meals and rooms tax and the cannabis excise tax apply to edible cannabis products.
(Added 2013, No. 200 (Adj. Sess.), § 5; amended 2019, No. 164 (Adj. Sess.), § 17b; 2021, No. 105 (Adj. Sess.), § 580, eff. July 1, 2022.)
§ 9202 Definitions
As used in this chapter:
(1) “Commissioner” means the Commissioner of Taxes appointed under 3 V.S.A. § 2251 and the Commissioner’s authorized representatives.
(2) “Person” means any individual, combination of individuals, firm, partnership, society, association, joint stock company, corporation, or any of the foregoing acting in a fiduciary or representative capacity, whether appointed by court or otherwise.
(3) “Hotel” means an establishment that holds itself out to the public by offering sleeping accommodations for a consideration, whether or not the major portion of its operating receipts is derived therefrom and whether or not the sleeping accommodations are offered to the public by the owner or proprietor or lessee, sublessee, mortgagee, licensee, or any other person or the agent of any of the foregoing. The term includes inns, motels, tourist homes and cabins, ski dormitories, ski lodges, lodging homes, rooming houses, furnished-room houses, boarding houses, and private clubs, as well as any building or structure or part thereof to the extent to which any such building or structure or part thereof in fact is held out to the public by offering sleeping accommodations for a consideration. As used in this chapter, the term includes “short-term rental” as defined in 18 V.S.A. § 4301. The term shall not include the following:
(A) a hospital licensed under 18 V.S.A. chapter 43 or a nursing home, residential care home, assisted living residence, home for the terminally ill, therapeutic community residence as defined pursuant to 33 V.S.A. chapter 71, or independent living facility;
(B) any establishment operated by any state or U.S. agency or institution, except the Department of Forests, Parks and Recreation of the State of Vermont;
(C) an establishment operated by a nonprofit corporation or association organized and operated exclusively for religious, charitable, or educational purposes, one or more that, in furtherance of any of the purposes for which it was organized, operates a hotel as defined herein; and
(D) a continuing care retirement community certified under 8 V.S.A. chapter 151.
(4) “Operator” means any person, or his or her agent, operating a hotel, whether as owner or proprietor or lessee, sublessee, mortgagee, licensee, or otherwise; and any person, or his or her agent, charging for a taxable meal or alcoholic beverage; and any person, or his or her agent, engaged in both of the foregoing activities. The term “operator” shall include booking agents and taxable meal facilitators. In the event that an operator is a corporation or other entity, the term “operator” shall include any officer or agent of such corporation or other entity who, as an officer or agent of the corporation, is under a duty to pay the gross receipts tax to the Commissioner as required by this chapter.
(5) “Occupant” means a person who, for a consideration, uses, possesses, or has a right to use or possess any room or rooms in a hotel under any lease, concession, permit, right of access, license, or agreement. The term shall not include a permanent resident.
(6) “Occupancy” means the use or possession, or the right to the use or possession, of any room or rooms in a “hotel” for any purpose, or the right to the use or possession of the furnishings or to the services and accommodations accompanying the use and possession of a room or rooms. The term shall not include occupancy by a “permanent resident,” or by an employee of an operator when such occupancy is granted to the employee as remuneration for his or her employment, or any occupancy furnished in a summer camp for children.
(7) “Permanent resident” means any occupant who has occupied any room or rooms in a “hotel” for at least 30 consecutive days.
(8) “Rent” means the consideration received for occupancy valued in money, whether received in money or otherwise, including all receipts, cash, credits, and property or services of any kind or nature, and also any amount for which the occupant is liable for the occupancy without any deduction therefrom whatsoever, and any monies received in payment for time-share rights at the time of purchase; provided, however, that such money received shall not be considered rent and thus not taxable if a deeded interest is granted to the purchaser for the time-share rights. The term “rent” shall include all amounts collected by booking agents except the tax required to be collected under this chapter. The term “rent” shall not include rental charges for living quarters, sleeping, or household accommodations to any student necessitated by attendance at a school as defined herein.
(9) “School” means an incorporated nonstock educational institution, including an institution empowered to confer educational, literary, or academic degrees, that has a regular faculty, curriculum, and organized body of pupils or students in attendance throughout the usual school year; that keeps and furnishes to students and others records required and accepted for entrance to a school of secondary, collegiate, or graduate rank; no part of the earnings of which inure to the benefit of any individual.
(10) “Taxable meal” means:
(A) Any food or beverage furnished within the State by a restaurant for which a charge is made, including admission, delivery or other facilitator charge, and minimum charges, whether furnished for consumption on or off the premises.
(B) Where furnished by other than a restaurant, any nonprepackaged food or beverage furnished within the State and for which a charge is made, including admission, delivery or other facilitator charge, and minimum charges, whether furnished for consumption on or off the premises. Fruits, vegetables, candy, flour, nuts, coffee beans, and similar unprepared grocery items sold self-serve for take-out from bulk containers are not subject to tax under this subdivision (10).
(C) Regardless where sold and whether or not prepackaged:
(i) sandwiches of any kind except frozen;
(ii) food or beverage furnished from a salad bar;
(iii) heated food or beverage; and
(iv) food or beverage sold through a vending machine.
(D) “Taxable meal” does not include:
(i) Food or beverage, other than that taxable under subdivision (C) of this subdivision (10), that is a grocery-type item furnished for take-out: whole pies or cakes; loaves of bread; single-serving bakery items sold in quantities of three or more; delicatessen and nonprepackaged candy sales by weight or measure, except party platters; whole uncooked pizzas; pint or larger closed containers of ice cream or frozen confection; eight ounce or larger containers of salad dressings or sauces; maple syrup; quart or larger containers of cider or milk.
(ii) Food or beverage, including that described in subdivision (C) of this subdivision (10) or alcoholic beverages:
(I) served or furnished on the premises of a nonprofit corporation or association organized and operated exclusively for religious or charitable purposes, in furtherance of any of the purposes for which it was organized, with the net sales revenues of the food or beverage or alcoholic beverages to be used exclusively for the purposes of the corporation or association;
(II) served or furnished on the premises of a school as defined herein;
(III) served or furnished on the premises of any institution of the State, political subdivision thereof, or of the United States to inmates and employees of such institutions;
(IV) prepared by the employees thereof and served in any hospital licensed under 18 V.S.A. chapter 43;
(V) furnished by any person while transporting passengers for hire by train, bus, or airplane, if furnished on any train, bus, or airplane;
(VI) furnished by any person while operating a summer camp for children, in such camp;
(VII) sold by nonprofit organizations at bazaars, fairs, picnics, church suppers, or similar events to the extent of four such events of a day’s duration, held during any calendar year; provided, however, where sales are made at such events by an organization required to have a meals and rooms registration license or otherwise required to have a license because its selling events are in excess of the number permitted, the sale of such food or beverage or alcoholic beverages shall constitute sales made in the regular course of business and are not exempted from the Vermont meals and rooms gross receipts tax;
(VIII) furnished to any employee of an operator as remuneration for his or her employment;
(IX) provided to the elderly pursuant to the Older Americans Act, 42 U.S.C. chapter 35, subchapter III;
(X) purchased under the USDA Supplemental Nutrition Assistance Program (SNAP);
(XI) served or furnished on the premises of a continuing care retirement community certified under 8 V.S.A. chapter 151; or
(XII) prepared and served by the employees, volunteers, or contractors of any nursing home, residential care home, assisted living residence, home for the terminally ill, therapeutic community residence as defined pursuant to 33 V.S.A. chapter 71, or independent living facility; provided, however, that “contractor” under this subdivision (10)(D) excludes meals or alcoholic beverages provided by a restaurant as defined by subdivision (15) of this section when those meals or alcoholic beverages are not otherwise available generally to residents of the facility.
(iii) Food or beverage purchased for resale, provided that at the time of sale the purchaser provides the seller an exemption certificate in a form approved by the Commissioner. However, when the food or beverage purchased for resale is subsequently resold, the subsequent purchase does not come within this exemption unless the subsequent purchase is also for resale and an exemption certificate is provided.
(iv) Cannabis or cannabis products as defined under 7 V.S.A. § 831.
(v) Alcoholic beverages produced or manufactured by the restaurant or operator and sold in sealed containers for consumption off premises, provided the restaurant or operator is licensed to sell alcohol by the Department of Liquor and Lottery pursuant to 7 V.S.A. chapter 9.
(11)(A) “Alcoholic beverages” has the same meaning as defined in 7 V.S.A. § 2 when served for immediate consumption.
(B) “Alcoholic beverages” shall be exempt from the tax imposed under section 9241 of this chapter when:
(i) produced or manufactured by a restaurant or operator and sold in sealed containers for consumption off premises, provided the restaurant or operator is licensed to sell alcohol by the Department of Liquor and Lottery pursuant to 7 V.S.A. chapter 9; or
(ii) served under the circumstances enumerated in subdivision (10)(D)(ii) of this section under which food or beverages or alcoholic beverages are excepted from the definition of “taxable meal.”
(12) “Food or beverage” means any substance used by humans for food, drink, confectionery, or condiment, except alcoholic beverages.
(13) “Heated food or beverage” means any food or beverage prepared for sale in a heated condition by, for example, cooking, microwaving, or warming by infrared lights, steam tables, or other heating devices. Food is considered heated regardless of cooling to air temperature that incidentally occurs. Bakery products that are sold still warm from initial baking are not heated foods unless a heat source is applied to maintain them for sale in a heated condition.
(14) “Prepackaged” means packaged off the premises of the operator, whether packaged in single servings or larger quantities, and sold in the original unopened container; or packaged on the premises and sold in the unopened package provided the operator sells for resale at least 80 percent of all items packaged in the same type and size of packaging.
(15) “Restaurant” means:
(A) An establishment from which food or beverage of the type for immediate consumption is sold or for which a charge is made, including a cafe, cafeteria, dining room, diner, lunch counter, snack bar, private or social club, bar, tavern, street vendor, or person engaged in the business of catering.
(B) An establishment 80 percent or more of whose total sales of food and beverage in the previous taxable year were, or in the first taxable year are reasonably projected to be, of alcoholic beverages, food, and beverage that are taxable under subdivision (10)(C) of this section and food and beverage that are taxable under subdivision (10)(B) and are not exempt under subdivision (10)(D) of this section.
(C) “Restaurant” shall not include a snack bar on the premises of a retail grocery or “convenience” store.
(16) “Salad bar” means any counter, stand, table, or other display of salads and other foods at which the customer may handle, cook, cut, mix, or dispense, in a nonpackaged state, the food displayed.
(17) “Snack bar” means a counter with no seating at which prepared food is offered only for self-service.
(18) “Independent living facility” means a congregate living environment, however named, for profit or otherwise, that meets the definitions of housing complexes for older persons as enumerated in 9 V.S.A. § 4503(b) and (c), or housing programs designed to meet the needs of individuals with a disability as defined in 9 V.S.A. § 4501(2) and (3).
(19) “Vending machine” means a machine operated by coin, currency, credit card, slug, token, coupon, or similar device that dispenses food or beverages.
(20) “Booking agent” means a person who facilitates the rental of an occupancy and collects rent for an occupancy and who has the right, access, ability, or authority, through an internet transaction or any other means, to offer, reserve, book, arrange for, remarket, distribute, broker, resell, or facilitate an occupancy that is subject to the tax under this chapter.
(21) “Taxable meal facilitator” means a person who facilitates the sale and collects the charge for a taxable meal or alcoholic beverage through an internet transaction or any other means.
(Added 1959, No. 217, § 3; amended 1963, No. 227, § 1; 1964, No. 15 (Sp. Sess.), § 1, eff. April 1, 1964; 1973, No. 42, §§ 1, 2; 1987, No. 113, § 1, eff. June 26, 1987; 1987, No. 247 (Adj. Sess.), §§ 3,4; 1989, No. 51, §§ 51, 51a, eff. June 1, 1989, No. 222 (Adj. Sess.), § 14, eff. May 31, 1990; 1991, No. 186 (Adj. Sess.), § 19, eff. May 7, 1992; 1993, No. 209 (Adj. Sess.), §§ 2-4; 1999, No. 49, § 60, eff. June 2, 1999; 2011, No. 143 (Adj. Sess.), §§ 59-61, eff. May 15, 2012; 2013, No. 96 (Adj. Sess.), § 198a; 2013, No. 174 (Adj. Sess.), § 20, eff. June 4, 2014; 2015, No. 57, § 88; 2015, No. 134 (Adj. Sess.), § 20, eff. May 25, 2016; 2015, No. 144 (Adj. Sess.), § 11; 2018, No. 10 (Sp. Sess.), § 2; 2019, No. 51, § 12; 2019, No. 71, § 7; 2019, No. 131 (Adj. Sess.), § 296; 2019, No. 164 (Adj. Sess.), § 17a, eff. March 1, 2022; 2021, No. 73, § 1, eff. Aug. 1, 2021; 2021, No. 73, § 2, eff. April 1, 2021; 2021, No. 105 (Adj. Sess.), § 581, eff. July 1, 2022; 2023, No. 72, § 4, eff. June 19, 2023.)
§ 9203 Records; inspection
Each operator shall keep such separate books or records of his or her business in such reasonable form as the Commissioner may from time to time require by regulation and shall safely preserve the same for three years in such manner as to ensure permanency and accessibility for inspection by the Commissioner and his or her authorized representatives. Such records shall be open for inspection by the Commissioner or his or her authorized representative at all reasonable times, and the Commissioner or his or her authorized representative may enter in or upon any premises where sleeping accommodations are rented or taxable meals are sold for the purpose of determining whether the provisions of this chapter are being obeyed and may examine the books, papers, records, and premises of any operator for the purpose of determining whether the taxes imposed by this chapter have been fully paid.
(Added 1959, No. 217, § 19; amended 1975, No. 154 (Adj. Sess.), § 3, eff. date, see note below.)
§ 9204 Repealed
[Repealed]
1987, No. 278 (Adj. Sess.), § 4, eff. June 21, 1988.
§ 9205 Repealed
[Repealed]
1963, No. 227, § 8.
§ 9206 Notices
Any notice required to be given by the Commissioner pursuant to this chapter to any person may be served personally, or by sending the same by mail to the person for whom it is intended, addressed to such person at the address given in the last report filed by him or her pursuant to the provisions of this chapter, or, if no report has been filed, then to the address of his or her last known abode, or, in the case of other than an individual, to the last known business address. If notice is given by mail, the mailing of the notice shall be presumptive evidence of its receipt by the person to whom it is addressed. Any time period that is determined under this chapter by the giving of notice by mail shall commence to run from the date of mailing of the notice.
(Added 1959, No. 217, § 15; amended 1979, No. 105 (Adj. Sess.), § 31.)
§ 9207 Repealed
[Repealed]
1991, No. 186 (Adj. Sess.), § 10(a), eff. May 7, 1992.
Subchapter 2 Imposition and Collection of Tax
§ 9241 Imposition of tax
(a) An operator shall collect a tax of nine percent of the rent of each occupancy.
(b) An operator shall collect a tax on the sale of each taxable meal at the rate of nine percent of each full dollar of the total charge and on each sale for less than one dollar and on each part of a dollar in excess of a full dollar in accordance with the following formula:
| $0.01-0.11 | $0.01 | | --- | --- | | 0.12-0.22 | 0.02 | | 0.23-0.33 | 0.03 | | 0.34-0.44 | 0.04 | | 0.45-0.55 | 0.05 | | 0.56-0.66 | 0.06 | | 0.67-0.77 | 0.07 | | 0.78-0.88 | 0.08 | | 0.89-1.00 | 0.09 |
(c) An operator shall collect a tax on each sale of alcoholic beverages at the rate of 10 percent of each full dollar of the total charge and on each sale for less than one dollar and on each part of a dollar in excess of a full dollar in accordance with the following formula:
| $0.01-0.14 | $0.01 | | --- | --- | | 0.15-0.24 | 0.02 | | 0.25-0.34 | 0.03 | | 0.35-0.44 | 0.04 | | 0.45-0.54 | 0.05 | | 0.55-0.64 | 0.06 | | 0.65-0.74 | 0.07 | | 0.75-0.84 | 0.08 | | 0.85-0.94 | 0.09 | | 0.95-1.00 | 0.10 |
(Added 1959, No. 217, § 6; amended 1963, No. 227, § 2; 1967; 1963, No. 346 (Adj. Sess.), § 1, eff. April 1, 1968; 1969, No. 144, § 16; 1983, No. 144 (Adj. Sess.), § 1, eff. June 1, 1984; 1989, No. 51; § 51b, eff. June 1, 1989; 1989, No. 210 (Adj. Sess.), § 294, eff. June 1, 1990; 1989, No. 222 (Adj. Sess.), § 16, eff. May 31, 1990; 1991, No. 32, § 18, eff. June 1, 1991; 1991, No. 32, § 20, eff. July 1, 1993; 1997, No. 60, § 69.)
§ 9242 Collection of meals and rooms tax by operator and imposition of gross receipts tax
(a) Each operator shall state the amount of tax to each occupant and each purchaser of a taxable meal and alcoholic beverage, and shall charge the tax for each rental, meal, or beverage, and shall demand and collect the tax from such occupant or purchaser. The occupant or purchaser shall pay the tax to the operator and each operator shall be liable for the collection thereof.
(b) No operator shall advertise or hold out or state to the public or to any consumer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the price of taxable meals or beverages or the rent, or that, if added, it or any part thereof will be refunded. However, an operator may advertise the price of a taxable meal or beverage or the rent by stating the purchase price or rent charge with the words “plus tax,” or “exclusive of tax,” or “tax included.” The operator shall maintain his or her records to show separately the charge for taxable meals, beverages, and rent and the amount of tax paid thereon, and the operator, if requested, shall furnish the purchaser or occupant with a statement of the charges made showing the tax separately computed thereof.
(c) A tax of nine percent of the gross receipts from meals and occupancies and 10 percent of the gross receipts from alcoholic beverages, exclusive of taxes collected pursuant to section 9241 of this title, received from occupancy rentals, taxable meals, and alcoholic beverages by an operator, is hereby levied and imposed and shall be paid to the State by the operator as herein provided. Every person required to file a return under this chapter shall, at the time of filing the return, pay the Commissioner the taxes imposed by this chapter as well as all other monies collected by him or her under this chapter; provided, however, that every person who collects the taxes on taxable meals and alcoholic beverages according to the tax bracket schedules of section 9241 of this title shall be allowed to retain any amount lawfully collected by the person in excess of the tax imposed by this chapter as compensation for the keeping of prescribed records and the proper account and remitting of taxes.
(Added 1959, No. 217, § 7; amended 1963, No. 227, § 3; 1964, No. 15 (Sp. Sess.), § 2, eff. April 1, 1964; 1967, No. 346 (Adj. Sess.), § 2, eff. April 1, 1968; 1971, No. 73, § 34, eff. April 16, 1971; 1983, No. 144 (Adj. Sess.), § 2, eff. June 1, 1984; 1989, No. 51, § 51c, eff. June 1, 1989; 1989, No. 210 (Adj. Sess.), § 295, eff. June 1, 1990; 1989, No. 222 (Adj. Sess.), § 17, eff. May 31, 1990; 1991, No. 32, § 19, eff. June 1, 1991; 1991, No. 32, § 21, eff. July 1, 1993; 1997, No. 60, § 70.)
§ 9243 Returns and payment
(a) Where the meals and rooms tax liability under this chapter for the immediately preceding full calendar year has been, or would have been in cases when the business was not operating for the entire year, $500.00 or less, the gross receipts taxes imposed by this chapter shall be due and payable in quarterly installments on or before the 25th day of the calendar month succeeding the quarter ending the last day of March, June, September, and December of each year. In all other cases, the gross receipts tax imposed by this chapter shall be due and payable monthly on or before the 25th (23rd of February) day of the month following the month for which the tax is due. Pursuant to section 3110 of this title, the Commissioner may authorize payment of the tax due by electronic funds transfer. The Commissioner may require payment by electronic funds transfer from any taxpayer who is required by federal tax law to pay any federal tax in that manner or from any taxpayer who has submitted to the Department of Taxes two or more protested or otherwise uncollectible checks with regard to any State tax payment in the prior two years. Each operator shall make out and sign under the pains and penalties of perjury a return for each quarter or month. The return shall be filed with the Commissioner on a form prescribed by the Commissioner. The Commissioner shall distribute return forms to the operators, upon request, but no operator shall be excused from liability for failure to file a return or pay the tax because he or she has failed to receive a form. A remittance for the amount of taxes shall accompany each quarterly or monthly return. Returns shall be made on forms provided by the Commissioner. Payment of taxes by electronic funds transfer does not affect the requirement to file returns.
(b) The Commissioner may require returns and amended returns to be filed within 20 days after notice and to contain the information specified in the notice. Upon failure of a taxpayer to file any return required under this chapter within 20 days of the date of a notice to the taxpayer, the Commissioner may petition a judge of the Superior Court in the county wherein the taxpayer resides or has a place of business or, if the taxpayer neither resides nor has a place of business in this State, the Commissioner may petition the Washington Superior Court, and upon the petition of the Commissioner and a hearing, the judge shall issue a citation requiring the taxpayer and, if the taxpayer is a corporation, any principal officer of such corporation, to file a proper return in accordance with this chapter, upon pain of contempt. The order of notice upon the petition shall be returnable not later than 20 days after the filing of the petition. The petition shall be heard and determined on the return day or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case consistent with the rights of the parties. The judgment shall include costs in favor of the prevailing party. The Commissioner’s authority to petition under this subsection is in addition to the Commissioner’s authority under section 9273 of this title to compute the tax liability of a taxpayer who fails to file a required return or files an incorrect or insufficient return.
(Added 1959, No. 217, § 8; amended 1963, No. 227, § 4; 1964, No. 15 (Sp. Sess.), § 3, eff. April 1, 1964; 1971, No. 73, § 35, eff. April 16, 1971; 1973, No. 42, § 3; 1975, No. 1 (Sp. Sess.), § 13, eff. April 1, 1976; 1989, No. 124 (Adj. Sess.), § 2, eff. Feb. 8, 1990; 1989, No. 225 (Adj. Sess.), § 25(b); 1991, No. 67, § 7, eff. June 19, 1991; 1991, No. 186 (Adj. Sess.), § 8(i), eff. May 7, 1992; 1997, No. 156 (Adj. Sess.), § 19, eff. April 29, 1998; 2007, No. 190 (Adj. Sess.), § 25, eff. June 6, 2008; 2017, No. 73, § 5, eff. June 13, 2017; 2021, No. 73, § 7.)
§ 9244 Optional dates; extensions
The Commissioner may, upon written request and for good cause shown, authorize an operator whose books and records are not kept on a calendar month basis or whose hotel or establishment for the sale of taxable meals is operated only during certain seasons of the year to file returns at other times than those specified in section 9243 of this title and in lieu of the returns, but except in the case of seasonal hotels and eating establishments, no taxpayer shall be permitted to make less than four returns during a year. The Commissioner may, if the Commissioner believes the action is necessary where collection of the tax may be in jeopardy, require an operator to file returns and pay taxes under this chapter at any time or from time to time. Except as to the time of filing and the period covered, all the provisions as to returns required by sections 3201, 9202, 9241–9243, 9271, and 9272 of this title shall be applicable to returns made under this section and a remittance for the tax due shall accompany any return filed under this section. The Commissioner may, on written application and for good cause shown, extend the time for making any return required by this chapter.
(Added 1959, No. 217, § 9; amended 2021, No. 105 (Adj. Sess.), § 582, eff. July 1, 2022.)
§ 9245 Overpayment; refunds
(a) Upon application by an operator, if the Commissioner determines that any tax, interest, or penalty has been paid more than once, or has been erroneously or illegally collected or computed, the same shall be credited by the Commissioner on any taxes then due from the operator under this chapter, and the balance shall be refunded to the operator or the operator’s successors, administrators, executors, or assigns, together with interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. That interest shall be computed from the latest of 45 days after the date the return was filed, 45 days after the date the return was due, including any extensions of time thereto, with respect to which the excess payment was made, or, if the taxpayer filed an amended return or otherwise requested a refund, 45 days after the date such amended return or request was filed. Provided, however, no such credit or refund shall be allowed after three years from the date the return was due.
(b) An operator must prove the following to be eligible for a refund under this section:
(1) that the tax was erroneously or illegally collected or computed; and
(2) that any erroneously or illegally collected or computed tax is or will be returned to the purchaser, unless the operator made the overpayment.
(c) A purchaser may seek a refund from the Department if the purchaser establishes that the tax was erroneously or illegally collected or computed. The Commissioner shall refund a purchaser in the same manner as under subsection (a) of this section.
(Added 1959, No. 217, § 10; amended 1975, No. 154 (Adj. Sess.), § 5, eff. date, see note below; 1979, No. 105 (Adj. Sess.), § 32; 1983, No. 59, § 5, eff. April 22, 1983; 2015, No. 57, § 90, eff. June 11, 2015; 2023, No. 72, § 5, eff. June 19, 2023.)
§ 9246 Repealed
[Repealed]
1963, No. 227, § 8.
§ 9247 Hospital and medical service corporations and credit unions
Notwithstanding 8 V.S.A. §§ 4518, 4590, and 30901, hospital service corporations, medical service corporations, and credit unions shall be subject to the meals and rooms tax. The statutory purpose of the remaining exemptions in 8 V.S.A. § 4518 is to lower the cost of health services to Vermonters. The statutory purpose of the remaining exemptions in 8 V.S.A. § 4590 is to lower the cost of health services to Vermonters. The statutory purpose of the remaining exemptions in 8 V.S.A. § 30901 is to affirm the nonprofit, cooperative structure of credit unions.
(Added 2013, No. 200 (Adj. Sess.), § 4.)
§ 9248 Informational reporting
The Department of Taxes may collect information on operators from persons providing an internet platform for the short-term rental of property for occupancy in this State. The information collected shall include any information the Commissioner requires, and the name, address, and terms of the rental transactions of persons acting as operators through the internet platform. The failure to provide information as required under this section shall subject the person operating the internet platform to a fine of $5.00 for each instance of failure. The Commissioner is authorized to adopt rules and procedures to implement this section.
(Added 2015, No. 134 (Adj. Sess.), § 21a, eff. July 1, 2017; amended 2019, No. 175 (Adj. Sess.), § 12, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 583, eff. July 1, 2022.)
Subchapter 3 Enforcement and Penalties
§ 9271 Licenses required
Each operator prior to commencing business shall register with the Commissioner each place of business within the State where he or she operates a hotel or sells taxable meals or alcoholic beverages; provided, however, that an operator who sells taxable meals through a vending machine shall not be required to hold a license for each individual machine, and a booking agent shall not be required to hold a separate license for each property the rental of which it facilitates. Upon receipt of an application in such form and containing such information as the Commissioner may require for the proper administration of this chapter, the Commissioner shall issue without charge a license for each such place in such form as he or she may determine, attesting that such registration has been made. No person shall engage in serving taxable meals or alcoholic beverages or renting hotel rooms without the license provided in this section. The license shall be nonassignable and nontransferable and shall be surrendered to the Commissioner if the business is sold or transferred or if the registrant ceases to do business at the place named.
(Added 1959, No. 217, § 4; amended 1971, No. 73, § 36, eff. April 16, 1971; 1981, No. 11; 1991, No. 186 (Adj. Sess.), § 20, eff. May 7, 1992; 2015, No. 57, § 89; 2019, No. 71, § 8; 2019, No. 131 (Adj. Sess.), § 297.)
§ 9272 Suspension and revocation of licenses; appeal
(a) The Commissioner may, after notice and hearing, suspend or revoke the license of any operator or may refuse to issue or renew any such registration for failure to comply with the provisions of this chapter or with all pertinent rules and regulations of the Commissioner promulgated hereunder.
(b) Any operator aggrieved by such suspension, revocation, or refusal may appeal therefrom to any Superior judge within 10 days after written notice of such suspension, revocation, or refusal has been mailed or delivered to the operator. Such Superior judge or another Superior judge designated by the Chief Superior Judge shall hear such appeal forthwith.
(c) If such appealing operator files with the Superior judge to whom he or she appeals a bond running to the State with a surety company authorized to do business in this State as surety in such sum as the Superior judge shall fix, conditioned upon the payment of all taxes due under this chapter and to become due during the pendency of such appeal, then during the pendency of any such appeal to the Superior judge, the suspension or revocation so appealed from shall be inoperative.
(d) In the case of an appeal from the refusal of the Commissioner to issue or renew a registration, the Commissioner shall issue or renew such registration during the pendency of the appeal if the aforesaid bond is given.
(e) Upon suspension or revocation, or in case of an unlicensed business, the Commissioner may cause to be posted, at every public entrance of the operator’s premises, a notice identifying the operator and the location and informing the public that the operator has no license or the license has been suspended or revoked, as the case may be, and that no rooms may be offered to the public for occupancy for a consideration or taxable meals or alcoholic beverages sold at that location as those terms are defined in this chapter. No person shall cover or deface the posted notice, and the posted notice shall not be removed until the license is reinstated or a new license issued for the location, or removal is otherwise authorized by the Commissioner. Whoever violates the terms of this subsection shall be assessed a penalty of $500.00. The Commissioner shall give notice of such assessment and make demand for payment.
(Added 1959, No. 217, § 5; amended 1979, No. 181 (Adj. Sess.), § 20; 1991, No. 186 (Adj. Sess.), § 40, eff. May 7, 1992; 1995, No. 29, § 20, eff. April 14, 1995; 1997, No. 50, § 26, eff. June 26, 1997; 2021, No. 147 (Adj. Sess.), § 30, eff. May 31, 2022.)
§ 9273 Assessment of additional tax
(a) If any operator shall fail to make a return as herein required, the Commissioner may make an estimate of the tax liability of the operator from any information he or she may obtain and, according to such estimate so made by him or her, assess the taxes, interest, and penalty due the State from such person, give notice of such assessment to the person, and make demand upon him or her for payment.
(b) After a return is filed under the provisions of this chapter, the Commissioner shall cause the same to be examined, and may make such further audits or investigation as he or she may deem necessary, and if he or she shall determine that there is a deficiency with respect to the payment of any tax due under this chapter, he or she shall assess the taxes and interest due the State, give notice of such assessment to the person liable, and make demand upon him or her for payment, but no such assessment shall be made after the later of three years from the date the return was filed or three years from the date the return was required to be filed, unless such return was fraudulent. When, before the expiration of the period prescribed herein for the assessment of an additional tax, a taxpayer has consented in writing that the period may be extended, the amount of the additional tax due may be determined at any time within the extended period. The period so extended may be further extended by subsequent consents in writing made before the expiration of the extended period. If the taxpayer has consented in writing to the extension of the period for assessment, the period for filing an application for credit or refund pursuant to section 9245 of this title shall likewise be extended for the same period of time. Notwithstanding the foregoing, where an operator under-reports tax collected under this chapter by 20 percent or more, the Commissioner may assess such tax at any time before the expiration of six years from the date the return was filed.
(c) If the Commissioner finds that an operator liable for a tax designs quickly to depart from this State, or to remove his property therefrom, or to conceal himself or herself or his or her property, or to discontinue business, or to do any other act tending to prejudice or to render wholly or partially ineffective proceedings to collect such tax, unless such proceedings be brought without delay, the Commissioner shall cause notice of such finding to be given such operator, together with a demand for an immediate return and immediate payment of such tax. If return and payment are not made upon demand, the Commissioner may make an estimate of the tax liability of such person from any information he or she may obtain and, according to such estimate, assess the taxes due the State from such person. The Commissioner shall give notice of said assessment and demand payment thereof, and such assessment shall be presumed to be correct, the burden showing otherwise being on the operator; thereupon, the tax shall become immediately due and payable. The Attorney General may at the same time, without delay, bring suit for the collection of the tax.
(Added 1959, No. 217, § 11; amended 1971, No. 73, § 37, eff. April 16, 1971; 1975, No. 154 (Adj. Sess.), § 6, eff. date, see note below; 1989, No. 119, §§ 10, 12, 14, eff. June 22, 1989.)
§ 9274 Petition for reconsideration
Any operator against whom an assessment shall be made by the Commissioner under the provisions of subsection 9272(e) or section 9273 of this title, and any person aggrieved by the refusal of the Commissioner to make a refund requested under section 9245 of this title, may petition for a reconsideration within 60 days after notice shall have been given such person as provided in this chapter. If a petition for reconsideration is not filed within the 60-day period, the amount of the assessment or the refusal to refund becomes final at the expiration thereof as to law and fact. If a petition for a reconsideration is filed within the 60-day period, the Commissioner shall reconsider the assessment or the refusal and, if the petitioner so requested in his or her petition, shall grant said petitioner an oral hearing and shall give the petitioner 10 days’ notice of the time and places thereof. For a cause shown, the Commissioner may extend the time for filing such petition. If appeal is not taken as provided in section 9275 of this title, the assessment or the refusal to refund upon reconsideration becomes final as to law and fact at the expiration of the 60-day period therein allowed for taking of appeals. The remedies provided by this section and section 9275 of this title shall be the exclusive remedies of a taxpayer for contesting an assessment under sections 9272 and 9273 of this title and denial of a refund under section 9245 of this title.
(Added 1959, No. 217, § 12; amended 1975, No. 154 (Adj. Sess.), § 7, eff. date, see note below; 1979, No. 105 (Adj. Sess.), § 33; 1989, No. 222 (Adj. Sess.), § 36; 1991, No. 186 (Adj. Sess.), § 42, eff. May 7, 1992.)
§ 9275 Appeals
Any person aggrieved by the decision of the Commissioner upon petition provided for in section 9274 of this title may, within 30 days after notice thereof from the Commissioner, appeal to the Superior Court of any county in which the person has a place of business subject to this chapter. Such appeals shall be preferred cases for hearing on the docket. The court may grant such relief as may be equitable and may order the State Treasurer to pay to the aggrieved taxpayer the amount of such relief with interest at the rate established pursuant to section 3108 of this title. Upon all such appeals that are denied, costs may be taxed against the appellant at the discretion of the court, but no costs shall be taxed against the State.
(Added 1959, No. 271, § 13; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1991, No. 186 (Adj. Sess.), § 21, eff. May 7, 1992; 1997, No. 50, § 27, eff. June 26, 1997; 1997, No. 161 (Adj. Sess.), § 23, eff. Jan. 1, 1998; 2019, No. 51, § 13, eff. June 10, 2019.)
§ 9276 Hearings
(a) The Commissioner may conduct hearings, administer oaths to, and examine under oath any person, including the operator, relative to the business of the operator, in respect to any matter incident to the administration of this chapter. The provisions of this chapter shall also apply to any person who the Commissioner has reason to believe is liable for payment of the tax under this chapter.
(b) The Commissioner shall have the power to compel the attendance of witnesses and the production of any books, records, papers, vouchers, accounts, or documents of any operator, or of any person the Commissioner has reason to believe is liable for the payment of the tax under this chapter, or of any person believed to have information pertinent to any matter under investigation by the Commissioner at any hearing held pursuant to the provisions of this chapter. The fees of witnesses required to attend any such hearing shall be the same as those allowed the witnesses appearing in the Superior Court, but no fees shall be payable to a witness charged with a meals and rooms tax liability. Such fees shall be paid in the manner provided for the payment of other expenses incident to the administration of this chapter.
(c) Any examination under oath conducted by the Commissioner may, in his or her discretion, be reduced to writing and willful false testimony therein shall be deemed perjury and be punishable as such.
(d) [Repealed.]
(Added 1959, No. 217, § 14; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1983, No. 230 (Adj. Sess.) § 17(8).)
§ 9277 Repealed
[Repealed]
1975, No. 154 (Adj. Sess.), § 15.
§ 9278 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.
§ 9279 Violations
(a) Failure to file; failure to collect; failure to remit. An operator who knowingly fails to file a return, fails to collect a tax, or fails to remit a tax required under this chapter shall be imprisoned not more than one year or fined not more than $1,000.00, or both.
(b) Failure to file; failure to collect; failure to remit in excess of $500.00. An operator who with intent to evade a tax liability fails to file a return, fails to collect a tax, or fails to remit a tax required under this chapter shall, if the amount collected or required to be collected is more than $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(c) False or fraudulent return. An operator who knowingly makes, signs, verifies, or files with the Commissioner a false or fraudulent return shall be imprisoned not more than one year or fined not more than $1,000.00, or both. An operator who with intent to evade a tax liability makes, signs, verifies, or files with the Commissioner a false or fraudulent return shall, if the amount of tax evaded is more than $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(d) Violation of this chapter. Any operator who knowingly violates the provisions of this chapter or rules adopted by the Commissioner under this chapter relative to the tax on meals, alcoholic beverages, and rooms shall be guilty of a misdemeanor and upon conviction for a first offense shall be sentenced to pay a fine of not more than $250.00 or to be imprisoned for not more than 60 days, or both, the fine and imprisonment in the discretion of the court; and for a second or subsequent offense shall be sentenced to pay a fine of not less than $250.00 or more than $500.00 or be imprisoned for not more than six months, or both, the fine and imprisonment in the discretion of the court.
(e) Separate offense for each week of operating without valid registration license. For the purpose of this section, every operator required to obtain a license under section 9271 of this title who is engaged in any business for which registration is required under section 9271 of this title without being the holder of a currently valid registration license shall commit a separate offense for each calendar week or part of the week during which the operator shall be so engaged.
(Added 1959, No. 217, § 18; amended 1963, No. 227, § 5; 1987, No. 48, § 10; 1991, No. 186 (Adj. Sess.), § 23, eff. May 7, 1992; 2021, No. 105 (Adj. Sess.), § 584, eff. July 1, 2022.)
§ 9280 Taxes as personal debt to State; action to collect taxes; limitations
(a) Any operator who fails to collect the required tax or to pay it to the Commissioner as required under this chapter shall be personally and individually liable for the amount of such tax together with such interest and penalty as has accrued under the provisions of section 3202 of this title, and if the operator is a corporation or other entity, the personal liability shall extend and be applicable to any officer or agent of the corporation or entity who, as an officer or agent of the same, is under a duty to collect the tax and transmit the tax to the Commissioner as required in this chapter.
(b) Any sum or sums collected in accordance with this chapter shall be deemed to be held by the person in trust for the State of Vermont. Such sums shall be recorded by such person in a ledger account so as clearly to indicate the amount of tax collected and that the same are the property of the State of Vermont.
(c) Action may be brought by the Attorney General at the instance of the Commissioner in the name of the State to recover the amount of taxes, penalties, and interest due from any person responsible for the same under this chapter, provided such action is brought within six years after the same are due or six years after the date the liability becomes final, whichever is later. Such action shall be returnable to the county where the person resides or has a place of business, and if the person is a nonresident with no place of business in the State, the action shall be returnable to Washington County. The limitation of six years in this section shall not apply to a suit to collect taxes, penalties, interest, and costs when the person filed a fraudulent return or failed to file a return when the same was due.
(d) As an additional or alternate remedy, the Commissioner may issue a warrant directed to the sheriff of any county commanding him or her to levy upon and sell the real and personal property of any person liable for the tax, which may be found within his or her county, for the payment of the amount thereof, with any penalties and interest, and the cost of executing the warrant, and to return the warrant to the Commissioner and to pay to him or her the money collected by virtue thereof within 60 days after the receipt of the warrant. The sheriff shall, within five business days after the receipt of the warrant, file with the county clerk a copy thereof, and thereupon the clerk shall enter in the judgment docket the name of the person mentioned in the warrant, and the amount of the tax, penalties, and interest for which the warrant is issued, and the date when the copy is filed. Thereupon, the amount of the warrant so docketed shall become a lien upon the title to and interest in real and personal property of the person against whom the warrant is issued. The sheriff shall then proceed upon the warrant in the same manner and with like effect as that provided by law in respect to executions issued against property upon judgments of a court of record, and for services in executing the warrant he or she shall be entitled to the same fees, which he or she may collect in the same manner. If a warrant is returned not satisfied in full, the Commissioner may from time to time issue new warrants and shall also have the same remedies to enforce the amount due thereunder as if the State had recovered judgment therefor and execution thereon had been returned unsatisfied.
(Added 1959, No. 217, § 21; amended 1963, No. 227, § 6; 1975, No. 154 (Adj. Sess.), § 14, eff. after June 30, 1976; 1991, No. 186 (Adj. Sess.), § 24, eff. May 7, 1992; 1997, No. 50, § 28, eff. June 26, 1997; 1999, No. 49, § 61, eff. June 2, 1999; 2003, No. 70 (Adj. Sess.), § 54, eff. March 1, 2004; 2017, No. 11, § 62.)
§ 9281 Taxes as property lien
If any operator required to pay and transmit a tax under this chapter neglects or refuses to pay the same after demand, the amount, together with all penalties and interest provided for in this chapter and together with any costs that may accrue in addition thereto, shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to such operator. Such lien shall arise at the time demand is made by the Commissioner of Taxes and shall continue until the liability for such sum with interest and costs is satisfied or becomes unenforceable. Such lien shall have the same force and effect as the lien for taxes withheld under the withholding provisions of the Vermont income tax law, as provided under section 5895 of this title, and notice of such lien shall be recorded as is provided in that section. Certificates of release of such lien shall also be given by the Commissioner as in the case of the aforesaid tax liens.
(Added 1959, No. 217, § 22; amended 1963, No. 227, § 7.)
§ 9282 Short-term rental operators
(a) A short-term rental operator shall post the corresponding meals and rooms tax account number on any advertisement for the short-term rental.
(b) The Department shall disseminate the information packet prepared by the Department of Health pursuant to 18 V.S.A. § 4468 to a short-term rental operator when the operator first registers a unit.
(Added 2018, No. 10 (Sp. Sess.), § 2; amended 2021, No. 105 (Adj. Sess.), § 585, eff. July 1, 2022.)
Subchapter 4 Short-Term Rental Impact Surcharge
§ 9301 Imposition; short-term rental impact surcharge
(a) An operator shall collect a surcharge of three percent of the rent of each occupancy that is a short-term rental. As used in this subchapter, “short-term rental” means a furnished house, condominium, or other dwelling room or self-contained dwelling unit rented to the transient, traveling, or vacationing public for a period of fewer than 30 consecutive days and for more than 14 days per calendar year. As used in this subchapter, “short-term rental” does not mean an occupancy in a lodging establishment licensed under 18 V.S.A. chapter 85.
(b) The surcharge shall be in addition to any tax assessed under section 9241 of this chapter. The surcharge assessed under this section shall be paid, collected, remitted, and enforced under this chapter in the same manner as the rooms tax assessed under section 9241 of this title.
(Added 2023, No. 183 (Adj. Sess.), § 5, eff. August 1, 2024.)
Chapter 227 Peddlers
§§ 9401-9412 Repealed
[Repealed]
1991, No. 167 (Adj. Sess.), § 66(5).
Chapter 229 Private Detectives
§§ 9501-9514 Repealed
[Repealed]
1981, No. 98, § 2.
Chapter 230 Tax on Transferors of Nursing Homes
§ 9530 Definitions
As used in this chapter unless the context requires otherwise:
(1) “Commissioner” means the Commissioner of Vermont Health Access.
(2) [Repealed.]
(3) “Nursing home” means an institution, as defined in 33 V.S.A. § 7102(7), required to be licensed pursuant to 33 V.S.A. § 7103.
(4) “Owner” means any natural person, association, trust, or corporation with an ownership interest in a nursing home.
(5) “Secretary” means the Secretary of Human Services.
(6) “Selling price” means the amount of the full actual consideration for the transfer, paid or to be paid, including the amount of any liens or encumbrances existing before the transfer and not removed.
(7) “Transfer” means every sale or change of ownership of a Vermont nursing home owned by the transferor during the entire 12-year period immediately preceding the change in ownership and providing services to the State under a contract during the entire period, after which transfer the home will continue in operation. A transfer includes all changes in ownership, whether effected by the transfer of stock, shares, or assets, with the following exceptions:
(A) the sale of stock or shares in a publicly traded corporation; or
(B) the sale of stock or shares made solely as a method of financing (not as a method of transferring management or control) when the number of shares transferred does not exceed 25 percent of the total number of shares in any one class of stock; or
(C) a change of ownership between related parties other than family members; or
(D) a change of ownership between family members for less than full and reasonable consideration; or
(E) such other transactions that the Commissioner may determine not to constitute a true change of ownership.
(8)(A) “Family member” means spouses, parents, grandparents, children, grandchildren, siblings, aunts, uncles, nieces, nephews, or the spouse of such person.
(B) “Related party” means a person that is directly or indirectly under common ownership or control or related by other business association or an entity in which an individual who directly or indirectly receives or expects to receive compensation in any form is also an owner, partner, officer, director, key employee of, or lender to the other entity.
(9) “Transferor” means the owner of a nursing home who by the transfer has been divested of an ownership interest in the home.
(Added 1995, No. 14, § 5, eff. April 12, 1995; amended 1995, No. 186 (Adj. Sess.), § 9, eff. May 22, 1996; 1999, No. 147 (Adj. Sess.), § 4; 2005, No. 174 (Adj. Sess.), § 65; 2009, No. 156 (Adj. Sess.), § I.32; 2021, No. 105 (Adj. Sess.), § 586, eff. July 1, 2022.)
§ 9531 Tax on transferor of a nursing home
A tax is hereby imposed upon the transferor of any nursing home located in this State. The tax shall be eight percent of the selling price.
(Added 1995, No. 14, § 5, eff. April 12, 1995; amended 1995, No. 186 (Adj. Sess.), § 10, eff. May 22, 1996.)
§ 9532 Repealed
[Repealed]
1995, No. 186 (Adj. Sess.), § 11, eff. May 22, 1996.
§ 9533 Tax liability, payment, and acknowledgement
(a) The tax imposed by this chapter is the sole liability of the transferor and shall conclusively be presumed to have been paid by the transferor only.
(b) The tax shall be paid by the transferor to the Department of Vermont Health Access within 10 days after the date of the transfer, accompanied by the nursing home transferor tax form prescribed by the Commissioner.
(c) A nursing home transferor tax return filing shall not be required for changes in nursing home ownership that are not transfers as defined in subdivision 9530(7) of this chapter.
(d) Notwithstanding anything to the contrary in 1 V.S.A. § 317 and section 3102 of this title, tax return filings made pursuant to this chapter shall be public information, subject to disclosure pursuant to 1 V.S.A. § 316.
(e) Upon the receipt of the full amount of the tax, the Commissioner shall deposit receipts from the transferor tax into the General Fund.
(Added 1995, No. 14, § 5, eff. April 12, 1995; amended 1995, No. 186 (Adj. Sess.), § 12, eff. May 22, 1996; 1999, No. 147 (Adj. Sess.), § 4; 2005, No. 174 (Adj. Sess.), § 66; 2009, No. 156 (Adj. Sess.), § I.33; 2019, No. 6, § 71, eff. April 22, 2019.)
§ 9534 Implementing rules
The Secretary may adopt rules necessary to implement the provisions of this chapter.
(Added 1995, No. 14, § 5, eff. April 12, 1995.)
§ 9535 Review and appeals
(a) At any time before, or within 10 days after the date of a transfer of a nursing home, a transferor may request from the Commissioner a determination of the transferor’s liability to pay or the amount of the nursing home transfer tax due. The Commissioner shall render a decision within 30 days of the receipt of all information that the Commissioner deems necessary to make a determination.
(b) Within 30 days of the date of issuance of the Commissioner’s determination, a transferor aggrieved by that determination may request review by the Secretary or the Secretary’s designee. This review shall not be subject to the provisions of 3 V.S.A. chapter 25.
(Added 1995, No. 14, § 5, eff. April 12, 1995; amended 2005, No. 174 (Adj. Sess.), § 67; 2009, No. 156 (Adj. Sess.), § I.34.)
Chapter 231 Property Transfer Tax
§ 9601 Definitions
As used in this chapter unless the context requires otherwise:
(1) “Deed” includes any deed, instrument, memorandum of deed, memorandum of lease, or other writing evidencing a transfer of title to property. “Deed” also means any agreement, instrument, or memorandum evidencing an agreement or instrument in which the grantee holds equitable title and is entitled to possession at any time during the term of the agreement and in which the grantor reserves legal title to the property for a period of time or until the grantee satisfies conditions specified in the agreement or instrument, including a bond for a deed, title bond, contract for sale, contract to convey, executory contract for sale, installment sale, and lease for a deed.
(2) “Person” means every natural person, association, trust, corporation, partnership, limited liability company, or other legal entity.
(3) “Title to property” includes:
(A) those interests in property that endure for a period of time the termination of which is not fixed or ascertained by a specific number of years, including an estate in fee simple, life estate, enhanced life estate, perpetual leasehold, and perpetual easement; and
(B) those interests in property enduring for a fixed period:
(i) equal to or exceeding 50 years;
(ii) less than 50 years if, by reason of a grant of right to extend the term by renewal or otherwise, said interest may be extended to a period equal to or exceeding 50 years; and
(iii) less than 50 years if there is granted a right to purchase the property and there is granted the right to construct on the property a building or structure or to make such major capital improvements as water systems, sewer systems, roads, or parking facilities.
(4) “Town clerk” means any town clerk, city clerk, county clerk, or other official whose duty it is to record deeds of property.
(5) “Transfer” includes a grant, assignment, conveyance, will, trust, decree of court, transfer or acquisition of a direct or indirect controlling interest in any person with title to property, or any other means of transferring title to property or vesting title to property in any person.
(6)(A) “Value” means:
(i) in the case of any transfer of title to property that is not a gift and that is not made for a nominal or no consideration, the amount of the full actual consideration for such transfer, paid or to be paid, including the amount of any liens or encumbrances on the property existing before the transfer and not removed thereby;
(ii) in the case of a gift, or a transfer for nominal or no consideration, the fair market value of the property transferred; and
(iii) in the case of a controlling interest in any person that has title to property, the fair market value of the property, apportioned based on the percentage of the ownership interest transferred or acquired in the person.
(B) “Value” shall not include the fair market value of private alternative energy sources as defined in section 3845 of this title.
(C) In the case of a life estate or an enhanced life estate, the grand list value of the property at the time of the transfer, multiplied by a factor published by the Internal Revenue Service for purposes of valuing life estates and remainders pursuant to 26 U.S.C. § 7520. This factor is based on the grantor’s age, published actuarial tables, and published interest rate in the month of the transaction.
(7) “Commissioner” means the Commissioner of Taxes or any officer or employee of the Department authorized by the Commissioner, directly or indirectly by one or more redelegations of authority, to perform the functions mentioned or described in this chapter.
(8) “Certificate” means a certificate of compliance, affirmation, or exemption that is a part of the property transfer return.
(9) “Commissioner of Health” means the Commissioner of Health appointed under 3 V.S.A. § 3051.
(10) “Property” means real property. The term does not include personal property transferred with real property.
(11) “Principal residence” means principal residence as defined in section 10002a of this title, together with land that is beneath or directly contiguous to the dwelling and that is transferred with the dwelling.
(12) “Controlling interest” means:
(A) In the case of a corporation, either 50 percent or more of the total combined voting power of all classes of stock of such corporation, or 50 percent or more of the capital, profits, or beneficial interest in such voting stock of such corporation.
(B) In the case of a partnership, limited liability company, association, trust, or other entity, 50 percent or more of the capital, profits, or beneficial interest in such partnership, limited liability company, association, trust, or other entity.
(C) For purposes of the tax imposed pursuant to section 9602 of this title, all acquisitions of persons acting in concert are aggregated for purposes of determining whether a transfer or acquisition of a controlling interest has taken place; provided, however, interests in any partnership, limited liability company, association, or other entity originally purchased in connection with the federal low-income housing tax credit program under 26 U.S.C. § 42 shall not be counted in determining a change in the “controlling interest.” The Commissioner shall adopt standards by rule to determine when persons are acting in concert. In adopting a rule for this purpose, the Commissioner shall consider the following:
(i) Persons must be treated as acting in concert when they have a relationship with each other such that one person influences or controls the actions of another through common ownership.
(ii) When persons are not commonly owned or controlled, they must be treated as acting in concert only when the unity with which the purchasers have negotiated and will consummate the transfer of ownership interest supports a finding that they are acting as a single person. If the acquisitions are completely independent, with each purchaser buying without regard to the identity of the other purchasers, the acquisitions must be considered separate acquisitions.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 291 (Adj. Sess.), § 13, eff. 60 days after April 9, 1970; 1971, No. 68, § 1, eff. April 15, 1971; 1971, No. 168 (Adj. Sess.); 1975, No. 225 (Adj. Sess.), § 2; 1975, No. 226 (Adj. Sess.), § 1; 1979, No. 105 (Adj. Sess.), § 35; 1981, No. 56, § 1; 1987, No. 200 (Adj. Sess.), § 1; 1989, No. 119, § 20, eff. June 22, 1989; 1989, No. 222 (Adj. Sess.), §§ 18, 19, eff. May 31, 1990; 2019, No. 71, § 9; 2021, No. 105 (Adj. Sess.), § 587, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 2, eff. January 1, 2022; 2023, No. 6, § 389, eff. July 1, 2023.)
§ 9602 Tax on transfer of title to property
A tax is hereby imposed upon the transfer by deed of title to property located in this State, or a transfer or acquisition of a controlling interest in any person with title to property in this State. The amount of the tax equals 1.25 percent of the value of the property transferred, or $1.00, whichever is greater, except as follows:
(1) With respect to the transfer of property to be used for the principal residence of the transferee, the tax shall be imposed at the rate of 0.5 percent of the first $200,000.00 in value of the property transferred and at the rate of 1.25 percent of the value of the property transferred in excess of $200,000.00, except that no tax shall be imposed on the first $250,000.00 in value of the property transferred if the purchaser obtains a purchase money mortgage funded in part with a homeland grant through the Vermont Housing and Conservation Trust Fund or that the Vermont Housing and Finance Agency or U.S. Department of Agriculture and Rural Development has committed to make or purchase; and tax at the rate of 1.25 percent shall be imposed on the value of that property in excess of $250,000.00.
(2) [Repealed.]
(3) With respect to the transfer to a housing cooperative organized under 11 V.S.A. chapter 7 and whose sole purpose is to provide principal residences for all of its members or shareholders, or to an affordable housing cooperative under 11 V.S.A. chapter 14, of property to be used as the principal residence of a member or shareholder, the tax shall be imposed in the amount of 0.5 percent of the first $200,000.00 in value of the residence transferred and at the rate of 1.25 percent of the value of the residence transferred in excess of $200,000.00; provided that the homesite leased by the cooperative is used exclusively as the principal residence of a member or shareholder. If the transferee ceases to be an eligible cooperative at any time during the six years following the date of transfer, the transferee shall then become obligated to pay any reduction in property transfer tax provided under this subdivision, and the obligation to pay the additional tax shall also run with the land.
(4) Tax shall be imposed at the rate of 3.4 percent of the value of the property transferred with respect to transfers of:
(A) residential property that is fit for habitation on a year-round basis;
(B) will not be used as the principal residence of the transferee; and
(C) for which the transferee will not be required to provide a landlord certificate pursuant to section 6069 of this title.
(Added 1967, No. 146, § 1; amended by 1969, No. 144, § 6; 1987, No. 200 (Adj. Sess.), § 2; 1993, No. 49, § 16,; 1997, No. 50, §§ 6, 43; 1999, No. 62, § 272; 2005, No. 75, § 5; 2007, No. 176 (Adj. Sess.), § 14; 2011, No. 45, § 33; 2019, No. 71, § 10; 2023, No. 181 (Adj. Sess.), § 73, eff. August 1, 2024.)
§ 9602a Clean water surcharge
There shall be a surcharge of 0.22 percent on the value of property subject to the property transfer tax under section 9602 of this title, except that there shall be no surcharge on the first $200,000.00 in value of property to be used for the principal residence of the transferee or the first $250,000.00 in value of property transferred if the purchaser obtains a purchase money mortgage funded in part with a homeland grant through the Vermont Housing and Conservation Trust Fund or that the Vermont Housing and Finance Agency or U.S. Department of Agriculture and Rural Development has committed to make or purchase. The surcharge shall be in addition to any tax assessed under section 9602 of this title. The surcharge assessed under this section shall be paid, collected, and enforced under this chapter in the same manner as the tax assessed under section 9602 of this title. The Commissioner shall deposit the surcharge collected under this section in the Clean Water Fund under 10 V.S.A. § 1388, except for the first $1,000,000.00 of revenue generated by the surcharge, which shall be deposited in the Vermont Housing and Conservation Trust Fund created in 10 V.S.A. § 312.
(Added 2015, No. 64, § 38, eff. June 16, 2015; amended 2017, No. 85, § I.9; 2023, No. 181 (Adj. Sess.), § 74, eff. June 17, 2024.)
§ 9603 Exemptions
The following transfers are exempt from the tax imposed by this chapter:
(1) Transfers recorded prior to January 1, 1968.
(2) Transfers of property to the United States of America; the State of Vermont; or any of their instrumentalities, agencies, or subdivisions.
(3) Transfers directly to the obligee to secure a debt or other obligation.
(4) Transfers that, without additional consideration, confirm or correct a transfer previously recorded.
(5) Transfers between two spouses, or parent and child or child’s spouse, or grandparent and grandchild or grandchild’s spouse, without actual consideration therefor; and also transfers in trust or by decree of court to the extent of the benefit to the donor or one or more of the related persons named in this subdivision; and transfers from a trust named in this subdivision conveying or releasing the property free of trust as between those related persons and without actual consideration therefor.
(6) Transfers to effectuate a mere change of identity or form of ownership or organization where there is no change in beneficial ownership.
(7) Transfers directly to the obligor of release of property that is security for a debt or other obligation when such debt or other obligation has been fully satisfied.
(8) Transfers of partition.
(9) Transfers made pursuant to mergers or consolidations of corporations pursuant to which transfer no gain or loss is recognized under the Internal Revenue Code, and bona fide transfers to shareholders of corporations in connection with the complete dissolution thereof, except where the Commissioner finds that a major purpose of such dissolution is to avoid the property transfer tax.
(10) Transfers made by a subsidiary corporation to its parent corporation for no consideration other than cancellation or surrender of the subsidiary’s stock.
(11) Transfers made to a corporation at the time of its formation pursuant to which transfer no gain or loss is recognized under 26 U.S.C. § 351, except where the Commissioner finds that a major purpose of such transaction is to avoid the property transfer tax.
(12) Transfers made to, or made by, a local development corporation as defined under 10 V.S.A. § 212(10).
(13) Transfers made to, or made by, an authority established pursuant to 10 V.S.A. chapter 12.
(14)(A) Transfers to organizations qualifying under 26 U.S.C. § 501(c)(3), as amended, and that prior to the transfer have been determined to meet the “public support” test of 26 U.S.C. § 509(a)(2), as amended, provided one of the stated purposes of the organization is to acquire property or rights and less than fee interest in property in order to preserve farmland or open-space land, and provided that the property transferred, or rights and interests in the property, will be held by the organization for this purpose. As used in this section, “farmland” means real estate that will be actively operated or leased as part of a farm enterprise, including dwellings and agricultural structures, and “open-space land” means land without structures thereon.
(B) Transfers to organizations qualifying under 26 U.S.C. § 501(c)(3), as amended, and that prior to the transfer have been determined to meet the “public support” test of 26 U.S.C. § 509(a)(1), as amended, shall not be exempt from tax, but the tax shall be deferred, provided one of the stated purposes of the organization is to acquire property or rights and less than fee interest in property in order to preserve farmland or open-space land, and provided that the property transferred, or rights and interests in the property, will be held by the organization for this purpose. Any transferee organization for which tax is deferred under this subdivision shall pay the deferred tax upon later transfer by that organization of all or a part of the property or the development rights for that property, up to a maximum of the consideration received for such later transfers.
(C)(i) Transfers from one organization qualifying under 26 U.S.C. § 501(c)(3), as amended, to another organization qualifying under 26 U.S.C. § 501(c)(3), provided the organizations are related organizations and the Commissioner does not determine that a major purpose of the transaction is to avoid the tax imposed under this chapter. As used in this subdivision (C), “related organizations” means one organization holds 50 percent or more of the membership interest of the other organization or one organization appoints or elects, including the power to remove and replace, 50 percent or more of the members of the other organization’s governing body.
(ii)(I) Notwithstanding subdivision (i) of this subdivision (C), a transferee organization that receives property in a transfer exempt under subdivision (i) of this subdivision (C) shall pay the tax imposed under this chapter on the value of the property transferred if:
(aa) not more than three years after the date of the first transfer, the transferee subsequently transfers any portion of the property;
(bb) the second transfer is not exempt under subdivision (i) of this subdivision (C) as a transfer between related organizations; and
(cc) the Commissioner determines that a major purpose of the transaction is to avoid the tax imposed under this chapter.
(II) The tax imposed under this subdivision (C)(ii) on the value of the property transferred at the time of the first transfer shall be due not later than 30 days after the second transfer and shall apply in addition to any tax due under this chapter from the subsequent transferee on the second transfer.
(15) Transfers made to a partnership at the time of its formation, pursuant to which transfer no gain or loss is recognized under 26 U.S.C. § 721, except where the Commissioner finds that a major purpose of such transaction is to avoid the property transfer tax.
(16) Transfers made by a partnership to a partner in connection with a complete dissolution of the partnership, pursuant to which transfer no gain or loss is recognized under the Internal Revenue Code, except where the Commissioner finds that a major purpose of such dissolution is to avoid the property transfer tax.
(17) Transfers of utility line easements to a public utility or a municipality for a consideration of $500.00 or less.
(18) Transfers between the obligor and the primary obligee arising out of a foreclosure proceeding or conveyance in lieu of foreclosure.
(19) Transfers under a court judgment decreeing the disposition of real estate of the parties to a civil marriage to the extent of the property interests conveyed to either of the parties.
(20) Transfers made to organizations qualifying under 26 U.S.C. § 501(c)(3) or to a wholly owned subsidiary corporation of such an organization, provided one of the stated purposes of the transferee is:
(A) to acquire property in order to preserve housing for families with low income;
(B) to operate a statewide public television station and provided that the property transferred will be held by the transferee for this purpose; or
(C) to act as a food clearinghouse in order to reduce the incidence of hunger in Vermont and provided that the property transferred will be held by the transferee for this purpose.
(21) Transfers made to a corporation qualifying as a limited equity cooperative under the Cooperative Housing Ownership Act, provided the property in the hands of the transferee will be used to provide housing for persons or households of low or moderate income.
(22) Transfers to an organization qualifying under 26 U.S.C. § 501(c)(2), provided the organization is controlled exclusively by an organization or organizations described in subdivision (14) of this section, and provided such transfer is for the purposes described in that subdivision.
(23) Transfers of leasehold or fee interests made to individuals with low income by organizations qualifying under 26 U.S.C. § 501(c)(3) and having as its primary purpose the provision of housing to individuals with low income, or from a wholly owned subsidiary of the organization, when the transfer is made concurrently with the transfer of an improvement located on the leasehold or fee property, or is a renewal of the lease where the purpose of the lease is to provide affordable housing or to ensure the continued affordability of the housing, or both.
(24) Transfers made to a limited liability company at the time of its formation pursuant to which no gain or loss is recognized under the Internal Revenue Code, except where the Commissioner finds that a major purpose of such transaction is to avoid the property transfer tax.
(25) Transfers made by a limited liability company to a member in connection with a complete dissolution of the limited liability company, pursuant to which transfer no gain or loss is recognized under the Internal Revenue Code, except where the Commissioner finds that a major purpose of such dissolution is to avoid the property transfer tax.
(26) Transfers of controlling interests in a person with a fee interest in property if the transfer of the property would qualify for exemption if accomplished by deed of the property between the parties to the transfer of the controlling interest.
(27)(A) Transfers of abandoned dwellings that the transferee certifies will be rehabilitated for occupancy as principal residences and not as short-term rentals as defined under 18 V.S.A. § 4301(a)(14), provided the rehabilitation is completed and occupied not later than three years after the date of the transfer. If three years after the date of transfer the rehabilitation has not been completed and occupied, then the tax imposed by this chapter shall become due.
(B) As used in this subdivision (27):
(i) “Abandoned” means real estate owned by a municipality and acquired through condemnation or a tax sale, provided the real estate has substandard structural or housing conditions, including unsanitary and unsafe dwellings and deterioration sufficient to constitute a threat to human health, safety, and public welfare.
(ii) “Completed” means rehabilitation of a dwelling to be fit for occupancy as a principal residence.
(iii) “Principal residence” means a dwelling occupied by a resident individual as the individual’s domicile during the taxable year and for a property owner, owned, or for a renter, rented under a rental agreement other than a short-term rental as defined under 18 V.S.A. § 4301(a)(14).
(iv) “Rehabilitation” means extensive repair, reconstruction, or renovation of an existing dwelling beyond normal and ordinary maintenance, painting, repairs, or replacements, with or without demolition, new construction, or enlargement.
(28) Transfers of a new mobile home, as that term is defined in 10 V.S.A. § 6201(1), that:
(A) bears a label evidencing, at a minimum, greater energy efficiency under the ENERGY STAR Program established in 42 U.S.C. § 6294a; or
(B) is certified as a Zero Energy Ready Home by the U.S. Department of Energy.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 144, § 7, eff. June 1, 1969; 1971, No. 68, § 2, eff. April 15, 1971; 1971, No. 73, § 38, eff. April 16, 1971; 1975, No. 225 (Adj. Sess.), §§ 3-9; 1981, No. 38, § 1, eff. April 21, 1981; 1981, No. 56, § 2; 1981, No. 247 (Adj. Sess.), § 15; 1987, No. 27, § 1, eff. April 30, 1987; 1987, No. 129 (Adj. Sess.), § 1, eff. March 23, 1988; 1987, No. 200 (Adj. Sess.), § 51; 1987, No. 254 (Adj. Sess.), § 5, eff. June 16, 1988; 1989, No. 222 (Adj. Sess.), §§ 20, 21, 40, eff. May 31, 1990; 1991, No. 67, §§ 9-17, 19, eff. June 19, 1991; 1991, No. 186 (Adj. Sess.), § 25, eff. May 7, 1992; 1995, No. 131 (Adj. Sess.), § 1; 1997, No. 50, §§ 29-31, eff. June 26, 1997; 2009, No. 3, § 12a, eff. Sept. 1, 2009; 2011, No. 143 (Adj. Sess.), § 24; 2019, No. 71, § 11; 2023, No. 72, § 13, eff. June 19, 2023; 2023, No. 181 (Adj. Sess.), § 83a, eff. August 1, 2024.)
§ 9604 Liability for tax
The tax imposed by this chapter upon any transfer of title to property is the liability of the transferee of the title, unless fixed otherwise by agreement of the parties.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 144, § 8, eff. June 1, 1969.)
§ 9605 Payment of tax
(a) The tax imposed by this chapter shall be paid to the Commissioner within 30 days after transfer of title to property subject to the tax or, in the case of a transfer or acquisition of a controlling interest in a person with title to property for which a deed is not given, within 30 days after transfer or acquisition.
(b) If an agreement, instrument, memorandum, or other writing evidencing a transfer of title to property is taxed as a deed at the time of its recording, the later recording of the deed to the property shall not be subject to the transfer tax.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1989, No. 222 (Adj. Sess.), § 22; 2009, No. 160 (Adj. Sess.), § 16; 2019, No. 175 (Adj. Sess.), § 7, eff. Oct. 8, 2020.)
§ 9606 Property transfer return
(a)(1) In the case of property transfer by deed, a property transfer return complying with this section shall be delivered to a town clerk at the time a deed evidencing a transfer of title to property is delivered to the clerk for recording.
(2) In the case of transfer or acquisition of a controlling interest in a person with title to property for which a deed is not given, a property transfer return complying with this section shall be delivered to the Commissioner within 30 days after the transfer or acquisition.
(b) The property transfer return required by this section shall be in such form and with such signatures as the Commissioner shall prescribe. If the return is filed with respect to a transfer that is claimed to be exempt from the tax imposed by this chapter, the return shall set forth the basis for such exemption. If the return is filed with respect to a transfer subject to such tax, the return shall truly disclose the value of the property transferred, together with such other information as the Commissioner may reasonably require for the proper administration of this chapter. The return shall include notice that the property may be subject to regulations governing potable water supplies and wastewater systems under 10 V.S.A. chapter 64, and to building, zoning, and subdivision regulations, and that the parties have an obligation under law to investigate and disclose his or her knowledge regarding flood regulation, if any, affecting the property.
(c) For receiving and acknowledging a property transfer return under this chapter, there shall be paid to the town clerk at the time of filing a fee as provided for in subdivision 1671(a)(6) of this title.
(d) The property transfer tax return shall not be required of properties qualified for the exemption stated in subdivision 9603(17) of this title, or qualified for the exemption stated in subdivision 9603(2) of this title if the transfer is of an interest in property for highway purposes and the consideration for the transfer is $10,000.00 or less. An entity acquiring such properties shall notify the listers of a municipality of the grantors, grantees, consideration, date of execution, and location of the property when it files for recording a deed that does not require a transfer tax return under this subsection.
(e)(1) In the case of property transferred by deed, the Commissioner of Taxes is authorized to disclose to any person any information appearing on a property transfer tax return, including statistical information derived therefrom, and such information derived from research into information appearing on property transfer tax returns as is necessary to determine if the property being transferred is subject to 10 V.S.A. chapter 151, except the Commissioner shall not disclose the Social Security number, federal identification number, e-mail address, or telephone number of any person pursuant to this subsection.
(2) In the case of transfer or acquisition of a controlling interest in a person with title to property for which a deed is not given, the return submitted to the Commissioner shall be treated as a tax return and tax return information under section 3102 of this title.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 291 (Adj. Sess.), § 14, eff. 60 days after April 9, 1970; 1971, No. 84, § 17; 1973, No. 263 (Adj. Sess.), § 4, eff. 30 days from April 16, 1974; 1979, No. 159 (Adj. Sess.), § 19; 1981, No. 38, § 2, eff. April 21, 1981; 1987, No. 64, §§ 5, 9; 1987, No. 76, § 18; 1993, No. 170 (Adj. Sess.), § 16; 1997, No. 60, § 52c, eff. Jan. 1, 1998; 1999, No. 155 (Adj. Sess.), § 12a; 2001, No. 133 (Adj. Sess.), § 12, eff. June 13, 2002; 2003, No. 70 (Adj. Sess.), § 55, eff. March 1, 2004; 2009, No. 47, § 14; 2009, No. 160 (Adj. Sess.), § 17; 2013, No. 73, § 44, eff. June 5, 2013; 2015, No. 40, § 32; 2017, No. 73, § 6, eff. June 13, 2017; 2019, No. 71, § 12.)
§ 9607 Acknowledgment of return and tax payment
Upon the receipt by a town clerk of a property transfer return and certificate and the fee required under subdivision 1671(a)(6) of this title, the clerk shall forthwith mail or otherwise deliver to the transferee of title to property with respect to which such return was filed a signed and written acknowledgment of the receipt of that return and certificate. A copy of that acknowledgment, or any other form of acknowledgment approved by the Commissioner, shall be affixed to the deed evidencing the transfer of property or the document evidencing the transfer or acquisition of a direct or indirect controlling interest in any person with title to property with respect to which the return and certificate was filed. The acknowledgment so affixed to a deed or document, however, shall not disclose the amount of tax paid with respect to any return or transfer.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1986; amended 1969, No. 291 (Adj. Sess.), § 15, eff. 60 days after April 9, 1970; 1971, No. 84, § 18; 2009, No. 160 (Adj. Sess.), § 18; 2019, No. 71, § 13.)
§ 9608 Prohibition against certain recordings
(a) Except as to transfers that are exempt pursuant to subdivision 9603(17) of this title, no town clerk shall record, or receive for recording, any deed or document evidencing the transfer or acquisition of a direct or indirect controlling interest in any person with title to property to which is not attached a properly executed transfer tax return, complete and regular on its face, and a certificate in the form prescribed by the Land Use Review Board and the Commissioner of Taxes that the conveyance of the real property and any development thereon by the seller is in compliance with or exempt from the provisions of 10 V.S.A. chapter 151. The certificate shall indicate whether or not the conveyance creates the partition or division of land. If the conveyance creates a partition or division of land, there shall be appended the current “Act 250 Disclosure Statement” required by 10 V.S.A. § 6007. A town clerk who violates this section shall be fined $50.00 for the first such offense and $100.00 for each subsequent offense. A person who purposely or knowingly falsifies any statement contained in the certificate required is punishable by fine of not more than $500.00 or imprisonment for not more than one year, or both.
(b) A person who makes a false certification under this section shall be liable for damages caused by that false certification, in addition to any existing liability created under the common law.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 250 (Adj. Sess.), § 30, eff. April 4, 1970; 1969, No. 291 (Adj. Sess.), § 16, eff. 60 days after April 9, 1970; 1971, No. 172 (Adj. Sess.), § 1; 1981, No. 38, § 3, eff. April 21, 1981; 1981, No. 223 (Adj. Sess.), § 23, 1987, No. 64, § 4; 1991, No. 111, § 9; 2003, No. 115 (Adj. Sess.), § 118, eff. Jan. 31, 2005; 2009, No. 160 (Adj. Sess.), § 19; 2013, No. 11, § 25; 2013, No. 174 (Adj. Sess.), § 21, eff. June 4, 2014; 2019, No. 71, § 14.)
§ 9609 Penalty for false statement
Any person who willfully falsifies any statement contained in a property transfer return required under section 9606 of this title shall be subject to a fine of not more than $1,000.00.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968.)
§ 9610 Remittance of return and tax; inspection of returns
(a) Not later than 30 days after the receipt of any property transfer return, a town clerk shall file the return in the office of the town clerk and electronically forward a copy of the acknowledged return to the Commissioner; provided, however, that with respect to a return filed in paper format with the town, the Commissioner shall have the discretion to allow the town to forward a paper copy of that return to the Department.
(b) The copies of property transfer returns in the custody of the town clerk may be inspected by any member of the public.
(c) Prior to distributions of property transfer tax revenues under 10 V.S.A. § 312, 24 V.S.A. § 4306(a), and subdivision 435(b)(10) of this title, 1.5 percent of the revenues received from the property transfer tax shall be deposited in a special fund in the Department of Taxes for Property Valuation and Review administration costs.
(d)(1) Prior to any distribution of property transfer tax revenue under 10 V.S.A. § 312, 24 V.S.A. § 4306(a), subdivision 435(b)(10) of this title, and subsection (c) of this section, $2,500,000.00 of the revenue received from the property transfer tax shall be transferred to the Vermont Housing Finance Agency to pay the principal of and interest due on the bonds, notes, and other obligations authorized to be issued by the Agency pursuant to 10 V.S.A. § 621(22), the proceeds of which the Vermont Housing and Conservation Board shall use to create affordable housing pursuant to 10 V.S.A. § 314.
(2) As long as the bonds, notes, and other obligations incurred pursuant to subdivision (1) of this subsection remain outstanding, the rate of tax imposed pursuant to section 9602 of this title shall not be reduced below a rate estimated, at the time of any reduction, to generate annual revenues of at least $12,000,000.00.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 1969, No. 291 (Adj. Sess.), § 17, eff. 60 days after April 9, 1970; 1971, No. 73, § 39, eff. April 16, 1971; 1987, No. 200 (Adj. Sess.), § 3; 1989, No. 119, § 27, eff. June 22, 1989; 1993, No. 210 (Adj. Sess.), § 275a, eff. June 30, 1995; 1993, No. 210 (Adj. Sess.), § 275b, eff. Oct. 1, 1994; 1995, No. 5, § 56, eff. March 3, 1995; 1995, No. 63, § 281(d), eff. June 30, 1996; 1999, No. 152 (Adj. Sess.), § 271e; 2009, No. 160 (Adj. Sess.), § 20; 2011, No. 45, § 34, eff. May 24, 2011; 2011, No. 45, § 35, eff. July 1, 2016; 2017, No. 85, § I.4; 2017, No. 85, § I.11(a)(4), eff. July 1, 2039; 2023, No. 181 (Adj. Sess.), § 75a, eff. June 17, 2024.)
§ 9611 Rules of Commissioner
The Commissioner may adopt, amend, and withdraw rules interpreting and implementing this chapter.
(Added 1967, No. 146, § 1, eff. Jan. 1, 1968; amended 2021, No. 105 (Adj. Sess.), § 589, eff. July 1, 2022.)
§§ 9612, 9613 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.
§ 9614 Taxes as personal debt to State
(a) All taxes required to be paid under this chapter and all increases, interest, and penalty thereon that become due and payable to the Commissioner shall constitute a personal debt from the person liable to pay the same to the State of Vermont to be recovered in a civil action under this section.
(b) Action may be brought by the Attorney General at the instance of the Commissioner in the name of the State to recover the amount of taxes, penalties, and interest due from such person, provided the action is brought within six years after the same are due. The action shall be returnable in the county where the person resides, if a resident of the State, and if a nonresident, the action shall be returnable to the County of Washington. The limitation of six years in this section shall not apply to a suit to collect taxes, penalties, interest, and costs when the person filed a fraudulent return or failed to file a return when the same was due.
(Added 1971, No. 73, § 47, eff. April 16, 1971; amended 1991, No. 186 (Adj. Sess.), § 26, eff. May 7, 1992.)
§ 9615 Levy for nonpayment
When all or any portion of a tax imposed by this chapter, or any penalty or interest due in connection with such a tax, is not paid, the Commissioner may issue a warrant under the Commissioner’s hand and official seal directed to the sheriff of any county of this State. The warrant shall command the sheriff to levy upon and sell the real and personal property of the taxpayer for the payment of the unpaid tax liability imposed by this chapter, together with allowable fees and costs. The levy and sale shall be effected in the manner, and shall be subject to the limitations, prescribed for the levy, distraint, and sale of property for the nonpayment of town taxes under sections 5191–5193 and 5253–5263 of this title. The sheriff shall return the warrant to the Commissioner and pay to the Commissioner the money collected within the time specified in the warrant.
(Added 1971, No. 73, § 48, eff. April 16, 1971; amended 2021, No. 105 (Adj. Sess.), § 590, eff. July 1, 2022.)
§ 9616 Taxes as property lien
If any person required to pay a tax under this chapter neglects or refuses to pay the same after demand, the amount, together with all penalties and interest provided for in this chapter and together with any costs that may accrue in addition thereto, shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to such person. Such lien shall arise at the time demand is made by the Commissioner of Taxes and shall continue until the liability for such sum with interest and costs is satisfied or becomes unenforceable. Such lien shall have the same force and effect as the lien for taxes withheld under the withholding provisions of the Vermont income tax law, as provided under section 5895 of this title, and notice of such lien shall be recorded as is provided in said section. Certificates of release of such lien shall also be given by the Commissioner as in the case of the withholding tax liens.
(Added 1971, No. 73, § 49, eff. April 16, 1971.)
§ 9617 Notices; appeals
Unless otherwise provided by this title:
(1) If the Commissioner finds that any taxpayer has failed to discharge in full the amount of any tax liability incurred under this title, or that a penalty or interest should be assessed under it, the Commissioner shall notify the taxpayer of the deficiency or assess the penalty or interest, as the case may be, by mail.
(2) Upon receipt of a notice of deficiency or assessment of penalty or interest under subdivision (1) of this section, the taxpayer may, within 60 days after the date of the mailing of the notice of assessment, petition the Commissioner in writing for a determination of that deficiency or assessment. The Commissioner shall thereafter grant a hearing upon the matter and notify the taxpayer in writing of the Commissioner’s determination concerning the deficiency, penalty, or interest.
(3) Any hearing granted by the Commissioner under this title shall be subject to and governed by 3 V.S.A. chapter 25.
(4) Any notice under this chapter may be given by mailing it to the person for whom it is intended in a postpaid envelope addressed to that person at the address given in the last return filed by that person under this title, or in any application made by that person or, if no return has been filed or application made, then to any address obtainable. The mailing of the notice shall be presumptive evidence of its receipt by the person to whom it is addressed. Any period of time that is determined under this chapter by the giving of notice shall commence to run from the date of mailing of the notice.
(5) A taxpayer may, within 30 days, appeal a determination by the Commissioner concerning a notice of deficiency or an assessment of penalty or interest to the Washington Superior Court or the Superior Court of the county in which the taxpayer resides or has a place of business.
(6) The exclusive remedy of a taxpayer with respect to a notification of deficiency or assessment of penalty or interest under subdivision (1) of this section shall be the petition for determination of the deficiency or assessment provided by subdivision (2) of this section, and the appeal from an adverse determination of deficiency or assessment provided under subdivision (5) of this section.
(7) Upon the failure of a taxpayer to petition in accordance with subdivision (2) of this section from a notice of deficiency or assessment issued under subdivision (1) of this section, or to appeal in accordance with subdivision (5) of this section from a determination of a deficiency or assessment of tax liability under subdivision (2) of this section, the taxpayer shall be bound by the terms of the notification, assessment, or determination, as the case may be. The taxpayer shall not thereafter contest, either directly or indirectly, the tax liability as set forth, in any proceeding, including proceeding for the enforcement or collection of all or any part of the tax liability.
(8)
(A) At any time within three years after the date a property is transferred, a taxpayer may petition the Commissioner in writing for the refund of all or any part of the amount of tax paid. The Commissioner shall thereafter grant a hearing subject to the provisions of 3 V.S.A chapter 25 upon the matter and notify the taxpayer in writing of the Commissioner’s determination concerning the refund request. The Commissioner’s determination may be appealed as provided in subdivision (5) of this section. This shall be a taxpayer’s exclusive remedy with respect to the refund of taxes under this chapter, except as provided under subdivision (B) of this subdivision (8).
(B) If the transfer taxed by this chapter was an enhanced life estate interest and that interest is revoked or revised pursuant to 27 V.S.A. chapter 6, the person who paid the tax may petition for a refund at any time after the date of revocation or revision. In the case of a revision, the revised enhanced life estate interest transfer shall be subject to tax under this chapter.
(Added 1979, No. 105 (Adj. Sess.), § 38; amended 1989, No. 222 (Adj. Sess.), § 37; 1997, No. 156 (Adj. Sess.), § 20, eff. April 29, 1998; 2021, No. 105 (Adj. Sess.), § 591, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 3, eff. January 1, 2022; 2023, No. 161 (Adj. Sess.), § 43, eff. June 6, 2024.)
§ 9618 Duty to report stock acquisitions
Each person who acquires a controlling interest in a corporation, whether by one or more than one transfer of stock, shall, if the fair market value of all real property held in this State by the corporation exceeds $500,000.00, report to the Commissioner of Taxes, within 30 days after the acquisition, the fair market value of all real property held in this State by the corporation at the time of the acquisition of the controlling interest.
(Added 1993, No. 85, § 3(b), eff. Jan. 1, 1994; amended 2019, No. 71, § 15.)
Chapter 233 Sales and Use Tax
Subchapter 1 General Provisions
§ 9701 Definitions
Unless the context in which they occur requires otherwise, as used in this chapter:
(1) “Person” means an individual, partnership, society, association, joint stock company, corporation, public corporation or public authority, estate, receiver, trustee, assignee, referee, and any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of the foregoing.
(2) “Commissioner” means the State Commissioner of Taxes or any officer or employee of the Department duly authorized by the Commissioner directly or indirectly by one or more redelegations of authority to perform the functions herein mentioned or described.
(3) “Purchaser” means a person who purchases property or who receives services taxable under this chapter.
(4)(A) “Sales price” means the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without deduction for the following:
(i) the seller’s cost of the property sold;
(ii) the cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expenses of the seller;
(iii) charges by the seller for any services necessary to complete the sale, other than installation charges; and
(iv) delivery charges;
and including consideration received by the seller from third parties if:
(I) the seller actually receives consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale;
(II) the seller has an obligation to pass the price reduction or discount through to the purchaser;
(III) the amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and
(IV) one of the following criteria is met:
(aa) the purchaser presents a coupon, certificate, or other documentation to the seller to claim a price reduction or discount where the coupon, certificate, or documentation is authorized, distributed, or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate, or documentation is presented;
(bb) the purchaser identifies himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount (a “preferred customer” card that is available to any patron does not constitute membership in such a group); or
(cc) the price reduction or discount is identified as a third party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate, or other documentation presented by the purchaser.
(B) “Sales price” shall not include:
(i) discounts, including cash, term, or coupons that are not reimbursed by a third party that are allowed by a seller and taken by a purchaser on a sale;
(ii) interest, financing, and carrying charges from credit extended on the sale of personal property or services, if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser;
(iii) any taxes legally imposed directly on the consumer that are separately stated on the invoice, bill of sale, or similar document given to the purchaser;
(iv) installation charges;
(v) credit for any trade-in; and
(vi) telecommunications nonrecurring charges.
(5) “Retail sale” or “sold at retail” means any sale, lease, or rental for any purpose other than for resale, sublease, or subrent, including sales to contractors, subcontractors, or repair persons of materials and supplies for use by them in erecting structures or otherwise improving, altering, or repairing real property. A manufacturer or retailer shall be treated as a contractor when purchasing material and supplies for use by them in erecting structures or otherwise improving, altering, or repairing real property unless an election is made under section 9711 of this title.
(6) “Purchase price” means the measure subject to use tax and has the same meaning as sales price.
(7) “Tangible personal property” means personal property that may be seen, weighed, measured, felt, touched, or in any other manner perceived by the senses. “Tangible personal property” includes electricity, water, gas, steam, and prewritten computer software regardless of the method in which the prewritten computer software is paid for, delivered, or accessed.
(8) “In this State” or “in the State” means within the exterior limits of the State of Vermont and includes all territory within these limits owned by or ceded to the United States of America.
(9) “Vendor” means:
(A) A person making sales of tangible personal property or services, the receipts from which are taxed by this chapter.
(B) A person maintaining a place of business in the State and making sales, whether at that place of business or elsewhere, to persons within the State of tangible personal property or services, the use of which is taxed by this chapter.
(C) A person who:
(i) solicits sales of tangible personal property either by employees, independent contractors, agents, or other representatives;
(ii) owns or controls a person engaged in the same manner or similar line of business in this State; or
(iii) maintains or has a franchisee or licensee operating under such person’s name in this State if the franchisee or licensee is required to collect the sales tax imposed by this chapter; and by reason thereof makes sales to persons within the State of tangible personal property or services, the use of which is taxed by this chapter.
(D) Any other person making sales to persons within the State of tangible personal property or services, the use of which is taxed by this chapter, who may be authorized by the Commissioner to collect the tax imposed by this chapter.
(E) The State of Vermont or any of its agencies, instrumentalities, public authorities, public corporations, including a public corporation created pursuant to agreement or compact with another state, or political subdivision when that entity sells services or property of a kind ordinarily sold by private persons.
(F) A person making sales of tangible personal property from outside this State to a destination within this State and not maintaining a place of business or other physical presence in this State that:
(i) engages in regular, systematic, or seasonal solicitation of sales of tangible personal property in this State:
(I) by the display of advertisements in this State;
(II) by the distribution of catalogues, periodicals, advertising flyers, or other advertising by means of print, radio, or television media; or
(III) by mail, internet, telephone, computer database, cable, optic, cellular, or other communication systems, for the purpose of effecting sales of tangible personal property; and
(ii) has either made sales from outside this State to destinations within this State of at least $100,000.00, or totaling at least 200 individual sales transactions, during the 12-month period preceding the monthly period with respect to which that person’s liability for tax under this chapter is determined.
(G) A person who has any other contact with this State that would allow this State to require the seller to collect and remit use tax under the provisions of the Constitution and laws of the United States.
(H) A person who provides telecommunications service as defined in subdivision (19) of this section, except that “vendor” shall not include a person whose activities in this State are limited to the performance of any activities that, without more, would not constitute nexus for sales tax collection purposes, plus any or all of the following necessary to create or maintain a World Wide Web page or internet site for the person:
(i) ownership of data or programming code in this State, or use of that data or programming code by another person or by a person not in this State;
(ii) ownership of, or receipt of services from, computer servers in this State; or
(iii) receipt of computer processing or web hosting services from a computer service provider or web hosting service in this State.
(I) For purposes of subdivision (C) of this subdivision (9), a person making sales that are taxable under this chapter shall be presumed to be soliciting business through an independent contractor, agent, or other representative if the person enters into an agreement with a resident of this State under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an internet website or otherwise, to the person if the cumulative gross receipts from sales by the person to customers in the State who are referred to the person by all residents with this type of an agreement with the person are in excess of $10,000.00 during the preceding tax year. For purposes of subdivision (C) of this subdivision (9), the presumption may be rebutted by proof that the resident with whom the person has an agreement did not engage in any solicitation in the State on behalf of the person that would satisfy the nexus requirements of the U.S. Constitution during the tax year in question.
(J) A marketplace facilitator who has facilitated sales by marketplace sellers to destinations within this State of at least $100,000.00, or totaling at least 200 individual sales transactions, during the 12-month period preceding the monthly period with respect to which that person’s liability for tax under this chapter is determined.
(K) A marketplace seller who has combined sales to a destination within this State and sales through a marketplace to a destination within this State of at least $100,000.00, or totaling at least 200 individual sales transactions, during the 12-month period preceding the monthly period with respect to which that person’s liability for tax under this chapter is determined.
(10) “Trade-in” means an allowance, including any core charges, made for like-kind property given to a vendor.
(11) “Place of entertainment” means any place where any facilities for entertainment, recreation, amusement, or sports are provided.
(12)(A) “Casual sale” means an isolated or occasional sale of an item of tangible personal property by a person who is not regularly engaged in the business of making sales of that general type of property at retail where the property was obtained by the person making the sale, through purchase or otherwise, for the person’s own use.
(B) Aircraft as defined in 5 V.S.A. § 202(6), snowmobiles as defined in 23 V.S.A. § 3201(5), all-terrain vehicles as defined in 23 V.S.A. § 3501(1), motorboats as defined in 23 V.S.A. § 3302(6), and vessels as defined in 23 V.S.A. § 3302(17) that are 16 feet or more in length are hereby specifically excluded from the definition of casual sale.
(13) “Use” means the exercise of any right or power over tangible personal property by the purchaser thereof and includes the receiving, storage or any keeping or retention for any length of time, withdrawal from storage, any installation, any affixation to real or personal property, or any consumption of that property.
(14) “Persons required to collect tax” or “persons required to collect any tax imposed by this chapter” means every vendor of taxable tangible personal property or services and every recipient of amusement charges. These terms also include marketplace facilitators with respect to retail sales made on behalf of a marketplace seller. These terms shall also include any officer or employee of a corporation or other entity or of a dissolved entity who, as that officer or employee, is under a duty to act for the corporation or entity in complying with any requirement of this chapter.
(15) “Property and services the use of which is subject to tax” means all property sold to a person within the State, whether or not the sale is made within the State, the use of which property is subject to tax under section 9773 of this title or will become subject to tax when such property is received by or comes into the possession or control of such person within the State.
(16) “Advertising agency” means a business 80 percent or more of whose gross receipts in the previous taxable year were, or in the first taxable year are reasonably projected to be, from charges for advertising services. As used in this definition, the term “gross receipts” does not include charges for printing, imprinting, reproduction, publishing of tangible personal property, or photography to the extent that:
(A) the activity was not performed by the business itself but was contracted out to another business; and
(B) the charges therefor were passed through the business to its client.
(17) “Advertising materials” means tangible personal property that promotes a product, service, idea, concept, issue, or the image of a person, but not copies or reproductions of such property, or property on which printing or imprinting service has been performed.
(18) “Advertising services” means services rendered to promote a product, service, idea, concept, issue, or the image of a person, including services rendered to design and produce advertising materials prior to the acceptance of the advertising materials for reproduction or publication, including research; design; layout; preliminary and final art preparation; creative consultation, coordination, direction, and supervision; script and copywriting; editing; and account management services. “Advertising services” do not include printing, imprinting, reproduction, publishing of tangible personal property, or photography.
(19) “Telecommunications service” means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. The term “telecommunications service” includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice-over internet protocol services or is classified by the Federal Communications Commission as enhanced or value added. “Telecommunications service” does not include:
(A) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where such purchaser’s primary purpose for the underlying transaction is the processed data or information.
(B) Installation or maintenance of wiring or equipment on a customer’s premises.
(C) Tangible personal property.
(D) Advertising, including directory advertising.
(E) Billing and collection services provided to third parties.
(F) internet access service.
(G) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider. Radio and television audio and video programming services shall include cable service as defined in 47 U.S.C. § 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 C.F.R. § 20.3.
(H) Ancillary services.
(I) Digital products delivered electronically, including software, music, video, reading materials, or ring tones.
(20) [Repealed.]
(21) “Mobile telecommunications service” means mobile telecommunications service as defined in 4 U.S.C. § 124.
(22) [Repealed.]
(23) “Alcoholic beverages” means beverages that are suitable for human consumption and contain one-half of one percent or more of alcohol by volume.
(24) “Clothing” means all human wearing apparel suitable for general use. The following list contains examples and is not intended to be an all-inclusive list.
(A) “Clothing” shall include:
(i) aprons, household and shop;
(ii) athletic supporters;
(iii) baby receiving blankets;
(iv) bathing suits and caps;
(v) beach capes and coats;
(vi) belts and suspenders;
(vii) boots;
(viii) coats and jackets;
(ix) costumes;
(x) diapers, child and adult, including disposable diapers;
(xi) earmuffs;
(xii) footlets;
(xiii) formal wear;
(xiv) garters and garter belts;
(xv) girdles;
(xvi) gloves and mittens for general use;
(xvii) hats and caps;
(xviii) hosiery;
(xix) insoles for shoes;
(xx) lab coats;
(xxi) neckties;
(xxii) overshoes;
(xxiii) pantyhose;
(xxiv) rainwear;
(xxv) rubber pants;
(xxvi) sandals;
(xxvii) scarves;
(xxviii) shoes and shoelaces;
(xxix) slippers;
(xxx) sneakers;
(xxxi) socks and stockings;
(xxxii) steel-toed shoes;
(xxxiii) underwear;
(xxxiv) uniforms, athletic and nonathletic; and
(xxxv) wedding apparel.
(B) “Clothing” shall not include:
(i) belt buckles sold separately;
(ii) costume masks sold separately;
(iii) patches and emblems sold separately;
(iv) sewing equipment and supplies, including knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles; and
(v) sewing materials that become part of “clothing,” including buttons, fabric, lace, thread, yarn, and zippers.
(25) “Clothing accessories” or “equipment” means incidental items worn on the person or in conjunction with “clothing.” “Clothing accessories or equipment” are mutually exclusive of and may be taxed differently than apparel within the definition of “clothing,” “sport or recreational equipment,” and “protective equipment.” The following list contains examples and is not intended to be an all-inclusive list. “Clothing accessories or equipment” shall include:
(A) briefcases;
(B) cosmetics;
(C) hair notions, including barrettes, hair bows, and hair nets;
(D) handbags;
(E) handkerchiefs;
(F) jewelry;
(G) sunglasses, nonprescription;
(H) umbrellas;
(I) wallets;
(J) watches; and
(K) wigs and hairpieces.
(26) “Delivery charges” means charges by the seller of personal property or services for preparations and delivery to a location designated by the purchaser of personal property, or services, including transportation, shipping, postage, handling, crating, and packing. Direct mail charges that are separately stated on an invoice or similar billing document given to the purchaser are excluded from the definition of “delivery charges.”
(27) “Dietary supplement” means any product, other than tobacco, intended to supplement the diet that:
(A) contains one or more of the following dietary ingredients:
(i) a vitamin;
(ii) a mineral;
(iii) an herb or other botanical;
(iv) an amino acid;
(v) a dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredients described in subdivisions (i) through (v) of this subdivision (27)(A);
(B) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if not intended for ingestion in such form, is not represented as conventional food and is not represented for use as a sole item of a meal or of the diet; and
(C) is required to be labeled as a dietary supplement, identifiable by the “supplemental facts” box found on the label and as required pursuant to 21 C.F.R. § 101.36.
(28) “Direct mail” means printed material delivered or distributed by U.S. mail or other delivery service to a mass audience or addresses on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items is not billed directly to the recipients. “Direct mail” includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. “Direct mail” does not include multiple items of printed material delivered to a single address.
(29) “Drug” means a compound, substance, or preparation and any component of a compound, substance, or preparation, but not including food and food ingredients, dietary supplements, alcoholic beverages, or grooming and hygiene products, that is:
(A) recognized in the official U.S. Pharmacopeia, official Homeopathic Pharmacopeia of the United States, official National Formulary, or in supplements to any of them;
(B) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
(C) intended to affect the structure or any function of the body.
(30) “Durable medical equipment” means equipment, including repair and replacement parts for such equipment, but does not include “mobility-enhancing equipment,” which:
(A) can withstand repeated use;
(B) is primarily and customarily used to serve a medical purpose;
(C) generally is not useful to a person in the absence of illness or injury; and
(D) is not worn on the body.
(31) “Food and food ingredients” means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. “Food and food ingredients” does not include alcoholic beverages, tobacco, cannabis and cannabis products as defined under 7 V.S.A. § 831, or soft drinks.
(32) “Grooming and hygiene products” means soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and screens.
(33) “Lease or rental” means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.
(A) “Lease or rental” does not include:
(i) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments.
(ii) A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price does not exceed the greater of $100.00 or one percent of the total required payments.
(iii) Providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the equipment to perform as designed. For the purpose of this subdivision, an operator must do more than maintain, inspect, or set up the tangible personal property.
(B) “Lease or rental” does include agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1).
(34) “Mobility-enhancing equipment” means equipment, including repair and replacement parts of such equipment, but does not include “durable medical equipment,” which:
(A) is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate for use either in a home or a motor vehicle;
(B) is not generally used by persons with normal mobility; and
(C) does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
(35) “Prosthetic device” means a replacement, corrective, or supportive device, including repair and replacement parts for such device worn on or in the body to:
(A) artificially replace a missing portion of the body;
(B) prevent or correct a physical deformity or malfunction; or
(C) support a weak or deformed portion of the body.
(36) “Protective equipment” means items for human wear and designed as protection of the wearer against injury or disease or as protection against damage or injury of other persons or property but not suitable for general use. “Protective equipment” is mutually exclusive of and may be taxed differently from apparel within the definition of “clothing,” “clothing accessories or equipment,” and “sport or recreational equipment.” The following list contains examples and is not intended to be an all-inclusive list. “Protective equipment” shall include:
(A) breathing masks;
(B) clean room apparel and equipment;
(C) ear and hearing protectors;
(D) face shields;
(E) hardhats;
(F) helmets;
(G) paint or dust respirators;
(H) protective gloves;
(I) safety belts;
(J) safety glasses and goggles;
(K) tool belts; and
(L) welders’ gloves and masks.
(37) “Sport or recreational equipment” means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use. “Sport or recreational equipment” is mutually exclusive of and may be taxed differently than apparel within the definition of “clothing,” “clothing accessories or equipment,” and “protective equipment.” The following list contains examples and is not intended to be an all-inclusive list. “Sport or recreational equipment” shall include:
(A) ballet and tap shoes;
(B) cleated or spiked athletic shoes;
(C) gloves, including baseball, bowling, boxing, hockey, and golf;
(D) goggles;
(E) hand and elbow guards;
(F) life preservers and vests;
(G) mouth guards;
(H) roller and ice skates;
(I) shin guards;
(J) shoulder pads;
(K) ski boots;
(L) waders; and
(M) wetsuits and fins.
(38) “Paging service” means a telecommunications service that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages or sounds, or both.
(39) “Private communications service” means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels.
(40) “Value-added non-voice data service” means a service that otherwise meets the definition of telecommunications service in which computer processing applications are used to act on the form, content, code, or protocol of the information or data primarily for a purpose other than transmission, conveyance, or routing.
(41) “Coin-operated telephone service” means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate.
(42) “Ancillary services” means services that are associated with or incidental to the provision of telecommunications services, including detailed telecommunications billing, directory assistance, vertical service, and voice mail services.
(43) “Telecommunication nonrecurring charges” means an amount billed for the installation, connection, change, or initiation of telecommunications service received by the customer.
(44) “Directory assistance” means an ancillary service of providing telephone number information or address information, or both.
(45) “Transferred electronically” means obtained by the purchaser by means other than tangible storage media.
(46) “Specified digital products” means digital audiovisual works, digital audio works, digital books, or ringtones that are transferred electronically.
(A) “Digital audiovisual works” means a series of related images that, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.
(B) “Digital audio works” means works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones.
(C) “Digital books” means works that are generally recognized in the ordinary and usual sense as “books.”
(D) “Ringtones” means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication.
(47) “End user” means any person other than a person who received by contract a product transferred electronically for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or exhibition of the product, in whole or in part, to another person or persons.
(48) “Compost” means a stable humus-like material produced by the controlled biological decomposition of organic matter through active management but does not mean sewage, septage, or materials derived from sewage or septage.
(49) “Manipulated animal manure” means manure that is ground, pelletized, mechanically dried, or consists of separated solids.
(50) “Perlite” means a lightweight granular material made of volcanic material expanded by heat treatment for use in growing media.
(51) “Planting mix” means material that is:
(A) used in the production of plants; and
(B) made substantially from compost, peat moss, or coir and other ingredients that contribute to fertility and porosity, including perlite, vermiculite, and other similar materials.
(52) “Vermiculite” means a lightweight mica product expanded by heat treatment for use in growing media.
(53) “Soft drink” means nonalcoholic beverages that contain natural or artificial sweeteners. “Soft drinks” do not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than 50 percent of vegetable or fruit juice by volume.
(54) “Noncollecting vendor” means a vendor that sells tangible personal property or services to purchasers who are not exempt from the sales tax under this chapter, but that does not collect the Vermont sales tax.
(55) “Advanced wood boiler” means a boiler or furnace:
(A) installed as a primary central heating system;
(B) rated as high efficiency, meaning a higher heating value or gross calorific value of 85 percent or more;
(C) containing at least one week fuel storage, automated startup and shutdown, and fuel feed; and
(D) meeting other efficiency and air emissions standards established by the Department of Environmental Conservation.
(56) “Marketplace facilitator” means a person who contracts with marketplace sellers to facilitate for consideration, regardless of whether deducted as fees from the transaction, the sale of the marketplace seller’s products through a physical or electronic marketplace operated by the person and engages:
(A) directly or indirectly through one or more affiliated persons, in any of the following:
(i) transmitting or otherwise communicating the offer or acceptance between purchasers and marketplace sellers;
(ii) owning or operating the infrastructure, electronic or physical, or technology that brings purchasers and marketplace sellers together;
(iii) providing a virtual currency that purchasers are allowed or required to use to purchase products from marketplace sellers; or
(iv) software development or research and development activities related to any of the activities described in subdivision (B) of this subdivision (56), if such activities are directly related to a physical or electronic marketplace operated by the person or an affiliated person; and
(B) in any of the following activities with respect to the marketplace seller’s products:
(i) payment processing services;
(ii) fulfillment or storage services;
(iii) listing products for sale;
(iv) setting prices;
(v) branding sales as those of the marketplace facilitator;
(vi) order taking;
(vii) advertising or promotion; or
(viii) providing customer service or accepting or assisting with returns or exchanges.
(57) “Marketplace seller” means a person who has an agreement with a marketplace facilitator and makes retail sales of tangible personal property, taxable services, or digital goods through a marketplace owned, operated, or controlled by a marketplace facilitator, even if the person would not be required to collect and remit the sales tax had the sale not been made through the facilitated marketplace.
(58) “Marketplace” means the physical or electronic processes, systems, places, and infrastructure, including a website, through which a marketplace facilitator engages in any of the activities described in subdivision (56) of this section.
(59) “Affiliated person” means a person who, with respect to another person:
(A) has an ownership interest of more than five percent, whether direct or indirect, in the other person; or
(B) is related to the other person because a third person, or group of third persons who are affiliated persons with respect to each other, holds an ownership interest of more than five percent, whether direct or indirect, in the related persons.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1975, No. 243 (Adj. Sess.), § 7, eff. May 1, 1976; 1977, No. 86, §§ 1, 6; 1979, No. 105 (Adj. Sess.), § 39, eff. date, see note below; 1983, No. 212 (Adj. Sess.), § 6; 1987, No. 251 (Adj. Sess.), § 3; 1989, No. 119, § 16, eff. June 22, 1989; 1989, No. 210 (Adj. Sess.), § 131b; 1989, No. 222 (Adj. Sess.), § 24; 1991, No. 32, § 40, eff. June 1, 1991; 1991, No. 186 (Adj. Sess.), § 28, eff. May 7, 1992; 1995, No. 86 (Adj. Sess.), §§ 1, 2, eff. March 28, 1996; 1997, No. 60, §§ 76, 77, eff. Sept. 1, 1997; 1999, No. 49, § 62, eff. June 2, 1999; 2001, No. 144 (Adj. Sess.), §§ 30, 33, 34, 38, eff. June 21, 2002; 2003, No. 68, §§ 51-56, eff. date, see note below; 2003, No. 152 (Adj. Sess.), § 16, eff. date, see note below; 2005, No. 75, §§ 21, 24, eff. July 1, 2005; 2005, No. 207 (Adj. Sess.), § 13, eff. May 31, 2006; 2009, No. 1 (Sp. Sess.), § H.40; 2009, No. 160 (Adj. Sess.), § 38, eff. April 1, 2011; 2011, No. 160 (Adj. Sess.), § 39; 2011, No. 45, § 36a, eff. date, see note below; 2013, No. 174 (Adj. Sess.), §§ 41, 44; 2015, No. 57, § 91; 2015, No. 134 (Adj. Sess.), § 22; 2015, No. 134 (Adj. Sess.), §§ 25, 27, eff. July 1, 2017; 2017, No. 194 (Adj. Sess.), § 25; 2019, No. 46, § 3, eff. June 1, 2019; 2019, No. 164 (Adj. Sess.), § 15, eff. March 1, 2022; 2019, No. 175 (Adj. Sess.), § 9, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 592, eff. July 1, 2022; 2023, No. 6, § 390, eff. July 1, 2023; 2023, No. 144 (Adj. Sess.), § 13, eff. January 1, 2025; 2023, No. 183 (Adj. Sess.), § 3, eff. July 1, 2024.)
§ 9702 General powers of the Commissioner
(a) In addition to other powers granted in this chapter, the Commissioner may:
(1) extend, for cause shown by general rule or individual authorization, the time of filing any return for a period not exceeding three months on the terms and conditions as the Commissioner may require;
(2) prescribe methods for determining the amount of receipts, amusement charges, and for determining which of them are taxable and which are nontaxable;
(3) require any person required to collect tax to keep detailed records of all receipts, amusement charges, received, charged, or accrued, including those claimed to be nontaxable, and also of the nature, type, value, and amount of all purchases, sales, admissions, and other facts relevant in determining the amount of tax due and to furnish that information upon request to the Commissioner; and
(4) publish and maintain, as the Commissioner deems necessary, lists of specific items of tangible personal property that are found to be exempt from tax under section 9741 of this title.
(b) Any examination under oath conducted by the Commissioner may, in the Commissioner’s discretion, be reduced to writing, and willful false testimony under oath shall be deemed perjury and be punishable as such.
(c) [Repealed.]
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1975, No. 154 (Adj. Sess.), § 9, eff. date, see note below; 1983, No. 230 (Adj. Sess.), § 17(9); 1991, No. 186 (Adj. Sess.), § 29, eff. May 7, 1992; 2021, No. 105 (Adj. Sess.), § 593, eff. July 1, 2022.)
§ 9703 Liability for tax
(a) Every person required to collect any tax imposed by this chapter or to pay it to the Commissioner as required by this chapter shall be personally and individually liable for the amount of such tax, together with such interest and penalty as has accrued under the provisions of section 3202 of this title; and if the person is a corporation or other entity, the personal liability shall extend and be applicable to any officer or agent of the corporation or entity who, as an officer or agent of the same, is under a duty to collect the tax and transmit it to the Commissioner as required in this chapter.
(b) Any sum or sums collected in accordance with this chapter shall be deemed to be held by the person in trust for the State of Vermont. Such sums shall be recorded by such person in a ledger account so as to clearly indicate the amount of tax collected and that the same are the property of the State of Vermont.
(c) Such person shall have the same rights in collecting the tax from his or her purchaser or regarding nonpayment of the tax by the purchaser as if the tax were a part of the purchase price of the property, telecommunications service, or amusement charge, as the case may be, and payable at the same time; provided, however, if the person required to collect the tax has failed to remit any portion of the tax to the Commissioner, that the Commissioner shall be notified of any action or proceeding brought by such person to collect the tax and shall have the right to intervene in such action or proceeding.
(d) A person required to collect the tax may also refund or credit to the purchaser any tax erroneously, illegally, or unconstitutionally collected. No cause of action that may exist under State law shall accrue against the seller for the tax collected unless the purchaser has provided written notice to a seller, and the seller has had 60 days to respond. Such notice must contain such information necessary to determine the validity of the request. A seller who uses either a provider or a system, including a proprietary system, that is certified by the State and who has remitted to the State all taxes collected less any deductions, credits, or collected allowances shall be presumed to have a reasonable business practice.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1989, No. 222 (Adj. Sess.), § 23, eff. May 31, 1990; 1997, No. 50, § 32, eff. June 26, 1997; 1997, No. 60, § 78, eff. Sept. 1, 1997; 1999, No. 49, § 63, eff. June 2, 1999; 2003, No. 152 (Adj. Sess.), § 20, eff. date, see note below.)
§ 9704 Principal and agent; joint and several liability
When in the opinion of the Commissioner it is necessary for the efficient administration of this chapter to treat any salesman, representative, peddler, or canvasser as the agent of the vendor, distributor, supervisor, or employer under whom he or she operates, or from whom he or she obtains tangible personal property sold by him or her, or for whom he or she solicits business, the Commissioner may, in his or her discretion, treat such agent as the vendor jointly and severally responsible with the principal, distributor, supervisor, or employer for the collection and payment of the tax.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1991, No. 186 (Adj. Sess.), § 30, eff. May 7, 1992.)
§ 9705 Payment and return by purchaser
(a) Where any purchaser has failed to pay a tax imposed by this chapter to the person required to collect the same, then in addition to all other rights, obligations, and remedies provided, the tax shall be payable by the purchaser directly to the Commissioner, and it shall be the duty of the purchaser to file a return with the Commissioner and to pay the tax to him or her within 20 days of the date the tax was required to be paid.
(b) The Commissioner may, whenever he or she deems it necessary for the proper enforcement of this chapter, provide by rule that purchasers shall file returns and pay directly to the Commissioner any tax herein imposed, at such times as returns are required to be filed and paid by persons required to collect the tax.
(Added 1969, No. 144, § 1, eff. June 1, 1969.)
§ 9706 Statutory purposes
(a) The statutory purpose of the exemption for medical products in subdivision 9741(2) of this title is to lower the cost of medical products in order to support the health and welfare of Vermont residents.
(b) The statutory purpose of the exemption for agricultural inputs in subdivision 9741(3) of this title is to promote Vermont’s agricultural economy.
(c) The statutory purpose of the exemption for prescription drugs intended for animal use, durable medical equipment and prosthetics for animal use, and veterinary supplies in subdivision 9741(53) of this title is to lessen the cost of veterinary services in order to support the health and welfare of Vermont animals.
(d) The statutory purpose of the exemption for fuels for railroads and boats, to propel vehicles, and to power machinery used in the timber industry, in subdivision 9741(7) of this title is to avoid the taxation of fuels:
(1) for the types of transportation for which public expenditure on infrastructure is unnecessary;
(2) that are already subject to taxation under 23 V.S.A. chapter 27 or 28 in support of public expenditure on infrastructure or are specifically exempt from taxation under either of those chapters; and
(3) in order to promote Vermont’s commercial timber and forest products economy.
(e) The statutory purpose of the exemption for sales of food in subdivision 9741(13) of this title is to limit the cost of goods that are necessary for the health and welfare of all people in Vermont.
(f) The statutory purpose of the exemption for newspapers in subdivision 9741(15) of this title is to reduce the cost of access to news and community information for people in Vermont.
(g) The statutory purpose of the exemption for rentals of coin-operated washing facilities in subdivision 9741(19) of this title is to exclude from taxation facilities that are still operated with coins.
(h) The statutory purpose of the exemption for admission fees to nonprofit museums in subdivision 9741(20) of this title is to support the missions of certain nonprofit facilities and encourage higher visitation.
(i) The statutory purpose of the exemption for items sold to fire, ambulance, and rescue squads in subdivision 9741(21) of this title is to limit the tax on organizations charged with protecting the safety of the public.
(j) The statutory purpose of the exemption for funeral charges in subdivision 9741(22) of this title is to lessen the costs accumulated by the bereaved.
(k) The statutory purpose of the exemption for commercial, industrial, or agricultural research use of tangible personal property in subdivision 9741(24) of this title is to reduce financial barriers to research and innovation in the commercial, industrial, and agricultural industries.
(l) The statutory purpose of the exemption for agricultural machinery and equipment in subdivision 9741(25) of this title is to promote Vermont’s agricultural economy.
(m) The statutory purpose of the exemption for energy purchases for a residence in subdivision 9741(26) of this title is to limit the cost of goods that are necessary for the health and welfare of Vermonters.
(n) The statutory purpose of the exemption for energy purchases for farming in subdivision 9741(27) of this title is to promote Vermont’s agricultural economy.
(o) The statutory purpose of the exemption for sales of films to movie theaters in subdivision 9741(28) of this title is to avoid double taxation.
(p) The statutory purpose of the exemption for aircraft and depreciable parts for commercial and private use in subdivision 9741(29) of this title is to promote the growth of the aircraft maintenance industry in Vermont by lowering the cost of parts and equipment relative to other states with private airplane maintenance facilities.
(q) The statutory purpose of the exemption for railroad rolling stock and depreciable parts in subdivision 9741(30) of this title is to increase the use of rail for transport.
(r) The statutory purpose of the exemption for ferryboats and depreciable parts in subdivision 9741(31) of this title is to increase the use of ferries for transport.
(s) The statutory purpose of the exemption for sales of mobile homes and modular housing in subdivision 9741(32) of this title is to create equity between mobile and modular housing and traditional residential construction by providing an exemption for the estimated portion of the cost attributable to labor (versus materials).
(t) The statutory purpose of the exemption for the U.S. flag sold to or by exempt veterans’ organizations in subdivision 9741(33) of this title is to support veterans’ organizations in performing their traditional functions.
(u) The statutory purpose of the exemption for property transferred as an incidental part of a personal service transaction or transfer of intangible property rights in subdivision 9741(35) of this title is to forgo taxation when the cost of compliance exceeds the revenues.
(v) The statutory purpose of the exemption for advertising materials in subdivision 9741(36) of this title is to exclude tangible personal property from taxation if it is incidental to a larger service.
(w) The statutory purpose of the exemption for documents that record a professional service in subdivision 9741(37) of this title is to exclude tangible personal property from taxation if it is incidental to a service package.
(x) The statutory purpose of the tracked vehicles cap in subdivision 9741(38) of this title is to lessen the cost of capital investments.
(y) The statutory purpose of the exemption for sales of building materials in subdivision 9741(39) of this title is to provide incentives to restore and revitalize downtown districts.
(z) The statutory purpose of the exemption for third-party scrap construction materials in subdivision 9741(43) of this title is to promote the reuse and recycling of scrap construction materials.
(aa) The statutory purpose of the exemption for property incorporated in a railroad line in subdivision 9741(44) of this title is to increase the use of rail for transport by lowering the costs of materials.
(bb) The statutory purpose of the exemption for clothing and footwear in subdivision 9741(45) of this title is to limit the tax burden on the purchase of goods that are necessary for the health and welfare of all people in Vermont.
(cc) The statutory purpose of the exemptions for property incorporated into a net metering system, on-premise energy systems not connected to the electric distribution system, and solar hot water heating systems in subdivision 9741(46) of this title are to increase the deployment of solar technologies until the price of solar materials and installation decreases to the point it does not need State subsidization.
(dd) The statutory purpose of the exemption for purchases by and limited purchases from 501(c)(3) organizations in subdivision 9743(3) of this title is to reduce costs for certain nonprofit organizations in order to allow them to dedicate more of their financial resources to furthering the public-service missions of the organizations.
(ee) The statutory purpose of the exemption for building materials and supplies used in construction or repair of buildings by governmental bodies, 501(c)(3) organizations, or development corporations in subdivision 9743(4) of this title is to reduce the costs of construction for certain nonprofit organizations in order to allow them to dedicate more financial resources to their public-service missions.
(ff) The statutory purpose of the exemption for amusement charges for four events per year for 501(c)(4)-(13) and (19) organizations and political organizations in subdivision 9743(5) of this title is to reduce the costs for and encourage participation in a limited number of events organized by certain nonprofit organizations in order to allow these organizations to dedicate more financial resources to their public-service missions.
(gg) The statutory purpose of the exemption for amusement charges for events presented by 501(c)(3) organizations in subdivision 9743(7) of this title is to reduce the costs for and encourage participation in fundraising events organized by certain nonprofit organizations in order to allow these organizations to dedicate more financial resources to their public-service missions.
(hh) The statutory purpose of the reallocation of receipts from tax imposed on sales of construction materials in section 9819 of this title is to provide incentives to restore and revitalize certain properties in designated downtown districts.
(ii) The statutory purpose of the exemption for sales by licensed auctioneers in subdivision 9741(48) of this title is to extend the casual sale exemption to sales involving an auctioneer selling on behalf of a third party.
(jj) The statutory purpose of the exemptions for composting materials, compost, animal manure, manipulated animal manure, and planting mix in subdivisions 9741(49) and (50) of this title is to support the composting industry and to further the goals of 2012 Acts and Resolves No. 148.
(kk) The statutory purpose of the exemption for timber cutting, removal, and processing machinery in subdivision 9741(51) of this title is to promote Vermont’s commercial timber and forest products economy.
[Subsection (ll) repealed effective July 1, 2027.]
(ll) The statutory purpose of the exemption for advanced wood boilers in subdivision 9741(52) of this title is to promote the forest products industry in Vermont by encouraging the purchase of modern wood heating systems.
(mm) The statutory purpose of the exemption for cannabis and cannabis products in subdivision 9741(55) of this title is to lower the cost of medical products sold by any dispensary as authorized under 7 V.S.A. chapter 37 in order to support the health and welfare of Vermont residents.
(nn) The statutory purpose of the exemption for sales of recyclable paper carryout bags in subdivision 9741(54) of this title is to lessen the cost of recyclable paper carryout bags incidental to other retail purchases made by customers in Vermont.
(oo) The statutory purpose of the exemption for menstrual products in subdivision 9741(56) of this title is to limit the cost of goods that are necessary for the health and welfare of Vermonters.
(Added 2013, No. 200 (Adj. Sess.), § 6; amended 2013, No. 174 (Adj. Sess.), § 45; 2017, No. 75, § 18a; 2017, No. 77, § 10; 2017, No. 194 (Adj. Sess.), § 27; 2019, No. 164 (Adj. Sess.), § 17, eff. March 1, 2022; 2021, No. 20, § 270; 2021, No. 73, § 11, eff. July 1, 2020; 2021, No. 105 (Adj. Sess.), § 594, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 27a, eff. June 7, 2022.)
§ 9707 Registration
(a) Before commencing business or opening new places of business, every person required to collect any tax imposed by this chapter and every person purchasing tangible personal property for resale shall apply for a license in the manner prescribed by the Commissioner. The Commissioner shall issue, without charge, to each registrant a license empowering him or her to collect the tax. Each license shall state the place of business to which it is applicable. The license shall be prominently displayed in the place of business of the registrant. A registrant who has no regular place of doing business shall attach the license to his or her cart, stand, truck, or other merchandising device or carry it on his or her person. The licenses shall be nonassignable and nontransferable and shall be surrendered to the Commissioner immediately upon the registrant’s ceasing to do business at the place named.
(b) No later than one business day prior to an event at which taxable sales will be made by vendors who have no permanent place of business in the State, the promoter of the event shall provide to the Commissioner a list of vendors who are authorized by the promoter to sell taxable property at the event and the vendors’ current sales tax license numbers. No later than one week after the event, the promoter shall notify the Department in writing of any changes to the list of participating vendors and their sales tax license numbers. In this subsection, “event” means a specific time and location at which 25 or more vendors are authorized by the promoter to sell taxable items.
(c) Any person who is not otherwise required to collect any tax imposed by this chapter and who makes sales to persons within the State of tangible personal property or services, the use of which is subject to tax under this chapter, may register with the Commissioner who may, in his or her discretion and subject to such conditions as he or she may impose, issue to him or her a certificate of authority to collect the compensating use tax imposed by this chapter.
(Added 1969, No. 144, § 1, eff. April 23, 1969; amended 1991, No. 186 (Adj. Sess.), § 30a, eff. May 7, 1992; 2003, No. 68, § 57; 2003, No. 70 (Adj. Sess.), § 56, eff. March 1, 2004; 2005, No. 75, § 1, eff. June 23, 2005.)
§ 9708 Restrictions on advertising
(a) No person required to collect any tax imposed by this chapter shall advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax is not considered as an element in the price or amusement charge payable by customer, or that he or she will pay the tax, that the tax will not be separately charged and stated to the customer, or that the tax will be refunded to the customer.
(b) Upon written application duly made and proof duly presented to the satisfaction of the Commissioner showing that in his or her particular business it would be impractical for the vendor to separately charge the tax to the customer, the Commissioner may waive the application of the requirement herein as to such vendor.
(c) Whenever reference is made in placards or advertisements or in any other publications to any tax imposed by this chapter, the reference shall be in substantially the following form: “sales and use tax”; except that in any bill, receipt, statement, or other evidence or memorandum of sale or amusement charges issued or employed by a person required to collect tax, if the tax is required to be stated separately thereon as provided in section 9778 of this title, the word “tax” will suffice.
(Added 1969, No. 144, § 1, eff. June 1, 1969.)
§ 9709 Records to be kept
Every person required to collect any tax imposed by this chapter shall keep records of every sale or amusement charge and of all amounts paid, charged, or due thereon and of the tax payable thereon, in such form as the Commissioner may by regulation require. These records shall include a true copy of each sales slip, invoice, receipt, statement, or memorandum upon which section 9778 of this title requires that the tax be stated separately. The records shall be available for inspection and examination at any time upon demand by the Commissioner or his or her duly authorized agent or employee and shall be preserved for a period of three years, except that the Commissioner may consent to their destruction within that period or may require that they be kept longer.
(Added 1969, No. 144, § 1, eff. June 1, 1969.)
§ 9710 Fundraising events; charitable organizations
(a) No charitable organization shall enter into a contract with any person for the promotion of any event the proceeds of which will be shared by the charitable organization and the person promoting the event without first having obtained a letter from the Commissioner stating that the person is in good standing with the Department.
(b) A person is in “good standing” if the person is registered to collect or pay any tax imposed under this title and:
(1) has no taxes due and payable; or
(2) has a pending appeal with respect to any taxes due and payable; or
(3) is in compliance with a payment plan approved by the Commissioner.
(c) The Commissioner may require that the person file a bond in order to be in good standing. The provisions of section 3114 of this title shall apply to any bond required under this section.
(d) All amounts paid to the person promoting the event as compensation or reimbursement of expenses or commissions in connection with the promotion are subject to tax under subdivision 9771(4) of this title, unless specifically exempted.
(e) If a charitable organization enters into a contract in willful violation of subsection (a) of this section, the charitable organization shall be jointly liable for any taxes due and payable on the proceeds from the event.
(Added 1989, No. 232 (Adj. Sess.), § 3.)
§ 9711 Election by manufacturer or retailer
(a) As used in this section:
(1) “Manufacturer” is any person that is primarily engaged in the business of manufacturing tangible personal property for sale.
(2) “Retailer” is any person that is primarily engaged in the business of making retail sales of tangible personal property.
(b) A manufacturer or retailer that purchases material and supplies for use by them in erecting structures or otherwise improving, altering, or repairing real property shall be permitted to make an election that it will be treated as a retailer on the purchase of those materials and supplies, and such purchase will not be considered a retail sale under subdivision 9701(5) of this title.
(c) A manufacturer or retailer making an election under subsection (b) of this section shall charge sales tax to its customer on its materials and supplies or, in the case of a manufacturer, the finished manufactured products, when it uses those materials, supplies, or finished manufactured products in erecting structures or otherwise improving, altering, or repairing real property. The sales price for the purposes of calculating sales tax on materials, supplies, or finished manufactured products shall not be less than the manufacturer’s or retailer’s best customer price. The tax charged shall be separately stated on any invoice or receipt.
(d) An election made under subsection (b) of this section shall be binding on a manufacturer or retailer for a minimum of five years and shall remain in effect until the manufacturer or retailer files a withdrawal of election. No manufacturer or retailer shall be entitled to a refund on the basis of a withdrawal of an election.
(e) The provisions of this section shall not excuse any person from the obligation to collect tax on retail sales of tangible personal property not used in erecting structures or otherwise improving, altering, or repairing real property or from the obligation to pay sales tax or remit the use tax on tools, services, and other materials that are not used in erecting structures or otherwise improving, altering, or repairing real property.
(f) An election made under subsection (b) of this section shall be made on a form prescribed by the Commissioner and filed with the Department of Taxes at least 30 days prior to such election taking effect.
(Added 2015, No. 134 (Adj. Sess.), § 23.)
§ 9712 Notice requirements for noncollecting vendors
(a) Each noncollecting vendor making sales into Vermont shall notify Vermont purchasers that sales or use tax is due on nonexempt purchases made from the noncollecting vendor and that the State of Vermont requires the purchaser to pay the tax due on his or her tax return. Failure to provide the notice required by this subsection shall subject the noncollecting vendor to a penalty of $5.00 for each such failure, unless the noncollecting vendor shows reasonable cause for such failure.
(b) Each noncollecting vendor shall send notification to all Vermont purchasers on or before January 31 of each year showing the total amount paid by the purchaser for Vermont purchases made from the noncollecting vendor in the previous calendar year. The notice requirement in this subsection only applies to Vermont purchasers who have made $500.00 or more of purchases from the noncollecting vendor in the previous calendar year. The notice shall include any information required by the Commissioner by rule. The notification shall state that the State of Vermont requires a sales or use tax return to be filed and sales or use tax paid on nonexempt purchases made by the purchaser from the noncollecting vendor. The notification required by this subsection shall be sent separately to all Vermont purchasers by first-class mail or electronic mail and shall not be included with any other shipments. The notification shall include the words “Important Tax Document Enclosed” on the exterior of the mailing. The notification shall include the name of the noncollecting vendor. Failure to send the notification required by this subsection shall subject the noncollecting vendor to a penalty of $10.00 for each such failure, unless the noncollecting vendor shows reasonable cause for such failure.
(c) [Repealed.]
(d) The Commissioner is authorized to adopt rules or procedures or to create forms necessary to implement this section. Penalties imposed under this section shall be subject to the same administrative and appeal provisions of this chapter as if imposed under section 3202 of this title.
(Added 2015, No. 134 (Adj. Sess.), § 26, eff. July 1, 2017; amended 2017, No. 73, § 23; 2019, No. 175 (Adj. Sess.), § 10, eff. Oct. 8, 2020.)
§ 9713 Marketplace facilitators and marketplace sellers
(a) Marketplace facilitators shall collect and remit the sales tax on retail sales by marketplace sellers through a marketplace. Marketplace sellers shall collect and remit the sales tax on any retail sales within this State that are not made through a marketplace.
(b) A marketplace facilitator shall certify to its marketplace sellers that it will collect and remit the sales tax under this chapter on the sale of taxable items made through its marketplace. A marketplace seller that accepts a certification from a marketplace facilitator in good faith shall exclude sales made through the marketplace from its obligation as a vendor under this chapter.
(c) A marketplace facilitator is relieved from liability under this chapter if it can demonstrate to the Commissioner that its failure to collect the correct amount of tax was due to incorrect information given to the marketplace facilitator by the marketplace seller.
(Added 2019, No. 46, § 4, eff. June 1, 2019.)
Subchapter 2 Exemptions
§ 9741 Sales not covered
Retail sales and use of the following shall be exempt from the tax on retail sales imposed under section 9771 of this title and the use tax imposed under section 9773 of this title:
(1) Sales not within the taxing power of this State under the Constitution of the United States.
(2) Drugs intended for human use, durable medical equipment, mobility enhancing equipment, and prosthetic devices and supplies, including blood, blood plasma, insulin, and medical oxygen, used in diagnosis or treatment intended to alleviate human suffering or to correct, in whole or in part, human physical disabilities; provided, however, that toothbrushes, floss, and similar items of nominal value given by dentists and hygienists to patients during treatment are supplies used in treatment to alleviate human suffering or to correct, in whole or part, human physical disabilities and are exempt under this subdivision.
(3) Agriculture feeds, seed, plants, baler twine, silage bags, agricultural wrap, sheets of plastic for bunker covers, liming materials, breeding and other livestock, semen breeding fees, baby chicks, turkey poults, agriculture chemicals other than pesticides, and bedding; and fertilizers and pesticides for use and consumption directly in the production for sale of tangible personal property on farms, including stock, dairy, poultry, fruit and truck farms, orchards, nurseries, or in greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities for sale.
(4) Casual sales.
(5), (6) [Repealed.]
(7)(A) Except as provided in subdivision (B) of this subdivision (7), sales of:
(i) motor fuels taxed or exempted under 23 V.S.A. chapter 28;
(ii) dyed diesel used to power machinery described in subdivision (51) of this section; and
(iii) dyed diesel used to propel a vehicle off the highways of the State.
(B) Aviation jet fuel and natural gas used to propel a motor vehicle shall be taxed under this chapter with the proceeds to be allocated to the Transportation Fund in accordance with 19 V.S.A. § 11.
(8) [Repealed.]
(9) Rents for rooms taxed under chapter 225 of this title and the transactions exempted therefrom.
(10) Sales of meals or alcoholic beverages taxed or exempted under chapter 225 of this title, except alcoholic beverages under subdivision 9202(10)(D)(v) or (11)(B)(i) of this title, or any alcoholic beverages served for immediate consumption.
(11) [Repealed.]
(12) Motor vehicle purchases and use taxed under chapter 219 of this title and the transactions exempted therefrom that are listed in section 8911 of this title. Provided, however, that notwithstanding subdivision 8911(5) of this title, construction, earthmoving, logging, and motorized equipment that has not been registered as a motor vehicle is subject to tax under this chapter, and further provided that power take off and other auxiliary equipment on motor vehicles, whether attached prior to or subsequent to registration, is not exempt under this section. Motor vehicle parts purchased by a dealer registered under the provisions of 23 V.S.A. §§ 451-468 shall be exempt from the tax under this chapter when used to recondition a used motor vehicle owned by the dealer in its inventory for resale.
(13) Sales of food and food ingredients sold for human consumption off the premises where sold, and sales of eligible foods that are purchased with benefits under the Supplemental Nutrition Assistance Program or any successor program, consistent with federal law.
(14)(A) Tangible personal property that becomes an ingredient or component part of or is consumed or destroyed or loses its identity in the manufacture of tangible personal property for sale.
(B) Machinery and equipment used in or consumed as an integral or essential part of an integrated production operation by a manufacturing or processing plant or facility engaged in the manufacture of tangible personal property for sale, or in the manufacture of other machinery or equipment, parts, or supplies for use in the manufacturing process. For the purposes of this subdivision (14), “manufacture” includes extraction of mineral deposits, the entire printing and bookmaking process, and the entire publication process.
(C) As used in this subdivision (14):
(i) “Integrated production operation” means an integrated series of operations at a manufacturing or processing plant or facility to process, transform, or convert tangible personal property by physical, chemical, or other means into a different form, composition, or character from that in which it originally existed. Integrated production operations begin when raw material is first changed physically, chemically, or otherwise in form, composition, or character, including being removed from storage or introduced for this manipulation, and end when the product is placed in initial packaging and shall include production line operations, including initial packaging operations, and waste, pollution, and environmental control operations.
(ii) “Manufacturing or processing business” means a business that utilizes an integrated production operation to manufacture, process, fabricate, or finish items for wholesale and retail distribution as part of what is commonly regarded by the general public as an industrial manufacturing or processing operation or an agricultural commodity processing operation. “Manufacturing or processing business” does not include nonindustrial businesses whose operations are primarily retail and that produce or process tangible personal property as an incidental part of conducting the retail business, such as retailers who bake, cook, or prepare food products in the regular course of their retail trade; the assembling of product by retailers for sale; grocery stores, meat lockers, and meat markets that butcher or dress livestock or poultry in the regular course of their retail trade; contractors who alter, service, repair, or improve real property; and retail businesses that clean, service, or refurbish and repair tangible personal property for its owner. The examples provided in this subdivision (ii) shall not be construed as exclusive.
(iii) “Manufacturing or processing plant or facility” means a single, fixed location owned or controlled by a manufacturing or processing business that consists of one or more structures or buildings in a contiguous area where integrated production operations are conducted to manufacture or process tangible personal property to be ultimately sold at retail. A business may operate one or more manufacturing or processing plants or facilities at different locations to manufacture or process a single product of tangible personal property to be ultimately sold at retail.
(iv) “Primary” or “primarily” means more than 50 percent of the time.
(v) “Production line” means the assemblage of machinery and equipment at a manufacturing or processing plant or facility where the actual transformation or processing of tangible personal property occurs.
(D) For the purposes of this subdivision (14), machinery and equipment shall be deemed to be used as an integral or essential part of an integrated production operation when used during the integrated production operation:
(i) to transport, convey, handle, or store the property undergoing manufacturing or processing at any point from the beginning of the production line until it is placed into initial packaging;
(ii) to act upon, effect, promote, or otherwise facilitate a physical change to the property undergoing manufacturing or processing;
(iii) to guide, control, or direct the movement of property undergoing manufacturing or processing;
(iv) to test or measure materials, the property undergoing manufacturing or processing, or the finished product during the manufacturer’s integrated production operations;
(v) to plan, manage, control, or record the receipt and flow of property while undergoing manufacturing or processing;
(vi) to lubricate, control the operating of, or otherwise enable the functioning of other production machinery and equipment and the continuation of production operations;
(vii) to transmit or transport electricity, gas, water, steam, or similar substances used in production operations from the point of generation, if produced by the manufacturer or processor at the plant site, to that manufacturer’s production operation or, if purchased or delivered from off–site, from the point where the substance enters the site of the plant or facility to that manufacturer’s production operations;
(viii) to package the property being manufactured or processed in any container or wrapping in which such property is normally sold or transported, even if the machinery operates after the point of initial packaging;
(ix) to cool, heat, filter, refine, or otherwise treat water, steam, acid, oil, solvents, or other substances that are used in production operations;
(x) to provide and control an environment required to maintain certain levels of air quality, humidity, or temperature in special and limited areas of the plant or facility where such regulation of temperature or humidity is part of and essential to the production process;
(xi) to treat, transport, or store waste or other byproducts of production operations at the plant or facility and to clean manufacturing machinery and equipment;
(xii) to control pollution at the plant or facility where the pollution is produced by the manufacturing or processing operation; or
(xiii) to inspect or conduct quality control on the product, even if the inspection or quality control machinery operates after the point of initial packaging.
(E) “Machinery and equipment used as an integral or essential part of an integrated production operation” does not mean:
(i) machinery and equipment used for nonproduction purposes, including machinery and equipment used for plant security, fire prevention, first aid, accounting, administration, record keeping, advertising, marketing, sales or other related activities, plant cleaning, plant communications, and employee work scheduling;
(ii) machinery, equipment, and tools used primarily in maintaining and repairing any type of machinery and equipment or the building and plant;
(iii) transportation, transmission, and distribution equipment not primarily used in a production, warehousing, or material handling operation at the plant or facility, including the means of conveyance of natural gas, electricity, oil, or water, and related equipment, located outside the plant or facility;
(iv) office machines and equipment, including computers and related peripheral equipment, not used directly and primarily to control or measure the manufacturing process;
(v) furniture and other furnishings;
(vi) buildings, other than exempt machinery and equipment that is permanently affixed to or becomes a physical part of the building, and any other part of real estate that is not otherwise exempt;
(vii) building fixtures that are not integral to the manufacturing operation, such as utility systems for heating, ventilation, air conditioning, communications, plumbing, or electrical;
(viii) machinery and equipment used for general plant heating, cooling, and lighting; or
(ix) motor vehicles that are registered for operation on public highways.
(F) Subdivisions (D) and (E) of this subdivision (14) shall not be construed as exclusive lists of the machinery and equipment that qualify or do not qualify as an integral or essential part of an integrated production operation. When machinery or equipment is used as an integral or essential part of production operations part of the time and for nonproduction purposes at other times, the primary use of the machinery or equipment shall determine the qualification of the machinery or equipment for the exemption.
(15) Sales of newspapers and sales of tangible personal property that becomes an ingredient or component part of, or is consumed or destroyed or loses its identity in the manufacture of newspapers, whether sold or distributed without charge. A publication shall not be considered a newspaper unless, on an average for the taxable year, at least 10 percent of its printed material consists of news of general or community interest, community notices, editorial comment, or articles by different authors.
(16) Materials, containers, labels, sacks, cans, boxes, drums, or bags and other packing, packaging, or shipping materials for use in packing, packaging, or shipping tangible personal property by a manufacturer or distributor.
(17) Rentals of furniture in furnished apartments or houses for residential use.
(18) Fees and charges paid for admission to or use of federal, State, or municipal recreation areas and facilities, including swimming pools.
(19) Rentals of coin-operated washing facilities for individual or personal use, including car washes and laundries.
(20) Fees and charges for admission to nonprofit museums.
(21) Sales of equipment, supplies, and building materials made directly to volunteer fire departments, volunteer ambulance companies, or volunteer rescue squads for official use by the volunteer organizations.
(22) Funeral charges, including sales of tangible personal property such as caskets, vaults, boxes, clothing, crematory urns, and other such funeral furnishings as are necessary incidents of the funeral, but excluding the sale of flowers and other items sold as an accommodation rather than as an integral part of the funeral service or preparation therefor.
(23) [Repealed.]
(24) Tangible personal property purchased for use or consumption directly and exclusively, except for isolated or occasional uses, in commercial, industrial, or agricultural research or development in the experimental or laboratory sense. It shall be rebuttably presumed that uses are not isolated or occasional if they total more than four percent of the time the machinery or equipment is operated. Such research or development shall not be deemed to include the ordinary testing or inspection of materials or products for quality control, efficiency surveys, management studies, consumer surveys, advertising, promotions, or research in connection with literary, historical, or similar projects.
(25) Sales of agricultural machinery and equipment for use and consumption predominately in the production for sale of tangible personal property on farms, including stock, dairy, poultry, fruit, and truck farms, orchards, nurseries, or in greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities for sale. As used in this subdivision, the term “predominately” means 75 percent or more of the time the machinery or equipment is in use.
(26) Sales of electricity, oil, gas, and other fuels used in a residence for all domestic use, including heating, but not including fuel sold at retail in free-standing containers, or sold as part of a transaction where a free-standing container is exchanged without a separate charge. Wood pellets sold to an individual on the vendor’s premises or delivered to an individual’s residence shall be presumed to be purchased for residential use and shall be exempt sales under this subdivision unless the vendor knew or ought reasonably to have known that the wood pellets were not purchased for residential use. A certificate of exemption shall not be required for exempt retail sales of wood pellets to an individual. The Commissioner shall by rule determine that portion of the sales attributable to domestic use where fuels are used for purposes in addition to domestic use.
(27) Sales of electricity, oil, gas, and other fuels used directly and exclusively for farming purposes.
(28) Sales of films where the films are acquired exclusively for the purpose of charging admission to see such films and where such admission is subject to the tax imposed by subdivision 9771(4) of this title.
(29) Aircraft, but not drones, sold to a person that holds itself out to the general public as engaging in air commerce, for use primarily in the carriage of persons or property for compensation or hire; and parts, machinery, and equipment to be installed in any aircraft, other than drones.
(30) Railroad rolling stock, including depreciable parts, machinery, and equipment to be installed as a capital asset in such rolling stock, sold for use primarily in the carriage of persons or property. As used in this section, “railroad rolling stock” shall include locomotives, cabooses, boxcars, tank cars, flatbed cars, maintenance of way equipment, and all other wheeled vehicles used on rails or tracks.
(31) Ferryboats, including depreciable parts, machinery, and equipment to be installed as a capital asset in such ferryboat, sold to a person who holds himself or herself out to the general public as engaging in water commerce, for use primarily in the carriage of persons or property for compensation or hire.
(32) Forty percent of the receipts from sales of mobile homes, as defined in 9 V.S.A. § 2601, and modular housing, when they are sold as tangible personal property.
(33) Sales of the flag of the United States to and by veterans’ organizations exempt under 26 U.S.C. § 501(c)(19).
(34) Sales of electricity, oil, gas, and other fuels used directly or indirectly in manufacturing tangible personal property for sale.
(35) Charges made when tangible property is transferred as part of a personal services transaction or a transfer of intangible property rights, as long as the focus of the transaction is the provision of services or the transfer of intangible property rights and not the transfer of tangible personal property; no separate charge is made for the transfer of tangible personal property; and the value of the tangible personal property transferred, including the value of services added to the tangible personal property transferred, is less than 10 percent of the total charge for the transaction. When the focus of the transaction is the transfer of tangible personal property, all receipts from the sale are taxable, including receipts from separately stated charges for services to produce the property, unless the receipts are otherwise exempt under this chapter.
(36) Charges by an advertising agency for the transfer of title or possession of or right to use advertising materials when the transfer is made in conjunction with the delivery of advertising services. This exemption does not extend to charges by any business other than an advertising agency or to charges by any person for printing, imprinting, copying, or reproducing advertising materials.
(37) Charges for documents, the sole purpose of which is to record or memorialize professional services rendered, such as charges for briefs, memoranda, agreements, and wills prepared by lawyers; charges for tax returns and reports produced by accountants; charges for drawings produced by architects; or charges for insurance policies.
(38) Tax on the sale or use of a tracked vehicle shall not exceed $1,100.00 adjusted as follows: as of July 1 of each even-numbered year, the Commissioner shall adjust the most recent unrounded cap amount by the cumulative inflation index for the prior two calendar years under the consumer price index for urban consumer all items, and round that amount to the nearest $10.00, and shall publish this rounded amount as the new cap.
(39) Sales of building materials within any three consecutive years in excess of $1,000,000.00 in purchase value used in the construction, renovation, or expansion of facilities that are used exclusively, except for isolated or occasional uses, for the manufacture of tangible personal property for sale.
(40) [Repealed.]
(41) Charges for wholesale transactions between telecommunications service providers where the service is a component part of a service provided to an end user. This exemption includes network access charges and interconnection charges paid to a local exchange carrier.
(42) [Repealed.]
(43) Sales of scrap materials generated in the course of construction or demolition and diverted from waste disposal at the construction or demolition job site, provided that the sale is not by the generator and is by a person who received the materials from the generator with no payment.
(44) Tangible personal property to be incorporated in a rail line in connection with the construction, maintenance, repair, improvement, or reconstruction of the rail line.
(45) Clothing, but clothing shall not include clothing accessories or equipment, protective equipment, or sport or recreational equipment.
(46) Tangible personal property to be incorporated into:
(A) a net metering system as defined in 30 V.S.A. § 8002;
(B) a home or business energy system on a premises not connected to the electric distribution system of a utility regulated under Title 30 and that otherwise meets the requirements of 30 V.S.A. § 8002(16)(A), (C), and (D); or
(C) a hot water heating system that converts solar energy into thermal energy used to heat water, but limited to that property directly necessary for and used to capture, convert, or store solar energy for this purpose.
(47) [Repealed.]
(48) Sales of tangible personal property sold by an auctioneer licensed under 26 V.S.A. chapter 89, including any buyer’s premium charged by the auctioneer, that are conducted on the premises of the owner of the property, provided that no other person’s property is sold on the auction premises and provided that the property was obtained by the owner, through purchase or otherwise, for his or her own use.
(49) Clean high carbon bulking agents, as that term is used in the Agency of Natural Resources’ Solid Waste Management Rules, used for commercial or on-farm composting, and food residuals used for commercial or on-farm composting or on-farm energy production.
(50) Compost, animal manure, manipulated animal manure, and planting mix when any of these items are sold in bulk. As used in this section, the term “sold in bulk” shall mean sold in a form that is not prepackaged, or sold in a packaged form in volumes greater than one cubic yard.
(51) The following machinery, including repair parts, used for timber cutting, timber removal, and processing of timber or other solid wood forest products intended to be sold ultimately at retail: skidders with grapple and cable; feller bunchers; cut-to-length processors; forwarders; delimbers; loader slashers; log loaders; whole-tree chippers; stationary screening systems; firewood processors, elevators, and screens; and when sold for use on any machinery listed under this subdivision, traction enhancement accessories, tire chains, track systems, and winch cables. The Department of Taxes shall publish guidance relating to the application of this exemption.
[Subdivision (52) repealed effective July 1, 2027.]
(52) Advanced wood boilers, as defined in section 9701 of this title.
(53) Prescription drugs intended for animal use, and durable medical equipment and prosthetics intended for animal use, and veterinary supplies intended for animal use. As used in this subdivision, “prescription drugs intended for animal use” means a drug dispensed only by or upon the lawful written order of a licensed veterinarian, and “veterinary supplies” means tangible personal property therapeutic in nature, not normally used absent illness or injury, and not intended for repeated usage.
(54) Sales of recyclable paper carryout bags to customers pursuant to 10 V.S.A. § 6693, provided that sales of recyclable paper carryout bags to stores and food service establishments as defined under 10 V.S.A. § 6691 shall not be exempt under this subdivision and shall not be considered sales for resale under subdivision 9701(5) of this title.
(55) Cannabis and cannabis products, as defined under 7 V.S.A. § 831, sold by any dispensary as authorized under 7 V.S.A. chapter 37 or any retailer licensed with a medical-use endorsement as authorized under 7 V.S.A. chapter 33, provided that the cannabis or cannabis product is sold only to registered qualifying patients directly or through their registered caregivers. A retailer that sells cannabis or cannabis products that are exempt from tax pursuant to this subdivision shall retain information pertaining to each exempt transaction as required by the Commissioner of Taxes.
(56) Menstrual products. As used in this subdivision, “menstrual products” means tampons, panty liners, menstrual cups, menstrual napkins, and other similar tangible personal property designed for use in connection with the human menstrual cycle but does not include “grooming and hygiene products” as defined in this chapter.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1969, No. 263 (Adj. Sess.), § 2, eff. April 6, 1970; 1973, No. 270 (Adj. Sess.), §§ 3-5; 1975, No. 156 (Adj. Sess.), § 2; 1975, No. 243 (Adj. Sess.), § 10(c), eff. May 1, 1976; 1977, No. 62, §§ 1, 2; 1977, No. 86, §§ 2-5; 1977, No. 135 (Adj. Sess.); 1979, No. 105 (Adj. Sess.) § 40; 1981, No. 13, eff. date, see note below; 1981, No. 87, § 21; 1981, No. 172 (Adj. Sess.), § 11d, eff. April 20, 1982; 1985, No. 88, § 1, eff. June 1, 1985; 1985, No. 135 (Adj. Sess.), §§ 1, 2, eff. April 24, 1986; 1985, No. 168 (Adj. Sess.), eff. May 7, 1986; 1985, No. 207 (Adj. Sess.), § 2; 1987, No. 82, § 10, eff. June 9, 1987; 1987, No. 113, § 2, eff. June 26, 1987; 1987, No. 184 (Adj. Sess.), eff. April 1, 1988; 1989, No. 32; 1989, No. 133 (Adj. Sess.), § 1, eff. April 5, 1990; 1989, No. 174 (Adj. Sess.); 1991, No. 32, §§ 13, 27, eff. June 1, 1991; 1991, No. 148 (Adj. Sess.), § 1, eff. May 4, 1992; 1993, No. 89, §§ 14c, 14d, eff. July 1, 1996; 1995, No. 29, § 27, eff. July 1, 1996; 1995, No. 86 (Adj. Sess.), § 3, eff. March 28, 1996; 1997, No. 50, § 45, eff. June 26, 1997; 1997, No. 60, § 72a, eff. June 26, 1997; 1997, No. 60, § 79; 1997, No. 71 (Adj. Sess.), §§ 50-52; 1997, No. 76 (Adj. Sess.), § 1, eff. March 30, 1998; 1997, No. 156 (Adj. Sess.), § 21, eff. April 29, 1998; 1999, No. 49, §§ 34, 34a, 64, 74, 92-94, eff. June 2, 1999; 2001, No. 54, § 1; 2001, No. 138 (Adj. Sess.), § 5, eff. June 21, 2002; 2001, No. 140 (Adj. Sess.), § 35, eff. June 21, 2002; 2001, No. 144 (Adj. Sess.), § 12, eff. January 1, 2003; 2001, No. 145 (Adj. Sess.), § 6, eff. June 21, 2002; 2003, No. 68, § 58, eff. date, see note below; 2003, No. 121 (Adj. Sess.), § 88, eff. June 8, 2004; 2003, No. 152 (Adj. Sess.), § 17, eff. date, see note below; 2005, No. 75, §§ 2, 2b, 22; 2005, No. 184 (Adj. Sess.), § 4; 2007, No. 81, § 7, eff. June 11, 2007, § 7a, eff. July 1, 2011; 2007, No. 164 (Adj. Sess.), § 34; 2011, No. 45, § 36g; 2011, No. 143 (Adj. Sess.), § 49, eff. May 24, 2011; 2011, No. 143 (Adj. Sess.), § 54, eff. Jan. 1, 2012; 2011, No. 143 (Adj. Sess.), § 54a; 2011, No. 153 (Adj. Sess.), § 42, eff. July 1, 2013; 2013, No. 73, § 45, eff. June 5, 2013; 2013, No. 99 (Adj. Sess.), § 9, eff. Jan. 1, 2017; 2013, No. 174 (Adj. Sess.), §§ 36, 46, 49; 2013, No. 200 (Adj. Sess.), § 22; 2015, No. 57, § 92; 2015, No. 100 (Adj. Sess.), § 1; 2015, No. 144 (Adj. Sess.), § 12; 2015, No. 157 (Adj. Sess.), § H.9, eff. Jan. 1, 2017; 2017, No. 73, § 19, eff. Sept. 1, 2017; 2017, No. 75, § 17; 2017, No. 77, § 9; 2017, No. 194 (Adj. Sess.), § 26; 2019, No. 29, § 1, eff. May 23, 2019; 2019, No. 46, § 5; 2019, No. 51, § 39, eff. June 10, 2019; 2019, No. 150 (Adj. Sess.), § 6, eff. July 13, 2020; 2019, No. 164 (Adj. Sess.), § 16, eff. March 1, 2022; 2021, No. 54, § 21, eff. June 3, 2021; 2021, No. 73, § 11a; 2021, No. 179 (Adj. Sess.), § 27, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 27b, eff. June 7, 2022; 2023, No. 72, § 3, eff. June 19, 2023; 2023, No. 166 (Adj. Sess.), § 14, eff. June 10, 2024.)
§ 9742 Transactions not covered
This chapter shall not cover the following transactions:
(1) [Repealed.]
(2) the transfer of tangible personal property to a corporation solely in consideration for the issuance of its stock, pursuant to a merger or consolidation effected under the laws of Vermont or any other jurisdiction;
(3) the distribution of property by a corporation to its stockholders as a liquidating dividend;
(4) the distribution of property by a partnership to its partners in whole or partial liquidation;
(5) the transfer of property to a corporation upon its organization in consideration for the issuance of its stock;
(6) the contribution of property to a partnership in consideration for a partnership interest therein;
(7) the sale of tangible personal property where the purpose of the vendee is to hold the thing transferred as security for the performance of an obligation of the vendor;
(8) the sawing of lumber owned by the person requesting the sawing or his agent is not a “fabrication” within the meaning of subdivision 9771(3) of this title;
(9) the use of waste wood for fuel by a manufacturer in its business, where the waste wood resulted from the manufacturing operations of the manufacturer, and where such wood was purchased by the manufacturer under a claim of the manufacturing exemption provided by subdivision 9741(14) of this title or was grown by such manufacturer; and the giving away without charge of such waste wood by such manufacturer; and
(10) the sale of telecommunications service to an affiliate of the telecommunications provider.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1971, No. 73, § 50, eff. April 16, 1971; 1977, No. 86, § 7; 1983, No. 111 (Adj. Sess.), eff. Feb. 24, 1984; 1997, No. 60, § 80, eff. Sept. 1, 1997.)
§ 9743 Organizations not covered
Any sale, service, or admission to a place of entertainment charged by or to any of the following or any use by any of the following are not subject to the sales and use taxes imposed under this chapter:
(1) The State of Vermont, or any of its agencies, instrumentalities, public authorities, public corporations, including a public corporation created pursuant to agreement or compact with another state, or political subdivisions when it is the purchaser, user, or consumer, or when it is a vendor of services or property of a kind not ordinarily sold by private persons, or when it charges for admission to any entertainment, except that sales of alcoholic beverages shall not be exempt from sales tax.
(2) The United States of America, any of its agencies and instrumentalities, insofar as it is immune from taxation when it is the purchaser, user, or consumer, or when it sells services or property of a kind not ordinarily sold by private persons.
(3) Organizations that qualify for exempt status under the provisions of 26 U.S.C. § 501(c)(3) and agricultural organizations qualified for exempt status under 26 U.S.C. § 501(c)(5), when presenting agricultural fairs, field days, or festivals, as amended, shall be exempt as follows:
(A) The organization first shall have obtained a certificate from the Commissioner stating that it is entitled to the exemption. The Commissioner shall issue a certificate to any organization that has received federal certification of Section 501(c)(3) status and may issue a certificate to any other qualified organization.
(B) Charges for admission to a place of entertainment by and sales to or uses by such organizations shall be exempt from the tax under this chapter.
(C) Sales other than entertainment charges by qualified Section 501(c)(3) organizations shall be exempt if the organization’s gross sales of tangible personal property and services that would be subject to tax under this chapter but for this subdivision, in the prior year, did not exceed $20,000.00.
(D) Sales of fresh cut flowers only, by a qualified Section 501(c)(3) organization, during a single annual sales event not to exceed seven days, shall be exempt.
(4)(A) Sales of building materials and supplies to be used in the construction, reconstruction, alteration, remodeling, or repair of:
(i) any building structure, or other public works owned by or held in trust for the benefit of any governmental body or agency mentioned in subdivisions (1) and (2) of this section and used exclusively for public purposes;
(ii) any building or structure owned by or held in trust for the benefit of any organization described in subdivision (3) and used exclusively for the purposes upon which its exempt status is based; and
(iii) any building or structure owned by any “local development corporation” as defined in 10 V.S.A. § 212(10) and used exclusively for the purposes authorized in 10 V.S.A. chapter 12; provided, however, that the governmental body or agency, the organization, or the development corporation has first obtained a certificate from the Commissioner stating that it is entitled to the exemption, and the vendor keeps a record of the sales price of each separate sale, the name of the purchaser, the date of each separate sale, and the number of the certificate.
(B) As used in this subdivision, the words “building materials and supplies” include all materials and supplies consumed, employed, or expended in the construction, reconstruction, alteration, remodeling, or repair of any building, structure, or other public work, as well as the materials and supplies physically incorporated therein.
(5) Organizations that qualify for exempt status under the provisions of 26 U.S.C. § 501(c)(4)-(13) and (19), and political organizations as defined in 26 U.S.C. § 527(e), as the same may be amended or redesignated, other than organizations that qualify for exempt status under the provisions of 26 U.S.C. § 501(c)(4) whose bylaws provide for the contribution of their net income to organizations that qualify for exempt status under the provisions of 26 U.S.C. § 501(c)(3), shall not be exempt from taxation of the sale or use of tangible personal property as defined in section 9701 of this title, but shall be exempt from the sales and use tax upon entertainment charges as defined in section 9701 in the case of not more than four special events (not including usual or continuing activities of the organization) held in any calendar year, and that, in the aggregate, are not held on more than four days in such year, and that are open to the general public. In case the organization holds more than four such special events a year, or such events are held on more than four days in a year, the organization may elect the events or the days to which the exemption provided by this subdivision shall apply, by giving prior notice to the Commissioner. This subdivision shall not apply to agricultural organizations governed by subdivision (3) of this section.
(6) A school or municipality; provided, however, that a vendor who is required to register with the Commissioner pursuant to section 9707 of this title who receives a share of the proceeds from the sale of property at a school or municipal premises shall collect and remit tax on the total sale price of such sales regardless of who is the direct recipient of the payment. As used in this subdivision, “school” means a school as defined in 16 V.S.A. § 11(7) and (8), and “municipality” means a city, town, unorganized town, village, grant, or gore.
(7) An exemption under subdivision (3) of this section shall not be available for entertainment charges for admission to a live performance by an organization whose gross sales of entertainment charges by or on behalf of an organization for admission to live performances in the prior calendar year exceeded $100,000.00.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1971, No. 73, § 40, eff. April 16, 1971; 1973, No. 165 (Adj. Sess.), eff. March 20, 1974; 1983, No. 62, eff. April 26, 1983; 1983, No. 206 (Adj. Sess.), § 1, eff. April 26, 1984; 1989, No. 222 (Adj. Sess.), § 31, eff. May 31, 1990; 1995, No. 28; 1995, No. 132 (Adj. Sess.), § 1, eff. April 30, 1996; 1997, No. 50, § 35, eff. June 26, 1997; 2009, No. 1 (Sp. Sess.), § H.44; 2009, No. 160 (Adj. Sess.), § 41; 2011, No. 45, § 36; 2021, No. 105 (Adj. Sess.), § 595, eff. July 1, 2022.)
§ 9744 Property exempt from use tax
(a) The following uses of property are not subject to the compensating use tax imposed under this chapter:
(1) property used by the purchaser in this State prior to June 1, 1969;
(2) property purchased and used outside the State by the user while a nonresident of this State, except in the case of tangible personal property that the user, in the performance of a contract, incorporates into real property located in the State;
(3) property or services to the extent that a retail sales or use tax was legally due and paid thereon, without any right to a refund or credit thereof, to any other state or jurisdiction within any other state but only when it is shown that the other state or jurisdiction allows a corresponding exemption with respect to the sale or use of tangible personal property or services upon which such a sales tax or compensating use tax was paid to this State; to the extent that the tax imposed by this chapter is at a higher rate than the rate of tax in the first taxing jurisdiction, this exemption shall be inapplicable and the tax imposed by section 9773 of this title shall apply to the extent of the difference in the rates;
(4) property withdrawn from inventory for the purpose of donating such property to an entity described in subdivision 9743(1), (2), or (3) of this title; and
(5) building materials and supplies stored in this State for 180 days or less, if purchased by a contractor for the construction, reconstruction, alteration, remodeling, or repair of real property in a state which has no sales or use tax;
(b) A person while engaged in any manner in carrying on in this State any employment, trade, business, or profession, not entirely in interstate or foreign commerce, shall not be deemed a nonresident with respect to the use in this State of property in that employment, trade, business, or profession.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1985, No. 88, § 2, eff. May 24, 1985; 1987, No. 251 (Adj. Sess.), § 4; 1995, No. 186 (Adj. Sess.), § 36, eff. May 22, 1996; 2001, No. 144 (Adj. Sess.), § 13, eff. June 21, 2002; 2013, No. 73, § 46, eff. June 5, 2013.)
§ 9745 Certificate or affidavit of exemption; direct payment permit
(a) Certificate or affidavit of exemption. The Commissioner may require that a vendor obtain an exemption certificate, which may be an electronic filing, with respect to the following sales: sales for resale, sales to organizations that are exempt under section 9743 of this title, and sales that qualify for a use-based exemption under section 9741 of this title. Acceptance of an exemption certificate containing such information as the Commissioner may prescribe shall satisfy the vendor’s burden under subsection 9813(a) of this title of proving that the transaction is not taxable. A vendor’s failure to possess an exemption certificate at the time of sale shall be presumptive evidence that the sale is taxable.
(b) Direct payment permit. The Commissioner may, in his or her discretion, authorize a purchaser, who acquires tangible personal property or services under circumstances that make it impossible at the time of acquisition to determine the manner in which the tangible personal property or services will be used, to pay the tax directly to the Commissioner and waive the collection of the tax by the vendor through the issuance of a direct payment permit. Any contractor, subcontractor, or repairman who acquires tangible personal property consisting of materials and supplies for use by him or her in erecting structures for others or building on or otherwise improving, altering, or repairing real property of others, may apply for a direct payment permit to pay the tax directly to the Commissioner and waive the collection of the tax by the vendor. No such authority shall be granted or exercised except upon application to the Commissioner and the issuance by the Commissioner of a direct payment permit. If a direct payment permit is granted, its use shall be subject to conditions specified by the Commissioner and the payment of tax on all acquisitions pursuant to the permit shall be made directly to the Commissioner by the permit holder.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 2003, No. 68, § 59, eff. date, see note below; 2013, No. 174 (Adj. Sess.), § 43.)
§ 9745a Application to section 9745
The provisions of section 9745 of this title shall be applicable to exemptions claimed for agricultural fertilizers, pesticides, and machinery and equipment under subdivisions 9741(3) and (25) of this title.
(Added 1973, No. 270 (Adj. Sess.), § 7; amended 2001, No. 140 (Adj. Sess.), § 36, eff. June 21, 2002.)
§ 9746 Snowmobile, all-terrain vehicle, motorboat, and vessel sales
(a) If a person sells a snowmobile, all-terrain vehicle, motorboat, or vessel and within three months purchases another such vehicle or vessel, “sales price” for purposes of the tax on the new vehicle or vessel shall exclude the lesser of:
(1) the sale price of the first vehicle or vessel; or
(2) the average book value at the time of sale of the first vehicle or vessel.
(b) If a person receives payment under a contract of insurance for:
(1) total destruction of a snowmobile, all-terrain vehicle, motorboat, or vessel; or
(2) damage to such vehicle or vessel that was then accepted without repair as a trade-in by the seller of a new snowmobile, all-terrain vehicle, motorboat, or vessel; and within three months following such destruction or damage the person purchases another snowmobile, motorboat, or vessel, “sales price” for purposes of the tax on the new vehicle or vessel shall exclude the insurance payment and any trade-in allowance for the damaged vehicle.
(c) A vendor determining sales price under this section shall obtain in good faith from the purchaser, on a form provided by the Department of Taxes and signed by the purchaser and bearing the purchaser’s name and address, a certificate of sale or payment of insurance proceeds with regard to the first vehicle or vessel.
(Added 1987, No. 251 (Adj. Sess.), § 5; amended 1993, No. 49, § 17, eff. May 28, 1993; 1995, No. 29, § 21, eff. April 14, 1995; 2005, No. 94 (Adj. Sess.), § 9, eff. date, see note below; 2023, No. 144 (Adj. Sess.), § 14, eff. January 1, 2025.)
Subchapter 3 Imposition, Rate, and Payment of Tax
§ 9771 Imposition of sales tax
Except as otherwise provided in this chapter, there is imposed a tax on retail sales in this State. The tax shall be paid at the rate of six percent of the sales price charged for, but in no case shall any one transaction be taxed under more than one of the following:
(1) tangible personal property;
(2) public utility services, including gas and electricity, but excluding water and transportation;
(3) producing, fabricating, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, printing, or imprinting;
(4) admission to places of entertainment, including athletic events, exhibitions, dramatic and musical performances, motion pictures, golf courses and ski areas, and access to cable television systems or other audio or video programming systems that operate by wire, coaxial cable, lightwave, microwave, satellite transmission, or by other similar means, and access to any game or gaming or amusement machine, apparatus, or device, excluding video game, pinball, musical, vocal, or visual entertainment machines that are operated by coin, token, or bills;
(5) telecommunications service, except coin-operated telephone service, paging service, private communications service, or value-added non-voice data service;
(6) directory assistance;
(7) tangible personal property to an advertising agency for its use in providing advertising services or creating advertising materials for transfer in conjunction with the delivery of advertising service; or
(8) specified digital products transferred electronically to an end user regardless of whether for permanent use or less than permanent use and regardless of whether or not conditioned upon continued payment from the purchaser.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1981, No. 170 (Adj. Sess.), § 11; 1991, No. 32, § 9, eff. June 1, 1991; 1993, No. 1 (Sp. Sess.), § 1, eff. Sept. 1, 1993; 1997, No. 60, §§ 81, 82, eff. Sept. 1, 1997; 1997, No. 109 (Adj. Sess.), § 3, eff. Sept. 1, 1998; 1997, No. 156 (Adj. Sess.), § 30, eff. April 29, 1998; 1999, No. 49, § 71, eff. June 2, 1999; 2003, No. 68, §§ 31, 60, eff. date, see note below; 2003, No. 152 (Adj. Sess.), § 12; 2003, No. 152 (Adj. Sess.), § 18, eff. date, see note set out below; 2005, No. 75, § 23, eff. July 1, 2005; 2009, No. 1 (Sp. Sess.), § H.41; 2011, No. 143 (Adj. Sess.), § 50, eff. May 15, 2012; 2013, No. 174 (Adj. Sess.), § 42; 2015, No. 134 (Adj. Sess.), § 24; 2017, No. 74, § 140a.)
§ 9771a Repealed
[Repealed]
2013, No. 200 (Adj. Sess.), § 22(2), eff. January 1, 2015.
§ 9772 Amount of tax to be collected
(a) For the purpose of adding and collecting the tax imposed by this chapter, or an amount equal as nearly as possible or practicable to the average equivalent thereof, to be reimbursed to the vendor by the purchaser, the vendor shall multiply the total sales price of all the transactions taxable by the rate specified in section 9771 of this title carried to the third decimal place and rounded up to the nearest whole cent if the third decimal point is greater than four and rounded down to the nearest whole cent if the third decimal point is four or less. The tax may be computed on either the total invoice amount or on each taxable item.
(b) The Commissioner may adopt transition rules that comply with any applicable multistate agreement in the event of a rate change.
(1969, No. 144, § 1, eff. June 1, 1969; amended 1971, No. 73, § 41, eff. April 16, 1971; 1981, No. 170 (Adj. Sess.), § 12; 1991, No. 32, § 10, eff. June 1, 1991; 1993, No. 1 (Sp. Sess.), § 2, eff. Sept. 1, 1993; 2003, No. 68, § 32, eff. June 18, 2003; 2003, No. 68, § 62, eff. date, see note below; 2003, No. 152 (Adj. Sess.), § 19, eff. date, see note below; 2009, No. 1 (Sp. Sess.), § H.42.)
§ 9773 Imposition of compensating use tax
Unless property or telecommunications service has already been or will be subject to the sales tax under this chapter, there is imposed on every person a use tax at the rate of six percent for the use within this State, except as otherwise exempted under this chapter:
(1) of any tangible personal property purchased at retail;
(2) of any tangible personal property manufactured, processed, or assembled by the user, if items of the same kind of tangible personal property are offered for sale by him or her in the regular course of business, but the mere storage, keeping, retention, or withdrawal from storage of tangible personal property or the use for demonstrational or instructional purposes of tangible personal property by the person who manufactured, processed, or assembled such property shall not be deemed a taxable use by him or her; and for purposes of this section only, the sale of electrical power generated by the taxpayer shall not be considered a sale by him or her in the regular course of business if at least 60 percent of the electrical power generated annually by the taxpayer is used by the taxpayer in his or her trade or business;
(3) of any tangible personal property, however acquired, where not acquired for purposes of resale, upon which any taxable services described in subdivision 9771(3) of this title have been performed;
(4) specified digital products transferred electronically to an end user; and
(5) telecommunications service, except coin-operated telephone service, private telephone service, paging service, private communications service, or value-added non-voice data service.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1973, No. 270 (Adj. Sess.), § 6; 1981, No. 170 (Adj. Sess.), § 13; 1985, No. 165 (Adj. Sess.), § 1, eff. May 5, 1986; 1991, No. 32, § 11, eff. June 1, 1991; 1993, No. 1 (Sp. Sess.), § 3, eff. Sept. 1, 1993; 2003, No. 68, § 33; 2009, No. 1 (Sp. Sess.), § H.43; 2013, No. 174 (Adj. Sess.), § 47.)
§ 9773a Repealed
[Repealed]
1993, No. 89, § 14b, eff. July 1, 1996.
§ 9774 Rules for computing compensating use tax
(a) Tangible personal property that has been purchased by a resident of the State outside this State for use outside this State, and subsequently becomes subject to the compensating use tax imposed under this chapter, shall be taxed on the basis of the purchase price of the property, provided however:
(1) that where a taxpayer affirmatively shows that the property was used outside the State by him or her for more than six months prior to its use within this State, the property shall be taxed on the basis of current market value of the property at the time of its first use within this State, but the value of the property, for compensating use tax purposes, may not exceed its cost; and
(2) that the compensating use tax on the tangible personal property brought into this State, other than for complete consumption or for incorporation into real property located in this State, and used in the performance of a contract or subcontract within this State by a purchaser or user for a period of less than six months may be based, at the option of the taxpayer, on the fair rental value of the property for the period of use within this State.
(b) For purposes of subdivision 9773(1) of this title, the tax shall be at the rate under that section, multiplied by the purchase price given or contracted to be given for the property or for the use of the property adjusted in the same manner as is the sales price under the sales tax to arrive at the sales price.
(c) For purposes of subdivision 9773(2) of this title, the tax shall be at the rate under that section, multiplied by the price at which items of the same kind of tangible personal property are offered for sale by the user.
(d) For purposes of subdivision 9773(3) of this title, the tax shall be at the rate under that section, multiplied by the purchase price given or contracted to be given for the service, including the consideration for any tangible personal property transferred in conjunction with the performance of the service adjusted in the same manner as is the charge for services under the sales tax to arrive at the sales price.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1981, No. 170 (Adj. Sess.), § 14; 1991, No. 32, § 12, eff. June 1, 1991; 1993, No. 1 (Sp. Sess.), § 4, eff. Sept. 1, 1993; 2003, No. 68, § 34, eff. June 18, 2003; 2003, No. 68, § 63, eff. date, see note below.)
§ 9775 Returns
(a) Except as otherwise provided in this section, every person required to collect or pay tax under this chapter shall, where the sales and use tax liability under this chapter for the immediately preceding calendar year has been, or would have been in cases when the business was not operating for the entire year, $500.00 or less, pay the tax imposed by this chapter in one annual payment on or before the 25th day of January of each year. Every person required to collect or pay tax under this chapter shall, where the sales and use tax liability under this chapter for the immediately preceding calendar year has been, or would have been in cases when the business was not operating for the entire year, more than $500.00 but less than $2,500.00, pay the tax imposed by this chapter in quarterly installments on or before the 25th day of the calendar month succeeding the quarter ending on the last day of March, June, September, and December of each year. In all other cases, except as provided in subsections (e) and (g) of this section, the tax imposed by this chapter shall be due and payable monthly on or before the 25th (23rd of February) day of the month following the month for which the tax is due. Payment by electronic funds transfer does not affect the requirement to file returns. The return of a vendor of tangible personal property shall show such information as the Commissioner may require.
(b) The Commissioner may permit or require returns to be made covering other periods and upon such dates as he or she may specify. In addition, the Commissioner may require payments of tax liability at such intervals and based upon such classifications as he or she may designate. In prescribing the other periods to be covered by the return or intervals or classifications for payment of tax liability, the Commissioner may take into account the dollar volume of tax involved and conformity with any applicable multistate agreement with respect to sales and use tax laws, as well as the need for insuring the prompt and orderly collection of the taxes imposed.
(c) The form of returns shall be prescribed by the Commissioner and shall contain such information as he or she may deem necessary for the proper administration of this chapter. The Commissioner may require returns and amended returns to be filed within 20 days after notice and to contain the information specified in the notice.
(d) Upon the failure of a taxpayer to file any return required under this chapter within 20 days of the date of a notice to the taxpayer under subsection (c) of this section, the Commissioner may petition a judge of the Superior Court in the county wherein the taxpayer resides or has a place of business or, if the taxpayer neither resides nor has a place of business in this State, the Commissioner may petition the Washington Superior Court, and upon the petition of the Commissioner and a hearing, the judge shall issue a citation requiring the taxpayer and, if the taxpayer is a corporation, any principal officer of such corporation to file a proper return in accordance with this chapter, upon pain of contempt. The order of notice upon the petition shall be returnable not later than 20 days after the filing of the petition. The petition shall be heard and determined on the return day or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case consistent with the rights of the parties. The judgment shall include costs in favor of the prevailing party. The Commissioner’s authority to petition under this subsection is in addition to the Commissioner’s authority under subsection 9777(a) of this title to compute the tax liability of a taxpayer who fails to file a required return or files an incorrect or insufficient return.
(e) A person who otherwise is required to file returns and pay tax monthly and who, upon annual application to the Commissioner on or before June 1 of each year, demonstrates to the satisfaction of the Commissioner that at least 50 percent of its sales during the immediately preceding calendar year were sales of building materials to contractors for the improvement of real estate, and that those sales were made on credit terms by the person required to collect the tax with an average credit period of at least 40 days, may, upon approval by the Commissioner, file and pay taxes in quarterly installments from July 1 of that year to June 30 of the following year, as provided in subsection (a) of this section. If a person with such approval fails to timely file or pay any such quarterly return and installment, that person’s approval to file quarterly shall be deemed immediately revoked and that person shall thereafter file returns and pay tax monthly as provided in subsection (a) of this section.
(f) A person registered under the Multistate Streamlined Sales and Use Tax Agreement that does not have a legal requirement to register in this State and is not a Model 1, 2, or 3 seller may file a return within one year of the month of initial registration and may file annual returns in the same month for succeeding years; provided, however, that such person must file a return on the 25th of the month following any month in which the taxpayer accumulated State and local taxes in the amount of $1,000.00 or more.
(g) A person required to report sales and use tax annually who cancels his, her, or its sales and use tax account shall file a final return not later than 60 days after such cancellation.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1975, No. 154 (Adj. Sess.), § 10, eff. date, see note below; 1989, No. 124 (Adj. Sess.), § 3, eff. date, see note below; 1989, No. 222 (Adj. Sess.), § 25, eff. May 31, 1990; 1997, No. 50, §§ 33, 36, eff. June 26, 1997; 1997, No. 60, § 84, eff. Sept. 1, 1997; 1997, No. 156 (Adj. Sess.), § 22, eff. April 29, 1998; 1999, No. 119 (Adj. Sess.), §§ 3, 18, eff. May 18, 2000; 2003, No. 68, § 64, eff. date, see note below; 2005, No. 207 (Adj. Sess.), § 5, eff. date, see note below; 2009, No. 1 (Sp. Sess.), § H.45.)
§ 9776 Payment of tax
Every person required to file a return under this chapter shall, at the time of filing the return, pay to the Commissioner the taxes imposed by this chapter as well as all other monies collected under this chapter; provided, however, that every person who collects the tax from purchasers of taxable items according to the tax bracket schedule of section 9772 of this title shall be allowed to retain, as partial compensation for services rendered to the State of Vermont in collecting the tax, any amount lawfully collected in excess of the tax imposed by this chapter. Pursuant to section 3110 of this title, the Commissioner may authorize payment by electronic funds transfer. The Commissioner may require payment by electronic funds transfer from any taxpayer who is required by federal tax law to pay any federal tax in that manner or from any taxpayer who has submitted to the Department of Taxes two or more protested or otherwise uncollectible checks with regard to any State tax payment in the prior two years. All the taxes for the period for which a return is required to be filed or for such lesser interval as shall have been designated by the Commissioner shall be due and payable to the Commissioner on the date limited for the filing of the return for that period or on the date limited for such lesser interval as the Commissioner has designated, without regard to whether a return is filed or whether the return that is filed correctly shows the amount of receipts, amusement charges, or the value of property or services sold or purchased, or the taxes due thereon.
(Added 1969, No. 144 § 1, eff. June 1, 1969; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1991, No. 186 (Adj. Sess.), § 31, eff. May 7, 1992; 1997, No. 156 (Adj. Sess.), § 23, eff. April 29, 1998; 2021, No. 73, § 8.)
§ 9777 Determination of tax or penalty
(a) If a return required by this chapter is not filed, or if a return, when filed, is incorrect or insufficient, the amount of tax due shall be determined by the Commissioner from any information available. If necessary, the tax may be estimated on the basis of external indices, such as stock on hand, purchases, rental paid (location, scale of rents or charges, comparable rents or charges, type of accommodations and service), number of employees, or other factors. Notice of the determination shall be given to the person liable for the collection of payment of the tax. The determination shall finally and irrevocably fix the tax 60 days after giving notice of the determination unless the person against whom it is assessed shall apply in writing to the Commissioner for a hearing, or unless the Commissioner of his or her own motion shall redetermine the tax. After the hearing, the Commissioner shall give notice of his or her determination to the person against whom the tax is assessed.
(b) Assessment of a penalty under subsection 9816(e) of this title shall become fixed unless the person against whom the penalty is assessed shall apply within 60 days of the date of the assessment to the Commissioner for a hearing, or unless the Commissioner on his or her own motion shall redetermine the penalty. After the hearing, the Commissioner shall give notice of the determination to the person against whom the penalty is assessed.
(c) Notwithstanding subsections (a) and (b) of this section, the Commissioner, if he or she believes the collection from a taxpayer of any deficiency, penalty, or interest to be in jeopardy, may demand, in writing, that the taxpayer pay the deficiency, penalty, or interest forthwith. The demand may be made concurrently with, or after, the notice of deficiency or the assessment of penalty or interest given to the taxpayer under subsection 9777(a) or (b) of this section. The amount of deficiency, penalty, or interest shall be collectible by the Commissioner on the date of the demand, unless the taxpayer files with the Commissioner a bond in an amount equal to the deficiency, penalty, or interest sought to be collected as security for such amount as finally may be determined.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1989, No. 222 (Adj. Sess.) § 26, eff. date, see note below; 1991, No. 67, § 20, eff. June 19, 1991; 1991, No. 186 (Adj. Sess.), § 43, eff. May 7, 1992.)
§ 9778 Collection of tax from purchaser
Every person required to collect the tax shall collect the tax from the purchaser when collecting the price or amusement charge to which it applies. If the purchaser is given any sales slip, invoice, receipt, or other statement or memorandum of the price, or amusement charge paid or payable, the tax shall be stated, charged, and shown separately on the first of the documents given to him or her. The tax shall be paid to the person required to collect it as trustee for and on account of the State.
(Added 1969, No. 144, § 1, eff. June 1, 1969.)
§ 9779 Deferred payment sales
The Commissioner may provide by rule that the tax upon receipts from sales on the installment plan, seasonal sales, or deferred payment sales may be paid on the amount of each deferred payment and upon the date when the payment is received.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 2021, No. 105 (Adj. Sess.), § 596, eff. July 1, 2022.)
§ 9780 Cancelled sales; returns; uncollectibles
The Commissioner may provide by rule for the exclusion from taxable receipts, amusement charges of amounts representing sales where the contract of sale has been cancelled, the property returned on the receipt or charge has been ascertained to be uncollectible, or, in the case the tax has been paid upon that receipt or charge, for refund or credit of the tax so paid.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 2021, No. 105 (Adj. Sess.), § 597, eff. July 1, 2022.)
§ 9781 Refunds
(a) As provided in this section, the Commissioner shall refund or credit any tax, penalty, or interest erroneously, illegally, or unconstitutionally collected or paid if application to the Commissioner for the refund shall be made within three years from the date the return was required to be filed. The application may be made by a customer who has actually paid the tax. The application may also be made by a person required to collect the tax, who has collected and paid over the tax to the Commissioner, provided that the application is made within three years of the payment to him or her by the customer, but no actual refund of monies shall be made to a person until he or she shall first establish to the satisfaction of the Commissioner, under such regulations as he or she may prescribe, that he or she has repaid to the customer the amount for which the application for refund is made. The Commissioner may, in lieu of any refund, allow credit on payments due from the applicant.
(b) A person shall not be entitled to a revision, refund, or credit under this section of a tax, interest, or penalty that had been determined to be due pursuant to the provisions of section 9777 of this title where he or she has had a hearing or an opportunity for a hearing as provided in that section or has failed to avail himself or herself of the remedies therein provided. No refund or credit shall be made of a tax, interest, or penalty paid after a determination by the Commissioner made under section 9777 unless it be found that the determination was erroneous, illegal, or unconstitutional, or otherwise improper pursuant to law, in which event refund or credit shall be made of the tax, interest, or penalty found to have been overpaid.
(c) If the Commissioner determines, on a petition for refund or otherwise, that a taxpayer has paid an amount of tax under this chapter that, as of the date of the determination, exceeds the amount of tax liability owing from the taxpayer to the State, with respect to the current and all preceding taxable periods, under any provision of this title, the Commissioner shall forthwith refund the excess amount to the taxpayer together with interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. That interest shall be computed from the latest of 45 days after the date the return was filed or from 45 days after the date the return was due, including any extensions of time thereto, with respect to which the excess payment was made or, if the taxpayer filed an amended return or otherwise requested a refund, 45 days after the date of such amended return or request was filed.
(d) A person who sells oil subject to the tax imposed by 23 V.S.A. chapter 27 upon which the tax imposed by this chapter has been paid shall be entitled to a refund in the amount of such tax paid pursuant to this chapter. Such refunds shall be claimed in the manner set forth in this section.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1975, No. 154 (Adj. Sess.) § 11, eff. date, see note below; 1975, No. 190 (Adj. Sess.) § 1, eff. date, see note below; 1979, No. 105 (Adj. Sess.), § 48; 1981, No. 172 (Adj. Sess.), § 11c; 1983, No. 59, § 6, eff. April 22, 1983; 1997, No. 156 (Adj. Sess.), § 24, eff. April 29, 1998; 2013, No. 73, § 47, eff. June 5, 2013.)
§ 9782 Mobile telecommunications sourcing
(a) Mobile telecommunications services shall be sourced according to the provisions of the federal Mobile Telecommunications Sourcing Act, 4 U.S.C. §§ 116-126. The definitions and provisions of such Act are hereby incorporated into this section by reference.
(b)(1) If charges for nontaxable mobile telecommunications service are aggregated with and not separately stated from charges for taxable service, then all charges are subject to taxation, unless the home service provider can reasonably identify nontaxable charges from its books and records kept in the regular course of business. If the home service provider can reasonably identify from its books and records that are kept in the regular course of business the portion of the aggregated charge that is attributable to nontaxable service, only the charges for taxable services are subject to taxation.
(2) A customer may not rely upon the nontaxability of mobile telecommunications services unless the customer’s home service provider separately states the charges for nontaxable mobile telecommunications services or the home service provider elects pursuant to 4 U.S.C. § 123(c) to provide verifiable data required to support the nontaxability.
(Added 2001, No. 144 (Adj. Sess.), § 35, eff. June 21, 2002.)
§ 9783 Repealed
[Repealed]
2011, No. 45, § 37(14), eff. October 1, 2015.
Subchapter 4 Enforcement and Penalties
§ 9811 Proceedings to recover tax
(a) Whenever any person required to collect tax shall fail to collect or pay over any tax, penalty, or interest imposed by this chapter or whenever any customer shall fail to pay any tax, penalty, or interest, the Attorney General shall, upon the request of the Commissioner, enforce the payment thereof on behalf of the State in any court of the State or of any other state of the United States.
(b) As an additional or alternate remedy, the Commissioner may issue a warrant directed to the sheriff of any county commanding him or her to levy upon and sell the real and personal property of any person liable for the tax, which may be found within his or her county, for the payment of the amount thereof, with any penalties and interest and the cost of executing the warrant, and to return the warrant to the Commissioner and to pay to him or her the money collected by virtue thereof within 60 days after the receipt of the warrant. The sheriff shall within five business days after the receipt of the warrant file with the county clerk a copy thereof, and thereupon the clerk shall enter in the judgment docket the name of the person mentioned in the warrant and the amount of the tax, penalties, and interest for which the warrant is issued, and the date when the copy is filed. Thereupon the amount of the warrant so docketed shall become a lien upon the title to and interest in real and personal property of the person against whom the warrant is issued. The sheriff shall then proceed upon the warrant, in the same manner and with like effect as that provided by law in respect to executions issued against property upon judgments of a court of record and, for services in executing the warrant, he or she shall be entitled to the same fees, which he or she may collect in the same manner. If a warrant is returned not satisfied in full, the Commissioner may from time to time issue new warrants and shall also have the same remedies to enforce the amount due thereunder as if the State had recovered judgment therefor and execution thereon had been returned unsatisfied.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 2017, No. 11, § 63.)
§ 9812 Actions for collection of tax
(a) Action may be brought by the Attorney General at the instance of the Commissioner in the name of the State to recover the amount of taxes, penalties, and interest due from such vendor, provided such action is brought within six years after the same are due. Such action shall be returnable in the county where the vendor resides, if a resident of the State; and if a nonresident, the action shall be returnable to Washington County. The limitation of six years in this section shall not apply to a suit to collect taxes, penalties, interest, and costs when the vendor filed a fraudulent return or failed to file a return when the same was due.
(b) The courts of this State shall recognize and enforce liabilities for taxes lawfully imposed by any other state, upon sales and use taxes, which extends a like comity to this State, and the duly authorized officer of that state may sue for the collection of the tax in the courts of this State. A certificate by the Secretary of State of the other state that an officer suing for the collection of a tax is duly authorized to collect it shall be conclusive proof of this authority.
(c) As used in this section, the words “tax” and “taxes” shall include interest and penalties due under this chapter, and liability for interest or penalties, or both, due under a taxing statute of another state shall be recognized and enforced by the courts of this State to the same extent that the laws of the other state permit the enforcement in its courts of liability for interest or penalties, or both, due under this chapter.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1993, No. 49, § 18, eff. May 28, 1993.)
§ 9813 Presumptions and burden of proof
(a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax hereby imposed, it shall be presumed that all receipts for property or services of any type mentioned in section 9771 of this title are subject to tax until the contrary is established, and the burden of proving that any receipt or amusement charge is not taxable hereunder shall be upon the person required to collect tax.
(b) The certificate of the Commissioner to the effect that a tax has not been paid; that a return, bond, or registration certificate has not been filed; or that information has not been supplied under this chapter shall be presumptive evidence thereof.
(Added 1969, No. 133 § 1, eff. June 1, 1969; amended 2017, No. 74, § 140b.)
§ 9814 Repealed
[Repealed]
1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.
§ 9814a Criminal penalties
(a) Any person who knowingly fails to file a return, fails to collect a tax, or fails to remit a tax required under this subchapter shall be imprisoned not more than one year or fined not more than $1,000.00, or both.
(b) Any person who with intent to evade a tax liability fails to file a return or fails to collect a tax or fails to remit a tax when required under this subchapter shall, if the amount collected or required to be collected is in excess of $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(c) Any person filing or causing to be filed, or making or causing to be made, or giving or causing to be given any certificate, affidavit, representation, information, testimony, or statement, required or authorized, that is willfully false, or willfully failing to file a bond, or failing to file a registration certificate and data in connection with it as the Commissioner by rule or otherwise may require, to display or surrender a license as required, or assigning or transferring the license, or willfully failing to charge separately the tax imposed under this chapter or to state the tax separately on any bill, statement, memorandum, or receipt issued or employed by the person upon which the tax is required to be stated separately as provided in section 9778 of this title, or referring or causing reference to be made to this tax in a form or manner other than that required, or failing to keep any records required, shall, in addition to any other penalties under this chapter or elsewhere prescribed, be guilty of a misdemeanor, punishable by a fine of not more than $1,000.00 or imprisonment for not more than one year, or both.
(d) Any person who knowingly makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall be imprisoned not more than one year or fined not more than $1,000.00, or both. Any person who with intent to evade a tax liability makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall, if the amount of tax evaded is in excess of $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both.
(e) A person who knowingly engages in any business for which registration is required under this chapter without a valid license shall commit a separate offense for each calendar week or part of the week during which the person shall be so engaged. Each offense shall be a misdemeanor and upon conviction for a first offense, a person shall be sentenced to pay a fine of not more than $250.00 or to be imprisoned for not more than 60 days, or both, the fine and imprisonment in the discretion of the court, and for a second or subsequent offense shall be sentenced to pay a fine of not less than $250.00 or more than $500.00 or to be imprisoned for not more than six months, or both, the fine and imprisonment in the discretion of the court.
(Added 1999, No. 49, § 65, eff. June 2, 1999; amended 2003, No. 70 (Adj. Sess.), §§ 57, 58, eff. March 1, 2004; 2021, No. 105 (Adj. Sess.), § 598, eff. July 1, 2022.)
§ 9815 Notice and limitations of time
(a) Any notice under this chapter may be given by mailing it to the person for whom it is intended in a postpaid envelope addressed to that person at the address given in the last return filed by him or her under this chapter or in any application made by him or her or, if no return has been filed or application made, then to any address obtainable. The mailing of the notice shall be presumptive evidence of its receipt by the person to whom addressed. Any period of time that is determined under this chapter by the giving of notice shall commence to run from the date of mailing of the notice.
(b) The provisions of law relating to limitations of time for the enforcement of a civil remedy shall not apply to any proceeding or action taken by the State or the Commissioner to levy, appraise, assess, determine, or enforce the collection of any tax or penalty under this chapter. However, except in the case of a willfully false or fraudulent return with intent to evade the tax, no assessment of additional tax shall be made after the expiration of more than three years from the later of the date of the filing of a return or the date a return is due; provided, however, that when no return has been filed as provided by law, the tax may be assessed at any time; and further provided that where tax collected under this chapter has been under-reported by 20 percent or more, such tax may be assessed at any time before the expiration of six years from the date of the filing of the return.
(c) When, before the expiration of the period prescribed herein for the assessment of an additional tax, a taxpayer has consented in writing that the period be extended, the amount of the additional tax due may be determined at any time within the extended period. The period so extended may be further extended by subsequent consents in writing made before the expiration of the extended period. If a taxpayer has consented in writing to the extension of the period for assessment, the period for filing an application for credit or refund pursuant to section 9781 of this title shall not expire prior to six months after the expiration of the period within which an assessment may be made pursuant to the consent to extend the time for assessment of additional tax.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1989, No. 119, §§ 11, 15, eff. June 22. 1989.)
§ 9816 Suspension or revocation of certificates; appeal
(a) The Commissioner may, after notice and hearing, suspend or revoke the license of any person required to collect the tax or may refuse to issue or renew any registration for failure to comply with this chapter or with any pertinent rules adopted under this chapter.
(b) Any person required to collect the tax aggrieved by a suspension, revocation, or refusal may appeal to any Superior judge within 10 days after written notice of the suspension, revocation, or refusal has been mailed or delivered to the person. The Superior judge or another Superior judge designated by the Chief Superior Judge shall hear the appeal immediately.
(c) If the appealing person required to collect the tax files with the Superior judge to whom the person appeals a bond running to the State with a surety company authorized to do business in this State as surety in a sum as the Superior judge shall fix, conditioned upon the payment of all taxes due under this chapter and to become due during the pendency of the appeal, then the suspension or revocation shall be inoperative during the appeal.
(d) On an appeal from the refusal of the Commissioner to issue or renew a certificate of authority, the Commissioner shall issue or renew the registration during the pendency of the appeal if the bond under subsection (c) of this section is filed.
(e) Upon suspension or revocation, or in the case of an unregistered business, the Commissioner may cause to be posted, at every public entrance of the vendor’s premises, a notice identifying the vendor and the location and informing the public that the vendor has no certificate or the certificate has been suspended or revoked, as the case may be, and that no retail sales or amusement charges may be made at that location. No person shall cover or deface the posted notice, and the posted notice shall not be removed until the certificate is reinstated, or a new certificate is issued for the location, or removal is otherwise authorized by the Commissioner. Whoever violates the terms of this subsection shall be assessed a penalty of $500.00, and the Commissioner shall give notice of such assessment and make demand for payment.
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1979, No. 181 (Adj. Sess.), § 21; 1991, No. 186 (Adj. Sess.), § 41, eff. May 7, 1992; 1993, No. 49, § 20, eff. May 28, 1993; 1995, No. 29, § 22, eff. April 14, 1995; 1997, No. 50, § 37, eff. June 26, 1997; 2003, No. 70 (Adj. Sess.), § 59, eff. March 1, 2004; 2021, No. 105 (Adj. Sess.), § 599, eff. July 1, 2022; 2021, No. 147 (Adj. Sess.), § 31, eff. May 31, 2022.)
§ 9817 Review of Commissioner’s decision
(a) Any aggrieved taxpayer may, within 30 days after any decision, order, finding, assessment, or action of the Commissioner made under this chapter, appeal to the Washington Superior Court or the Superior Court of the county in which the taxpayer resides or has a place of business.
(b) The appeal provided by this section shall be the exclusive remedy available to any taxpayer for review of a decision of the Commissioner determining the liability of the taxpayer for the taxes imposed.
(c) [Repealed.]
(Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1997, No. 161 (Adj. Sess.), § 24, eff. Jan. 1, 1998; 2011, No. 143 (Adj. Sess.), § 51, eff. May 15, 2012; 2019, No. 51, § 14, eff. June 10, 2019.)
§ 9818 Liens
If any person required to pay or collect and transmit a tax under this chapter neglects or refuses to pay the same after demand, the amount, together with all penalties and interest provided for in this chapter and together with any costs that may accrue in addition thereto, shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to such person. Such lien shall arise at the time demand is made by the Commissioner of Taxes and shall continue until the liability for such sum with interest and costs is satisfied or becomes unenforceable. Such lien shall have the same force and effect as the lien for taxes under chapter 151 of this title, as provided in section 5895 of this title, and notice of such lien shall be recorded as is provided in that section. Certificates of release of such lien shall also be given by the Commissioner as in the case of the aforesaid tax liens.
(Added 1973, No. 165 (Adj. Sess.), § 2, eff. March 20, 1974.)
§ 9819 Reallocation of receipts
(a) Receipts from the tax imposed by this chapter on sales of construction materials used in qualified projects under 24 V.S.A. chapter 76A shall be allocated by the Commissioner of Taxes and paid to the municipality in which the project is located as follows:
(1) in a municipality in which the population is 7,500 residents or less, all receipts from sales in excess of $100,000.00 of construction materials used in each separate qualified project located in that municipality;
(2) in a municipality in which the population is greater than 7,500 residents but fewer than 30,000 residents, all receipts from sales in excess of $200,000.00 of construction materials used in each separate qualified project located in that municipality; and
(3) in a municipality in which the population is more than 30,000 residents, all receipts from sales in excess of $1,000,000.00 of construction materials used in each separate qualified project located in that municipality.
(b)(1) Beginning in fiscal year 2007, the Vermont Downtown Development Board, established under 24 V.S.A. § 2792, may certify for allocation to municipalities sales tax revenues under this section, so that the total shall not exceed $1,500,000.00, when considered together with the following:
(A) credits awarded under subsections 5930cc(a) and (b) of this title, concerning qualified historic rehabilitation projects and qualified façade improvement projects; and
(B) credits awarded under subsection 5930cc(c) of this title, concerning qualified code improvement projects.
(2) A total annual allocation of no more than 30 percent of these tax credits in combination with sales tax reallocation may be awarded in connection with all of the projects in a single municipality.
(c) As used in this section:
(1) “Construction materials” means all materials purchased by the owner or owner’s representative, project manager, construction manager, general contractor, or subcontractor to be incorporated into a qualified project.
(2) “Qualified project” means expansion or rehabilitation of contiguous real property that is or will be used at the completion of the expansion or rehabilitation as a structure in a downtown development district designated under 24 V.S.A. chapter 76A, but only to the extent that the expansion or rehabilitation becomes an integral component of the real property and the project does not seek qualification for either tax credit authorized under subsection 5930cc(a) or (b) of this title. “Qualified project” also means new construction of contiguous real property that will be used at the completion of the construction as a structure in a downtown development district designated under 24 V.S.A. chapter 76A, but only to the extent that the new construction is compatible with the buildings that contribute to the integrity of the district in terms of materials, features, size, scale and proportion, and massing of buildings.
(d) The allocation shall be determined as follows:
(1) The municipality and the owner of the qualified project shall submit to the Board a joint application for a reallocation of the sales taxes generated by the qualified project. The application shall describe the project to be constructed and shall include an estimate of the taxable cost of construction materials that will be used in the qualified project. The estimate shall be based upon the successful bid documents.
(2) The Board shall review the joint application. If the project meets the requirements of this section and the requested allocation does not exceed the statutory limit set by this section, the Board shall approve the application and forward it to the Commissioner of Taxes who may authorize an allocation up to the approved amount. Fifty percent of the authorized allocation shall be paid to the municipality when construction is 50 percent complete as determined by the Board, and the balance shall be paid after completion of the project.
(3) Tax revenues allocated to a municipality under this section shall be used by the municipality only for expenditures related to the support of the qualified project that generated those revenues.
(Added 1997, No. 71 (Adj. Sess.), § 51a; amended 1997, No. 120 (Adj. Sess.), § 1b; 2001, No. 114 (Adj. Sess.), § 12, eff. May 28, 2002; 2001, No. 114 (Adj. Sess.), § 17, eff. July 1, 2003; 2005, No. 14, § 9; 2005, No. 75, § 13; 2005, No. 183 (Adj. Sess.), § 13.)
Chapter 235 Shows and Concessions
§§ 9901-9910 Repealed
[Repealed]
1991, No. 167 (Adj. Sess.), § 66(6).
Chapter 236 Tax on Gains from the Sale or Exchange of Land
§ 10001 Tax imposed
There is imposed, in addition to all other taxes imposed by this title, a tax on the gains from the sale or exchange of land in Vermont.
(Added 1973, No. 81, § 8, eff. May 1, 1973.)
§ 10002 Land and residences
(a) “Land” means all land, whether or not improved, that has been purchased and subdivided by the transferor within the six years prior to the sale or exchange of the land, but does not include land not exceeding 10 acres, necessary for the use of a dwelling used by the seller of such land as his or her principal residence. Buildings or other structures are not included in this definition of “land.” “Land” also means timber or rights to timber when that timber or those timber rights are sold within six years of their purchase, provided the underlying land is also sold within six years. “Underlying land” means the land from which timber or timber rights have been separated, whether subdivided or not. As used in this subsection, the term “subdivision” means a tract or tracts of land, owned or controlled by a person, that the person has partitioned or divided for the purpose of sale or transfer. Subdivision shall be deemed to have occurred on the conveyance of the first lot or the filing of a plat, plan, or deed in the town records, whichever first occurs. A subdivision shall not include a boundary adjustment between adjacent parcels.
(b) Also excluded from the definition of “land” is the land, not exceeding 10 acres, necessary for the use of a dwelling that, within one year from the date of acquisition, will be used for the principal residence of the purchaser of such land. As used in this section, “principal residence” means the principal dwelling of a person whose domicile is in the State of Vermont. If, at the time of transfer, there is not on the land a dwelling completed and fit for occupancy as the purchaser’s principal residence, the residence shall be completed and occupied within two years of the date of transfer, or the tax imposed by this chapter shall then become due and payable.
(c) If zoning or similar laws or regulations require a minimum of more than 10 acres for residential property, that number of acres, instead of 10 acres, shall be excluded from the definition of “land” under subsections (a) and (b) of this section, except that not more than 25 acres shall be so excluded.
(d) Also excluded from the definition of “land” of subsection (a) of this section is the land owned by a development corporation or local development corporation as defined in 10 V.S.A. § 212(10).
(e) Also excluded from the definition of “land” of subsection (a) of this section is land purchased by the State of Vermont from organizations qualifying under 26 U.S.C. § 501(c)(3).
(f) Also excluded from the definition of “land” is any land up to 10 acres, with the modification permitted by subsection (c) of this section, acquired by a person who will build on that land a house that, by the next succeeding sale, will be the principal residence of the occupant when the person purchases from the person who built the house. The person acquiring such land must certify to the Commissioner of Taxes that the person will begin building within one year of date of purchase, complete the building within two years from the date of purchase, and sell it within three years from date of purchase to a person who qualifies under subsection (b) of this section. If the land is sold as more than one parcel by the builder who acquired it, only those parcels on which a dwelling has been completed in accordance with the requirements of this subsection shall be excluded from the definition of “land.” The deed for the property shall recite the fact that there is running with the land a lien equal to the amount of land gains tax exempted by this subsection until the time as all conditions of this subsection have been met.
(g) As used in this chapter, the phrase “necessary for the use of a dwelling” refers merely to the fact that land is beneath or directly contiguous to the dwelling, and no other showing of necessity shall be required. Where an exemption from taxation is provided in the case of a purchase of land “necessary for the use of a dwelling used by the taxpayer as the taxpayer’s principal residence,” the land need not have been purchased at the same time as the dwelling to qualify for the exemption.
(h) Also excluded from the definition of “land” is any land conveyed pursuant to a court judgment decreeing the disposition of real estate of the parties to a civil marriage, to the extent that the land is conveyed to either of the parties.
(i) Also excluded from the definition of “land” of subsection (a) of this section is farmland and open-space land sold to organizations qualifying under 26 U.S.C. § 501(c)(3), as amended, which also meet the “public support” test under 26 U.S.C. § 509(a)(2), provided one of the stated purposes of the organization is to acquire property or rights and interests in property in order to preserve agricultural, forestry, or open-space uses, and provided that the property transferred, or rights and interests in the property, will be held for agricultural, forestry, or open-space purposes, and is so held by such organization for at least six years. As used in this section, “farmland” means land that will be actively operated or leased as part of a farm enterprise, and “open-space land” shall mean land without structures thereon. If the property transferred, or rights and interests in the property, is not so held by such organization for the six-year period, the tax that would have been due from the seller or transferor shall become due from such organization for that portion of the property not so held or transferred to a governmental entity. In cases coming within this subsection, the Commissioner of Taxes may require the seller or transferor to file a land gains tax return at the time of the sale or exchange, in order to establish the amount of tax that will become the tax liability of such organization in such case. The exclusion under this subsection shall be disallowed if the Commissioner of Taxes determines that the sale was not for a conservation purpose, as defined in 26 U.S.C. § 170(h), as amended.
(j) Also excluded from the definition of “land” of subsection (a) of this section is land sold by the United States of America, the State of Vermont, or any of its instrumentalities or subdivisions, or by organizations qualifying under 26 U.S.C. § 501(c)(3), provided that the sale is exempt from federal income taxation under the Internal Revenue Code.
(k) Also excluded from the definition of “land” is agricultural land transferred by a farmer to a member of the farmer’s family, when the land is used by the transferee as agricultural land for a period of time that, when added to the time the land was used as agricultural land by the transferor, equals or exceeds six years. As used in this section, the terms “agricultural land” and “farmer” shall have the definitions provided under section 3752 of this title, and “family” shall mean persons in a relationship to the transferor of grandparent, parent or stepparent, brother or sister, or natural or adopted child. As used in this section, land is deemed to be transferred from a farmer to a transferee when the farmer has died and title vests in the transferee by right of survivorship in a joint tenancy, or tenancy by the entirety, or through intestate succession, or by will, without any intervening transfers, except those to and from the estate.
(l) Also excluded from the definition of “land” are conservation rights and interests and preservation rights and interests transferred to a qualified holder. As used in this section, “conservation rights and interests,” “preservation rights and interests,” and “qualified holder” have the meanings given to them by 10 V.S.A. § 821.
(m) Also excluded from the definition of “land” is a parcel of land 25 acres or less, purchased by a farmer, as defined in section 3752 of this title, for active and direct use by that farmer, and that, upon transfer, but for the acreage, meets the definition of “agricultural land” or “managed forestland” in section 3752 of this title, and continues to meet that definition for at least six years after the transfer.
(n) Also excluded from the definition of “land” is the land comprising a mobile home park that is transferred in a single purchase to a group composed of a majority of the mobile home park leaseholders, as defined in 10 V.S.A. § 6242(a), or to a nonprofit organization that represents such a group.
(o) Also excluded from the definition of “land” is the land sold to an organization that qualifies under 26 U.S.C. § 501(c)(3) and also meets the “public support” test of 26 U.S.C. § 509(a)(2), if one of the stated purposes of the organization is to provide affordable housing and if the land is sold by the organization within 12 months of the transfer to the organization to a buyer, qualified under an affordable housing program, in a transfer that meets all the requirements of subsection (b) of this section.
(1) If the organization fails to transfer the land within 12 months, or transfers it within 12 months but not to a qualified buyer for occupancy as the buyer’s principal residence, then the organization shall become liable for the land gains tax due on the original transfer of the land to the organization and for the land gains tax on the transfer by the organization.
(2) If the organization transfers the land within 12 months, but at the time of the transfer by the organization there is no dwelling on the land completed and fit for occupancy, and the qualified buyer fails to complete and occupy a principal residence on the land within two years of purchase from the organization, then the organization shall become liable for the land gains tax due on the original transfer of the land to the organization, and the buyer who purchased the land from the organization shall become liable for the land gains tax due on the transfer from the organization to the buyer.
(p) Also excluded from the definition of “land” is a transfer of land in a Vermont neighborhood or neighborhood development area, a downtown development district, a village center, a growth center, or a new town center development district designated under 24 V.S.A. chapter 76A.
(q) Also excluded from the definition of “land” is a transfer of property to the State of Vermont or a municipality for a project that is authorized under the State’s enacted Transportation Program or for an emergency project within the meaning of 19 V.S.A. § 10g(h), regardless of whether the State or the municipality has commenced any condemnation proceedings.
(Added 1973, No. 81, § 8, eff. May 1, 1973; amended 1973, No. 209 (Adj. Sess.); 1975, No. 225 (Adj. Sess.), §§ 10-12; 1977, No. 240 (Adj. Sess.), §§ 1, 2, eff. April 17, 1978; 1979, No. 105 (Adj. Sess.), § 42; 1981, No. 247 (Adj. Sess.), § 16; 1983, No. 20, §§ 1, 2, eff. April 6, 1983; 1983, No. 59, § 7, eff. April 22, 1983; 1987, No. 27, § 2, eff. April 30, 1987; 1987, No. 64, § 11, eff. June 1, 1987; 1989, No. 119, § 17, eff. June 22, 1989; 1989, No. 222 (Adj. Sess.), §§ 27, 28, eff. May 31, 1990; 1991, No. 186 (Adj. Sess.), § 31a, eff. May 7, 1992; 1995, No. 53, § 5, eff. April 20, 1995; 1997, No. 103 (Adj. Sess.), § 12, eff. Jan. 1, 1998; 1999, No. 49, § 66, eff. June 2, 1999; 2003, No. 70 (Adj. Sess.), § 60, eff. March 1, 2004; 2007, No. 81, § 25, eff. June 11, 2007; 2007, No. 176 (Adj. Sess.), § 12; 2009, No. 3, § 12a, eff. Sept. 1, 2009; 2013, No. 59, § 13; 2015, No. 40, § 33; 2019, No. 71, § 16, eff. Jan. 1, 2020; 2021, No. 105 (Adj. Sess.), § 600, eff. July 1, 2022.)
§ 10002a Principal residence
(a) “Principal residence” means a dwelling that, within one year prior to sale, was occupied as the domicile of the seller or that, within one year from the date of sale, will be occupied as the domicile of the purchaser. As used in this section, a domicile is the principal dwelling of a person domiciled in the State of Vermont.
(b) “Principal residence” includes any multi-family dwelling, not exceeding four units, if:
(1) the seller used at the time of sale at least one unit within such dwelling as his or her principal residence; or
(2) the purchaser will use at least one unit within such dwelling as his or her principal residence under the conditions of subsection 10002(b) of this title.
(c) “Principal residence” also means any dwelling used as the seller’s principal residence or that will be used by the purchaser as his or her principal residence under the conditions of subsection 10002(b) of this title, even though the resident also carries on or will carry on commercial activity in that dwelling. Commercial activity includes an office for the resident’s business or profession or a retail store.
(Added 1987, No. 64, § 12, eff. June 1, 1987; amended 1989, No. 222 (Adj. Sess.), § 29, eff. May 31, 1990.)
§ 10003 Rate of tax
The tax imposed by section 10001 of this title shall be based upon the years held at the following rates on the gain, as gain is determined under section 10005 of this title:
| Years land held by | *Gain, as a percentage | | | | --- | --- | --- | --- | | transferor | of basis (tax cost) | | | | | 0-99% | 100-199% | 200% or more | | Less than 4 months | 60% | 70% | 80% | | 4 months, but less than 8 | 35% | 52.5% | 70% | | 8 months, but less than 1 year | 30% | 45% | 60% | | 1 year, but less than 2 | 25% | 37.5% | 50% | | 2 years, but less than 3 | 20% | 30% | 40% | | 3 years, but less than 4 | 15% | 22.5% | 30% | | 4 years, but less than 5 | 10% | 15% | 20% | | 5 years, but less than 6 | 5% | 7.5% | 10% |
- Gain, as percent of basis, shall be rounded to the next highest whole percentage. A single flat rate of tax shall apply to all of the gain and shall be determined by the percentage that the entire gain is of the basis (tax cost).
(Added 1973, No. 81, § 8, eff. May 1, 1973; amended 1987, No. 64, § 8, eff. June 1, 1987.)
§ 10004 Sale or exchange
(a) As used in this chapter, “sale or exchange of land” shall mean any transfer of title to land for a consideration. As used in this chapter, “transfer” and “title” shall have the same meaning as “transfer” and “title to property” as used in section 9601 of this title, except as modified or enlarged by explicit provisions of this chapter and as limited herein to land. The transfer of an option for the sale or exchange of land shall be considered a transfer of title to land for the purposes of this chapter.
(b) Contracts for the sale of land constitute sales or exchanges of land for all purposes of this chapter. However, contracts shall not constitute sales or exchanges until some consideration has passed thereunder to or for the benefit of the seller or exchanger. The sale or exchange is considered to take place at the time any consideration whatsoever, of whatever nature, first passes under the contract. If the land has been held by the seller for less than one year, the entire tax due on the sale then shall become due as provided under this chapter, even if the transaction between the parties involves an installment sale. A mere promise to purchase, and amounts paid as earnest money, or amounts paid in deposit or amounts paid in escrow to which the seller has no immediate right, do not constitute the passing of consideration for the purposes of this chapter.
(c) Any sale or exchange of shares in a corporation or other entity, or of comparable rights or property interests in any other form of organization or legal entity, that effectively entitles the purchaser to the use or occupancy of land constitutes a sale or exchange of land.
(Added 1973, No. 81, § 8, eff. May 1, 1973; amended 1987, No. 64, § 6, eff. June 1, 1987.)
§ 10005 Basis, gain, and holding period
(a) The provisions of Title 26 of the U.S. Code shall determine the basis of land sold or exchanged, except basis for land transferred by a mortgagee who acquired the land by foreclosure or transfer in lieu of foreclosure shall be the amount of debt due the mortgagee, increased by the costs of acquisition, and decreased by the amount of any tax benefit due to bad debt loss on the mortgage debt.
(b) The amount realized from the sale or exchange shall be the full actual consideration therefor, paid or to be paid, including the amount of any liens or encumbrances on the land existing before the sale or exchange and not removed thereby. The amount realized from the sale or exchange shall be the gross amount thereof, reduced by any reasonable expenses of sale and commissions. However, if the seller has owned the land for less than one year, the amount realized from the sale or exchange shall be the gross amount thereof, reduced by no more than a total of 12 percent by any expenses of sale and commissions. In the event that a sale includes land and buildings or other structures, the amount realized shall be allocated between the land and the buildings or other structures on the basis of fair market value.
(c) The taxable gain from the sale or exchange is the amount realized minus the basis of the land as determined under subsection (a) of this section. No gain shall be recognized in cases where gain is not recognized under Title 26 of the U.S. Code, as amended, in relation to the sale or exchange of capital assets.
(d) The land sold or exchanged shall be deemed to have been held as determined under Title 26 of the U.S. Code. If two spouses are tenants by the entirety, there may be added to the holding period the amount of time the land was held by one spouse alone before that spouse created the tenancy by the entirety. Notwithstanding any provision to the contrary under Title 26 of the U.S. Code, if a tenancy by the entirety is dissolved by reason of death or divorce, the holding period during the tenancy by the entirety will be added to the holding period of the spouse subsequently owning the property in his or her own name. For the purposes of this subsection, land devised to or inherited by a surviving spouse or land awarded to a spouse upon dissolution of civil marriage shall be treated as though it had been held by two spouses as tenants by the entirety.
(e) The taxable gain under this chapter from the sale or exchange of land shall not be reduced by any losses incurred in other transactions.
(f) Notwithstanding any other provisions of this section, land acquired from a decedent or an estate or sold by an estate shall have a holding period commencing as of the date of death of the decedent, and its basis shall be the fair market value of such property as of the date of death of the decedent, or alternative valuation date as finally determined under Title 26 of the U.S. Code for the federal estate tax.
(Added 1973, No. 81, § 8, eff. May 1, 1973; amended 1973, No. 187 (Adj. Sess.), eff. March 30, 1974; 1977, No. 240 (Adj. Sess.), § 3, eff. April 17, 1978; 1979, No. 75; § 1, eff. May 10, 1979; 1983, No. 59, § 8, eff. April 22, 1983; 1987, No. 64, §§ 7, 13, eff. June 1, 1987; 1991, No. 186 (Adj. Sess.), §§ 31b, 31c, eff. May 7, 1992; 2009, No. 3, § 12a, eff. Sept. 1, 2009.)
§ 10006 Liability for tax
(a) The person liable for the tax is the transferor, which includes the owner, seller, or other exchanger, of the land sold or exchanged. However, whenever in this chapter the transferor is relieved from liability for the payment of the tax on account of a certification or statement made by the transferee concerning the use or intended use of the land, and such certification or statement is, or turns out to be, untrue or incorrect, then the tax otherwise due from the transferor shall become the liability of, and shall be paid by, the transferee. The transferee’s tax liability shall be a lien upon the land transferred, running with the land, in favor of this State.
(b) In any such case where the transferor is relieved of tax at the time of transfer on account of a certification or statement made by the transferee, the transferor shall file at the time of transfer a land gains tax return in order to establish the amount of the tax liability of the transferee in the event that the certification or statement made by the transferee is, or turns out to be, untrue or incorrect.
(c) Notwithstanding any other provision of this section, when underlying land is sold separately from timber or rights to timber purchased with the underlying land and both sales occur within six years of the purchase, the gain on the sale of the timber or timber rights shall be combined with the gain or loss on the sale of the underlying land to determine the land gains tax liability. If the sale of the underlying land occurs first in time and land gains tax on the sale has already become due before the timber or timber rights are sold, the taxpayer shall, as many times as necessary, recompute the tax and file an amended return or amended returns to include the gain or loss on the sale of all timber or timber rights sold within six years of purchase. The holding period used to calculate the total tax shall be the holding period of the underlying land. Gains on the sale of timber or timber rights shall not be subject to the tax assessed under this subsection if, prior to cutting and throughout the remainder of the six years following purchase or throughout the subsequent period of the taxpayer’s ownership, whichever is less, the land is subject to and in compliance with a forest management plan approved under subsection 3755(b) of this title or under 10 V.S.A. § 2623(2). This subsection shall apply only where one or more transactions within six years by the same transferor involve underlying land that is or was part or all of a tract of more than 300 acres of contiguous land owned by the same transferor at any time during the holding period. Transferors owned or controlled, directly or indirectly by the same interests, shall be deemed to be the same transferor for purposes of this subsection.
(d) If the property does not qualify as “land” under subsection 10002(a) of this chapter, the parties to the transaction are relieved of any obligation to pay the tax, file a return, or withhold the tax imposed by this chapter. If the property qualifies as “land” under subsection 10002(a) of this chapter, but an exclusion is claimed under any of the remaining subsections of section 10002, the parties to the transaction must still comply with the obligations to pay, file, and withhold, as specified under this chapter.
(Added 1973, No. 81, § 8. eff. May 1, 1973; amended 1983, No. 59, § 9, eff. April 22, 1983; 1991, No. 186 (Adj. Sess.), § 32, eff. May 7, 1992; 1995, No. 53, § 6, eff. April 20, 1995; 2019, No. 71, § 17, eff. Jan. 1, 2020.)
§ 10007 Withholding at source; payment
(a) The buyer or transferee of any land held by the seller or transferor for less than six years shall withhold 10 percent of all consideration paid to the seller or transferor for such land, including 10 percent of all partial payments made pursuant to installment sales under section 10008 of this title. At the time any payment is made to the seller or transferor, the amounts withheld shall be remitted to the Commissioner of Taxes.
(b) Within 30 days of the sale or exchange of land, for which withholding is required under this section, the seller or transferor shall file a return with the Commissioner of Taxes setting forth the amount of the tax due pursuant to section 10003 of this title and the amount withheld by the buyer or transferee pursuant to subsection (a) of this section. The seller shall either remit with the return the balance of the tax due or make claim for a refund. Any refund not made by the Commissioner within 45 days of receipt of a valid claim shall accrue interest at the rate established pursuant to section 3108 of this title. For good cause shown and upon conditions set by him or her, the Commissioner may extend the time for filing the return and paying the tax required by this chapter.
(c) Notwithstanding either subsection (a) or (b) of this section, the seller or transferor may, in advance of the sale or exchange, pay the tax imposed by this chapter or obtain a written ruling from the Commissioner of Taxes that no tax is due under this chapter. In either case, the Commissioner shall certify to the seller or transferor that such payment has been made or that no tax is due. Upon receipt by the buyer or transferee of such certification from the seller or transferor, the buyer or transferee shall not be required to withhold under subsection (a) of this section.
(d) All taxes required to be paid or withheld under this chapter shall constitute a personal debt of the person liable to pay or withhold the same to the State of Vermont to be recovered in an action on this statute.
(e) An action may be brought to recover the amount of the taxes to be paid or withheld in the manner prescribed for recovering amounts owed for taxes under chapter 151 of this title. The amount of taxes to be paid or withheld shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to the person liable for the tax or for the withholding. The lien shall be enforced in the manner prescribed by section 5895 of this title.
(Added 1973, No. 81, § 8, eff. May 1, 1973; amended 1993, No. 49, § 21, eff. May 28, 1993; 1999, No. 49, § 67, eff. June 2, 1999.)
§ 10008 Installment sales
(a) As used in this section, “installment sale” means sale or exchange of land as defined in section 10004 of this title for which the total tax due under this chapter is greater than $2,000.00 and in which the parties agree in advance that payments shall be received by the seller or transferor in more than one installment on a date or dates other than the date of closing. A sale financed by a mortgage, deed of trust, or other financing arrangement in which the seller or transferor is paid in full on the date of the sale or exchange shall not be considered an installment sale. A lease-purchase agreement under which any part of the rental payments constitute a portion of the purchase price of the land shall be considered an installment sale, and for the purposes of this chapter, the end of the holding period with respect to the sale or exchange shall be determined as of the date of the agreement.
(b) Notwithstanding any provision of law to the contrary, the tax under this chapter on any installment sale shall be due within 30 days of the date of payment of each installment paid to the seller or transferor. However, except for the first installment, the seller or transferor may elect to file his or her return as part of his or her Vermont income tax return for any year in which subsequent installments are paid or due and to pay the balance of such tax as part of such income tax; provided that, if the seller or transferor elects to file annual returns, no interest shall accrue on any withholding as provided by subsection 10007(b) of this title.
(c) In an installment sale, the total amount of taxes due under this chapter shall be the amount that would have been due had the total purchase price been paid on the date the sale or exchange took place. The amount of taxes due on each separate installment, including the first installment, shall bear the same proportion to the total amount of taxes due as the amount of that installment bears to the total consideration.
(Added 1973, No. 81, § 8, eff. May 1, 1973.)
§ 10009 Administration of tax
(a) The Commissioner of Taxes shall administer and enforce this chapter and this tax. The Commissioner may adopt, amend, and withdraw reasonable rules to assist such administration and enforcement.
(b) All the administrative provisions of chapter 151 of this title, including those relating to the collection and enforcement by the Commissioner of the withholding tax and the income tax, and of chapter 103 of this title, including those relating to interest and penalty charges, shall apply to the tax imposed by this chapter.
(Added 1973, No. 81, § 8, eff. May 1, 1973; amended 2009, No. 1 (Sp. Sess.), § H.46, eff. June 2, 2009; 2021, No. 105 (Adj. Sess.), § 601, eff. July 1, 2022.)
§ 10010 Criminal penalties
(a) Any person who willfully defeats or evades or attempts to defeat or evade the tax imposed by this chapter shall be imprisoned not more than one year or fined not more than $10,000.00 or five times the amount of the tax defeated or evaded or attempted to be defeated or evaded, whichever is larger, or may be both thus imprisoned and fined. A corporation or other taxable entity not being a natural person shall be subject to the fine provided by this section.
(b) Any officer, employee, director, trustee, or other responsible person of a corporation or other taxable entity, and any other person, who counsels, aids, abets, participates in, or conceals the defeat or evasion of tax, or the attempt thereat, shall be subject to the penalties of subsection (a) of this section.
(c) [Repealed.]
(Added 1973, No. 81, § 8, eff. May 1, 1973; amended 2017, No. 73, § 31, eff. June 13, 2017.)
§ 10011 Exception
Notwithstanding sections 10001 and 10003 of this title, in the case of a sale or exchange of land to an organization that qualifies under 26 U.S.C. § 501(c)(3) and also meets the “public support” test of 26 U.S.C. § 509(a)(2), if one of the stated purposes of the organization is to provide affordable housing and if the land will be held for this purpose for at least six years following the sale, then one-half of the tax otherwise imposed under this chapter shall be due. If the land is not held for affordable housing purposes for at least six years following the transfer, the tax that would have been due from the seller or transferor shall become due from such organization for that portion of the property not so held. In cases coming within this section, the Commissioner may require the seller or transferor to file a land gains tax return at the time of the sale or exchange, in order to establish the amount of tax that will become the tax liability of such organization in such case.
(Added 1989, No. 222 (Adj. Sess.), § 41, eff. May 31, 1990.)
Chapter 237 Tax on Hazardous Waste
§ 10101 Definitions
As used in this chapter unless the context requires otherwise:
(1) All terms defined in 10 V.S.A. § 6602 shall have the same meaning for purposes of this chapter that they have for purposes of 10 V.S.A. chapter 159.
(2) “Acutely hazardous waste” means those specification and off-specification commercial chemical products or manufacturing chemical intermediates that are listed at 40 C.F.R. § 261.33(e), as that list may be amended by rule of the Secretary, if and when they are discarded or intended to be discarded. This definition does not include other materials or wastes that contain these listed substances.
(3) “Long-term storage” means storage for a period of more than one year.
(4) “Tax” or “taxes” shall include tax, interest, penalties, and late fees imposed under this chapter.
(5) “Commissioner” means the Commissioner of Taxes or any person authorized by the Commissioner (directly or indirectly by one or more redelegations of authority) to perform the functions described in this chapter.
(6) “Secretary” means the Secretary of Natural Resources or any person authorized by the Secretary (directly or indirectly by one or more redelegations of authority) to perform the functions described in this chapter.
(Added 1985, No. 70, § 7; amended 1987, No. 76, § 18; 2021, No. 105 (Adj. Sess.), § 602, eff. July 1, 2022.)
§ 10102 Powers of the Commissioner and Secretary
(a) In addition to any other powers granted to the Commissioner and the Secretary in this chapter, they may:
(1) adopt, amend, and repeal from time to time reasonable rules to assist in the administration and enforcement of this chapter; provided however, that those rules may not in any way alter, abridge, or condition the express terms of this chapter;
(2) for cause shown, waive, reduce, or compromise any of the taxes, penalties, interest, or other amounts provided in this chapter;
(3) delegate to any agent or employee under their supervision such powers as the Commissioner or Secretary may deem necessary to carry out efficiently the provisions of this chapter;
(4) require any person required to pay the tax imposed by this chapter to keep detailed records of the description, volume, and destination of hazardous waste handled by such person and to furnish that information upon request to the Commissioner or Secretary; and
(5) require the attendance of, the giving of testimony by, and the production of any books and records of any person believed to be liable for the payment of tax or to have information pertinent to any matter under investigation by the Commissioner or the Secretary. The fees of witnesses required to attend any hearing shall be the same as those allowed witnesses appearing in the Superior Court, but no fees shall be payable to a person charged with a tax liability under this chapter. Any Superior judge may, upon application of the Commissioner or the Secretary, compel the attendance of witnesses, the giving of testimony, and the production of books and records before the Commissioner or the Secretary in the same manner, to the same extent, and subject to the same penalties as if before a Superior Court.
(b) For cause shown, the Commissioner may authorize the Secretary to calculate the tax liability of any person on a monthly or more frequent basis.
(Added 1985, No. 70, § 7; amended 1997, No. 133 (Adj. Sess.), § 2; 2009, No. 154 (Adj. Sess.), § 220; 2021, No. 105 (Adj. Sess.), § 603, eff. July 1, 2022.)
§ 10103 Tax imposed; exemptions
(a) Any person initiating a shipment of hazardous waste in Vermont, who is required to file a manifest, or other similar report, pursuant to the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), as amended from time to time, or under 10 V.S.A. chapter 159 and the rules adopted under that chapter, shall pay a tax based on the quantity of hazardous waste required to be reported on such manifest or other report, as follows:
(1) Hazardous waste destined to be recycled for a beneficial purpose as defined by the Secretary, except as specified in subdivision (3) of this subsection, shall be taxed at the rate of 11 cents per gallon of liquid or 1.4 cents per pound of solid.
(2) Hazardous waste destined for any form of management other than recycling, except as specified in subdivision (3) of this subsection, shall be taxed at the rate of 23.6 cents per gallon of liquid or 3.0 cents per pound of solid.
(3) Hazardous waste destined for any form of management shall be taxed at the rate of 1.0 cent per pound, if all of the following apply:
(A) it is shipped from a storage or collection facility for which financial responsibility is required and maintained under 10 V.S.A. § 6605 or 6606 or the rules adopted under those sections;
(B) it is not generated by the owner or operator of the storage or collection facility;
(C) it has not been previously taxed in Vermont; and
(D) it has not been held onsite for more than 180 days.
(b) The following hazardous wastes are exempt from the tax imposed by subsections (a) and (e) of this section, provided that the exemption is noted on a manifest or other report in the manner prescribed by the Secretary:
(1) hazardous waste that is generated as a result of any action taken under 10 V.S.A. § 1283 for which disbursements from the Environmental Contingency Fund have been or will be made by the Secretary;
(2) [Repealed.]
(3) hazardous waste that is destined for treatment in an onsite waste water treatment unit to produce a material that is not hazardous before entering a public sewer system or waters of the State, but the tax does apply to any residue of treatment that is a hazardous waste;
(4) for any calendar quarter, hazardous waste generated by a person who generated an average of less than 220 pounds of hazardous waste per month per site or 2.2 pounds of acutely hazardous waste per month per site during that calendar quarter;
(5) hazardous waste generated by a facility onsite that is recycled onsite;
(6) hazardous waste that has been previously taxed in Vermont, provided:
(A) the person shipping the previously taxed waste has not held the waste for more than 180 days; and
(B) if the waste has been mixed, the resulting mixture does not change the applicable U.S. Department of Transportation shipping description from that which applied before the waste was mixed; and
(7) hazardous waste shipped in implementing a corrective action plan approved by the Secretary of Natural Resources under 10 V.S.A. § 6615a, the redevelopment of contaminated properties program, provided that the Secretary issues a certificate of completion, as provided under that section.
(c) The following persons are exempt from the tax imposed by subsections (a) and (e) of this section, provided they meet the conditions of the exemption:
(1) A person who pays a tax on hazardous waste pursuant to this section shall not be further taxed for such hazardous waste, provided that such hazardous waste is stored or reshipped by the same person without change in the applicable U.S. Department of Transportation shipping description. The person shall note the previously taxed hazardous waste on a manifest in the manner prescribed by the Secretary.
(2) Any person who initiates a manifest to import hazardous waste into Vermont from a foreign country shall not be required to pay a tax under subsection (a) of this section, provided that this exemption is noted on the manifest in the manner prescribed by the Secretary.
(d) The tax imposed by this chapter shall be deposited in the Environmental Contingency Fund established under 10 V.S.A. § 1283 and the Hazardous Waste Management Assistance Account of the Waste Management Assistance Fund established under 10 V.S.A. § 6618, as required by the Secretary of Natural Resources under that section.
(e) Any facility required to obtain certification under 10 V.S.A. § 6606 and the rules adopted under that section that recycles, treats, or disposes of hazardous waste shall pay a tax based on the quantity of hazardous waste recycled, treated, or disposed of at the facility in a calendar quarter. Each facility shall report the quantity of hazardous waste recycled, treated, or disposed of in a calendar quarter no later than 30 days after the end of the quarter. The following tax rates shall apply:
(1) hazardous waste that is recycled shall be taxed at the rate of 11 cents per gallon of liquid or 1.4 cents per pound of solid;
(2) hazardous waste that is treated shall be taxed at the rate of 15.7 cents per gallon of liquid or 2.0 cents per pound of solid; and
(3) hazardous waste that is land disposed or land treated shall be taxed at the rate of 23.6 cents per gallon of liquid or 3.0 cents per pound of solid.
(Added 1985, No. 70, § 7; amended 1989, No. 282 (Adj. Sess.), § 6, eff. June 22, 1990; 1995, No. 47, § 19; 1997, No. 133 (Adj. Sess.), § 3; 2003, No. 164 (Adj. Sess.), § 3, eff. June 12, 2004.)
§ 10104 Duties of Secretary and Commissioner
(a) On or before the last day of the month following each calendar quarter, the Secretary shall calculate the amount of tax due under this chapter based on information required to be reported on a manifest or other report during that calendar quarter and shall supply the Commissioner with the name, address, and amount of tax owed by each person required to pay tax for that quarter.
(b) If the Secretary finds that any person has failed to report in full the description, volume, or destination of hazardous waste required to be reported on a manifest or other report, the Secretary may determine the person’s liability for the tax imposed by this chapter based on any information available and shall supply the Commissioner with such information on or before the last day of the month following the calendar quarter in which such determination is made.
(c) Upon receipt of the information supplied by the Secretary, the Commissioner shall bill each person required to pay tax. The tax assessed under this chapter shall be payable upon receipt of a bill from the Commissioner.
(Added 1985, No. 7, § 7; amended 1997, No. 133 (Adj. Sess.), § 4.)
§ 10105 Failure to pay tax; criminal penalties
(a) Any person who fails to pay a tax liability imposed under this chapter within 30 days after the date of billing by the Commissioner shall be subject to and governed by the provisions of sections 3202 and 3203 of this title.
(b) Any person who willfully fails to pay a tax liability imposed under this chapter when due or to supply any information required by this chapter or who willfully makes, renders, signs, verifies, or files any false or fraudulent manifest, report, or information shall be fined not more than $5,000.00 or be imprisoned not more than one year, or both.
(Added 1985, No. 70, § 7; amended 1997, No. 133 (Adj. Sess.), § 5; 2021, No. 105 (Adj. Sess.), § 604, eff. July 1, 2022.)
§ 10106 Notice of deficiency
(a) If the Commissioner finds that any taxpayer has failed to discharge in full the amount of any tax liability incurred under this chapter, or that a penalty or interest should be assessed under it, the Commissioner shall notify the taxpayer of the deficiency or assess the penalty or interest, as the case may be.
(b) The Commissioner may notify a taxpayer of a deficiency with respect to the payment of any tax liability imposed under this chapter or assess a penalty or interest with respect thereto at any time within three years after the date that the taxpayer was originally required to file a manifest or other report; provided, however, that if a taxpayer fails to file a proper manifest or other report at the time prescribed for its filing, the notification or assessment may be made at any time before the end of three years after the taxpayer files such a manifest or other report; and if no manifest or report has been filed or if the deficiency is caused by reason of fraud or the willful intent of the taxpayer to defeat or evade a requirement of this chapter, the notification or assessment may be made at any time; and provided further that if the taxpayer and the Commissioner agree, the notification or assessment may be made at any time before the date so agreed upon.
(c) The exclusive remedy of a taxpayer with respect to a notification of deficiency or assessment of a penalty or interest shall be to petition for determination of the deficiency or assessment as provided by section 10109 of this title and appeal from which adverse determination of deficiency or assessment. Upon the failure of a taxpayer to petition in accordance with section 10109 of this title from a notice of deficiency or assessment under section 10106 of this title, or to appeal in accordance with section 10109 of this title from a determination of a deficiency or assessment, the taxpayer shall be bound by the terms of the notification, assessment, or determination. The taxpayer shall not thereafter contest, either directly or indirectly, the tax liability as therein set forth, in any proceeding, including a proceeding upon a claim of refund of all or any part of any payment made with respect to the tax liability, or a proceeding for the enforcement or collection of all or any part of the tax liability.
(Added 1985, No. 70, § 7; amended 1997, No. 50, § 38, eff. June 26, 1997; 1997, No. 133 (Adj. Sess.), § 6.)
§ 10107 Refunds
(a) At any time within three years after the date a tax is due under this chapter, a taxpayer may petition the Commissioner for the refund of all or any part of the amount of tax paid. This shall be a taxpayer’s exclusive remedy with respect to the refund of taxes under this chapter.
(b) If the Commissioner determines that a taxpayer has paid an amount of tax under this chapter that, as of the date of the determination, exceeds the amount of tax liability owing from the taxpayer to the State, with respect to all taxes administered by the Commissioner and with respect to the current and all preceding taxable years, the Commissioner shall forthwith refund the excess amount to the taxpayer together with interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. That interest shall be computed from 45 days after the date the return with respect to which the excess payment was made was filed or from 45 days after the date the return was due, including any extensions of time thereto, whichever is the later date.
(c) If the Commissioner determines that the taxpayer is not entitled to all or a part of the refund requested, the Commissioner shall notify the taxpayer of the denial of the refund request.
(Added 1985, No. 70, § 7; amended 1997, No. 50, § 39, eff. June 26, 1997.)
§ 10108 Mailing of notice
Any notice under this chapter may be given by mailing it to the person for whom it is intended in a postpaid envelope addressed to that person at the address given in a manifest or other report filed by that person or to the best address obtainable. The mailing of the notice shall be presumptive evidence of its receipt by the person to whom addressed. Any period of time that is determined under this chapter by the giving of notice shall commence to run from the date of mailing of the notice.
(Added 1985, No. 70, § 7.)
§ 10109 Determination by Commissioner
(a) Upon receipt of a notice of deficiency or assessment of penalty or interest under section 10106 of this title or upon receipt of a notice of the denial of all or a portion of a refund request under section 10107 of this title, the taxpayer may, within 60 days after the date of mailing of the notice or assessment, petition the Commissioner in writing for a determination of that deficiency or assessment. The Commissioner shall thereafter grant a hearing upon the matter and notify the taxpayer in writing of the Commissioner’s determination concerning the deficiency, assessment, or refund request.
(b) The aggrieved taxpayer may, within 30 days after a determination by the Commissioner concerning a notice of deficiency, an assessment of penalty or interest, or a claim to refund, appeal that determination to the Washington Superior Court or the Superior Court of the county in which the taxpayer resides or has a place of business.
(Added 1985, No. 70, § 7; amended 1989, No. 222 (Adj. Sess.), § 38; 1997, No. 50, § 40, eff. June 26, 1997.)
§ 10110 Appeal process
(a) Any hearing granted by the Commissioner under section 10109 of this title shall be subject to and governed by 3 V.S.A. chapter 25.
(b) Any aggrieved taxpayer may, within 30 days, appeal a determination by the Commissioner concerning a notice of deficiency, an assessment of penalty or interest, or a claim to refund to the Washington Superior Court or the Superior Court of the county in which the taxpayer resides or has a place of business by filing a notice of appeal and either paying or giving security, approved by the Commissioner, for the payment of any tax liability that may be determined to be due and costs of appeal.
(Added 1985, No. 70, § 7.)
§ 10111 Payment and collection of deficiencies and assessments; jeopardy notices
(a) Upon notification to a taxpayer of any deficiency, or upon assessment against the taxpayer of any penalty or interest, under section 10106 of this title, the amount of the deficiency or assessment shall be payable forthwith and shall be collectible by the Commissioner 30 days after the date of the notification or assessment; provided, however, that if a taxpayer timely appeals a notice or assessment, the amount of the deficiency or assessment shall be collectible 30 days after the Commissioner gives notice of the determination of the appeal or, if the taxpayer appeals to the court, on the date the appeal becomes final.
(b) Notwithstanding subsection (a) of this section, if the Commissioner believes that collection of any tax liability is in jeopardy, the Commissioner may demand, in writing, that the taxpayer pay the tax at once. The demand may be made concurrently with, or after, a notice of deficiency or assessment of penalty or interest is given to the taxpayer under section 10106 of this title. The amount of the tax shall be collectible by the Commissioner on the date of the demand unless the taxpayer files with the Commissioner a bond in an amount equal to the deficiency, penalty, or interest sought to be collected as security for such amount as finally may be determined.
(Added 1985, No. 70, § 7.)
§ 10112 Action to collect taxes
Any tax liability imposed by this chapter is, from the time the tax liability becomes collectible under section 10111 of this title, a debt of the taxpayer to the State, to be recovered in an action on this title. The action shall be returnable in a county where the taxpayer resides or has a place of business, and if the taxpayer neither resides nor has a place of business in this State, the action shall be returnable in Washington County.
(Added 1985, No. 70, § 7.)
§ 10113 Lien
The amount of taxes to be paid under this chapter shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to the person liable for the tax. The lien shall be enforced in the manner prescribed by section 5895 of this title.
(Added 1985, No. 70, § 7.)
Chapter 239 Games of Chance
§§ 10201-10209 Repealed
[Repealed]
2017, No. 73, § 31(1), eff. September 1, 2017.
Chapter 241 Health It-Fund
§ 10301 Health IT-Fund
(a) The Vermont Health IT-Fund is established in the State Treasury as a special fund to be a source of funding for Medical Health Care Information Technology Programs and initiatives such as those outlined in the Vermont Health Information Technology Plan administered by the Secretary of Administration or designee. One hundred percent of the Fund shall be disbursed for the advancement of health information technology adoption and utilization in Vermont as appropriated by the General Assembly, less any disbursements relating to the administration of the Fund. The Fund shall be used for loans and grants to health care providers pursuant to section 10302 of this chapter and for the development of programs and initiatives sponsored by VITL and State entities designed to promote and improve health care information technology, including:
(1) a program to provide electronic health information systems and practice management systems for health care and human service practitioners in Vermont;
(2) financial support for VITL to build and operate the health information exchange network;
(3) implementation of the Blueprint for Health information technology initiatives, related public and mental health initiatives, and the advanced medical home and community care team project; and
(4) consulting services for installation, integration, and clinical process re-engineering relating to the utilization of health-care information technology such as electronic health records.
(b) The Health IT-Fund shall be administered by the Secretary of Administration or his or her designee.
(c) Into the Fund shall be deposited:
[Subdivision (c)(1) repealed effective July 1, 2026.]
(1) revenue from the health care claims tax imposed on health insurers pursuant to subdivision 10402(b)(1) of this title;
(2) contributions from the Department of Vermont Health Access, as appropriated by the General Assembly; and
(3) the proceeds from grants, donations, contributions, taxes, and any other sources of revenue as may be provided by statute, rule, or act of the General Assembly.
(d) The Fund shall be administered pursuant to chapter 7, subchapter 5 of this title, except that interest earned on the Fund and any remaining balance shall be retained in the Fund. All monies received by or generated to the Fund shall be disbursed solely as allowed by appropriation of the General Assembly.
(e) VITL and any other entity requesting disbursements from the Health IT-Fund shall develop a detailed annual plan for proposed expenditures from the Health IT-Fund for the upcoming fiscal year. The expenditure plan shall be included within the context of the entity’s overall budget, including all revenue and expenditures.
(f) The plan developed under subsection (e) of this section shall be submitted to the Secretary of Administration or his or her designee, the Green Mountain Care Board, the House and Senate Committees on Appropriations, the House Committee on Health Care, and the Senate Committee on Health and Welfare.
(g) The Secretary of Administration or his or her designee shall submit an annual report on the receipts, expenditures, and balances in the Health IT-Fund to the Joint Fiscal Committee at its September meeting and to the Green Mountain Care Board. The report shall include information on the results of an annual independent study of the effectiveness of programs and initiatives funded through the Health IT-Fund, with reference to a baseline, benchmarks, and other measures for monitoring progress and including data on return on investments made.
(h) VITL and any other beneficiary receiving funding shall submit quarterly expenditure reports to the Secretary of Administration and to the Green Mountain Care Board, including a year-end report by August 1.
(i) Any primary care practitioner receiving an electronic health information system, practice management system, or both pursuant to subdivision (a)(1) of this section shall maximize usage of such system in accordance with the guidelines developed by VITL. A practitioner who is determined by VITL to be using the system to less than its full capacity shall be provided with an opportunity for additional instruction as needed to enable full usage of the system. If a practitioner is unwilling or unable to utilize the system to its full capacity, such practitioner shall refund to VITL the fair market value of the system.
(Added 2007, No. 192 (Adj. Sess.), § 7.004, eff. June 7, 2008; amended 2009, No. 61, § 9, eff. June 2, 2009; 2009, No. 156 (Adj. Sess.), § I.35; 2011, No. 63, § G.105; 2013, No. 73, § 50, eff. July 1, 2013; 2013, No. 73, § 52, eff. July 1, 2026.)
§ 10302 Certified Electronic Health Record Technology Loan Fund
(a) Subject to the requirements set forth in subsection (d) of this section, the Secretary of Administration or designee shall establish a Certified Electronic Health Record Technology Loan Fund (“Loan Fund”) within the Health IT-Fund for the purpose of receiving and disbursing funds from the Office of the National Coordinator of Health Information Technology for the loan program described in subsection (b) of this section.
(b) The Secretary of Administration or designee may apply to the Office of the National Coordinator of Health Information Technology for a grant to establish a loan program for health care providers to:
(1) facilitate the purchase of electronic health record technology;
(2) enhance the utilization of certified electronic health record technology, including costs associated with upgrading health information technology so that it meets criteria necessary to be a certified electronic health record technology;
(3) train personnel in the use of electronic health record technology; or
(4) improve the secure electronic exchange of health information.
(c) In addition to the application required by the National Coordinator, the Secretary or designee shall also submit to the National Coordinator a strategic plan identifying the intended uses of the amounts available in the Loan Fund for a period of one year, including:
(1) a list of the projects to be assisted through the Loan Fund during such year;
(2) a description of the criteria and methods established for the distribution of funds from the Loan Fund during the year;
(3) a description of the financial status of the Loan Fund as of the date of the submission of the plan; and
(4) the short-term and long-term goals of the Loan Fund.
(d) Amounts deposited in the Loan Fund, including loan repayments and interest earned on such amounts, shall be used only as follows:
(1) to award loans that comply with the following:
(A) the interest rate for each loan shall not exceed the market interest rate;
(B) the principal and interest payments on each loan shall commence no later than one year after the date the loan was awarded, and each loan shall be fully amortized no later than 10 years after the date of the loan; and
(C) the Loan Fund shall be credited with all payments of principal and interest on each loan awarded from the Loan Fund;
(2) to guarantee, or purchase insurance for, a local obligation, all of the proceeds of which finance a project eligible for assistance under this subsection, if the guarantee or purchase would improve credit market access or reduce the interest rate applicable to the obligation involved;
(3) as a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the State if the proceeds of the sale of the bonds will be deposited into the Loan Fund;
(4) to earn interest on the amounts deposited into the Loan Fund; and
(5) to make reimbursements described in subdivision (f)(1) of this section.
(e) The Secretary of Administration or designee may use annually no more than four percent of the grant funds to pay the reasonable costs of administering the loan programs pursuant to this section, including recovery of reasonable costs expended to establish the Loan Fund.
(f)(1) The Loan Fund may accept contributions from private sector entities, except that such entities may not specify the recipient or recipients of any loan issued under this subsection. The Secretary or designee may agree to reimburse a private sector entity for any contribution to the Loan Fund, provided that the amount of the reimbursement may not exceed the principal amount of the contribution made.
(2) The Secretary or designee shall make publicly available the identity of, and amount contributed by, any private sector entity and may issue to the entity letters of commendation or make other awards, provided such awards are of no financial value.
(g) The Secretary of Administration or designee shall agree, as part of the grant application, to make available from the Health IT-Fund established under section 10301 of this title nonfederal cash contributions, including donations from public or private entities, toward the costs of the loan program in an amount equal to at least $1.00 for every $5.00 of federal funds provided under the grant.
(Added 2009, No. 61, § 10.)
Chapter 243 Health Care Claims Tax
§ 10401 Definitions
As used in this chapter:
(1) “Health insurance” means any group or individual health care benefit policy, contract, or other health benefit plan offered, issued, renewed, or administered by any health insurer, including any health care benefit plan offered, issued, renewed, or administered by any health insurance company, any nonprofit hospital and medical service corporation, any dental service corporation, or any managed care organization as defined in 18 V.S.A. § 9402. The term includes comprehensive major medical policies, contracts, or plans; short-term, limited-duration health insurance policies and contracts as defined in 8 V.S.A. § 4053; student health insurance policies; and Medicare supplement insurance policies, contracts, or plans, but does not include Medicaid or any other State health care assistance program in which claims are financed in whole or in part through a federal program unless authorized by federal law and approved by the General Assembly. The term does not include policies issued for specified disease, accident, injury, hospital indemnity, long-term care, disability income, or other limited benefit health insurance policies, except that any policy providing coverage for dental services shall be included.
(2) “Health insurer” means any person who offers, issues, renews, or administers a health insurance policy, contract, or other health benefit plan in this State and includes third party administrators or pharmacy benefit managers who provide administrative services only for a health benefit plan offering coverage in this State. The term does not include a third party administrator or pharmacy benefit manager to the extent that a health insurer has paid the fee that would otherwise be imposed in connection with health care claims administered by the third party administrator or pharmacy benefit manager.
(Added 2013, No. 73, § 48; amended 2017, No. 131 (Adj. Sess.), § 4, eff. May 16, 2018; 2019, No. 14, § 83, eff. April 30, 2019; 2025, No. 11, § 27, eff. September 1, 2025.)
§ 10402 Health care claims tax [Effective until July 1, 2026; see also 32 V.S.A. § 10402 effective July 1, 2026 set out below]
(a) There is imposed on every health insurer an annual tax in an amount equal to 0.999 of one percent of all health insurance claims paid by the health insurer for its Vermont members in the previous fiscal year ending June 30. The annual fee shall be paid to the Commissioner of Taxes in one installment due by January 1.
(b) Revenues paid and collected under this chapter shall be deposited as follows:
(1) 0.199 of one percent of all health insurance claims into the Health IT-Fund established in section 10301 of this title; and
(2) 0.8 of one percent of all health insurance claims into the General Fund.
(c) The annual cost to obtain Vermont Healthcare Claims Uniform Reporting and Evaluation System (VHCURES) data, pursuant to 18 V.S.A. § 9410, for use by the Department of Taxes shall be paid from the Vermont Health IT-Fund and the General Fund in the same proportion as revenues are deposited into those Funds.
(d) It is the intent of the General Assembly that all health insurers shall contribute equitably through the tax imposed in subsection (a) of this section. In the event that the tax is found not to be enforceable as applied to third-party administrators or other entities, the tax owed by all other health insurers shall remain at the existing level and the General Assembly shall consider alternative funding mechanisms that would be enforceable as to all health insurers.
(Added 2013, No. 73, § 48; amended 2013, No. 73, § 53, eff. July 1, 2019; 2019, No. 6, § 72, eff. April 22, 2019.)
§ 10402 Health care claims tax [Effective July 1, 2026; see also 32 V.S.A. § 10402 effective until July 1, 2026 set out above]
(a) There is imposed on every health insurer an annual tax in an amount equal to 0.8 of one percent of all health insurance claims paid by the health insurer for its Vermont members in the previous fiscal year ending June 30. The annual fee shall be paid to the Commissioner of Taxes in one installment due on or before January 1.
(b) Revenues paid and collected under this chapter shall be deposited into the General Fund.
(c) The annual cost to obtain Vermont Healthcare Claims Uniform Reporting and Evaluation System (VHCURES) data, pursuant to 18 V.S.A. § 9410, for use by the Department of Taxes shall be paid from the General Fund.
(d) It is the intent of the General Assembly that all health insurers shall contribute equitably through the tax imposed in subsection (a) of this section. In the event that the tax is found not to be enforceable as applied to third-party administrators or other entities, the tax owed by all other health insurers shall remain at the existing level and the General Assembly shall consider alternative funding mechanisms that would be enforceable as to all health insurers.
(Added 2013, No. 73, § 48; amended 2013, No. 73, § 53, eff. July 1, 2019; 2019, No. 6, § 72, eff. April 22, 2019; 2019, No. 6, § 73, eff. July 1, 2026.)
§ 10403 Administration of tax
(a) The Commissioner of Taxes shall administer and enforce this chapter and the tax. The Commissioner may adopt rules under 3 V.S.A. chapter 25 to carry out such administration and enforcement.
(b) All of the administrative provisions of chapter 151 of this title, including those relating to the collection and enforcement by the Commissioner of the withholding tax and the income tax, shall apply to the tax imposed by this chapter. In addition, the provisions of chapter 103 of this title, including those relating to the imposition of interest and penalty for failure to pay the tax as provided in section 10402 of this title, shall apply to the tax imposed by this chapter.
(Added 2013, No. 73, § 48.)
§ 10404 Determination of deficiency, refund, penalty, or interest
(a) Within 60 days after the mailing of a notice of deficiency, denial, or reduction of a refund claim, or assessment of penalty or interest, a health insurer may petition the Commissioner in writing for a determination of that deficiency, refund, or assessment. The Commissioner shall thereafter grant a hearing upon the matter and notify the health insurer in writing of his or her determination concerning the deficiency, penalty, or interest. This is the exclusive remedy of a health insurer with respect to these matters.
(b) Any hearing granted by the Commissioner under this section shall be subject to and governed by 3 V.S.A. chapter 25.
(c) Any aggrieved health insurer may, within 30 days after a determination by the Commissioner concerning a notice of deficiency, an assessment of penalty or interest, or a claim to refund, appeal that determination to the Washington Superior Court or to the Superior Court for the county in which the health insurer has a place of business.
(Added 2013, No. 73, § 48.)
Chapter 244 Requirement to Maintain Minimum Essential Coverage
§ 10451 Definitions
As used in this chapter:
(1) “Applicable individual” means, with respect to any month, an individual other than the following:
(A) an individual who is:
(i) a member of a recognized religious sect or division thereof that is described in 26 U.S.C. § 1402(g)(1) and is an adherent of established tenets or teachings of that sect or division; or
(ii) a member of a religious sect or division thereof that is not described in 26 U.S.C. § 1402(g)(1), who relies solely on a religious method of healing, and for whom the acceptance of medical health services would be inconsistent with the individual’s religious beliefs;
(B) an individual not lawfully present in the United States; or
(C) an individual for any month if for the month the individual is incarcerated, other than incarceration pending the disposition of charges.
(2) “Minimum essential coverage” has the same meaning as in 26 U.S.C. § 5000A and any related regulations and federal guidance, as in effect on December 31, 2017. The term also includes any other coverage or health insurance product deemed by the Department of Financial Regulation to constitute minimum essential coverage based on the criteria established in federal law and guidance in effect on December 31, 2017.
(Added 2017, No. 182 (Adj. Sess.), § 1, eff. Jan. 1, 2020; amended 2019, No. 63, § 1, eff. Jan. 1, 2020.)
§ 10452 Requirement to maintain minimum essential coverage
An applicable individual shall ensure that the individual and any dependent of the individual who is also an applicable individual is covered at all times under minimum essential coverage.
(Added 2017, No. 182 (Adj. Sess.), § 1, eff. Jan. 1, 2020.)
§ 10453 Reporting and documentation of coverage
(a) Each applicable individual who files or is required to file an individual income tax return as a resident of Vermont, either separately or jointly with a spouse, shall indicate on the return, in a manner prescribed by the Commissioner of Taxes, whether the individual had minimum essential coverage in effect for each of the 12 months of the taxable year for which the return is filed as required by section 10452 of this chapter, whether covered as an individual or as a named beneficiary of a policy covering multiple individuals.
(b) An applicable individual who indicates on a Vermont income tax return that the individual had minimum essential coverage shall provide to the Department of Taxes, upon the Department’s request, a copy of the statement of coverage furnished to the individual pursuant to 26 U.S.C. § 6055 by the provider of the individual’s minimum essential coverage.
(c) In the event that the requirement for providers of minimum essential coverage to furnish a statement of coverage to individuals pursuant to 26 U.S.C. § 6055 is suspended or eliminated for any taxable year, the Department of Vermont Health Access and each employer, health insurance carrier, and other entity providing minimum essential coverage to residents of this State shall submit a return to the Department of Taxes including the same information as had been provided to the Internal Revenue Service pursuant to 26 U.S.C. § 6055 at such time and in such form as the Commissioner of Taxes shall require.
(Added 2019, No. 63, § 1, eff. Jan. 1, 2020.)
§ 10454 Outreach to uninsured Vermonters
The Department of Vermont Health Access, in consultation with the Office of the Health Care Advocate and other interested stakeholders, shall use information obtained from the Department of Taxes regarding Vermont residents without minimum essential coverage to provide targeted outreach to assist those residents in identifying and enrolling in appropriate and affordable health insurance or other health coverage.
(Added 2019, No. 63, § 1, eff. Jan. 1, 2020.)
Chapter 245 Health Care Fund Contribution Assessment
§ 10501 Purpose
For the purpose of more equitably distributing the costs of health care to uninsured residents of this State, an employers’ Health Care Fund contribution is established to provide a fair and reasonable method for sharing health care costs with employers that do not offer their employees health care coverage and employers that offer insurance but whose employees enroll in Medicaid.
(Added 2017, No. 73, § 16, eff. Jan. 1, 2018.)
§ 10502 Definitions
As used in this chapter:
(1) “Employee” means an individual who is:
(A) 18 years of age or older for all of a calendar quarter;
(B) employed full-time or part-time; and
(C) reported by an employer for purposes of complying with Vermont unemployment compensation law pursuant to 21 V.S.A. chapter 17.
(2) “Employer” means a person who is required to furnish unemployment insurance coverage pursuant to 21 V.S.A. chapter 17.
(3)(A) “Full-time equivalent” or “FTE” means the number of employees expressed as the number of employee hours worked during a calendar quarter divided by 520. The FTE calculation shall be based on a 40-hour work week. No more than one FTE may be assessed against an individual employee, regardless of the actual number of hours worked by that employee during the calendar quarter.
(B) The hours worked during a calendar quarter means hours worked during all pay periods in that quarter for which gross wages were reported and paid. Unworked hours, such as vacation or sick time, may be excluded from the FTE calculation.
(C) “Full-time equivalent” shall not include any employee hours attributable to a seasonal employee or part-time employee of an employer who offers health care coverage to all of its regular full-time employees, provided that the seasonal employee or part-time employee has health care coverage under either a private plan or any public plan except Medicaid.
(4) “Health care coverage” shall mean any private or public plan that includes both hospital and physician services.
(5) “Part-time employee” shall mean an employee who works for an employer for fewer than 30 hours a week or fewer than 390 hours in a calendar quarter.
(6) “Seasonal employee” means an employee who:
(A) works for an employer for 20 weeks or fewer in a calendar year; and
(B) works in a job scheduled to last 20 weeks or fewer.
(7) “Uncovered employee” means:
(A) an employee of an employer who does not offer to pay any part of the cost of health care coverage for its employees;
(B) an employee who is not eligible for health care coverage offered by an employer to any other employees; or
(C) an employee who is offered and is eligible for coverage by the employer but elects not to accept the coverage and:
(i) is enrolled in Medicaid;
(ii) has no other health care coverage under either a private or public plan except Medicaid; or
(iii) has purchased health insurance coverage as an individual through the Vermont Health Benefit Exchange.
(Added 2017, No. 73, § 16, eff. Jan. 1, 2018.)
§ 10503 Health Care Fund contribution assessment
(a) The Commissioner of Taxes shall assess and an employer shall pay a quarterly Health Care Fund contribution for each full-time equivalent uncovered employee employed during that quarter in excess of four full-time equivalent employees.
(b) The amount of the contribution shall be $158.77 for each full-time equivalent employee in excess of four. Starting in calendar year 2018, the amount of the contribution shall be adjusted annually by a percentage equal to any percentage change in premiums for the second-lowest cost of all silver-level health benefit plans, whether offered in or outside the Vermont Health Benefit Exchange.
(c) Health Care Fund contribution assessments under this chapter shall be determined on a calendar quarter basis, due and payable on or before the 25th day of the calendar month succeeding the close of each quarter. All administrative provisions of chapter 151 of this title shall apply to this chapter, except penalty and interest shall apply according to chapter 103 of this title.
(d) Revenues from the Health Care Fund contributions collected shall be deposited into the General Fund.
(e)(1) Notwithstanding any provision of law to the contrary, the Department of Taxes shall provide the Joint Fiscal Office with all returns or return information relating to the Health Care Fund contribution assessment, except information that would identify a taxpayer. The information sharing required by this subsection shall occur quarterly within a reasonable time following the return due date for each quarter.
(2) When handling information shared pursuant to this subsection, the Joint Fiscal Office shall be subject to the same requirements and penalties as employees of the Department of Taxes under section 3102 of this title. It shall be considered an unauthorized disclosure for an officer, employee, or agent of the Joint Fiscal Office to disclose returns or return information provided pursuant to this subsection that does not combine a taxpayer’s information with at least nine other taxpayers.
(Added 2017, No. 73, § 16, eff. Jan. 1, 2018; amended 2019, No. 6, § 74, eff. April 22, 2019.)
§ 10504 Hours worked by uncovered employees; calculation and reporting
(a) Employers shall report to the Department of Taxes the number of hours worked by each uncovered employee on a return provided by the Department. The return shall be filed at the same time payment is required under subsection 10503(c) of this chapter, shall be filed electronically, and shall include any information required by the Commissioner.
(b) Quarterly health care contributions shall be calculated in the following manner:
(1) An employer shall divide the total hours worked by all uncovered employees during a quarter by 520, to represent one full-time equivalent employee. The employer shall then round the resulting number down to the nearest whole number and subtract four. The employer shall then multiply the resulting number by the amount established under subsection 10503(b) of this chapter to determine the amount of assessment due for the quarter.
(A) For full-time salaried employees, employers shall use 520 hours a quarter for the total hours worked.
(B) For all employees who worked more than 520 hours in a quarter, employers shall use 520 hours a quarter for the total hours worked.
(2) The Commissioner shall provide an electronic declaration of health care coverage form for employers to collect the health coverage statuses of their employees for purposes of this assessment. The form shall preserve the confidentiality of the type of coverage possessed by the employee and the employer shall only use the form for purposes of this assessment.
(A) An employer shall annually obtain a declaration of health care coverage from every employee who is not enrolled in a plan offered by the employer.
(B) An employer shall maintain declarations of health care coverage for a minimum of three years in a manner reasonably available for review and audit.
(C) Employees for whom no declaration of coverage is obtained shall be treated as uncovered.
(c) In the case of an employee leasing agreement, leased employees shall be considered employees of a client company and not employees of an employee leasing company.
(Added 2017, No. 73, § 16, eff. Jan. 1, 2018.)
§ 10505 Health benefit costs
(a) Employers shall provide their employees with an annual statement indicating:
(1) the total monthly premium cost paid for any employer-sponsored health benefit plan;
(2) the employer’s share and the employee’s share of the total monthly premium; and
(3) any amount the employer contributes toward the employee’s cost-sharing requirement or other out-of-pocket expenses.
(b) Notwithstanding the provisions of subsection (a) of this section, an employer who reports the cost of coverage under an employer-sponsored health benefit plan as required by 26 U.S.C. § 6051(a)(14) shall be deemed to be in full compliance with the requirements of this section.
(Added 2017, No. 73, § 16, eff. Jan. 1, 2018.)
Chapter 246 Child Care Contribution
§ 10551 Purpose
The Child Care Contribution is established to provide funding for the Child Care Financial Assistance Program established in 33 V.S.A. §§ 3512 and 3513, including the provision of incentive payments pursuant to 33 V.S.A. § 3515.
(Added 2023, No. 76, § 24, eff. July 1, 2024.)
§ 10552 Definitions
As used in this chapter:
(1) “Covered wages” means wages paid to an employee by an employer.
(2) “Employee” means an individual who receives payments with respect to services performed for an employer from which the employer is required to withhold Vermont income tax pursuant to chapter 151, subchapter 4 of this title.
(3) “Employer” means a person who employs one or more employees who is required to withhold income tax from wages paid to the employees pursuant to chapter 151, subchapter 4 of this title.
(4) “Self-employed individual” means an individual who earns self- employment income.
(5) “Self-employment income” has the same meaning as in 26 U.S.C. § 1402.
(6) “Wages” means payments that are included in the definition of wages set forth in 26 U.S.C. § 3401.
(Added 2023, No. 76, § 24, eff. July 1, 2024.)
§ 10553 Contribution; rate; collection
(a)(1) Each employer shall pay the Child Care Contribution on all covered wages paid to each of the employer’s employees and shall remit those amounts to the Department of Taxes pursuant to the provisions of this section. An employer may deduct and withhold from an employee’s covered wages an amount equal to not more than one quarter of the contribution required pursuant to subsection (b) of this section. An employer shall pay the contributions required pursuant to this section as if the contributions were Vermont income tax subject to the withholding requirements of chapter 151, subchapter 4 of this title, including the requirements relating to the time and manner of payment.
(2) Each self-employed individual shall pay the Child Care Contribution on self-employment income earned by the individual and shall remit those amounts to the Department of Taxes pursuant to the provisions of this section. A self-employed individual shall make installment payments of estimated contributions pursuant to this subdivision from the enrolled self-employed individual’s self-employment income as if the contributions were Vermont income tax subject to the estimated payment requirements of 32 V.S.A. chapter 151, subchapter 5, including the time and manner of payment.
(b) The contribution rate shall be 0.44 percent of each employee’s covered wages and 0.11 percent on each self-employed individual’s self-employment income.
(c)(1) The Department shall collect the contributions required pursuant to this section. The administrative and enforcement provisions of chapter 151 of this title shall apply to the contribution requirements under this section as if the contributions required pursuant to this section were Vermont income tax, except penalty and interest shall apply according to chapter 103 of this title.
(2) Employers shall be responsible for the full amount of any unpaid contributions due pursuant to subdivision (a)(1) of this section. Self-employed individuals shall be responsible for the full amount of any unpaid contributions due pursuant to subdivision (a)(2) of this section.
(Added 2023, No. 76, § 24, eff. July 1, 2024.)
§ 10554 Child Care Contribution Special Fund
(a) The Child Care Contribution Special Fund is created pursuant to chapter 7, subchapter 5 of this title and shall be administered by the Department for Children and Families and the Department of Taxes. Monies in the Fund may be expended by the Department of Taxes for the administration of the Child Care and Parental Leave Contribution created under this chapter; by the Department for Children and Families for benefits provided by the Child Care Financial Assistance Program established in 33 V.S.A. §§ 3512 and 3513, including the provision of incentive payments pursuant to 33 V.S.A. § 3515; and by the Departments for necessary costs incurred in administering the Fund. All interest earned on Fund balances shall be credited to the Fund.
(b) The Fund shall consist of:
(1) contributions collected or recovered pursuant to section 10553 of this title;
(2) any amounts transferred or appropriated to the Fund by the General Assembly; and
(3) any interest earned by the Fund.
(c) The Departments may seek and accept grants from any source, public or private, to be dedicated for deposit into the Fund.
(Added 2023, No. 76, § 24, eff. July 1, 2024.)
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